Contractor and owner entered into a settlement agreement by which the owner paid a significant sum in exchange for a release stating that there were no further outstanding claims on the projects. At the time, two of the five projects involved had not been completed as to deficiencies and there were contractual completion holdbacks for both projects. The contractor then took the position that it should receive not only the settlement amount, but also the holdback amounts. The court dismissed the claim stating that, at the time of the settlement, the contractor was fully aware of the money the owner had held back and, if it had intended these funds be paid in addition to the settlement amount, it could have stipulated that in the settlement agreement.
Written by Jonathan Speigel, the founding partner of Speigel Nichols Fox LLP, leads the litigation and construction practices.