Client Owed Money on Public Works Projects: General Contractor Denies Claim, and Alleges that Client Breached Contract by Stopping Work; Arbitrator Awards Client Amount Owed

Construction CasesWe represented the plaintiff, a subcontractor, who had done work on three public works projects for the defendant, a general contractor. Our client was owed money on all three projects— two of which were finished— and had stopped work on the third due to nonpayment. The general contractor hired another subcontractor to finish our client’s work on the third project.

Our client sued the general contractor and its two bonding companies for payment, and the defendants counter-sued our client for alleged breach of contract for stopping work. The defendants claimed that our client was liable for the additional costs incurred by them in hiring the replacement contractor to finish our client’s work. The parties agreed to binding arbitration to settle their dispute.

The claims against one bonding company were settled the day before the arbitration hearing. The remaining claims were arbitrated. The arbitrator found in favor of our client. Total recovery for plaintiff: $98,000.

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