• R. Marsil Johnson

Mr. Sterling Successfully Concludes Decade-long Hotel Litigation

Tom Sterling successfully resolved a 10 year long construction matter in which he represented a performance and payment surety. The bonded principal was declared in default on a hotel renovation project. The surety, with the advice of the firm, took over and completed the project. The surety also settled and paid substantial payment claims from subcontractors and suppliers.

The project owner then brought suit against the surety for $3 million alleging defective work and delay. The surety counterclaimed seeking a quantum meruit recovery for the completion costs.

After the matter was referred to arbitration, the surety recovered a $4.4 million Award on its quantum meruit claim, together with its fees, and costs. The Arbitration Award was confirmed after 2 appeals and 2 remands.

The surety ultimately recovered $5.6 million representing its subrogation recovery, attorney’s fees, expert fees, and prejudgment interest.

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