Subcontractor Files Lawsuit Against Parsons for Delay of Settlement Payment

The attorney-authors represent a subcontractor that recently filed a lawsuit against Parsons Global Services Inc.  and other Parsons entities (collectively referred to here as “Parsons”) in the Central District of California Federal Court.  Parsons was a primary contractor to the United States Government (USG) for construction work in Iraq.

The subcontractor that filed the lawsuit, Al-Marzoog Contracting Company (based in Iraq), alleges that Parsons unreasonably delayed settlement payments.  Al-Marzoog and Parsons had agreed to the settlement amounts years ago, but to date, Parsons has not paid Al-Marzoog, according to the lawsuit.

The lawsuit alleges Parsons has claimed it will not pay Al-Marzoog until the USG reviews the construction work matters and pays Parsons.  The lawsuit alleges that this “pay-when-paid” arrangement is unlawful because an unreasonable amount of time (years) has passed without payment.

For more details about the lawsuit, you can review the Complaint, posted below.

If you have a subcontractor settlement in which payment has been unreasonably delayed, please feel free to contact the blog-author attorney Vonda K. Vandaveer at vonda@vkvlaw.com or +1-202-340-1215.

Negligent Estimate Response and Reply Briefs (AGT v. U.S. Army)

The blog’s attorney authors wrote here about a contractor, AGT, which we represent before the Armed Services Board of Contract Appeals for a negligent estimate claim (and summary judgment motion) against the U.S. Army.  Here are links to the summary judgment response and reply briefs submitted thus far:

Negligent Estimate Summary Judgment Motion, AGT v. US Army

The blog’s attorney-authors represent a contractor in a case against the U.S. Army. The case is in litigation before the Armed Services Board of Contract Appeals (ASBCA), ASBCA No. 56758, Under Contract No. DABM06-03-C-0009.

The contractor we represent, American General Trading & Contracting (AGT), provided laundry services for U.S. Army soldiers in Iraq.  In the legal case, AGT alleges, among other issues, that the Army included negligent estimates in the parties’ contract that severely overestimated the amount of clothing items to be laundered.  Once the contract was performed, AGT had laundered substantially fewer laundry items than the average-item number estimated in the contract.

We recently filed a motion for summary judgment with ASBCA, trying to win the negligent estimate claim and other issues for AGT.  The summary judgment brief is below.

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