Construction partners dispute attorney fees over Orleans Parish jail project

The Fifth Circuit reviewed a fee battle between the McDonnel Group and Archer Western Contractors, partners in a joint venture that built the Orleans Parish Sheriff’s Office Inmate Processing Center. Archer Western, the majority owner, previously secured a $518,000 attorney-fee award after winning a summary-judgment claim, an award the appellate court has already upheld. McDonnel, after a jury found it did not breach the joint-venture agreement on unpaid capital calls, now seeks about $413,000 in fees for defending those claims, a request denied by a magistrate and the district judge.

Both sides cite a contract provision stating a “defaulting party” must cover the other’s legal costs, but they disagree on whether the clause triggers for defensive wins. Judges Jerry E. Smith and Kurt D. Engelhardt expressed opposing views on the clause’s applicability, while Catharina Haynes joined the panel. The case was sent back for further consideration.