MCWG Trial Team Prevails in Court

General Contractor Prevails at Trial

On August 10, 2009, MCWG client Granite Construction Northeast prevailed at trial in a commercial construction dispute with its former subcontractor American Steel Erectors.  The MCWG trial team was led by Todd Bakal.  Granite and ASE were co-defendants in an action brought in New York State Supreme Court, Richmond County, by ASE’s masonry subcontractor to recover for labor performed on the $70 million MTA Staten Island Railway Signal Modernization Project.  After the plaintiff’s claims were resolved, ASE asserted damage claims against Granite arising out of the December 2002 termination of its $1.6 million subcontract, as well as for delays and for alleged extra work change order requests.  Granite counterclaimed seeking the cost to complete ASE’s work on the Project, including additional payments made to ASE’s subcontractors and suppliers.

After a seven day bench trial, the Court dismissed all of ASE’s claims against Granite and separately granted Granite’s motion to dismiss all bond claims against Granite’s surety companies.  The Court determined that ASE had been fully compensated by Granite for the amount of work completed at the time of the termination and that ASE could not recover under its subcontract for extra work change order requests that had been rejected by the owner.  The Court also awarded Granite approximately two-thirds of its claimed contractual damages.  With attorney’s fees, expenses and interest to be determined at a subsequent hearing in September 2009, it is anticipated that the final judgment will exceed one million dollars.  For details, contact Todd Bakal at tbakal@moundcotton.com.