The firm defended a prime contractor from a lawsuit by a plumbing subcontractor in connection with the construction of an aquatics center. Before the project was complete, the plumbing subcontractor filed suit to enforce a stop notice which included retention and a mix of approved and unapproved change orders. The subcontractor also asserted unwarranted claims for prompt payment penalties, interest, and attorneys’ fees. The firm evaluated the claims and identified a series of contractual and statutory defenses. The firm recommended our client make an early strategic Code of Civil Procedure section 998 settlement offer. By doing so, the prime contractor was able to achieve a settlement at a discount from the principal balance, and avoided incurring any liability for prompt payment penalties, interest and attorneys’ fees. The lawsuit was resolved without the prime contractor ever making an appearance in the case.
Counsel: Jason R. Thornton and Scott M. Bennett