“Circuit court litigation comes at a price, sometimes a heavy price.”
Does your contract include an attorneys fees provision? Does it include words like “reasonable” or “prevailing party?” If so, then the prevailing party may be reimbursed for its “reasonable” attorneys fees expended in the litigation or arbitration process.
On April 13, 2017, the Virginia Supreme Court held the trial court of the City of Virginia Beach abused its discretion when the plaintiff recovered the entire amount it sought from the defendant ($500), but defendant only had to pay $375 out of the $9,568.50 total attorneys fees expended to reach the judgment.
Under Virginia law, a Court or tribunal (e.g., arbitrator or arbitration panel) will typically consider at least seven different factors to determine how much is “reasonable.” Determining a reasonable amount is not a simple ratio calculation nor can it be predicted with certainty. The Court stated “merely applying a ratio between the damages actually awarded and damages originally sought will not satisfy the reasonableness inquiry.”
The Court also cautioned that parties should be careful not to overinflate their damages as “an unreasonably exaggerated claim for damages provokes a proportional response.” “This unnecessarily inflates the costs of litigation for both sides and increases the possibility that one will end up liable to the other for an exorbitant award of attorney’s fees.”
Lambert v. Sea Oats Condominium Association, Inc., Record No. 160269 (April 13, 2017).
Substandard is Not Defective
The government need not follow the industry standard. It can do less or more.
Hide, Seek, & Seek
Have you ever played hide and seek? If you are the seeker, do you win the game when you find the hidden person? Yes, of course! Unless, you’re a government contractor.
Contractor Schooled School
Have you ever done exactly what you were supposed to do, but it didn’t work and you were blamed anyway? Nevertheless, if contractors follow the owner’s plans and it still doesn’t work, the contractor may be without fault – this is as it should be.
Walk It Off, Keep Going
During a recent soccer game, my seven-year-old son took the ball squarely in the face. But, he walked it off and continued playing. Contractors must do the same with changes.
Are We There Yet?
Next time you close a deal, get the essential terms on paper and signed by all parties before it’s Miller Time.
Show Me the Money!
You told the guy to do the work, the work is done, and now it’s time for payment, right? But, you only told […]
Reasonable ≠ Ratio
“Circuit court litigation comes at a price, sometimes a heavy price.”
Words Matter
Remember the adage, “what you say today could bite you tomorrow.”
Recently, a Contractor won its argument before the Armed Services Board of […]
Run Through the Base, Not To the Base
Run Through the Base, Not To the Base
Thankfully, baseball season is back. While listening to a broadcast of my favorite team yesterday, […]
