Dow v. AES Engineering

A general contractor instituted an international arbitration proceeding against a large engineering firm arising out of the design and construction of a co-generation plant in Europe.  The engineering firm hired Beck Redden.  The general contractor contended that the engineering firm, who acted as a subcontractor on the project, negligently designed and managed the project causing nearly $120 million in cost overruns, re-engineering and construction work, delay damages, and fees.  Sometimes, the best defense is a good offense.  Faced with a damage claim of $120 million, Beck Redden filed a counterclaim against the general contractor for unpaid bills.  The firm then worked closely with the client to develop the case for arbitration.  The international arbitration panel denied substantially all of the relief sought by the general contractor, and granted the majority of the relief sought by the firm’s client, the net result of which was an award to the client.