Construction Litigation
Construction cases are document cases. They are won by the party who kept records during the project, not by the party with the better account of it afterwards.
These disputes are more complex than ordinary commercial litigation for structural reasons. There are usually more than two parties, because an owner sues a general contractor who brings in the subcontractors who blame the designer who points at the supplier. There are overlapping legal theories running on different deadlines, including contract claims, lien rights and trust fund claims. And the technical questions frequently require expert evidence.
The firm handles construction disputes for owners, contractors, subcontractors and suppliers in Michigan courts and in arbitration, and coordinates the lien and trust fund claims that normally run alongside the contract case.
Matters litigated
- Construction lien foreclosure, and actions to discharge invalid or overstated liens
- Breach of contract claims by and against owners, contractors and subcontractors
- Building contract fund claims, including against individuals who directed the funds
- Defect and workmanship claims, including claims involving design responsibility
- Delay, disruption and acceleration claims
- Change order, extra work and scope disputes
- Wrongful termination and abandonment claims
- Claims on payment and performance bonds
- Warranty claims following completion
- Disputes between contractors and their own subcontractors and suppliers
Court or arbitration
Many construction contracts require arbitration. That choice has consequences worth understanding before a dispute arises, because it is generally made when the contract is signed rather than when the fight starts.
| Court | Arbitration | |
|---|---|---|
| Decision maker | Judge, or jury where available | Arbitrator, often with construction background |
| Discovery | Broad, which is thorough and expensive | Usually limited, which is faster and can cut both ways |
| Cost | Filing fees are modest, discovery is not | Arbitrator fees are a significant direct cost |
| Timeline | Generally longer | Generally shorter |
| Appeal | Available on the merits | Very limited, so an unfavourable award usually stands |
| Third parties | Easier to bring everyone into one case | Harder, since parties who never agreed to arbitrate cannot be compelled |
A lien expires unless foreclosure is filed within its own statutory period, independent of the limitation period on the contract claim. Losing the lien usually means losing the leverage that would have settled the case, so those dates are protected first.
How a case is handled
- Deadlines and forum identifiedLien dates, limitation periods, and whether the contract sends the dispute to arbitration and on what terms.
- The project record assembledContract, drawings, change orders, payment applications, sworn statements, waivers, daily reports, schedules and correspondence.
- Technical position establishedWhere defect or delay is in issue, an assessment that will withstand challenge, obtained before the position is committed to.
- Resolution pursued at each stageDemand, mediation or facilitation, and trial or hearing where required, with the economics reassessed as the case develops.
Questions about construction disputes
How much does a construction case cost?
More than most parties expect, driven by discovery and expert work rather than by court fees. That is precisely why the first conversation covers whether the claim justifies the cost, and whether a documented demand or an early mediation is the better route. Some claims are not worth filing and you will be told so.
Can I recover my attorney fees?
Generally only where a contract or a statute provides for it. This is why an attorney fee provision in a construction contract matters so much, and why its absence can make a mid sized claim uneconomic to pursue.
There are five parties blaming each other. How does that work?
It is normal in construction. Claims and cross claims get brought so everyone with potential responsibility is in one proceeding and the case is decided once. It adds complexity, and it usually beats litigating the same facts separately more than once.
My contract says arbitration. Am I stuck with it?
Usually, since arbitration clauses are generally enforced. Their scope varies though, and not every claim always falls inside them, particularly lien foreclosure which may still require a court filing to preserve the lien. The clause needs reading rather than assuming.
These cases are won with the records kept during the job.
[PHONE]Matters with a lien deadline, a filing deadline or a hearing already on the calendar are handled by phone.