The firm represented the prime contractor on a federal drainage channel project administered by the Army Corps of Engineers. One-third of the way into the project, the landscape/drainage subcontractor defaulted and was replaced. The subcontractor ultimately filed for bankruptcy. A supplier to the defaulted subcontractor sued the firm’s client on its Miller Act payment bond. The firm cross-complained against the subcontractor and, navigating around the automatic stay resulting from its bankruptcy filing, pressured the subcontractor into mediation. The firm was able to obtain a settlement from the subcontractor, notwithstanding the bankruptcy, that compensated the supplier and the prime contractor for its completion costs.
Counsel: P. Randolph Finch Jr.