Bergman & Dacey, Inc. provides ongoing advice
and counseling to our clients. Our firm has significant experience handling
multi-million dollar construction matters on behalf of both plaintiffs
and defendants. The matters we handle in both the threatened and actual
litigation phases of a construction project include: contract and change-order
disputes, delay, disruption and acceleration claims, performance and payment
bond disputes, patent and latent construction defect claims, indemnification
claims, general foreclosure actions, professional design errors, omissions
and liability claims, and review of prime contracts, architect contracts,
construction management contracts, inspector contracts, and pre-qualification
documentation for risk management and litigation prevention purposes.
Bergman & Dacey, Inc. achieves each client’s goals by relying
on over two decades of extensive experience representing public and
private construction project owners, general contractors, subcontractors,
and sureties.
HOW BERGMAN & DACEY, INC. CAN ASSIST YOU
Dismissal of a Lawsuit
Bergman & Dacey, Inc. repeatedly extricates clients from lawsuits
involving private and public works construction projects before they
have to respond to a lawsuit. We write strongly worded demand letters,
containing well-reasoned arguments explaining why a complaint is without
merit, which often results in dismissal of the lawsuit before a responsive
pleading is due.
Early Case Resolution Through Mediation
Bergman & Dacey, Inc. has resolved hundreds of construction matters,
both private
and public works, by getting the other side to an early mediation. At
mediation, we strategically gain leverage to obtain economically, favorable
settlements for our clients. Early resolution through mediation frequently
results in significant savings in potential attorney fees and costs.
Contractors Stipulate To Judgments to Avoid Trial
Bergman & Dacey, Inc. often obtains stipulated judgments against
defendant contractors who wish to avoid trial. We negotiated such settlements
in areas as diverse as a freeway project, a U.S. Navy Housing project,
high school projects, and a museum project. These types of settlements
may include up-front amounts, payment schedules, and an executed stipulated
fraud judgment held in trust to be filed in the event of nonpayment.
Earthquake Repairs and Insurance Related Litigation
Bergman & Dacey, Inc. represented several general contractors who
were actively engaged in the repair of structures damaged in the 1994
Earthquake, including multi-unit residential and government owned buildings.
Bergman & Dacey, Inc. obtained an $8 million settlement reached
during an informal mediation on behalf of one of these general contractors.
Statutory Hearings and Public Contract Code Penalties
Bergman & Dacey, Inc. successfully represents public entity owners
and general contractors in administrative hearings in connection with
issues ranging from bid protests, substitution of listed subcontractors,
contractor licensing, assignment of subcontract, prevailing wage violations,
and penalties for alleged statutory violations of the Public Contract
Code, the Labor Code and the Business and Professions Code. Our vast
experience on behalf of clients on both sides of these issues makes
us extremely effective.
Prevailing Wage Issues
Bergman & Dacey, Inc. has extensive experience representing public
entities and private contractors in disputes arising under the California
Labor Code’s provisions governing the payment of prevailing wages
on public works construction projects. Our experience includes assisting
public entity labor compliance officers in their investigation of Labor
Code compliance, the determination, recovery, and disbursement of back
wages and statutory penalties, and the representation of public entities
in review hearings before the Department of Industrial Relations and
writ proceedings at the trial and appellate court levels.
BERGMAN & DACEY INC.’S
REPRESENTATIVE CASES
PUBLIC ENTITIES
Bergman & Dacey, Inc. represents multiple school
and college districts, and various fire districts, sanitary districts,
water districts, cities, and counties within the State of California.
We handle a wide variety of matters on behalf of our clients, including
contractor licensing, bidding, and substitution of subcontractor issues,
stop notice enforcement actions, claims for breach of contract, delay,
disruption, acceleration, wrongful termination, contractor abandonment,
fraud, false claims, prevailing wage violations, statutory penalties
and interest, and other statutory claims. Our efforts to limit the public
entity's litigation expenses, while providing the necessary services,
are designed to protect our client's interests. We aggressively advocate
our clients' interests, while always remaining vigilant in seeking settlement
opportunities.
