Glaser Weil Secures Major ‘Delay and Defect’ Win for Chestlen Development in $500 Million Hotel Construction Dispute

Glaser Weil and Construction Practice Group Chair Peter Sheridan are proud to announce another significant trial victory for the Group.

The Firm has successfully represented its client Chestlen Development, a real estate investment and development firm and owner of the 52-story, 750-room W Hotel and Element Hotel (Marriott) in Philadelphia. Glaser Weil is representing Chestlen in a complex, high-profile dispute against general contractor Tutor Perini Building Corp., multiple subcontractors and surety bond issuers, seeking $100 million in damages for construction delays and defect repairs, while also defending against Tutor’s $100 million counterclaims involving change orders, disruptions and COVID-19-related delays.

After a heavily litigated five-week bench trial held over the course of five months in 2025, the Court issued its Phase 1 ruling on liability entirely in favor of Chestlen.

The ruling found Tutor liable for breach of contract and rejected its counterclaims against Chestlen. The Court also ruled against subcontractor Carney and its surety Arch, while finding in favor of Ventana (windows) on claims brought by Tutor. This outcome follows the submission of over 1,000 pages of post-trial findings of fact and marks a significant milestone in the litigation, with damages (Phase 2) and Mechanic’s Lien (Phase 3) trials scheduled for early 2026.

The litigation has forced the contractor and subcontractors to confront and address their defective work and the resulting delays, which postponed the completion of this high-profile project by more than 1,000 days and disrupted both city and developer plans.

The Glaser Weil team’s success in Phase 1 is a testament to years of strategic and tireless work, always in close collaboration with Glaser Weil’s co-counsel at Blank Rome in Philadelphia, Jonathan Korn and Michael Darbee, and David Fineman of Royer Cooper. As lead trial counsel, Sheridan has been dedicated to the case since 2018. Partner Rob Lee played a critical role throughout the litigation, leading depositions, document reviews, expert preparation and trial execution. Of Counsel Christopher Dacus contributed to expert testimony preparation and Kristen O’Hagan provided essential paralegal support throughout the trial. 

“This victory could not have been achieved without the tireless work of Rob Lee and the entire team at Glaser Weil and at Blank Rome, but mostly finds its genesis in the courage and fortitude of our clients Brook Lenfest and Jared Wallace in taking on one of the largest construction companies in the world and literally slaying the dragon,” said Sheridan.

Glaser Weil is proud to represent Chestlen Development in this landmark case and looks forward to continuing its advocacy in the upcoming trial phases.