Waterfront Pearl LP – Cost Overrun and Delay Litigation

Ball Janik LLP acted as lead counsel for Waterfront Pearl LP and its lender in an AAA arbitration seeking $6 million damages from MCA Architects PC.

Ball Janik represented the owner and lender in a cost overrun and professional negligence action against the architect of two high rise luxury condominium buildings along the Willamette River. The primary claim was that the lead architect has failed to deliver adequate construction drawings to allow for the efficient construction of the buildings. The architect, MCA Architects, P.C. brought counterclaims against its sub-consultants (the structural engineer, the mechanical engineer, the interior designer, and others) for indemnity. In addition, the architect asserted that the general contractor for the $70 million project caused all of the delays and cost overruns.

We filed the claims with the American Arbitration Association (AAA) pursuant to the agreement. The matter was complex, dealing with design issues, scheduling, and construction actions. In addition, the damages claim involved complicated cost calculations and accounting issues. It was an international matter, involving a Canadian development company, Canadian architects, and an Australian lender.

The parties ultimately settled this dispute at mediation in December 2009 after multiple mediation sessions and direct negotiations. The terms were very favorable to Waterfront Pearl and MCA retained its claims against the sub-consultants. Waterfront is required to make representatives available as required in the subsequent indemnity action. All terms of the confidential settlement have been met.

Bruce Cahn (litigation partner) handled the case for Ball Janik.