Background

A small general contractor was awarded contracts on a series of projects with the New York City Housing Authority. When its performance was criticized and its pace lagged, the Authority issued default notices.

The Challenge

We were retained by the contractor to get the defaults lifted. In particular, its owner was worried that with “default”, termination could not be far behind and the Authority would demand that the construction surety complete.

The Solution

On both projects we promptly commenced proceedings by Order to Show Cause and sought temporary restraint and injunctions. During that process we engaged in discussions with the Authority and held off involvement of the surety.

The Result

In each instance we obtained a temporary restraining order and were able to enjoin the Authority’s action relating to default. A compromise was reached and the contractor continued on both projects.