Shareholder Robert Boylan and partner Eric Shukis, who together served as lead defense counsel, defeated claims totaling over $100 million for their client in a construction dispute involving wrongful termination. They were also successful in defeating the owner’s attempt to vacate a $4.4 million award in their client’s favor.
The case arose from the design and construction of a new concrete segmental bridge in Northwest Indiana. Foran Glennon represented the EPC contractor, who, towards the end of the project, was abruptly terminated by the owner for a host of reasons, including failure to timely achieve key project milestones, delays in achieving substantial completion, improper staffing.
The owner claimed damages for substantial completion costs (over $40 million), costs to remediate defective work discovered post-termination, increased debt financing and lost profits.
After a nearly three-week arbitration hearing, the panel found that the owner’s termination of the EPC contractor was wrongful and the owner had breached its implied duty of good faith and fair dealing. Ultimately, the panel decided the EPC contractor was entitled to a net recovery of $4.4 million, which included attorneys’ fees and expenses.
The owner then refused to pay the award, which spawned enforcement proceedings in Indiana state court. Attempting to vacate the award, the owner argued that it was procured by fraud, it violated public policy and the arbitrators exceeded their authority. The Indiana trial court disagreed on all scores and confirmed the award and entered judgment in the EPC contractor’s favor.
Foran Glennon is pleased to have achieved this result for its client in such a high-stakes case, which serves as a reminder that termination is the most highly leveraged decision in construction and getting it wrong can have severe consequences. This case also exemplifies the heavy burden that parties face when attempting to vacate an arbitration award.
Robert Boylan concentrates his practice on commercial litigation, primarily litigating construction and products liability claims and is a seasoned trial lawyer with over 30 years of experience. He has successfully tried many cases to judges, juries, and arbitration panels.
Eric Shukis focuses his practice on litigating all types of construction-related disputes, along with a wide variety of other complex commercial and general civil matters