Puyallup must pay contractor's legal fees, state Supreme Court rules
In a battle over the payment of legal fees, the Washington State Supreme Court sided with Conway Construction against the city of Puyallup Friday, setting a favorable precedent for businesses contracting with governments.
The nine-member court unanimously upheld a trial court’s decision that Conway was not in default when a roadwork contract was terminated, and is therefore entitled to reimbursement for $1.5 million in legal fees.
“This sets a lot of precedent,” said Joe Straus, attorney with Schwabe, Williamson & Wyatt and lead attorney on the case. “It’s applicable to any public entity in the state of Washington.”
The issue dates back to March 2016, when Puyallup gave Conway notice of suspension and alleged breach of contract on roadwork at 39th Avenue Southwest in front of a Costco store.
A lower court had already sided with Conway regarding the termination of the contract, but the city challenged the need to pay Conway's legal fees. The contract with Conway included a legal fee clause. Puyallup has already paid Conway Construction $1.4 million for the underlying judgment.
https://www.bizjournals.com/seattle/news/2021/07/11/highest-state-favors-contractor-in-legal-fee-fight.htmlv
