Commercial/Litigation department obtains $6.9 million judgment for client

Weinstock & Scavo litigation partner Marvin Pastel, assisted by associate Vincent Russo, received a $6.9 million judgment on behalf of his client Belfor USA Group, Inc. after a two-week trial in Daytona Beach, Florida.  Belfor USA is the world’s largest disaster restoration company.  Following the 2004 hurricanes that ravished Florida, Belfor performed more than a billion dollars worth of restoration work reviving Florida’s damaged properties.   

As part of that work, Belfor performed restoration work to eight hotels owned by Bray & Gillespie along the Daytona Beach shoreline.  The project lasted eight months and the total invoice was just under $20 million.  Bray & Gillespie refused to pay $6.6 million claiming that Belfor’s work was defective and the invoices contained numerous errors.  

In an attempt to substantiate its claim, Bray & Gillespie took over 20 depositions in seven states and spent more than two million on legal and expert fees compared to Weinstock & Scavo’s fees of under $500,000.  Nevertheless, the Judge found no deficiencies in Belfor’s construction work and made only minor changes to Belfor’s invoices.  

Weinstock & Scavo was able to deliver the favorable results at significant cost savings by adhering to its commitment: dynamic, strategic, decisive® legal representation. Our attorneys achieved this by efficiently managing the client’s legal resources, focusing on the key issues and depositions, presenting its case through only key personnel without redundancy and avoiding the opposition’s pitfalls.  

Following the judgment, all 80 Bray & Gillespie entities filed bankruptcy, including the ones that were subject to the construction lien and judgment.  In all, the Bray & Gillespie entities have more than $400 million of secured debts.  Weinstock & Scavo’s bankruptcy department is in the process of securing Belfor’s priority status and favorable payment schedule while actively participating in the secured creditors committee.

For the full press release, click here