Facts

A 50-year-old house was undergoing a $1.3 million remodel when after eight months of work, plaintiff found there to be construction defects and delays in the work. Plaintiff filed for breach of contract and construction defects. A new contractor was hired and incurred thousands of dollars to complete the remodel.

After being discharged from the remodel, defendants filed a cross-complaint against 11 subcontractors for breach of contract and indemnity for defense costs.

There were six mediations and two mandatory settlement conferences involving complicated insurance issues and difficulties identifying the defects.

Damages

Plaintiff suffered damages in excess of $800,000, which encompassed delays in construction, repairing defects, and finishing construction.

Result

Plaintiff settled with $506,000 compensation for construction delays, to finish the remodel, and to repair defects.

Other Information

Defendants claims for bad faith against several insurance companies based on contractual indemnity for defense costs is still pending.