Success in litigation with a subcontractor

News / 20.11.2020

The Law Firm represented the Company sued by a subcontractor for payment for performance of construction work. Despite the fact that the parties agreed on a lump sum payment in the contract, in the course of its implementation the subcontractor demanded an increase in payment for completed part of work, and in the face of failure to meet its demands it stopped further work under the contract binding the parties and filed a statement of withdrawal from the contract. The defendant Company disputed the effectiveness of the subcontractor’s statement of withdrawal from the contract, and ordered replacement work to be performed by another entity at the subcontractor’s expense. Subsequently, in the course of bankruptcy proceedings against the subcontractor, the Company filed its claim for the cost of replacement work and set it off against the subcontractor’s claim against the Company. The subcontractor contested existence of the defendant Company’s claim, as well as the effectiveness of set-off. Thanks to the effective argumentation of the Law Firm’s attorneys and advocates, the action brought against the Law Firm’s Client was legally dismissed.