O&B is Successful in Defending a Multi-million Dollar Breach of Contract Counterclaim
March 2005

O&B was recently successful in defending a multi-million dollar breach of contract counterclaim in a lawsuit arising out of the construction of a not-for-profit school for children with learning disabilities, after a lengthy trial in the Supreme Court of New York County.

The lawsuit was commenced by the school based upon the general contractor's various breaches, including the failure to complete construction by the contract completion date of September 17, 2000. In November, 2000, the school terminated the general contractor and thereafter commenced the litigation, seeking more than $5 million in damages based upon the contractor's poor workmanship and failure to complete the project. The contract on counterclaimed seeking to recover amounts it claimed to be owed, including work added pursuant to change orders, in the amount of approximately $3.5 million. Therefore, the contractor filed a mechanic's lien in this amount and also claimed that it was wrongfully terminated from the project, resulting in another $4 million in damages.

In support of its counterclaims, the general contractor argued that the school's architect's continued changes in the construction plans, preparation of incomplete and inadequate plans and failure to respond promptly to proposals and requests for information concerning the plans were responsible for the delays and mishaps experienced on the project.

After extensive discovery, in August, 2004, O&B successfully argued a motion for summary judgment before Justice Karla Moskowitz reducing the general contractor's maximum amount of recovery on the counterclaims at trial to approximately $1 million.

Thereafter, during the course of a two-month jury trial, O&B convinced the jury that the school did not breach its contract by refusing to pay the contractor for work performed prior to its termination. Accordingly, the jury found in favor of the school on its claims against the contractor and dismissed the contractor's counterclaims against the school in their entirety.

The Churchill School and Center for Learning Disabilities, Inc. was successfully represented by Christopher B. Hitchcock and Stephanie J. Kaufman in The Churchill School and Center for Learning Disabilities, Inc. v. James A. Jennings Company, Inc.

(Prior results do not guarantee a similar outcome.)