Hanson Bridgett trial team secures another major arbitration victory

The trial attorneys at Hanson Bridgett LLP have secured a major victory in a significant win for contractor client, Smith-Hyder, Inc. The complex dispute was against the owner and representative of a synagogue (Owner) in Palo Alto, California, over its $20 million construction and development. Following a two-week evidentiary arbitration hearing, Hanson Bridgett obtained a complete defense of the Owner’s $4.9 million delay and defect claim and went on to achieve a $5.2 million award for Smith-Hyder for non-payment, attorneys’ fees, and costs. This was a total win for Smith-Hyder, Inc.

In her award, the arbitrator stated: “In this case, the evidence persuasively established that [the Owner] wrongfully terminated Smith-Hyder. Instead of negotiating a fair price for the work, they added to the project, failed to

pay Smith-Hyder for its work, failed to negotiate reasonable additional costs and time, and then sent a termination letter wrongfully asserting that Smith-Hyder was responsible for delays and cost overruns justifying its termination. This was a breach for which Smith-Hyder is entitled to recover its damages.”

Partner Andrew Giacomini explained that Smith-Hyder took on the challenging and innovative project based on its care for the community.

“Smith-Hyder wanted to build something meaningful based on the trusting relationship with the project’s owner,” he explained. “Our client accommodated numerous design and work requests that fundamentally altered the cost, timing, and scope of the project. Ultimately, our client was not treated fairly – the owner concealed changes made to the plans, failed to negotiate reasonable additional costs and time, and then egregiously, wrongfully terminated them, falsely asserting that Smith-Hyder was responsible for delays and cost overruns.”

The arbitration award secured is a complete vindication of Smith-Hyder as a company, the conduct of its principals, and the quality of its work. The arbitrator awarded the entire amount of Smith Hyder’s claim along with interest and attorney’s fees.

The Hanson Bridgett team included partners Andrew Giacomini and Brian Schnarr, and associate Tom Li.