Facts

This case arises from construction at the Antelope County Fairgrounds in Lancaster. The City of Lancaster hired Bernards Bros. as the general contractor. Bernards entered into a subcontract with G&W Builders, a general engineering contractor, to construct three pre-engineered metal buildings.

In April 2003, G&W substantially completed its work, but did not fully complete the project. G&W has since sought payment of the subcontract balance. Bernards refused to pay the $239,053 owed under the subcontract, and asserted a series of back charges for as much as $500,000. Bernards sought money back from G&W.

Settlement Discussions

Prior to trial, G&W offered to settle the case for $400,000. Bernards and the other defendants rejected the offer.

Result

Following a bench trial, the court awarded $466,253 in damages, including the balance owed on the subcontract, prompt payment penalties, and prejudgment interest. G&W was also awarded attorney fees of $429,901 and costs of $27,919. The court found that at the time of termination only $6,500 worth of work remained to complete G&W's scope of work. The court rejected all but $6,500 of the back charges, and found that the vast majority of the back charges were not in good faith. Accordingly, the court imposed a monetary penalty against Bernards for failing to promptly pay the money owed as required by statute. The court also found liability against Seabord Surety Company, the payment bond surety on the project, and United States Fidelity and Guaranty Company, the stop notice release bond surety. Defendants have since appealed the judgment.

Other Information

FILING DATE: April 30, 2003.