{"id":901027,"date":"2023-04-05T15:38:15","date_gmt":"2023-04-05T21:38:15","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=901027"},"modified":"2023-04-05T15:38:25","modified_gmt":"2023-04-05T21:38:25","slug":"attorneys-fees-win-some-lose-some","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/attorneys-fees-win-some-lose-some\/","title":{"rendered":"Construction Litigation Roundup: \u201cYou Win Some, You Lose Some\u201d"},"content":{"rendered":"\n

Daniel Lund III | Phelps Dunbar<\/a><\/p>\n\n\n\n

You win some, you lose some. <\/p>\n\n\n\n

A surety and its principal (the general contractor) in litigation concerning an Air Force project in Nevada prevailed in the case and sought to recover their attorneys\u2019 fees. <\/p>\n\n\n\n

The dispute involved a first-tier subcontractor and the related subcontract, which contained an attorneys\u2019 fees clause. At the end of the trial, the Nevada federal district court held: \u201c\u2018[General contractor and surety] are the prevailing parties in this case and should be awarded their attorneys’ fees\/expenses in an amount to be determined upon motions as directed in the Court’s Order.\u2019\u201d The subcontractor moved to have the court reconsider its awards of attorneys\u2019 fees. <\/p>\n\n\n\n

Noting the \u201cAmerican rule\u201d that \u201clitigants generally must pay their own attorneys’ fees in absence of a rule, statute, or contract authorizing such an award\u2026,\u201d the court re-examined its award of attorneys\u2019 fees to the GC and surety. As regards the GC, a principal argument against the attorneys\u2019 fees award was that the GC should not have been considered a \u201cprevailing party\u201d (the term used in the attorneys\u2019 fees clause in the subcontract) entitling it to the recovery. The federal district court disagreed: the \u201cprevailing party, for purposes of attorneys’ fees, is one that \u2018succeeds on any significant issue in litigation which achieves some of the benefit it sought in bringing suit.\u2019\u201d <\/p>\n\n\n\n

However, the inquiry on the award of fees to the surety went deeper: \u201c\u2026the court finds that it has committed a clear error and therefore will reconsider its award of attorneys’ fees to [the surety]. \u2026[T]he Miller Act does not provide for attorneys’ fees as a matter of law\u2026,\u201d and \u201c[surety] does not point to any other rule, statute, or contract that make an award of attorneys’ fees available. <\/p>\n\n\n\n

\u201c[Surety] argues that nothing in the \u2026subcontract prevents it from recovering attorneys’ fees and costs. … But whether the subcontract prevents attorneys’ fees is not relevant; it must affirmatively provide that [surety] may recover them.<\/p>\n\n\n\n

\u201c[Surety] essentially argues that it should be considered a \u2018party\u2019 under the [subcontract]\u2026 . Previously, the court conflated [GC and surety] as parties to this contract. Upon review, that was clear error. \u2026 <\/p>\n\n\n\n

\u201cThe relevant subsection allocating attorneys’ fees refers specifically to \u2018the parties,\u2019 which the contract defines in the recitals as [subcontractor and general contractor]. \u2026 The court erred in finding that [the surety] was entitled to fees under a subcontract it was not a party to. \u2026\u201d <\/p>\n\n\n\n

(Of course, the likely upshot of the ruling against the surety is: the principal, because of its indemnity agreement with the surety, no doubt was required to reimburse the surety for its attorneys’ fees.)<\/p>\n\n\n\n

United States ex rel. Wells Cargo, Inc. v. Alpha Energy & Elec., Inc., 2023 U.S. Dist. LEXIS 46228 (D. Nev. Mar. 20, 2023)\u00a0<\/em><\/a><\/p>\n\n\n\n

\n\n\n\n

When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes – please call Advise & Consult, Inc. at 888.684.8305, or email experts@adviseandconsult.net<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Daniel Lund III | Phelps Dunbar You win some, you lose some.  A surety and its principal (the general contractor) in litigation concerning an Air Force project in Nevada prevailed in the case and sought to recover their attorneys\u2019 fees.  The dispute involved a first-tier subcontractor and the related subcontract, which contained an attorneys\u2019 fees… Continue reading Construction Litigation Roundup: \u201cYou Win Some, You Lose Some\u201d<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[172],"tags":[9895,142],"class_list":["post-901027","post","type-post","status-publish","format-standard","hentry","category-construction-law-2","tag-advise-consult","tag-attorneys-fees","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nConstruction Litigation Roundup: \u201cYou Win Some, You Lose Some\u201d - 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