Suppose you are advising a CGL insurer of an insured contractor that does renovation work on one floor of a New York City building. The job goes badly, causing damage to building property beyond the work area, and all tenants temporarily remove themselves from the building, resulting in the building owner’s voluntary waiver of their rent and reimbursement of their moving costs.
Suppose further that the building owner sues the sloppy contractor for property damage for breach of contract and wins a substantial verdict that includes several hundred thousand dollars in attorney fees pursuant to their contractual provision that in the event of legal action to enforce any term of the contract, the party prevailing shall recover “reasonable attorney fees and costs.”