The following matters are representative of the results we routinely
achieve for our public entity clients:
- Bergman and Dacey, Inc. successfully assisted our client, a public
entity, to favorably resolve over 100 cases pending against it through
negotiation, mediation, arbitration, and trial. Although these cases
posed a potential exposure in excess of $80 million, Bergman and Dacey,
Inc. was able to obtain resolutions resulting in a net gain of $3
million to our client, who paid a total of $1.7 million, but collected
$4.7 million from these same contractors and their performance bond
sureties.
- Bergman and Dacey, Inc. successfully petitioned the California
Court of Appeal to allow our client, a public entity, to retain over
one million dollars in settlement funds that a contractor had sought
to recoup under a theory that the public entity breached the settlement
agreement. Initially, the trial court overruled our objection that
it lacked jurisdiction to enforce the settlement. In response to our
petition, however, the Court of Appeal issued a Palma Letter ordering
the trial court to either rule in our client’s favor or file
a substantive opposition to our petition. Under this ruling by the
Court of Appeal, the trial court issued a new order in favor of our
client.
- Bergman & Dacey, Inc.’s client, a public entity owner,
settled a lawsuit brought against three construction management firms
and one engineering firm hired by the public entity client. The case
had been hotly litigated for two years and settled very favorably
for our client.
- A general contractor walked off two public works projects contending
Bergman & Dacey, Inc.’s client, the public entity owner,
materially breached both contracts. The general contractor filed suit
seeking in excess of $3,000,000.00 in damages. Bergman & Dacey,
Inc.’s client cross-complained seeking approximately $1,500,000.00
in damages. Multiple settlement conferences were held. After successfully
convincing the court that the general contractor and its performance
bond surety had waived trial by jury, the court granted Bergman &
Dacey, Inc.’s client’s motion to try legal issues first.
Our client won nine of the nine legal issues tried to the court. The
general contractor and its performance bond surety requested the court
to set a mandatory settlement conference with another sitting judge.
The case settled within three days with the general contractor receiving
nothing. Bergman & Dacey, Inc.’s client obtained a settlement
from the general contractor and its performance bond surety worth
approximately $1,200,000.00, which was paid within ten days.
- A general contractor claimed that it had finished a $10,000,000.00
plus public works project and then filed suit against Bergman &
Dacey, Inc.’s client, the public entity owner, seeking in excess
of $12,000,000.00 in damages. Our client cross-complained contending
that the project was not substantially complete and that the general
contractor materially breached the contract causing substantial damage
to the public entity. The action was consolidated with other related
cases and litigated. Formal settlement attempts stalled. Bergman &
Dacey, Inc. then proposed an out of the ordinary settlement vehicle
to the general contractor and its performance bond surety, the cross-defendants
on the public entity’s cross-complaint. A settlement was reached
where under the public entity agreed to release a reduced amount of
the retention if the general contractor waived its entire claim against
Bergman & Dacey, Inc.’s client and return to the site, under
new payment and performance bonds, and successfully finish the project.
- A general contractor walked off a public works construction project
contending that Bergman & Dacey, Inc.’s client, the public
entity owner, materially breached the contract for failing to make
progress payments. The general contractor sought damages in excess
of $5,000,000.00. Our client cross-complained against the general
contractor and its performance bond surety. The litigation grew into
a consolidated action with approximately 45 parties. Formal settlement
conferences were ordered by the court and extended over an eight month
period. No positive results were reached. Bergman & Dacey, Inc.
then proposed a settlement vehicle to the general contractor and performance
bond surety that resulted in a settlement of the action. As a result,
Bergman & Dacey, Inc.’s client paid nothing and received
a settlement payment in excess of $1,200,000.00.
- In a series of consolidated lawsuits involving eight construction
projects, which undoubtedly would have entailed thousands of attorney
hours to investigate, prepare, and proceed to trial, Bergman &
Dacey, Inc. was able to convince the only defendant that had sued
its public entity client for contribution and indemnification to dismiss
it in exchange for a tolling agreement, thereby avoiding an unnecessary
lengthy trial (estimated to take sixty days) and the extensive costs
and disruption accompanying such proceedings.
- Bergman & Dacey, Inc. represents a school district in assisting
with its negotiation of takeover agreements with performance bond
sureties for the completion of projects upon the original contractors
default and material breach of contract.
