NEWS & EVENTS
Coughlin Delivers Litigation Victories
George P. Coughlin recently recorded two major litigation victories – one in an arbitration matter and the other in a case in federal court in Kansas City, Kansas.
The arbitration matter was between Dysart Taylor’s client Tarmac, Inc. and a California-based contracting company. Tarmac is a Missouri-based company that manufactures, sells, and leases soil remediation equipment. It had leased a used soil remediation plant to the contracting company, but problems in the start-up and operation of the plant resulted in a dispute between the parties as to the amounts to be paid under the lease agreement.
Tarmac filed for arbitration against the contracting company with the American Arbitration Association. The arbitration hearing began in Kansas City, MO and lasted three days following extensive discovery. The arbitrator handed down his ruling Dec. 4, 2015 following the submission of post-hearing briefs, and awarded Tarmac $163,396.34 against the contracting company. Matthew W. Gearyassisted with legal briefing.
The federal court case involved litigation between Dysart Taylor’s client Buildex, Inc. and a Missouri-based producer of finished concrete. Buildex is a Kansas-based producer of lightweight aggregate. It sold lightweight aggregate to the concrete producer to be used for a new deck on an I-70 bridge in the St. Louis area.
The concrete producer accepted Buildex’s aggregate but failed to pay for all of it, claiming that some of the aggregate did not meet its specifications. Buildex sued for the unpaid invoices as well as for claims under Missouri’s Prompt Pay Act, a statute that allows subcontractors and material men like Buildex to seek penalty interest and attorney fees when not timely paid for providing material used in a Missouri public works project.
A three-day jury trial began in federal court in Kansas City, KS on Nov. 16, 2015. The jury returned a verdict in favor of Buildex, awarding it $65,309.86. The jury also found that the concrete producer had acted in bad faith and without reasonable cause in not paying Buildex. The Kansas federal judge will enter contract interest against the concrete producer in an amount exceeding $28,000. In addition, the judge will decide whether Buildex is further entitled to penalty interest of 18 percent and attorney fees under the Prompt Pay Act. Matthew W. Geary assisted with legal briefing and during the trial.