Total Defense Victory in High-Value AAA Construction Arbitration
The Challenge: Multi-Party Arbitration Stemming from $14 Million Construction Dispute
O’Hagan Meyer senior associate John Lamb represented a high‑end tile subcontractor in a consolidated AAA Commercial Arbitration arising from the construction of a North Shore lakefront mansion. The case began with claims of approximately $14 million, brought by a Chicago homeowner against the general contractor and architect for alleged defective design and construction.
The general contractor and architect asserted third‑party demands against multiple subcontractors, including O’Hagan Meyer’s client, seeking indemnity and damages. Although the arbitration was formally bifurcated between exterior and interior claims, all parties, including third‑party respondents, were required to participate in both phases, effectively placing the subcontractors in a direct defensive posture.
The Solution: Extensive Arbitration Defense Across a Year-Long Proceeding
The arbitration spanned 67 hearing days over 12 months and involved more than 23 witnesses and 9,000 pages of documents and testimony. O’Hagan Meyer defended the subcontractor against claims related to alleged interior construction defects, while also addressing the indemnity exposure asserted by the upstream parties.
John Lamb led the defense through both phases of the proceeding, focusing on the claimant’s failure to establish liability or damages connected to the subcontractor’s work.
The Outcome: Unanimous Defense Award
The AAA arbitration panel unanimously ruled in favor of the subcontractor, finding that the claimant failed to meet its burden of proof on liability or damages related to the interior claims. As a result, the third‑party indemnity claims against the client were eliminated.
Although the claimant was awarded $4.5 million for exterior damages, those claims did not involve the subcontractor’s work. The ruling resulted in a total defense win for the client following an extensive, high‑stakes arbitration.
