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GRSM Team Secures Directed Verdict in Construction Dispute on Behalf of National Housing Developer

A Gordon Rees Scully Mansukhani trial team, including Partner Jonathan Barnes, Associate Amir Hajimohammad, and incoming Associate Quyen Dang, secured a directed verdict in favor of the firm’s clients, a private-sector developer of affordable housing and a general contractor, in a $3 million lawsuit after a six-day jury trial.

The case arose from a construction project involving a $70 million mixed-use apartment building in Washington, DC. The plaintiffs, subcontractors on the construction project, filed claims for quantum meruit, unjust enrichment, and wage loss in the Superior Court of the District of Columbia, asserting they were owed payment for plumbing and sprinkler work under the subcontract between the parties.

The plaintiffs relied on the argument that there was not a valid subcontract in place, while the defendants argued that there was a valid and enforceable subcontract and that payments were made to the subcontractor in excess of the agreed-upon amount in the subcontract.

The GRSM team successfully established that the subcontracts remained valid, the plaintiffs failed to adhere to standard construction contract terms, performance was neither impossible nor impractical, and the plaintiffs, operating as independent subcontractors, were responsible for their workers’ wages, taxes, and compliance with employment laws.

The court determined that a valid and enforceable contract governed the entire duration of the construction project, granting a directed verdict in favor of the defendants and dismissing the plaintiffs’ claims for quantum meruit and unjust enrichment. Additionally, the court concluded that the plaintiffs were not entitled to any wage loss claims, resulting in the claims’ dismissal.

Learn more about how GRSM’s Construction practice excels in managing and resolving complex construction-related disputes, from subcontractor claims to contract enforcement.