- Bergman & Dacey, Inc. represents a school district in lawsuits
brought by general contractors challenging the school district’s
procedure for pre-qualification of bidders and the school district’s
finding that certain general contractors are non-responsible bidders.
- Bergman & Dacey, Inc. represented a school district and various
administrators in a multi-million dollar lawsuit brought by a subcontractor
seeking to overturn an administrative determination that the subcontractor
failed to pay prevailing wages to its workers on a school project.
Bergman & Dacey, Inc. successfully obtained dismissal of all claims
against the district and its administrators as affirmed in a published
opinion by the California Court of Appeal in Mobley v. Los Angeles
Unified School District, 90 Cal.App.4th 1221, 109 Cal.Rptr.2d 591
(2001).
- Bergman & Dacey, Inc. represented a school district with the
sudden liquidation of a national surety company. A large number of
the school district’s construction projects involved bonds previously
issued by the now insolvent surety company. Bergman & Dacey, Inc.
successfully handled the economic and legal fallout from the sudden
liquidation, and secured all the necessary replacement bonds from
the contractors and from the replacement surety companies.
- Bergman & Dacey, Inc. represented a school district in litigation
with contractors who are also the subject of criminal prosecutions
for bid-rigging and violations of the Cartwright Act. Bergman &
Dacey, Inc. successfully opposed one of the contractor’s ex
parte efforts seeking immediate release of contract funds through
a Petition for Writ of Mandate, then filed a cross-complaint on behalf
of the school district to recover damages for contractor’s defective
work on the project.
- Bergman & Dacey, Inc. represented a school district in a dispute
over the construction of a $40 million high school. We successfully
convinced the plaintiff to dismiss the school district from five stop
notice lawsuits by demonstrating stop notice release bonds were posted.
We also negotiated a settlement with the general contractor on behalf
of the school district which enabled the project to be completed.
- A contractor brought an action for breach of contract and various
torts arising from the expansion of a water filtration plant against
a public agency who furnishes water throughout Southern California.
In representing the public agency, Bergman & Dacey, Inc. was successful
in dismissing several causes of action brought by the contractor.
Bergman & Dacey, Inc.’s aggressive discovery strategy and
presentation of the public agency’s case during a three-day
mediation forced the contractor and its subcontractors to reconsider
the alleged merits of their case. Shortly after the mediation, we
settled the case, with the result that our public agency client returned
the retention funds, and did not owe anything else.
- Bergman & Dacey, Inc. represented a school district in a lawsuit
brought by the general contractor for sums allegedly owed from the
construction of a baseball field. Although the contractor sued for
over $9 million in damages, Bergman & Dacey, Inc. successfully
resolved the lawsuit after the first few days of trial for close to
the amount of retention funds being withheld on the project.
- Bergman & Dacey, Inc. represented a school district on a classroom
relocation project in a suit brought by an electrical subcontractor
who filed a stop notice claim. Bergman & Dacey, Inc. successfully
brought the punch list to completion, while the general contractor
agreed to waive unpaid change orders in exchange for the release of
the retention funds. The electrical subcontractor agreed to release
its stop notice claims and dismiss the district from the lawsuit since
the remaining retention money was placed in a trust account and secured
by a bond, thereby entitling the electrical subcontractor, if it prevailed
on its action against the general contractor, to recover these sums.
- Bergman & Dacey, Inc. recently settled a dispute on behalf
of a school district over portable classrooms after convincing opposing
counsel most of the manufacturer’s claims were time barred.
- Bergman & Dacey, Inc. recently extricated a school district
client from a subcontractor-general contractor dispute arising from
a public works project within 30 days of the district being served
with the Summons and Complaint. We sent a demand letter to opposing
counsel demonstrating, with citations to case law and applicable statutes,
that maintaining the cause of action against the school district would
subject the plaintiff and their counsel to monetary sanctions in the
form of attorney’s fees and costs. A dismissal of the district
was received within six days of the letter being sent.
- Bergman & Dacey, Inc. helped resolve a twenty-year dispute
concerning the use of $100 million in funds for the construction of
housing and business developments in geographic areas affected by
the construction of an interstate freeway.
- Bergman & Dacey, Inc. settled litigation on behalf of a large
school district client in an action against a general contractor.
