Jun 11, 2010

The Owner of an eighteen hundred room hotel in downtown Dallas, Texas, recently undertook a major $10,000,000.00 million renovation project. Upon substantial completion, it paid the general contractor over a million dollars in retainage.  But soon thereafter, the Owner discovered that the general contractor hadn’t been paying its subcontractors or suppliers—despite the general contractor’s written certifications to the contrary—and that the general contractor was in serious and growing financial trouble. Over thirty subcontractors and suppliers remained unpaid, and lien claims against the property started to accumulate. The general contractor, an out-of-state corporation, closed its Dallas branch office.

Once engaged to address the rapidly-escalating problem, ASM devised and implemented a successful legal strategy which resulted in the general contractor assigning to the Owner funds owed from a financially-stable third party. These third-party funds were sufficient to enable the Owner to pay off all unpaid project vendors and to secure final lien releases. In addition, the Owner received full reimbursement for all of its attorneys’ fees, while retaining full rights against the general contractor for future liens, defective work, and any other unknowns. Thus, with ASM’s guidance and leadership, the Owner was ultimately able to successfully close out all of its potential lien exposure for the project as well as all its payment obligations, while retaining full rights going forward… all with zero out-of-pocket cost.

For more information, please contact: John McKenna or Chris Taggi