In a dramatic turn of events, a prominent California law firm has accused a major construction management company of deliberately circumventing legal payment obligations. Feldman & Associates, Inc. filed the complaint on June 4, 2024, in the Superior Court of California, County of San Francisco against Swinerton Management & Consulting, Inc., Swinerton Incorporated, and Swinerton Builders.
The case revolves around the South San Francisco Unified School District’s Measure J Bond Program and subsequent litigation involving USS Cal Builders Inc., for which Feldman & Associates served as legal counsel. According to the complaint, Feldman had an outstanding attorney fee lien on the proceeds from this litigation. Despite this lien being formally recognized by state law and notified to all parties involved, the defendants allegedly entered into an unauthorized settlement agreement with Arch Insurance Company. This agreement resulted in settlement funds being paid directly to Arch without satisfying Feldman's fee lien or obtaining approval from USS Cal Builders.
The complaint details that Feldman was retained by USS Cal Builders under a fee agreement dating back to 2001. This agreement granted Feldman a priority lien on any litigation proceeds resulting from their representation. However, despite being fully aware of this lien, Swinerton allegedly paid $190,000 to Arch Insurance Company as part of a settlement related to the litigation without addressing Feldman's unpaid fees.
Feldman argues that this action constitutes intentional interference with contractual relations and prospective economic advantage. The law firm asserts that Swinerton's actions were not only intentional but also negligent and in direct violation of established trade practices within the legal profession. "Defendants knew or should have known that payment or disbursement of any funds to any party other than Feldman directly contravened the fee lien," states the complaint.
As relief, Feldman & Associates is seeking general damages exceeding $190,000 for past and future economic loss and punitive damages ranging between $1.5 million and $15 million. They are also requesting reimbursement for all costs incurred during the suit and interest at the legal rate against all parties involved.
Representing Feldman & Associates are attorneys Mark A. Feldman and Adam H. Meyers from their Los Angeles-based firm. The case has been assigned Case No.: CGC-24-615224 in front of Judge Andrew Cheng at the Superior Court of California in San Francisco County.