State Hwy. Dept. v. Milton Const. Co.

This case arises out of a contract dispute between Milton Construction Company, Inc., and the State of Alabama Highway Department. In Milton Construction Co. v. State Highway Dep't,568 So.2d 784 (Ala. 1990) ("Milton I"), we held that the clause in the contract between these parties, which authorized the Highway Department to withhold money as disincentive payments for projects not completed by the deadline, was void and unenforceable as a penalty.1 In that case we reversed the judgment of the trial court and remanded the case for further proceedings consistent with our opinion.

On remand,…