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Settlement – $50,000Facts
The plaintiff, a municipal water district, entered into an agreement with the defendant developer for the construction of a tank and pump station. The defendant developer obtained, and the defendant surety provided, a performance bond with the defendant district listed as an obligee. When the developer defaulted in completion and abandoned the project prior to completion, the district stepped in and completed the project at its own expense. The district sought compensation for its expenses under the bond. The plaintiff brought this action against the Surety and the developer defendants based on breach of contract and mechanic's lien theories of recovery. The developer defendants defaulted.
Settlement Discussions
The plaintiff made a settlement demand for $77,000. The defendant made a settlement offer of $20,000.
Damages
The plaintiff claimed an economic loss of $150,000 as a result of completion of construction of the water facilities project.
Other Information
A mediation was held on March 26, 1996 before Glen Buchanan. It did not resolve the matter.
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