We represented a design-build firm in an American Arbitration Association (AAA) arbitration proceeding initiated by project owners alleging breach of contract. The owners claimed our client did not begin construction by an agreed-upon date, entitling them to a full refund of significant funds previously paid to our client for its design efforts. We vigorously defended the claim and asserted a wide variety of counterclaims, centering on the contract’s explicit terms which show the owners’ mischaracterization, as it had only an estimated project duration from an undefined commencement date. Further, force majeure, unforeseen conditions, and integration clauses protected our client from liability for delays. To the contrary, the owners’ termination triggered a “Termination Fee” clause, exceeding the amount of their previously paid funds and covering design work, completed construction, profit, and overhead. We sought an AAA arbitration award confirming our client’s right to retain the previously paid funds as a setoff against the Termination Fee, plus more damages for attorney fees and costs incurred due to the owners’ initial lawsuit filed in contravention of the contract’s arbitration clause.
