02 August 2013

Firm wins arbitration award for client

The Witt Law Firm is pleased to announce that it won an arbitration award for a client in a construction dispute earlier this week.

The case arose our of a six-figure remodeling job on a single-family home. The dispute began with minor billing discrepancies but escalated when the homeowners learned that the general contractor had not been paying its subcontractors, and that the subcontractors were preparing to pursue mechanics lien claims.

Firm principal Jesse Witt represented the homeowners. He first negotiated a three-way deal to ensure that the subcontractors received payment and released their liens. He then defended the homeowners in an arbitration hearing over the general contractor's bill. Following this hearing, the arbitrator found that the general contractor's "credibility during cross-examination was severely lacking," and that the he had overcharged the homeowners for a number of items. The arbitrator ruled that the contractor was due some additional payment, but he deemed the homeowners to be the prevailing parties and awarded them reasonable attorney fees.

Cases such as this illustrate the importance of keeping accurate records on construction jobs, accounting for all subcontractor funds held in trust, and maintaining good communications between owners and general contractors.