Contractor Stops Work on Store Improvements for Non-Payment: Suit Filed Against Shopping Center Owner to Recover Balance Due

Phoenix Shopping CenterOur client, a general contractor, entered into a contract to renovate a closed grocery store and adjacent store space for the owner of a Phoenix shopping center. The work involved demolition, interior and storefront improvements, and electrical upgrades. The contract price was $162,000. Prior to completion of the work, however, our client terminated the contract for non-payment.

After unsuccessful negotiations to resolve the dispute, our client filed suit against the owner for non-payment. The complaint sought damages in the sum of $69,667, representing the balance due. The owner counter-sued our client for $91,961, claiming delay damages and unauthorized work.

We took out-of-state depositions of the owner’s representatives, which provided us a basis to file a motion for summary judgment against the owner. In so doing, we sought to have judgment entered in our client’s favor based solely on the undisputed facts.

Prior to a ruling on the summary judgment motion, the case was settled for $113,068. The settlement amount represented the full balance due, plus interest, costs, and attorney fees. As part of the settlement, the complaint and counterclaim were dismissed.

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