Confidential
Settlement – $0Arbitrator
Court
American Arbitration Association
Attorneys
Plaintiff
Defendant
Facts
Claimant, a townhome owner's association, and respondent, a construction contractor, had entered into an agreement for certain repairs resulting from the Northridge earthquake. When the work was substantially complete, claimant retained a portion of the contract amount. Claimant contended that respondent had overcharged it, charging a straight 2 percent of the contract price instead of passing on the actual cost of the performance bond; that respondent's subcontractors damaged the new roof on a number of the units; and that respondent failed to complete certain pick-up work. The respondent contended that in a fixed-price, as opposed to cost-plus, construction contract, it had the right to charge a percentage of the contract price for the performance bond, and that such a practice yields a price reasonably close to the actual cost of the bond; that there was no evidence that respondent's subcontractors had been the ones who had damaged the roof tiles; and that it had sent workers on four different occasions to complete the pick-up work, so that any work not completed was no longer its responsibility. The plaintiff brought this action against the defendant based on a breach of contract theory of recovery.
Settlement Discussions
The plaintiff made a C.C.P. º998 settlement demand for $_________. The defendant made a C.C.P. º998 offer of compromise for $_________.
Damages
Claimant had retained $12,906 on account of the performance bond premium; $20,700 for roofing repairs; and $5,000 for pick-up work.
Other Information
The matter was mediated before Deborah Rothman of the American Arbitration Association on Aug. 24, 1998. Had the matter not settled, it was scheduled for a AAA arbitration.
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