General Builders, Inc., dba American General Development v. Great American Insurance Company
Published: Jul. 15, 1995 | Result Date: May 26, 1995 | Filing Date: Jan. 1, 1900 |Case number: 12831 – $3,447,000
Judge
Court
Humboldt County District
Attorneys
Plaintiff
Defendant
Experts
Plaintiff
Vernon E. Leverty
(technical)
Stephen S. Degnan
(technical)
Facts
Plaintiff General Builders, Inc., dba American General Development, was awarded a $4,800,000 building contract following a competitive bidding procedure. It then purchased payment and performance bonds from an agent of Defendant Great American Insurance Company. The agent had an unlimited power of attorney, Great American's seal, and various Great American forms. The agent signed, sealed, and delivered the bonds to its subagent and accepted a premium payment from Plaintiff contractor. Several days later, after the contractor had delivered the bonds to the owner's architect and prepared to sign the final contract documents with the owner, Defendant Great American called the Plaintiff and the owner to advise that the bonds were "unauthorized" and were "void or revoked." Because of Great American's revocation of the bonds, the owner terminated the building contract and awarded a new contract to a different contractor.
Settlement Discussions
Plaintiff contends it demanded $450,000 (5 months prior to trial) and Defendant offered $150,000 (several weeks prior to trial).
Damages
Plaintiff contractor sought damages equal to its gross profit expected from the building contract in a range of up to $897,000.
Other Information
This case was filed May 23, 1994; one year prior to this result.
Deliberation
1 hour Phase I, 4 hours Phase II
Poll
8-0 Phase I, 6-2 Phase II
Length
4 days
For reprint rights or to order a copy of your photo:
Email
jeremy@reprintpros.com
for prices.
Direct dial: 949-702-5390