Deacon Builders, LLC’s $19 Million Arbitration Award

Hanson Bridgett LLP secured a $19 million arbitration award arising out of a construction dispute for unpaid contract funds, delay damages, attorneys’ fees, and interest for Deacon Builders, LLC, a leading construction company with offices in California, Washington, and Oregon.

The dispute arose out of Deacon’s construction of The Turing – a 370 unit multi-use building in Milpitas, California. Disputes with the owner (Milpitas District 1 Associates LLC – a Lyon Communities company) were instant and continued throughout construction. Due to the owner’s ever-changing vision, the building was completely redesigned multiple times during construction. In addition, during the framing activity, it was discovered that the owner had neglected to properly design the structural aspects of the project by omitting code-required seismic joints. These design changes and flaws delayed construction over a year and a half, resulting in significant delay and impact damages and other costs.

The owner refused to take responsibility for the impacts of its continuous design changes and flaws and would not grant time extensions. Instead, the owner falsely blamed Deacon for the project delays, stopped paying a year before the project was completed, and wrongfully assessed liquidated damages; at one time, the owner was seeking more than $26 million in damages, including $18 million in liquidated damages. Deacon sought the principal balance of $13 million for its unpaid contract funds and delay damages. The dispute also included well over a dozen unpaid subcontractors.

Hanson Bridgett Partners Andrew Giacomini (Picture) and Tyson Shower and Associate Neema Ghiasi led the firm’s trial team.

Involved fees earner: Neema Ghiasi – Hanson Bridgett ; Andrew Giacomini – Hanson Bridgett ; Tyson Shower – Hanson Bridgett ;

Law Firms: Hanson Bridgett ;

Clients: Deacon Construction, LLC;

Author: Martina Bellini