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Contracts
Breach of Contract
Construction Contract

Prudential Construction & Management v. Old Financial District, LP, et al.

Published: Feb. 11, 2003 | Result Date: Jan. 10, 2003 | Filing Date: Jan. 1, 1900 |

Case number: BS079997 Arbitration –  $857,557

Court

L.A. Superior


Attorneys

Plaintiff

Timothy P. Creyaufmiller


Defendant

William W. Steckbauer
(Steckbauer Weinnart LLP)

Joel T. Glassman


Experts

Plaintiff

Gale Powell
(technical)

Facts

The plaintiff, a general contractor, entered into an agreement with the defendant, Old Financial District LP, to repair and renovate three downtown Los Angeles structures to be utilized as residential units (the San Fernando Building, the Continental Building and the Hellman Building). In addition to the construction agreement, the parties also entered into a separate profit agreement. During construction, numerous problems arose as well as changed conditions which delayed completion of the project. In spite of the plaintiff's requests for payment of its increased field overhead costs, the defendants refused. Furthermore, the defendants failed to pay pursuant to the profit agreement and, as a result, the plaintiff was forced to demand arbitration of the dispute.

Settlement Discussions

Other than a walkway, the defendants made no settlement offers. The plaintiff submitted a C.C.P. Section 998 offer prior to arbitration in the amount of $1.1 million.

Result

At arbitration, the plaintiff demanded the amount of $1,672,145 and was awarded a total of $943,596 on its contract claims. The defendant prevailed on a portion of its offset defense in the amount of $562,164, reduced by certain extra-contractual claims asserted by plaintiff at arbitration in the amount of $382,036, for a total net award to plaintiff for $763,468 plus attorney fees in the amount of $60,673 and costs of $19,287, for a total award of $843,429. This amount was increased by the trial court to $857,557 as a result of post award interest, attorney fees and costs. A petition to enter judgment pursuant to the arbitration award was unopposed. An arbitration was held before Kenneth Gibbs of Los Angeles' Gibbs, Giden, Locher & Turner.


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