The city of Galveston, Texas, has been ordered to pay a housing contractor $15 million due to breach of contract. The suing party was a company overseeing some of the federally insured recovery efforts in the area after the devastation caused by Hurricane Ike in 2008. The decision to award judgement to the contractor was made by a jury on Sept. 25.
The contractor suing the city of Galveston was hired for recovery efforts in 2009 and fired in 2012. Representatives of the city claim they were fired for unsatisfactory performance and misrepresenting its level of expertise in hurricane relief. The company says that they fulfilled all their contractual duties. The city says they plan to appeal the jury decision as soon as possible.
The jury came up with the $15 million decision based on several factors: $8 million for breach of contract, $4 million for accrued interest and $3 million for economic losses. The trial involving the Boston-based contractor and the city has been ongoing since 2013. Representatives state that they believe the lawsuit already caused the city millions of dollars before any decision was made.
When one party believes another party in a business contract has violated the terms of an agreement, filing a lawsuit may be necessary. When this situation occurs, it’s important for each entity to get representation from an attorney or law practice that focuses on contract litigation. It’s the lawyer’s responsibility to use all available information to advocate for their client in front of a judge or jury.
Strong: U.S. News and World Report, “Galveston Ordered to Pay Nearly $15M in Ike Housing Dispute”, 09/25/2018