Client Spotlight: Stoel Rives Prevails for VSS International, Inc., Over Subcontractor in Arbitration in Breach of Contract Action

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Stoel Rives congratulates its client VSS International, Inc., on prevailing in a recent arbitration that arose from the failure of a subcontractor to satisfactorily perform a 2014 paving subcontract on a Caltrans project.

According to the arbitrator, the very experienced subcontractor overextended itself in its geographical area of coverage, failed to provide proper materials and oversight, and performed substandard work, resulting in 154 days of delays and liquidated damages (the liquidated damages were previously resolved and released by Caltrans). The subcontractor blamed VSS, as well as the Caltrans inspectors and engineers, claiming favoritism and defective specifications. However, VSS’s replacement subcontractor was able to perform the necessary work within just five days, and the project was ultimately accepted by Caltrans.

The Stoel Rives team, which was led by Ryan Wood and included associate Bao Vu and paralegal Rebecca Lerma, recovered nearly every category of damages sought by VSS. A motion for attorney’s fees as the prevailing party will follow shortly in favor of VSS.

Key Contributors

Rebecca M. Lerma
Bao M. Vu
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