What is the legal process for contract disputes between parties in the construction industry?
In Washington, contract disputes between parties in the construction industry are governed by the Washington State Construction Lien Act and the Washington State Commercial Construction Lien Law. When a dispute arises between two parties in the construction industry, either party can file a lawsuit in a court of law. This is called a claim. The filing party is known as the plaintiff, and the other party is the defendant. The plaintiff must prove the terms of the contract and the damages that were suffered due to the breach of the contract. The defendant has the right to dispute the plaintiff’s claim. Both parties have the right to present evidence such as witness testimony, documents, diagrams and contracts. The court will examine the evidence and make a ruling. If the court finds that the defendant is liable for breaching the contract, the plaintiff may be awarded financial compensation. This compensation may include the cost of repairs, additional labor costs, and legal fees. The court may also issue an injunction which is an order that prohibits one party from doing something such as interfering with the other party’s work. If the injunction is violated, the guilty party may face further legal action. If an agreement cannot be reached through the legal process, parties can attempt to settle the dispute through mediation or arbitration. In mediation, a neutral third-party attempts to guide the disputing parties to reach an agreement. In arbitration, a neutral third-party acts as a judge and makes a decision that the parties must abide by.
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