CSK Defense Team
Fort Lauderdale West Partners Sanaz Alempour and Gregory Willis
Case Summary
A Palm Beach County jury recently upheld a municipality’s decision to terminate a $2 million construction contract involving critical potable water infrastructure beneath the Intracoastal Waterway.
The Defendant retained the Plaintiff to construct two new subaqueous water main crossings and evaluate potential remediation of three existing water mains serving a barrier island community. The contract required completion of all base and any elected alternate work within 240 days of the Notice to Proceed.
Following a change in ownership shortly after bidding and before award, the Plaintiff failed to complete the base work on time and did not perform the alternate remediation work. As a result, the Defendant issued a Notice of Default and ultimately terminated the contract for cause.
Defense Strategy
The CSK Defense Team successfully demonstrated that the Plaintiff’s delays and nonperformance were the result of its own contractual failures—not any breach by the Defendant. Evidence showed the Plaintiff resisted performing the remediation work as designed, attempted to substitute a significantly more expensive alternative system, and sought to shift increased costs beyond the fixed contract price.
The defense also showed that qualified subcontractors were available to perform the work in accordance with the original plans and specifications, undermining the Plaintiff’s claims that performance was impossible. At trial, the team effectively challenged the Plaintiff’s expanded and late-asserted damages theories, many of which were unsupported by timely discovery.
Outcome
After an eight-day trial, the jury returned its verdict in approximately three hours, delivering a clear and decisive outcome in favor of the Defendant. The jury rejected the Plaintiff’s claims for wrongful termination and violations of Florida’s Prompt Payment Act, eliminating more than $500,000 in claimed damages, including lost profits, statutory interest, and attorney’s fees.
While the jury awarded the Plaintiff its retainage, it also ruled in favor of the Defendant on its counterclaim, awarding damages for liquidated damages and additional costs caused by the Plaintiff’s delays.
The verdict significantly limited the Plaintiff’s recovery and reinforces the Defendant’s right to enforce contractual deadlines and terminate for default when warranted.
Special Thanks to the Fort Lauderdale West Team
Associate Mikayla Mathews
Associate Paola Espinoza
Legal Assistant/Paralegal Marybeth Stone-Kassner
Legal Assistant/Paralegal Toni Ortiz
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