The contractor had obtained final inspection and had notices of completion
filed on two separate public works projects. However, given past experience
with the contractor, Bergman & Dacey, Inc. had a team of forensic
experts inspect the sites. It was determined that numerous defects
in the work existed. The school district sued the contractor and its
performance bond surety. The contractor's primary defense was that
the school district had accepted the jobs and that the bond was exonerated
upon the filing of the notices of completion. Bergman & Dacey,
Inc. disagreed. The defects were discovered within the general warranty
period and the school district's complaint was timely filed. Bergman
& Dacey, Inc. then convinced the contractor to settle as the defects
existed and the contractor's and surety’s defenses had no merit.
The contractor did settle and paid Bergman & Dacey, Inc.'s school
district client $2,000,000.00.
- Bergman & Dacey, Inc. resolved two separate stop notice claims
on behalf of a school district client in lawsuits arising out of a
modernization project. In one action, Bergman and Dacey, Inc. convinced
the plaintiff, through a strongly worded demand letter citing to applicable
authority, that its stop notice claim was procedurally defective as
against the school district. The plaintiff in that action immediately
dismissed all of its claims against our client. In the second stop
notice action, we negotiated a stipulation with the other parties
whereby the district interpled with the court a portion of the funds
withheld pursuant to the stop notice in exchange for a dismissal with
prejudice from the action. We negotiated the stipulation in such a
way as to allow the district to use a portion of the withheld funds
to cover all of the attorneys’ fees and costs it incurred in
defending the stop notice action.
- Bergman & Dacey, Inc. handled a complex breach of contract case
on behalf of a school district client involving claims by a general
contractor on a modernization and safety and technology project. The
general contractor sought damages in excess of $3,300,000.00 for progress
payments, retention, and alleged delays, disruptions, and acceleration
of its work. Bergman & Dacey, Inc. filed a cross-complaint on
behalf of the school district against the contractor and its performance
and license bond sureties seeking damages related to the contractor’s
failure to complete the project. Utilizing the leverage we had developed
during the hard-fought litigation, we structured a favorable settlement
whereby the school district would receive a completed project and
a dismissal of the contractor’s entire $3,300,000.00 claim in
exchange for payment by the school district of less than $280,000.00.
- One of Bergman and Dacey, Inc.’s school district clients terminated
a general contractor's right to proceed with work when the general
contractor could not properly man, supervise, coordinate, and construct
the project. Bergman & Dacey, Inc. was brought in to convince
the general contractor's performance bond surety to take over the
project. It did so, and the project was successfully completed at
no further cost to the school district. The general contractor ultimately
sued the school district. The school district cross-complained against
the general contractor and performance bond surety for damages sustained
before the surety took over. The performance bond surety also sued
the general contractor. During litigation, Bergman & Dacey, Inc.
convinced the surety company to defend, indemnify and hold the school
district harmless against the general contractor's claim in exchange
for the school district assigning its claims against the contractor
to the surety. In doing so, the school district avoided the expense
and risks of attending a jury trial.
- Bergman and Dacey, Inc. settled a public works construction litigation
where a contractor claimed damages for, among other things, delay,
lost profit, and failure of the public entity owner to follow the
contractual dispute resolution procedures. At the mediation, Bergman
and Dacey, Inc. pushed the contractor to back up its numbers with
factual support and asserted various legal arguments. Because the
contractor was unable to rebut the legal arguments or provide the
level of back-up requested, the case settled at an amount favorable
to our client, the public entity owner.
PRIVATE CLIENTS
In addition to representing public entities in the area
of construction, Bergman & Dacey, Inc. handles a wide variety of matters
on behalf of private clients, including general contractors, subcontractors
and owners. The following matters are representative of the types of matters
we handle, and the results we routinely achieve for our private clients:
- When a private construction company began to experience delay and
disruption issues on a $400 million Southern California private university
project, it called Bergman & Dacey, Inc. Our client’s goals
were to avoid litigation and ensure its rights were fully protected
while keeping the project on schedule. We fully evaluated our client’s
rights and obligations, interfaced with project site personnel, and
developed a plan of operation to have the project completed. Despite
the project experiencing numerous impacts, and running a year and
a half over schedule, preventative risk counseling from Bergman &
Dacey, Inc. and exceptional project management under extremely challenging
site conditions, produced only one lawsuit. A subcontractor sued the
general contractor seeking in excess of $250,000.00 for alleged extras
supposedly incorporated into the project. Bergman & Dacey, Inc.
convinced the plaintiff that it could not prove its case with certainty.
