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CONFIDENTIAL

May 6, 2000

Contracts
Breach of Contract
Construction Contract

Confidential

Settlement –  $2,162,830

Court

Fresno Superior


Attorneys

Experts

Plaintiff

Mark Evans
(technical)

Peter Badala
(technical)

Defendant

Tom Miller
(technical)

Michael Huhn
(technical)

Facts

Plaintiff was working was an electrical subcontractor for the defendant on an $80 million sewage treatment plant expansion project. Numerous disputes arose over the ongoing construction and scope of work. The completion of the construction was delayed 400 days beyond the scheduled date. The schedule was disputed. Before the construction was completed. Plaintiff sued defendant general contractor for breach of contract, asserting non-payment of progress payments and retention, non-payment for extra work and delay damages.

Settlement Discussions

In January 2000, plaintiff and its surety offered $675,000. The cross-complainant general contractor demanded payment of $2,250,000, plus the contract balance it held. Four days before trial, plaintiff and its surety agreed to pay the general contractor $1 million in cash and to waive their claim to the subcontract balance. The design engineer, a third party cross-defendant, also agreed to contribute $50,000 to the settlement. According to the plaintiff/cross-defendant, payment is still pending.


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