Michael L. Feinstein, P.A.

Construction litigation ensues when developer pulls out of deal

Though the construction industry can be lucrative, company owners can also face numerous issues. In some cases, a prospective project could fall through even after a deal was made, and the company could face serious setbacks and financial losses. It is not unusual for construction litigation to result from this type of ordeal.

Florida readers may be interested in a lawsuit recently filed in another state. According to reports, a construction company was slated to construct an air-rights tower for a development firm. However, the development company did not follow through with the deal, and now, the construction company is suing for $100 million. The lawsuit claims that the development firm withdrew from the deal at the last minute and used unsavory tactics in efforts to achieve personal gain at the expense of the construction company.

The report also stated that the construction company and the development firm had partnered on projects before and worked together for nearly a decade on this recent deal that fell through. Apparently, both companies invested a total of $100 million over the years, working on the proposed project before the developing firm pulled out. The chief executive for the construction company believes that the development firm acted in dishonest and treacherous ways.

As this case shows, construction companies can lose a great deal if a partner suddenly pulls out of a project. In some cases, it may be necessary to move forward with construction litigation if the deal did not go through due to the dishonest actions of the other party. If Florida construction company owners are in similar predicaments, they may wish to explore their own legal options.

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