Facts

Plaintiff owned approximately 40 acres of undeveloped land in Bakersfield that was being used as a sand quarry or borrow pit. It entered into a contract for the exchange of real property with the City of Bakersfield in which plaintiff was to fill and grade the pit on the property and put it in farmable condition. After plaintiff performed the grading, the city refused to complete escrow and complete the exchange.

PLAINTIFF'S CONTENTIONS:
Plaintiff contended that it performed the grading in accordance with the grading plan but that the city failed to perform its obligations under the contract and complete the exchange.

Plaintiff sued the city for breach of contract, breach of the covenant of good faith and fair dealing, declaratory relief, specific performance, inverse condemnation, and violation of civil rights under 42 U.S.C. Section 1983.

DEFENDANT'S CONTENTIONS:
Defendant contended that the contract between the parties contained language permitting the city the right to request additional grading if the work was not performed to its satisfaction, and that in this case plaintiff failed to perform the work in accordance with its instructions.

Settlement Discussions

Plaintiff made a $10 million demand and the defense made a CCP Section 998 offer for $25,000.

Result

The jury returned a defense verdict.

Other Information

FILING DATE: March 21, 2008.