October 23, 2024
GrayRobinson Shareholder Erik Neudorff has successfully represented a drywall and framing subcontractor in a high-stakes legal dispute against a joint venture general contractor (GC) related to the construction of a Holiday Inn. The GC faced significant delays and quality control issues during the project and attempted to shift blame onto the subcontractor. This resulted in the project developer imposing liquidated damages on the GC, who, in turn, passed these damages and approximately $400,000 in back charges to the subcontractor.
The subcontractor, unpaid for completed work, initiated litigation nearly four years ago to recover the unpaid balance. The GC counterclaimed for close to $100,000 and retained a prominent national law firm, escalating the legal battle. The case demanded an aggressive defense and thorough preparation, as the GC used extensive litigation tactics, including over 40 days of depositions and numerous discovery disputes, to pressure the subcontractor into dropping the claim.
Erik played a central role in navigating these challenges, managing complex technical arguments, retaining expert witnesses, and ensuring the client's rights were protected at every stage. Following an 8-day jury trial, the jury awarded $175,000 to the subcontractor—a verdict that helped pave the way for the recovery of legal fees and costs, potentially increasing the total recovery to nearly $1 million.
This matter was significant because it demonstrated the ability of a small business to stand up to a larger, well-funded adversary. It also underscored GrayRobinson's commitment to leveling the playing field for our clients through thorough preparation, strategic litigation, and tireless advocacy. The client’s satisfaction and the favorable outcome solidify GrayRobinson’s reputation as a firm that delivers meaningful results. This victory was a team effort, and special thanks go to Danielle Goodacre-Cline, Juan Martinez, and Scott Cagan for their exceptional contributions throughout the case.