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Contractor’s reckless failure to timely complete remodeling project triggers exception to consequential-damages exclusion

A contractor agreed to gut and remodel a building for use as a neighborhood bar. It didn’t do so by the agreed completion date, causing the customer, a would-be bar owner, to miss the November-December holiday season. The court agreed with the bar owner that the contractor’s conduct had been “reckless” — causing the breach to fall within a carve-out from the contract’s exclusion of consequential damages. As a result, the court affirmed an award of the bar owner’s lost profits. [1]

[1] See Bakhshi v. Baarlaer, 2021 Ohio 13, No. 28767, slip op. ¶¶ 68-69, 84 (Ohio App. Jan. 8, 2021). Hat tip: Alexandra Parriman.

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