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Business Law
Breach of Contract
Breach of Warranty

Information Systems and Network Corporation (ISN) v. Securacom, Inc. and SMF Systems, Inc., et al.

Published: Feb. 1, 1997 | Result Date: Jul. 19, 1996 | Filing Date: Jan. 1, 1900 |

Case number: 388933 –  $0

Judge

H. James Ellis

Court

San Mateo Superior


Attorneys

Plaintiff

Robert Ted Parker


Defendant

William T. Eliopoulos


Facts

In 1992, plaintiff information Systems & Networks Corporation (ISN) was the general contractor for the construction of a computerized security system at Oakland International Airport. The plaintiff claimed that defendant Securacom Inc. breached its warranty in preparing the bid specifications and drawings; and that the defendant's design was defective, causing the plaintiff extra work and lost profits. The defendants, Securacom Inc. (the design consultant) and SMF Systems (the equipment manufacturer), denied any liability to the plaintiff. The plaintiff brought this action against the defendants based on breach of contract and breach of warranty theories of recovery.

Settlement Discussions

The plaintiff made a C.C.P. º998 settlement demand for $3 million. The defendants made a C.C.P. º998 offer of compromise for $25,000.

Damages

The plaintiff claimed $3 million in lost profit damages.

Other Information

The verdict was reached approximately three years and seven months after the case was filed. SETTLEMENT CONFERENCE: A settlement conference was held on May 17, 1996 before John R. Griffiths. It did not resolve the matter. The court severed the defendants' defense that ISN was not properly licensed by the California Contractor's State License Board at all times during the project. This defense was tried first to a jury, which delivered a defense verdict, precluding any damage claims by the plaintiff against the defendants. The issue presented to the jury was whether the license issued to ISN by the Contractor's State License Board was valid. The existence of a license was held not to be determinative of whether it was valid. The plaintiff's motion for substantial compliance with statutes was denied.

Deliberation

2 hours

Poll

10-2

Length

5 days


#79165

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