The firm defended a prime contractor and its surety from a lawsuit by an electrical subcontractor in connection with the renovation and conversion of a City library. After repeated delays with the subcontractor’s performance and an emotionally charged on site altercation, the prime contractor made the decision to supplement the subcontractor’s performance and to back charge the subcontractor for the cost of completion. In response, the subcontractor filed suit, asserting extensive damages for subcontract balance, approved change orders, prompt payment penalties, interest, and attorneys’ fees.
Rather than respond to the lawsuit, the firm recognized the case as being ripe for mediation and determined its efforts would be best devoted to negotiation. The firm articulated its client’s claims, and demonstrated to the subcontractor the circumstances had given both parties’ claims that could lead to a messy and complicated litigation. The parties agreed to appoint a mediator, and through a series of written and in person negotiations, achieved a mutually agreeable resolution that accounted for both parties’ principal claims.
Counsel: Jason R. Thornton, Scott M. Bennett, and Jacob W. Goldschlag