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RNG Successfully Defends $37 Million Breach of Contract Action and Obtains $8.8 Million Award for Design/Build Hospital Contractor

Posted March 12, 2015 --> • News

RNG represented hospital design/build contractor HBE Company and performance bond sureties Travelers and CNA in this dispute with Kaiser Foundation Hospitals relating to the design and construction of a $300 Million Kaiser hospital.  Kaiser sued HBE and its sureties for breach of contract based on defective design and construction and project delays, seeking more than $37 Million in damages.  At the conclusion of a 5-week arbitration, the arbitrator, the Hon. Carl West (Ret), held that Kaiser had breached the contract by wrongfully terminating HBE and that its actions exonerated the sureties’ performance bonds.  Judge West awarded HBE $8.8 Million in damages.  HBE, Travelers and CNA were represented by RNG partners Chris Rogers and David Nemeth and RNG’s co-counsel Tim Thornton, Andy Manual and Jen Therrien of Greensfelder, Hemker & Gale, St. Louis, MO.