Meltzer, Lippe, Goldstein & Breitstone LLP’s construction department, led by Manny Frade, Adam Wald, and Max Rayetsky, successfully defended Judlau Contracting Inc., a leading heavy civil construction firm, against a $22 million delay claim from a subcontractor. The dispute arose during the renovation of a subway station destroyed in the September 11, 2001, attacks.
The subcontractor alleged Judlau failed to adequately sponsor its claim against the MTA for damages caused by delays and acceleration demands to meet a 2018 anniversary deadline. However, the arbitration panel found Judlau properly handled the claim and was not liable for delays. The subcontractor was awarded only $1.6 million, previously agreed upon by the MTA, plus a small additional amount for “premium time.” The panel affirmed that general contractors are not obligated to support claims they believe lack merit, particularly in public works, where such actions could lead to debarment.