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Company sued for $300 million fighting back

Kansas residents may be interested in a major breach of contract action currently pending in a California courtroom. In the suit, Santa Clara County alleged that Turner Construction breached its contract to build an expansion for the Santa Clara Valley Medical Center.

According to sources, the county claims that the construction company's delays have cost it $30 million each year for the work that went beyond the project deadline and $36 million per year in lost revenues. The plaintiff also contends that the construction company took workers away from the hospital project to focus on building a new stadium for the San Francisco 49ers, a project the company completed on time.

Turner Construction states that the county's own problems led to the delays. It has stated that the county's plans for the hospital had design flaws and the county reportedly issued so many change orders that it resulted in an additional $150 million in project costs for taxpayers there. The company also indicated it will be filing a counterclaim against Santa Clara County for what the company terms the plaintiff's "wrongful actions" as well as to seek recovery of money Turner claims is owed to both it and its employees.

Companies that are working on a construction contract may seek financial recovery of damages from the other party in the event of a breach. If the breach is a major one, the court may order that the breaching party pay damages necessary to make the other party whole. As this case illustrates, some breach of contract actions are very large and necessarily complicated. An attorney who has experience in this type of complex litigation can be of assistance throughout the process.

Source: Construction Dive, "Turner Construction fires back against CA county lawsuit over controversial hospital project," Emily Peiffer, Nov. 9, 2015

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