Business Law Articles
On August 31, 2017, Senior Judge Lynn J. Bush of the United States Court of Federal Claims issued a $4,000,000 judgment against the United States in favor of Magnus Pacific Corporation, a Wilke Fleury client and one of the leading geotechnical contractors in the country.
Magnus Pacific’s claims arose out of levee restoration work performed for the United States Section of the International Boundary and Water Commission (USIBWC) along the Rio Grande River near Presidio, Texas.
Magnus Pacific’s work took place from approximately April of 2011 through May of 2012, and was performed pursuant to a contract entered into with the USIBWC. During the course of the project, Magnus Pacific encountered site conditions that differed significantly from those depicted in the project plans and specifications. Those differing conditions led to significant additional work, and associated cost overruns. Magnus Pacific requested the USIBWC’s voluntary payment of those additional costs, but those requests were rejected.
Upon completion of the project, and successful construction of the levee under extraordinarily difficult conditions, Magnus Pacific submitted “certified claims” to the USIBWC, again requesting payment of the additional costs incurred. Once again, those claims were rejected. Therefore, on October 31, 2013, Wilke Fleury partner Dan Baxter filed a lawsuit in the Court of Federal Claims, advancing three claims on Magnus Pacific’s behalf, and seeking approximately $4,000,000 in damages. After the completion of significant written discovery, and over a dozen depositions occurring in California, Texas, Mississippi, Arizona, and Massachusetts, a three-week trial took place in August and September of 2016. At trial, Magnus Pacific was represented by Dan Baxter, assisted by Wilke Fleury paralegal Sharon Brazell. The United States was represented by three lawyers and two paralegals from the Department of Justice. After trial, the parties engaged in extensive post-trial briefing, and the case was submitted for decision on January 17, 2017.
On August 31, Judge Bush issued a 110-page reported decision and associated judgment. Judge Bush found in Magnus Pacific’s favor on all three claims, and awarded Magnus Pacific the principal amount of $3,879,919, plus interest on approximately 3/4ths of that amount. With such interest, the amount awarded exceeds $4,000,000.
Wilke Fleury is proud of its association with Magnus Pacific (now Great Lakes Environmental and Infrastructure), and pleased at the opportunity to secure a successful outcome for its longstanding client.
See the final reported decision here: Magnus Pacific v. US–Final Published Decision