On February 18, 2022, Reno Partner Brian Walters, with significant assistance from Las Vegas Senior Paralegal Cristina Pagaduan, obtained judgment for the firm’s general contractor client after a seven-day bench trial on its affirmative claims for breach of contract and enforcement of mechanic’s lien release bonds against a private residential developer defendant and it surety. Walters also obtained a judgment in the client’s favor on the developer’s breach of contract, delay, and construction defect claims.
The case originated as a payment dispute related to a residential development at which the firm’s client served as the general contractor for the developer defendant for the construction of five single-family homes. The developer defendant stopped paying the firm’s client and five of its subcontractors. The initial amount sought by the firm’s client was approximately $46,000.00. Walters recorded mechanics liens against each of the five homes on behalf of the client and brought an action for breach of contract, foreclosure of the liens, and other related claims.
In a misguided and ultimately fateful effort to leverage a settlement and convince the client to release its liens, the developer defendant filed a counterclaim for breach of contract based on alleged delays and construction defects. Through its counterclaim, the developer defendant sought damages against the firm client of approximately $300,000.00. Motivated by loyalty to its subcontractors, the firm’s client refused to budge and insisted on recovery of every penny owed by the developer defendant.
Through written discovery and depositions, Walters negotiated a stipulation with counsel for the developer defendant in which the parties agreed to all aspects of notice and service of the client’s liens, leaving only the lien amounts for trial. The developer defendant eventually posted bonds for 1.5 times the amount of each lien to secure their release in order to sell the five homes. Walters moved for and obtained amendment of the client’s complaint to add the surety as a defendant before.
The trial began on November 8, 2021. Walters presented witness testimony from the client, the project lender, and the project disbursement control company to thoroughly document unpaid invoices and change orders to prove up the client’s damages. Walters also prevailed on several trial objections that prevented the developer defendant from offering evidence of its alleged construction defects, delays, and offsets to the client’s liens. Walters’ cross-examination of the developer’s principal established that its alleged delays were actually the responsibility of the developer.
Proving up the general contractor’s damages was complicated by a disorganized project file and the client’s contract, which the client had recycled from a previous project, but forgot to revise certain provisions that worked against it on the project. Pagaduan was instrumental in trial preparation, coordination of trial evidence, and presentation of the client’s case at trial. The trial concluded on December 9, 2021.
On February 18, 2022, the court issued its Findings of Fact and Conclusions of Law in the client’s favor on its affirmative claims against the developer defendant and its surety. The Court also found in favor of the firm’s client and against the developer defendant on its counterclaims.
On March 24, 2022, Walters filed a Motion for Attorneys’ Fees on the client’s behalf based on a contractual attorney’s fees provision, NRS 108.237 (the mechanics lien statute permitting the prevailing lien claimant to recover attorney’s fees), and NRS 18.010, which allows the prevailing party to recover attorney’s fees for claims that are “brought or maintained” “without reasonable grounds.” On May 11, 2022, the court entered an Order granting the client’s Motion for Attorney’s Fees $209,757.03. Needless to say, the firm’s client is pleased with the result.