A nuisance value, less than cost of defense, settlement was reached
within six weeks of a pending trial date.
The same client utilized Bergman & Dacey, Inc. in connection with
several different projects: the Junipero Serra State Office Building
in downtown Los Angeles, the Howard Hughes Entertainment Center, and
The Rivers, a commercial development in Rancho Mirage, California.
- A general contractor client of Bergman & Dacey, Inc. recently
bid on a $10,000,000.00 plus public works engineering project for
a local city. Our client was the third lowest bidder but reported
certain deficiencies that it was aware of in the two low bids and
the bid process overall. Bergman & Dacey, Inc. assisted the client
in drafting a bid protest contending bid irregularities and that the
city’s conducting of the bid (use of two different bid clocks)
created an unfair competitive advantage for some of the bidders. The
city reviewed the bid protest, found it to be meritorious, and rejected
all bids. The project was to be re-bid.
- Bergman & Dacey, Inc.’s client, a structural steel subcontractor
on a hotel and casino project, recently obtained a $2 million settlement
from the general contractor’s payment bond surety shortly before
the case was set to begin trial.
- Bergman & Dacey, Inc.’s client, a general contractor,
recently had an owner on a private commercial office building project
drop an alleged $2 million damage claim against the contractor just
before trial. Rather, the owner made an affirmative cash payment in
six figures to Bergman & Dacey, Inc.’s general contractor
client
- A general contractor client of Bergman & Dacey, Inc. recently
sued a city concerning a historical preservation project, seeking
damages for delay, penalties for late progress payments, penalties
for wrongfully withholding retention, and other damages. While the
general contractor had performed successfully, it suffered significant
impacts from the city changing the available hours of construction
after award of the contract. Bergman & Dacey, Inc. successfully
argued that a change order that the city contended fully compensated
for the hours change was not binding on the contractor and that the
city’s belated reasons for withholding retention were contrived
and in bad faith. The case settled with the city making a settlement
payment to Bergman & Dacey Inc.’s client five weeks before
a pending trial date.
- Construction of the State of California’s new Museum of Science
and Industry in Exposition Park near downtown Los Angeles, ran thirteen
months beyond the original completion date. Bergman & Dacey, Inc.
became involved during the early stages of the Museum of Science and
Industry project. We worked with project personnel to help organize
their records to document ongoing problems and issues for later use
in litigation. However, only three lawsuits were filed.
We first represented our client in an administrative
hearing under the Public Contract Code when the structural steel subcontractor sued for $2.5
million after being removed from the project. Our client and its surety
cross-complained against the steel subcontractor and its performance
bond surety. The case settled eleven days before trial with our clients
receiving $750,000.00 and paying out nothing.
Bergman & Dacey, Inc. also successfully handled
two separate trials arising
from the Museum of Science and Industry project. When the subcontractors
initiated actions against our client seeking delay, disruption, and
acceleration damages, (with the assistance of consultants and experts)
we objectively evaluated and assessed both cases. In the first trial,
the plaintiff sought over $3.3 million and was awarded only $131,000.00.
By way of post-trial motions, our client was awarded $511,000.00 in
attorneys’ fees and associated costs. After deducting plaintiff’s
award, a new judgment of $380,000.00 was entered in our client’s
favor. We obtained a similar result for our client in the second trial.
Seeking $1.8 million against our client, the plaintiff recovered only
$69,000.00. Through post-trial motions, our client was awarded $350,000.00
in attorneys’ fees and costs, resulting in a new judgment of $281,000.00
entered in our client’s favor.
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Bergman & Dacey, Inc. represented a general
contractor in a dispute regarding the Roosmoor Leisure World Project.
We were able to defeat the defendant’s Motion for Summary Judgment
(the defendant claimed that the general contractor’s claims
were barred by the statute of limitations) by demonstrating the new
claims related back to the previously filed claims.
