Litigation – Recovery in Bankruptcy

After the subcontractor walked off a job and filed for bankruptcy, we helped our client recoup the resulting damages.

Situation

Situation
This dispute arose from the construction of a new public project. The project contained significant concrete related work. During construction of the project, the concrete subcontractor developed financial problems and abruptly walked off the project, without any prior notice to our client, and filed chapter 7 bankruptcy. Our client was forced to fix and complete the concrete subcontractor’s scope of work, and timely filed a proof of claim in bankruptcy court. The Trustee disputed our client’s proof of claim and instead asserted a counterclaim for unpaid work performed by the concrete subcontractor. As a result, Kirwin Norris was retained to try these claims in an adversarial proceeding in bankruptcy court.

Outcome

Kirwin Norris tried the general contractor’s claim at the bench trial and successfully won a verdict for all of the client’s damages (in excess of $2 million).

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