Proven Results

Our firm recently represented a general contractor in a complex public works dispute involving the diversion of project funds through falsified joint checks and releases.

The matter arose when a subcontractor improperly redirected funds intended for a sub-tier contractor by forging the sub-tier’s signature on joint checks and later issuing falsified releases. The conduct resulted in a six-figure shortfall and triggered significant exposure across multiple parties on the project.

The dispute developed into two separate actions. The sub-tier contractor initiated litigation against the subcontractor as well as the payment bond and stop notice release bond sureties. In response, our firm filed a separate action on behalf of the general contractor asserting claims for fraud, conversion, and bond enforcement against the subcontractor, its principals, and the applicable license bond sureties.

Within approximately twelve months, both matters were resolved through a coordinated settlement involving eleven parties. The resolution secured full repayment of the misdirected funds, along with recovery of attorney’s fees and interest. The settlement framework also provides for repayment of the general contractor’s remaining legal fees through structured payments over the following twelve months.

This resolution allowed the project stakeholders who were not involved in the misconduct to move forward without prolonged disruption. By addressing the issue early and pursuing a coordinated strategy across both actions, the matter was resolved efficiently and without the extended litigation that often accompanies disputes of this nature.

Our firm recently secured a successful recovery on behalf of a subcontractor who was not paid for work performed on a construction project.

After the general contractor failed to issue payment, we initiated litigation asserting multiple claims, including foreclosure of a mechanic’s lien against the property. The action sought to enforce the subcontractor’s right to payment and preserve its security interest in the project.

Within approximately twelve months of filing the complaint, the matter resolved through settlement. Our client recovered the full principal amount owed, along with a substantial portion of its attorney’s fees.

This result reflects the effectiveness of California’s mechanic’s lien framework in protecting subcontractors and providing a direct path to recovery when payment issues arise.