Confidential
Settlement – $400,000Judge
Court
Riverside Superior Indio
Attorneys
Plaintiff
Defendant
Experts
Plaintiff
Paul Cunningham
(technical)
Ron Schaeffer
(technical)
Defendant
Robert Krieger
(technical)
Johan Perslow
(technical)
Facts
The plaintiff/cross-defendant corporation was in the business of building man-made lakes, generally for the golf course industry. In 1990, the defendant/cross-complainant, purchased 16+ prime acres of residential property in Rancho Mirage with the intent of building his personal retirement residence thereon. In 1991, the defendant contracted with the plaintiff to construct various lakes and streams on the parcel in an effort, ultimately, to develop his personal residence on an island shaped in the form of his homeland, Crete. The defendant wanted his residence surrounded by multiple lakes, including bridges and fish habitats. After the plaintiff had nearly completed the rough grading on the the project, the job was shut down by city officials alleging that the grading was not proceeding pursuant to the approved grading permit. As a result, the defendant ultimately filed a lawsuit against the city of Rancho Mirage, attempting to get the stop-order lifted. He was successful in doing so nearly a year later, in July 1992. In the interim, the defendant refused to pay the plaintiff for the work performed during the 30 days preceding the shutdown. The plaintiff, the lake-builder, brought this action against the defendant, the land owner, based on breach of contract and common count theories of recovery. The defendant cross-complained against the plaintiff based on negligence.
Settlement Discussions
On the eve of trial, the plaintiff/cross-defendant indicated a willingness to dismiss the action upon payment of a nominal sum and a waiver of costs and attorney's fees. The defendant/cross-complainant demanded that he be paid $400,000.
Damages
The plaintiff sought $212,000 in damages. The cross-complainant sought $920,000 in damages.
Other Information
The settlement was reached approximately four years and 10 months after the case was filed, following a jury verdict (in a second trial of the matter) of $212,129 plus prejudgment interest and attorney's fees in favor of the plaintiff on the complaint. The jury in that trial found 12-0 that the defendant breached the contract. In 1994, the case was initially settled after 10 days of trial. That settlement resulted in a judgment being entered in favor of the defendant and against the plaintiff in the sum of $1.7 million. That settlement was set aside on appeal, resulting in the reported retrial and subsequent settlement.
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