Claims settlement – You can’t win if you’re not in the game
Abstract: Failing to take part in the legal process can leave a party bereft of any potential recourse. In one recent case, a financially strapped subcontractor, being sued for expenses related to poor work, stopped paying its lawyers and failed to participate any further in the case. A settlement had already been paid to the owner by the general contractor — and the subcontractor might normally have been allowed to set this amount off against any recovery against it. But because the subcontractor was in default — and offered no evidence or argument regarding the comparative degree of fault of itself vs. the general contractor — it wasn’t allowed any setoff.