Attorneys Joe Manna and Chris Poole recently secured the dismissal of a $7 million claim asserted by a publicly traded railway company against a Buffalo contractor.
Construction Project
The Buffalo based contractor, who has been a longstanding client of Joe Manna, was hired for a project that involved the construction of a rail car repair station. Due to a dispute that took place while construction of the repair station was in progress, the railway company terminated its contract with the Buffalo based contractor.
Termination “For Convenience” and $7 Million Lawsuit
The railway company in this matter terminated the Buffalo contractor from this construction project “for convenience.” Termination of convenience clauses generally state that a business may terminate a contractor at their convenience, at any time throughout a construction contract, without cause. Following the termination, the railway company in this matter filed a $7 million claim against the Buffalo contractor for defective and incomplete construction of the rail car repair station.
Successful Dismissal of $7 Million Claim
Attorney Joe Manna has a long track record of successfully defending contractors in significant “bet the company” legal disputes. In 2022, Joe successfully defeated an $8 lawsuit that Gov. Hochul and Gov. Cuomo of New York State filed against his client, a general contractor.
In this matter, Joe Manna and Chris Poole successfully argued before New York State Supreme Court that the $7 million claim filed against their client should be dismissed because the Buffalo contactor was terminated “for convenience” and not terminated “for cause” as the railway contended. The court granted the motion filed by Joe Manna and Chris Poole during pre-discovery and the $7 million claim against the Buffalo contractor was dismissed.
Construction Project Terminations
Construction contract terminations can always be risky. Attorney Joe Manna cautions “owners and contractors considering or facing termination should always consult with an experienced construction lawyer as soon as possible when termination situations begin to arise. Delaying legal advice, or getting the wrong advice, can be fatal to claims and defenses.”
Additional Information
For more information on construction contract terminations and all construction litigation matters, contact Joe Manna or Chris Poole.
