Following the settlement of a motion seeking to determine and fix the owner’s statutory holdback under the Construction Lien Act, the court was required to determine the appropriate costs award.
The moving subcontractor argued that the owner delayed addressing the holdback issue, necessitating the motion and increasing litigation costs, and sought enhanced partial indemnity costs.
The responding party argued the motion was over-lawyered and that only minimal costs should be awarded.
The court held that the motion produced a successful result by compelling the owner to fund an interim holdback available for distribution to subcontractors, entitling the moving party to costs.
However, no exceptional circumstances justified enhanced costs, and a fair and proportionate partial indemnity award was fixed.