The firm represented a general contractor in pursuing a plumbing subcontractor and its performance bond surety for the cost to complete the subcontractor’s work after the subcontractor asserted material breach and abandoned the project during construction.
Client was general contractor for a public work of improvement.
The project was a $145 million community college expansion project. The plumbing subcontractor alleged it was entitled to walk because the project schedule was prolonged, portions of its work were wrongfully rejected, and its subcontract scope was increased. The subcontractor and its surety disclaimed all liability for completion costs and engaged in protracted, multi-year litigation.
Subcontractor claim defeated. $4 million awarded to general contractor.
After an eleven-day hearing featuring 27 witnesses, a three arbitrator panel rejected the subcontractor’s $2 million affirmative claim and awarded the general contractor over $4 million, including fees, costs, and interest. The award was promptly paid by the surety, whose highest pre-arbitration offer had been to pay $500,000.
Counsel: P. Randolph Finch Jr., Andrea L. Petray, and Thomas E. Diamond