Facts

In Oct. 2003, plaintiff Granite Construction Co. and the city of El Centro entered a construction agreement for work on the Alder Canal Trunk Sewer Main and Lift Stations Project. The city hired Nolte Associates Inc. (Nolte) for construction management services.

Granite brought an action against El Centro, asserting that the city breached the contract by providing incorrect data, failing to establish the right of way from private owners, interfering with Granite's work, and failing to compensate for work done as well as cost expenses.

Granite also brought an action against Nolte, asserting negligence in performance of its managing service. Granite filed an amended complaint, claiming that a special relationship existed between Granite and Nolte. Nolte denied this contention, filing an answer as well as a motion for summary judgment, which was denied.

PLAINTIFF'S CONTENTIONS:
Granite asserted that El Centro breached the contract by offering insufficient information, specifically, the city had misrepresented groundwater and soil factors, thus causing delay and additional work. Granite contended that Nolte was negligent when it instructed Granite on procedures for unfavorable conditions, directions that contradicted initial project plans.

DEFENDANT'S CONTENTIONS:
Nolte asserted it was not negligent. El Centro denied any claims and cross-complained, arguing that Granite breached the contract when it failed to complete performance properly and timely. El Centro further claimed that Granite failed to fix claimed defects.

Result

Parties reached a settlement of $2,240,000, of which El Centro is responsible for $1.7 million.