Denny Construction, Inc. v. City & County of Denver Ex Rel. Board of Water Commissioners

In this action for breach of contract, we are asked to determine whether a construction contractor may recover lost profit damages from the breaching party that are attributable to impaired bonding capacity. Petitioner, Denny Construction Inc. ("Denny"), and Respondent, the City and County of Denver acting through its Board of Water Commissioners (the "Board"), brought breach of contract claims against each other after the Board declared Denny in default of a contract for the construction of the Board's new headquarters. After the declaration of default, Denny's surety reduced Denny's bonding…