Construction

Arbitration, Mediation & Alternative Dispute Resolution

Stites & Harbison has a wealth of ADR experience conducting ADR sessions as either mediators or arbitrators, and in advocating on behalf of clients in the ADR setting. The firm's attorneys mediate and arbitrate all types of disputes. Ten of our firm's attorneys completed training or certification in mediation, and eight completed training or certification in arbitration. The New York City-based CPR International Institute for Conflict Prevention & Resolution has named three Stites & Harbison attorneys to its Panel of Neutrals. In addition, many others have received training in ADR by the American Arbitration Association, the Atlanta Justice Center, or the Mediation Center of Kentucky and regularly serve as arbitrators and mediators.

As advocates, we understand that the majority of litigation results in a negotiated settlement. We are experienced and well-equipped to achieve the best settlement results possible for our clients. We have settled hundreds of millions of dollars in claims by alternative dispute resolution. In one recent case, Stites & Harbison helped achieve a mediated settlement of $12 million in favor of the firm's client.

In our experience, mediation and other forms of alternative dispute resolution often succeed in terminating litigation on terms acceptable to both parties. Mediation or ADR forces a plaintiff to realistically assess a case and come face-to-face with its weaknesses. Otherwise, this might not happen until the eve of trial.

In cases involving complex engineering or scientific principles, we have sometimes used a “non-lawyer neutral” in direct interface with experts retained by the adverse parties. Sometimes we do this without lawyers present; sometimes we have lawyers present, but only for the purpose of observing to ensure the fairness of the process. We have noted how much time can be saved and how many technical issues can be resolved in this manner. Mediations or arbitrations are substantially shortened, and the issues narrowed more quickly.

Examples of complex cases we successfully resolved by ADR include:

  • A construction mold case involving $25 million in damage to a hotel in Charleston, S.C. Large amounts of water infiltrated the building within a year of its completion. Essentially, the entire building from the concrete structure out had to be torn down and rebuilt. Engineering issues concerned whether this was a result of construction errors in the masonry system, or design errors by the HVAC engineer inducing negative pressures and exacerbated by the humidity of the South Carolina summer. Ground-breaking scientific approaches to proof were developed in this case.
  • A $40 million case involving the chemistry of flu gases generated in a coal-burning power plant, and the metallurgy of a very rarely-used grade of stainless steel that was specified for construction of a scrubber tower. We represented an international engineering and construction company that was the world's leading builder of power plants. On the other side was the last U.S. manufacturer of boilers used in power plants. Each of these companies needed the other in order to maintain its market going forward. The ADR, which followed months of aggressive litigation, was structured totally around future business arrangements between the parties.
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Client Alerts

Enhancing the Prospects for Contractors to Have Insurance Coverage for Their Subcontractors’ Defective Work

When a construction contractor engages in a construction project, it generally purchases a commercial general liability policy (“CGL”) to broadly cover it and, frequently, the property owner for claims that might arise during the course of construction. These insurance contracts are standard forms issued by the Insurance Services Office (“ISO”) that cover accidental damage to property or personal injury claims.

by Gregory P. Parsons and J.P. Stilz, Summer Associate (2020) July 06, 2020
Presentations

State of the Union – Mitigating the Impact of COVID-19 on Infrastructure Projects

Presentation by Steven Henderson and Aaron Klein to the 12th Annual Law & Regulatory Forum presented by ARTBA.

by Steven M. Henderson and Aaron R. Klein June 08, 2020
Press Releases

Robert Connolly Elected to The Nature Conservancy Board of Trustees

LOUISVILLE, Ky.—The Nature Conservancy recently elected Stites & Harbison, PLLC Chair, Robert M. Connolly, to its Board of Trustees of the Kentucky Chapter.

by Stites & Harbison, PLLC May 08, 2020
Press Releases

Steven Henderson Appointed Chair of Stites & Harbison’s Construction Service Group

LOUISVILLE, Ky.—Stites & Harbison, PLLC is pleased to announce that attorney Steven Henderson has been appointed Chair of the firm’s Construction Service Group.

by Stites & Harbison, PLLC March 23, 2020
Press Releases

Dan Douglass and Bill Joseph Recognized in 2020 Georgia Super Lawyers

ATLANTA—Stites & Harbison, PLLC attorneys Dan Douglass and Bill Joseph were recently honored in the 2020 Georgia Super Lawyers magazine.

by Stites & Harbison, PLLC February 14, 2020
Press Releases

Morgan Ward appointed to Landmarks and Preservation Districts Commission

LOUISVILLE, Ky.—Louisville Mayor Greg Fischer has appointed Stites & Harbison, PLLC attorney Morgan Ward to serve on Louisville Metro Government’s Historic Landmarks and Preservation Districts Commission.

by Stites & Harbison, PLLC November 11, 2019
Client Alerts

Slow Payment Costs General Contractors and Subcontractors Billions

A new study found slow payments to general contractors and subcontractors cost $64 billion in 2019 – a nearly $25 billion increase from 2018 with general contractors added to the report.

by Rebecca M.W. Sherman October 31, 2019