Breach-of-Contract Claim – Construction Contract

Situation:

Doeren Mayhew’s litigation support advisors were retained by a national energy provider (Plaintiff), in a

breach-of-contract lawsuit case for the failure, by a joint venture with a national energy contractor (Defendant), to complete construction of a $300 million power plant. This new plant was to be located next to a global steel provider.

The plant was considered one of a kind because it used steam from the steel provider blast furnaces to provide a large portion of the power to run it. The Defendant had contracted to build the plant for Plaintiff, and they fell behind in completing the project. The Plaintiff was forced to take over a substantial portion of the project in an effort to stay on the timeline set by the contract.

Breach-of-Contract Investigative Process:

Our litigation support experts analyzed more than 5,000 individual invoices for determination of additional cost to the complex, multifaceted project, splitting many of them. The report showed approximately $60 million in damages, with an energy economist providing another report indicating $300 million in damages relating to the failure of the plan to reach maximum efficiency.

Resolutions:

The lawsuit case went to arbitration. The arbitrators threw out the $300 million claim made by the economist and instead awarded all $60 million included in our report, provided that Plaintiff had actually prepared and could substantiate change orders on the contracts during construction. Plaintiff had only prepared change orders on half the additional costs, and this was awarded $30 million in damages.

For more information about how Doeren Mayhew can help you in your lawsuit, contact our litigation support specialists in Michigan, Houston or Ft. Lauderdale.