The firm’s client was the prime contractor on a federal design-build construction project on a military base in Northern California. The project plumbing and HVAC subcontractor submitted inflated billings for work on the project and claimed additional costs relating to delays and labor inefficiencies. The design-builder denied the subcontractor’s claim and the subcontractor demanded arbitration for approximately $1.9 million against the firm’s client and the client’s Miller Act surety. The firm represented the design-builder and the surety. After limited discovery, the firm worked closely with the contractor to investigate and analyze the subcontractor’s claims relating to delays and inefficiencies and refuted them in a comprehensive presentation during mediation. As a result of the firm’s efforts, the subcontractor realized the inflated nature of its claims and agreed to settle the action for barely a third of its original demand.
Counsel: Jeffrey B. Baird and Daniel P. Scholz