What color are the blooms on that plant? Copied this off this site:
http://cipm.ncsu.edu/daylily/c...
"Daylilies will grow best in a location that receives full sun (this means sun all day). However, it is often recommended that red, violet and other dark colored daylilies be planted in areas that receive afternoon shade. When dark colors are planted in full sun, they often darken or "burn", because the dark colors absorb light and heat from the sun. Daylilies with dark-colored flowers should be planted in afternoon shade to prevent sunburn of the blossoms. "
Do you think that might be the problem?