The client company, a construction company, subcontracted part of its contracted construction work to the opposing company. After completing the subcontracted work, the subcontractor submitted a settlement statement, and the client paid the subcontract price accordingly.
It was later discovered that the settlement statement included items that had not been performed, duplicated items, and incorrectly calculated unit prices, resulting in an amount inflated beyond the actual work performed. Significant defects were also found in the portions completed by the subcontractor.
The subcontractor then claimed that it had been underpaid and even entered the construction site without authorization, posting banners asserting a lien and interfering with the client??s work.
Representing the client company, Taelim argued with objective materials that there was a clear discrepancy between the subcontractor??s settlement statement and the actual work performed, and that substantial defects in the subcontractor??s work had caused significant damages.
Taelim further argued that the client company was entitled to recover overpaid progress payments from the subcontractor, meaning the lien asserted by the subcontractor lacked a secured claim and was unlawful. Taelim also argued, based on legal principles and case law concerning liens, that the lien was unlawful because it was exercised through illegal possession.
The court accepted all of Taelim??s arguments, fully recognized the amount claimed by the client company, and ordered the subcontractor to remove the lien banners.
This case enabled the prime contractor??s legitimate interests to be protected in response to defective subcontracted work and an improper assertion of lien.
If you are facing difficulty in a similar situation, please feel free to contact Law Firm Taelim.
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