Varela, Lee, Metz & Guarino (VLMG)

Another Huge Win for VLMG!

» Posted October 1, 2024Garrett E. Dillon, Wajiha Rais, Daniel Sakaguchi, Michael M. SugaNews

We’re excited to share a significant legal victory for VLMG.  Recently, a California Court issued its final Judgment, which was a resounding victory for VLMG’s client. Huge congratulations to the litigation team of Garrett Dillon, Michael Suga, Daniel Sakaguchi & Wajiha Rais!

VLMG was originally engaged by our client to challenge a California Public Owner’s termination of client’s US$100+ million contract for alleged default. VLMG negotiated a favorable settlement with the Public Owner in advance of trial, resolving ~US$120 million in claims. The litigation continued with our client pursuing claims against its primary subcontractor on the Project. At the 10-week trial in early 2022 our client pursued US$40 million in damages against the subcontractor on its behalf, as well as US$62.5 million in claims assigned by the Public Owner as part of the settlement. Claims included breach of contract, negligent misrepresentation, and indemnity. The subcontractor sought recovery of approximately US$15 million in claims.

The Court’s July 2024 Judgment ruled that the subcontractor had (a) breached its subcontract with our client (precluding the subcontractor’s own recovery), (b) breached its third-party beneficiary obligations to the Owner, and (c) ruled that the subcontractor had negligently misrepresented its progress to both our client and the Owner. The Court awarded us US$102.5 million in compensatory damages, amounting to a 100% recovery of all amounts sought by us in the litigation, while simultaneously rejecting all subcontractor claims.  Additionally, following post-judgment briefing, the trial court awarded $34 million in prejudgment interest resulting in a final Judgment award of over $136.5 million.

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