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In a breach of statutory duty/fraudulent conveyance action arising
out of a construction project, Bergman & Dacey, Inc. obtained
an assignment of rights on behalf of our client and successfully pursued
the causes of action on behalf of our client against a bank. Our client
recovered monies it was not aware it had any right to pursue.
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Bergman & Dacey, Inc. successfully resolved
a construction defect litigation dispute on a multi-building project
by obtaining a dismissal of the general contractor from the action
by way of a motion for sanctions against the subcontractor’s
frivolous pleading.
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In a construction contract dispute involving a
subcontractor’s stop notice claim against the owner, Bergman
& Dacey, Inc. negotiated a settlement on behalf of the owner wherein
our client received reimbursement for all of its attorney’s
fees incurred in the stop notice action, even though the contract
between the owner and the general contractor did not have an attorney’s
fees provision.
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Bergman & Dacey, Inc. successfully resolved
an indemnity claim made by a private owner’s title insurance
company against our client, the general contractor, by cross-complaining
against the title company and the owner for recision and/or reformation
of the indemnity agreement.
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Bergman & Dacey, Inc. obtained judgments on
behalf of a general contractor against three separate subcontractors,
all based on promissory estoppel causes of action. Each of the three
subcontractors submitted bids on which the prime contractor relied,
and then refused to sign subcontracts with the general contractor.
We successfully recovered the difference between the bids and the
replacement subcontracts for the general contractor.
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Bergman & Dacey, Inc. settled two separate
actions to foreclose mechanics’ liens brought on behalf of our
client who had construction contracts with lessees of commercial property.
In each case, after the lessee breached its lease with the property
owner, Bergman & Dacey, Inc. recovered against the property owner
despite the fact that the property owner posted Notices of Non-Responsibility.
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Bergman & Dacey, Inc. obtained two defense
verdicts and a successful resolution for one of its general contracting
clients and its bonding companies when a subcontractor sought recovery
of damages against the payment and stop notice release bond sureties.
Bergman & Dacey, Inc. obtained defense verdicts as to both surety
companies, received a defense verdict on the quantum meruit cause
of action, and prevailed on a trial motion which knocked out $500,000.00
in alleged “cost of borrowing” damages.
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Bergman & Dacey, Inc. recovered several hundred
thousand dollars from a subcontractor on behalf of our client, a joint
venture general contractor regarding a Federal Navy Housing Project
in San Diego which was presented as a breach of contract action. Bergman
& Dacey, Inc. filed suit on behalf of the general contractor and
shortly thereafter moved for summary judgment. The subcontractor then
agreed to a stipulated judgment and a payment plan before the summary
judgment motion was heard by the court.
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Bergman & Dacey, Inc. successfully enforced
a “pay if paid” clause in favor of a general contractor
against claims made by one of its subcontractors when the owner of
a housing project refused to pay for certain extra work and release
the contract balance to the general contractor. The subcontractor
claimed it was entitled to payment from the general contractor for
extra work even though the owner had not paid. Bergman & Dacey,
Inc. convinced the court that the general contractor’s “pay
if paid” clause made payment from the owner a condition precedent
to the general contractor’s obligations to pay the subcontractor.
(This case was decided before the California Supreme Court decision
in Wm. R. Clarke v. Safeco.)
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Bergman & Dacey, Inc. successfully convinced
a court to sustain a demurrer to a complaint, without leave to amend,
on a claim against the payment bond. The court agreed with Bergman
& Dacey, Inc.’s position that the plaintiff failed to provide
the preliminary notice required by statute. Therefore, the plaintiff
did not preserve its right to sue on the bond. The court also awarded
our client attorneys’ fees and costs.
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In a private works, high-end remodel construction
project, Bergman and Dacey, Inc. was able to obtain a 100% recovery
on behalf of the general contractor against the owner in an arbitration
for an award of $370,655.58. Although the owner put forth many defenses,
including over-billing, delay in progress of the work, and that the
contract was modified by conduct, Bergman and Dacey, Inc. was able
to obtain a ruling from the Arbitrator finding in our client’s
favor on each of those defenses. Bergman and Dacey, Inc. has filed
post-award briefs seeking costs, attorneys’ fees as the prevailing
party, statutory penalties, and interest.
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