“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).
E-mail Signature Not Enough to Certify a Claim
Construction project professionals routinely send e-mails with “signatures,” which typically include the sender’s typewritten name, title, contact information, and/or company logo. But, this sort of e-mail “signature” is not enough to certify a claim to the Government.
Government Contractors: Ask for a “Sum Certain” in Your Claim
If your Claim includes an item for damages with an amount “TBD,” you could lose the entire Claim.
Contractors: Be Aware When Contracting with Virginia Public Agencies
Without a valid contract, a Virginia public entity has no duty to to pay for any of your work.
Constructive Acceleration
Contractors know that time is money. So, the point is clear when expressly told to “Speed Up! Go Faster!”
But, what do you […]
Construction Contracts & Whodunit
Imagine reading a crime novel and just when you think you figured out whodunit, a plot twist suggests a different culprit. In construction contracting, finding the right answer can be a difficult task when
Trick or Treat in Government Contract Claims
Without a request for a contracting officer’s final decision, claimants may seek treats, but get tricked instead.
Owner Nonpayment is No Defense to Miller Act Claim
As if you needed confirmation that the Federal Miller Act is a powerful tool for unpaid subcontractors, this is it. Even when a Prime ordered and accepted the Sub’s work, but didn’t have to pay under the Subcontract, the Subcontractor still. . . .
Trust, but Verify
Rely at your own risk upon a Contracting Officer’s statements when statutes or contract provisions may conflict.
Payment for Verbal Changes When a Writing was “Required”
Even if your agreement can only be modified by a writing, you may still have a good argument to be paid for extra work.
