Defense of Prime Contractor Against Supplier Claim

The firm represented a prime contractor on a lease-leaseback public work of improvement. One of the client’s suppliers submitted a six figure payment claim in excess of the base contract balance. The supplier also served a stop payment notice on the project’s owner. The client disputed the payment claim based on the contract terms with the supplier. The firm immediately engaged the supplier on the disputed payment claim. The firm negotiated with the supplier to waive the payment claim in its entirety. Without any alternative dispute resolution or litigation, the firm was able to secure a full release of the stop payment notice from the supplier. The client was then able to close out the supplier’s contract with a final payment only as to the base contract balance.

Counsel: Jeffrey B. Baird, Esq. and Cory P. DiBene, Esq.