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ARTICLE · 12 NOVEMBER 2012

When Is Litigation History A Sign Of Unreliability?

Duane Morris LLP
Duane Morris LLP
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An Atlanta-area school district, already embroiled in construction litigation, learned that the replacement contractor hired to salvage a project has also been involved in litigation.

United StatesReal Estate and Construction

An Atlanta-area school district, already embroiled in construction litigation, learned that the replacement contractor hired to salvage a project has also been involved in litigation. The story made headlines in the Atlanta Journal-Constitution. But the bigger question is – when does a company's litigation history become a concern, or even a predictor of how a project will turn out? This is not a simple question.

Does involvement in litigation mean that a design or construction company is not reliable? (Or, using the public procurement term, "responsible?") Companies competing for public work must often list pending litigation, and even some private owners ask for this information. So litigation information is sought for some purpose, and companies must air their laundry, dirty or not. I would hazard a guess that members of public boards entrusted to decide whether to hire an architect or a contractor will often not agree on when litigation history is a meaningful

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