Litigation

CDI Contractors Wins $40,000 Attorney's Fees Defending Contract Claim Against Sub-Contractor

By H. William Allen et al.

The Arkansas Court of Appeals affirmed an award of attorney's fees in Meyer v. CDI Contractors, LLC, No. 07- (5/21/08).

CDI hired Meyer as a subcontractor to perform earthwork a project for the Church at Rock Creek. After CDI canceled the contract, Meyer filed suit for fraudulent inducement to contract. CDI later learned that Meyer submitted false information when he applied for his contractor license. CDI moved for summary judgment under Ark. Code Ann. § 17-25-103(d), which prohibits any action to enforce a contract that violates the Arkansas Contractors Licensing Law. The trial court granted summary judgment and also awarded CDI attorney's fees of $40,000.

The court of appeals affirmed, although it did say a fraud claim could potentially survive this statute. However, Meyer's fraudulent inducement claim was linked entirely to the illegal contract, and he sought breach of contract damages. The court also found the attorney's fee award was reasonable.

Full post as published by Arkansas Business Litigation Blog on May 21, 2008 (boomark / email).