Bloom Parham Wins Partial Reversal of a Georgia Construction Damages Award
Bloom Parham has secured a partial reversal from the Georgia Court of Appeals that reopens the amount of damages awarded by the trial court in a construction payment dispute. In a February 13, 2026 decision (No. A25A1967), the Court of Appeals left the trial court’s main liability ruling in place but reversed the lower court’s damages awards on two contested issues, returning the case to the trial court. On remand, our client will be able to contest the amount of damages awarded to the opposing party after it walked off the job and to argue for an award of actual damages caused by the opposing party submitting a false subcontractor’s affidavit.
Stephen M. Parham and Troy Covington of Bloom Parham represented our client, the general contractor, in this matter.
Read the full decision here.
The Dispute: A Payment Breakdown on a Senior Living Project
The project was a 160-unit senior living facility. Our client served as the general contractor and hired a framing subcontractor for the job. After site delays that the trial court found were not the subcontractor’s fault drove up material costs, the two sides agreed to split the added expense, and our client agreed to pay the material supplier directly.
A payment dispute ended the working relationship. Our client paid the subcontractor for its labor, holding back a ten percent retainage, then stopped paying on the view that nothing further was owed. The subcontractor worked a short time longer, then left the job with the framing roughly ninety percent complete and filed a lien. Our client later sued for breach of contract.
The Trial Court’s Ruling
After a bench trial, the court found that the subcontractor was still owed money when it left and therefore was not liable for stopping work, and it awarded the subcontractor roughly $249,000 in damages and interest. On a separate claim, the court found the subcontractor liable for submitting a false affidavit that failed to disclose one of its own lower-tier subcontractors, but it awarded our client only nominal damages, reasoning that the record did not show how much of our client’s bond premium costs were tied to that omission.
What the Georgia Court of Appeals Held
On appeal, Bloom Parham secured reversals on both damages questions. The Court of Appeals held that no evidence supported including the ten percent retained funds in the subcontractor’s award, particularly where the work was not satisfactorily completed, and it sent that issue back for the trial court to identify supporting evidence or recalculate the award. The court also held that the nominal damages on the false affidavit could not stand, because our client had pointed to record evidence of an annual bond premium it was forced to pay because of the undisclosed subcontractor’s lien. The result returns the case to the trial court to reassess damages on both issues, and it reflects the value of a focused appeal that targets findings that the record cannot support.
Facing a Construction or Contract Dispute? Talk to Bloom Parham
Bloom Parham pairs trial-tested business litigators with a dedicated appellate litigation practice, so a hard-fought trial result does not have to be the last word, and an adverse damages order does not have to stand. When the stakes are high, our lawyers know how to protect a client’s recovery and reframe the issues on appeal. To discuss a construction, contract, or business dispute, reach out to Stephen M. Parham or Troy Covington.