Facts

Strategic Concepts LLC and Karen Christiansen sued the Beverly Hills Unified School District. Christiansen owned and managed Strategic Concepts, which provided program management and project management services to the School District related to construction and renovation of physical facilities.

PLAINTIFFS' CONTENTIONS:
Plaintiffs alleged that it entered into a contract with defendant in June 2008, for the period ending on June 30, 2009. Plaintiffs agreed to provide consulting services to defendants related to the renovation of its facilities under a 2002 $92 million bond issue. Plaintiff Christiansen was to be paid $953,000 for the first half of 2008, plus additional payments. In August 2008, a written amendment was made to the June 2008 agreement. Plaintiffs completed performance under the amendment, but defendants refused to pay them citing conflicts of interest for plaintiff's supposed failure to comply with public contracting laws. Defendant also demanded plaintiff to disgorge and repay nearly $5 million to the School District. Plaintiff alleged there was no basis for the disgorgement.

Plaintiffs filed suit seeking declaratory relief and damages for breach of contract.

DEFENDANT'S CONTENTIONS:
Defendant denied plaintiffs' allegations and asserted various affirmative defenses.

Settlement Discussions

Prior to trial demand was $6 million and offer was $2.4 million.

Result

The jury found in favor of plaintiffs and awarded them $7,710,509 for the breach of contract claim and another $6 million in damages for putting Strategic Concepts out of business.

Other Information

FILING DATE: Aug. 25, 2009.

Deliberation

one day

Poll

12-0 (lost profits for breach of contract), 11-1 (for additional damages for destroying plaintiff's business)

Length

11 days