Favorable Resolution of Public Transportation Contract Dispute
The Government Contracts practice was retained by a foreign transit technology company to enforce its rights against a subcontractor that had provided it with defective devices for a local public transportation project. The devices did not perform as required under the subcontract, which forced our client to agree to a considerable payment reduction under the terms of its prime contract with the government agency. After the subcontractor failed to meaningfully respond to demand letters, we filed a lawsuit in federal court for breach of contract, breach of express warranty, breach of implied warranty, and breach of the implied warranty of merchantability.
Before engaging in discovery, which we expected to be lengthy and expensive for the client, we aggressively pushed to resolve this matter. Less than two months after we filed the lawsuit, the defendant’s counsel agreed to try to settle the dispute by participating in mediation. Prior to the mediation, we drafted and submitted an extensive mediation brief, including various exhibits supporting its claims, in an effort to convince both the defendant and the mediator that our client could, and would, prove its claims and damages at trial.
During the mediation, the defendant ultimately agreed to pay our client an appropriate and favorable sum, and the parties promptly entered into a settlement agreement. As a result, our client achieved successful resolution quickly and before incurring significant attorneys’ fees and expenses.