S.D. Deacon Corp. of California v. Wal-Mart Stores Inc.
Published: Mar. 5, 1998 | Result Date: Dec. 22, 1997 |Case number: 29801 Bench Verdict – $1,805,940
Judge
Court
Lake Superior
Attorneys
Plaintiff
Defendant
Facts
In 1993, plaintiff S.D. Deacon Corp. of Calif. (Deacon), the general contractor, contracted with Wal-Mart Stores Inc. (Wal-Mart) for construction of a Wal-Mart store in Clearlake. The plaintiff's excavation and earthwork subcontractor was Garrison Construction Company Inc. (Garrison). Although Deacon constructed the entire Wal-Mart project, the claims and disputes arose principally from the excavation and earthwork performed by Garrison. Garrison alleged that the earthwork was a much more difficult job than Wal-Mart represented and Garrison sought compensation for additional expenses. Deacon brought this action against Wal-Mart based on contract and tort theories of recovery. Garrison's cross-complaint against Wal-Mart alleged causes of action in tort for fraudulent misrepresentation, negligent misrepresentation, intentional interference with economic relations, and negligent interference with economic advantage. Garrison also stated a contract cause of action against Wal-Mart as a third party beneficiary of the prime contract.
Settlement Discussions
A settlement conference was held in January 1996. Demands were made for settlement in the range of $1 million; Per plaintiff, Wal-Mart made no offer approaching the demand.
Damages
Garrison sought to recover compensatory damages from Wal-Mart in the amount of approximately $1.4 million, plus punitive damages. Deacon sought $350,000 in damages.
Result
The plaintiff and cross-complainant were awarded compensatory damages for breach of contract, plus statutory interest. The plaintiff was also awarded statutory penalties and nominal attorney fees under Civil Code ºº 3260 and 3260.1 for Wal-Mart's withholding of undisputed retention payments. Neither Deacon nor Garrison prevailed on their tort claims.
Other Information
The decision was reached approximately two years and six months after the case was filed. The case was initially decided on June 23, 1997. Wal-Mart filed a Notice of Appeal but failed to perfect its appeal, and it was dismissed. Thereafter, Wal-Mart requested relief from the dismissal of the appeal in the Supreme Court, which was denied in Decemeber 1997.
Length
eight days (Bench Trial)
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