Miami project results in construction litigation

Small and large businesses alike have gotten close to the red line and almost winked out of existence because of a bad-faith deal or a bad bet in a risky market. Reorganization, sale or bankruptcy are all ways to get out of a situation in which a firm is responsible for its own problems.

When another party is responsible for a problem with a construction project, litigation is always an option. A lawsuit in civil court may render financial damages for a plaintiff if a defendant admits liability or a jury finds that liability lies there.

The former owner of a Florida construction company is alleging in a recent lawsuit that nonpayment of fees related to its work contributed to its insolvency and collapse. The company went out of business after working on two Miami high-rise projects planned for mixed-use development.

The lawsuit alleged the subsidiary of the property owner refused to pay more than $4 million to the now-defunct company, leading to a lien filed for the amount.

“This is the real power of a construction claim of lien and what gives contractors financial security for their work,” said a lawyer connected to the case. “The [company’s] liens were filed almost exactly one year ago, so it is likely that this lawsuit was filed to prevent the claims of lien from being extinguished.”

Construction litigation is a complicated area law, and an attorney can help construction companies and the other related parties how to navigate it when it is necessary. Legal representation is often the best ally for a contractor’s future financial security.