Fidelity & Deposit Company of Maryland v. BEGL Construction Company Inc., Mehr Beglari, Vickey Beglari, et al.
Published: Jul. 16, 2005 | Result Date: Nov. 12, 2004 | Filing Date: Jan. 1, 1900 |Case number: BC292493 Verdict – $954,197
Judge
Court
L.A. Superior Central
Attorneys
Plaintiff
Defendant
Experts
Plaintiff
Clarence Kurisu
(technical)
Ashton Goldbar
(technical)
Kenneth E. Bondy
(technical)
Defendant
Lionel Vincent
(technical)
Chukwuma Ekwueme
(technical)
Jordan Rosenfeld
(technical)
Craig Sorensen
(technical)
Facts
Fidelity and Deposit Company of Maryland (F&D) issued a performance bond to BEGL Construction Company Inc. BEGL was a general contractor hired by Los Angeles Unified School District to perform a public works project to repair earthquake damage. Mehr and Vickey Beglari, principals of BEGL, signed an indemnity agreement with F&D. In 2002, the school district terminated BEGL and made a claim against the bond seeking to have F&D complete the project. The school district claimed that concrete work performed by BEGL was flawed. F&D conducted an investigation before taking over the project. F&D sued BEGL and the Beglaris for reimbursement of costs associated with completion of the project. BEGL filed a cross-complaint against F&D for loss of bonding capacity and loss of business profits associated with how the claim was handled. BEGL also sued the school district for breach of contract damages. The school district cross-complained against BEGL and Star Insurance Company for breach of contract, damages caused from delays, increased project costs and damages under the state False Claims Act. The school district countered that BEGL caused the defects to the concrete walls and failed to perform its work in a timely manner.
Settlement Discussions
BEGL demanded $1.2 million. The school district offered 0.
Damages
F&D claimed damages in the sum of $400,000. BEGL sought a reduced sum of $1.2 million in damages. The school district sought over $200,000 in damages.
Result
The jury awarded $954,197 to BEGL and $1 to LAUSD's cross-complaint. The jury determined that BEGL and LAUSD breached the contract. The jury did not find that LAUSD liable for breach of implied warranty of the corrections of plans and specifications. The jury did not find BEGL liable for False Claims Act violations.
Other Information
The matter is on appeal and cross-appeal.
Deliberation
1.5 hours
Poll
11-1
Length
nine days
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