WaferTech LLC construction disputes
Jim McDermott has long represented WaferTech LLC, one of southwest Washington’s largest employers, in a series of construction disputes related to its silicon-chip manufacturing plant in Camas, Washington.
Mr. McDermott was lead counsel to WaferTech in all aspects of the multiple cases, from the Clark County Superior Court to the Washington State Supreme Court and through subsequent appeals.
WaferTech prevailed many times in the 20-year history of several construction cost overrun disputes with Natkin/Scott, one of the subcontractors that helped construct WaferTech’s silicon chip manufacturing plant. Natkin/Scott filed a $7.65 million lawsuit against WaferTech in May 1998 and later sought a total of $13 million in cost overruns. After several weeks of a jury trial, WaferTech obtained dismissal of Natkin/Scott’s entire case. The trial court also awarded WaferTech nearly $1 million for its attorney fees and costs.
On appeal, WaferTech prevailed on every claim except for Natkin/Scott’s $1.5 million lien-foreclosure claim. The Court of Appeals affirmed WaferTech’s entire attorney-fee award, which, including accrued interest, obligated Natkin/Scott’s surety to pay approximately $1.1 million.
On remand, the case sat dormant for five years until Natkin/Scott’s successor-in-interest, BSA, filed a Notice of Appearance to restart the case. WaferTech moved to dismiss, arguing that the trial court (presided over by a different judge from the first jury trial) had inherent authority to dismiss the sole remaining claim because of BSA’s delay since remand. The Court agreed and dismissed BSA’s entire case. BSA was forced back into the Washington Court of Appeals, which reversed the trial court. In 2012, the Washington Supreme Court affirmed by a vote of 7 to 2.
On remand, WaferTech moved for summary judgment against the remaining portion of BSA’s case. WaferTech argued that a $2.4 million settlement payment that BSA previously obtained from another defendant represented a complete setoff of BSA’s only claim against WaferTech. The Clark County Superior Court granted WaferTech’s motion, dismissed BSA’s claim, and entered final judgment in WaferTech’s favor. In addition, the Court awarded WaferTech $430,000 in prevailing party fees and costs. After 20 years of litigation, the trial case settled on terms very favorable to WaferTech.
Mr. McDermott was lead trial counsel and argued all appeals on behalf of WaferTech.