Trachtman & Trachtman, LLP Recovers an Eight-Figure Settlement for Contractor in Construction Payment Dispute
Facts: One of Trachtman & Trachtman, LLP’s industry-leading contracting clients was retained as the design-build general contractor for a $30,000,000+ construction project. After performing most of the work, the Owner and Construction Lenders got into a dispute over the loan and the lenders stopped funding. The loan funds were the sole source of payment for the client and its subcontractors and subconsultants.
After the fund stoppage, the client stopped working on the project. Trachtman & Trachtman, LLP recorded a mechanic’s lien and served the Lenders with a bonded stop notice. Following non-payment, Ben Trachtman filed suit on behalf of the client including causes of action for breach of contract, foreclosure on the mechanic’s lien, enforcement of the stop notice and common counts.
Soon thereafter, the Owner filed for bankruptcy protection. Our client pursued its bonded stop notice rights which turned out to be the sole avenue for our client to recover its damages. Trachtman & Trachtman, LLP filed a Motion for Summary Adjudication (“MSA”) to establish that the client’s bonded stop notice was valid, thereby leaving only the quantum of the client’s claim to be decided. Ryan Craig did a terrific job handling the law and motion associated with the MSA.
Outcome: Following our MSA victory, and just prior to trial commencing in early 2013, Trachtman & Trachtman, LLP procured an eight-figure settlement in favor of its client. It was a long, hard-fought battle with numerous procedural roadblocks thrown in our way. In the end, through dogged perseverance, we prevailed and our client received what it deserved.