Wood Smith Henning & Berman is proud to announce a successful outcome in a significant arbitration matter on behalf of its client, a construction manager involved in a private shopping center project. Partners Keith Smith and Mike Kowalski and Senior Counsel Courtney Jakofsky led the defense team to a complete victory. The arbitrator ruled entirely in the client's favor, dismissing the property owner's counterclaim, and awarding the client full recovery of its attorney's fees.
The dispute arose after the property owner failed to pay amounts due under the parties' agreement, prompting the client to initiate legal action to obtain payment. The property owner responded with a countersuit alleging breach of contract and seeking more than $900,000 in damages based on claims that the client failed to properly manage and oversee the project.
WSHB moved for summary judgment on the countersuit, arguing that the contract's limitation of liability provision restricted the owner's sole remedy to termination and barred any claim for monetary damages, or limited any recovery to 5% of the total fees paid if the termination language was found to be unenforceable. The arbitrator found the limitation of liability provision to be enforceable, agreed with the arguments made by WSHB, and granted the motion for summary judgment. This resulted in a complete dismissal of the counterclaim, which sought in excess of $900,000 in damages.
WSHB subsequently filed a motion to recover attorney's fees incurred in the defense of the counterclaim pursuant to the prevailing party fee provision in the agreement. The arbitrator awarded the client the full amount of attorney's fees and costs requested in the motion.
"This result highlights the importance and enforceability of well-drafted limitation of liability provisions and aggressively pursuing dispositive motions early in the litigation," said Smith. "We are pleased that the arbitrator recognized the strength of our client's contractual position and granted a complete victory, including recovery of all attorney's fees."
With this result, WSHB continues its strong track record of guiding clients through complex arbitration and mediation proceedings and delivering efficient, results-driven resolutions that protect both business interests and project outcomes.
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