Litigation – Changes and Additional Scope

When a developer changed the scope of a construction project without paying our client, a general contractor, for the changes, we prosecuted. And won.

Situation

Our client was hired by the developer to construct two new buildings for use as both retail and office condominiums in a planned community. During construction, the developer issued significant changes and additional scopes of work which increased the original GMP amount by approximately 50 percent. Unfortunately, the developer did not pay for the changes. After achieving substantial completion, our client retained our firm to prosecute a lawsuit against the developer for breach of contract and to perfect its construction lien rights.

Outcome

After initiating the lawsuit, our firm took an active approach in negotiating with both the developer and subcontractors for payments by the developer to specific subcontractors. This approach narrowed the global dispute and allowed us to focus specific discovery depositions on remaining issues between our client and the developer. Then, our firm was able to draft a motion for summary judgment against the developer, which we subsequently won for all of the client’s damages (in excess of $2 million) including attorney fees and costs. After perfecting the client’s judgment, including claim of lien, we successfully negotiated with the project’s lender and title company for immediate payment of all client damages.

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