Woolford Kanfer recently represented a public works contractor who was terminated by the West Chester Area School District in the middle of the project. The District made a claim on the performance bond and the surety completed the contract. The District alleged that the GC failed to timely produce baseline and schedule updates, failed inexcusably to meet several interim milestone dates, refused to add more workers when progress slipped and installed some work not in accordance with the contract documents. After efforts to negotiate a return to the project were unsuccessful, Woolford Kanfer filed suit on the contractor’s behalf for wrongful termination. It also sought attorneys’ fees and penalties under the Pennsylvania Prompt Payment Act. After a two-week trial, the judge sided with the contractor on all points finding that the School District’s termination was improper and not justified. It ruled that the GC was not responsible for the late production of the CPM schedules and that it was due to the failure of certain other prime contractors to cooperate in making the schedule. Despite requests by the GC for assistance in compelling the other primes’ cooperation, the District took no action and instead withheld payment from the GC. The judge rejected the District’s arguments on the delays and ruled that it was the District that actually caused delays, and the judge’s opinion commended the GC for its valiant efforts to overcome the District-caused delays. It rejected the District’s defective work accusations in their entirety. The judge expressed shock and disbelief at the conduct of School District personnel, who the judge found acted arbitrarily, callously and in bad faith toward the GC. The GC was awarded over $2.8 million in damages due to the wrongful termination, which included interest, penalties and attorneys’ fees under the Prompt Payment Act.
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