WaferTech Cost-Overrun Litigation, Jury Trial and Multiple Appeals
Ball Janik LLP has represented WaferTech LLC, a silicon-chip manufacturer headquartered in Camas, Washington, and one of the area’s largest employers, in a series of construction disputes related to its silicon-chip manufacturing plant in Camas, Washington. Ball Janik has represented WaferTech as lead counsel WaferTech in all aspects of this matter, from the trial court level to the Washington State Supreme Court and through subsequent appeals.
WaferTech has prevailed many times in the fourteen-year history of a construction cost overrun dispute with Natkin/Scott, one of WaferTech’s contractors involved in building a silicon-chip manufacturing plant in Camas. Natkin/Scott filed a $7.65 million lawsuit against WaferTech in May 1998 and later sought a total of $11 - $13 million in cost overruns. Through pre-trial motions, WaferTech succeeded in reducing its potential exposure to $2.4 million. And, in April 2002, after several weeks of a jury trial, WaferTech succeeded in getting Natkin/Scott’s entire case dismissed. WaferTech then obtained an award of nearly $1 million for its attorney fees and costs.
On appeal in March 2004, WaferTech prevailed on every claim except for Natkin/Scott’s lien-foreclosure claim. Moreover, other rulings in the appeal limited WaferTech’s exposure on this remaining claim to $1.5 million. WaferTech was able, however, to keep and collect on the entire attorney-fee award, which, including accrued interest, obligated Natkin/Scott’s surety to pay approximately $1.1 million. Then the case sat dormant on remand for five years.
In June 2009, 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 than the first jury trial) had inherent authority to dismiss the sole remaining claim because of BSA’s delay since remand. Again, WaferTech prevailed on the entire case and BSA was forced back into the Washington Court of Appeals, which reversed the trial court. WaferTech successfully sought review, which was granted. In 2012, the Washington Supreme Court affirmed by a vote of 7 to 2.
The remaining fragment of this case is now pending in the Clark County Superior Court.
James T. McDermott of Ball Janik tried the case and argued all three appeals on behalf of WaferTech.
