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Subcontractor Default And Miller Act Claim – Department Of Army Project

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.

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