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CONFIDENTIAL

Oct. 21, 2003

Contracts
Breach of Contract
Construction Defect

Confidential

Settlement –  $220,000

Court

Santa Clara Superior


Attorneys

Plaintiff

Anthony Marsh
(Law Office of Anthony Marsh)


Defendant

William L. Coggshall
(Gordon & Rees LLP)

Francis Stillman

Rhial N. Devine

John W. Gudgeon

Kelly Michelle Laughrin

Nicholas Pastore

Robert M. Bustamante
(Bustamante & Gagliasso)

Mary K. Acquesta

Gerard K. Carroll

Richard G. Arneal
(Wolfe & Wyman LLP)


Experts

Plaintiff

Bob Leary
(technical)

John T. Holland
(technical)

Daniel Dyckman
(technical)

Defendant

Patrick M. Kelly
(ADR Services Inc.) (technical)

John Wanek
(technical)

Facts

The defendant Anderson & Sweeters constructed a home for the plaintiffs. The subject suit arose from a dispute in which the defendants failed to complete a list of warranty work. The plaintiffs owed the defendants $45,000 on the construction contract and paid half to the defendants upon the defendants' promise to complete a punch list of warranty work. The work was not completed and the plaintiffs withdrew the other $22,750 from a joint escrow account. In addition to numerous items requiring repair, the plaintiffs complained that defective windows and doors were installed in their house. Most of the windows were fogged and doors leaked because of improper installation of thresholds. The defendant, California Classic Windows manufactured the windows and claimed that the defendant, Anderson & Sweeters had not timely painted the windows within ten days of installation so that the windows warped, causing fogging of the windows. The plaintiffs alleged causes of action for breach of contract, breach of express warranty, breach of implied warranty, negligence and strict liability. The defendant, Anderson & Sweeters, cross-complained against the plaintiffs for $22,750 for monies unpaid upon the construction contract and cross-complained against numerous subcontractors. Anderson & Sweeters Construction contended the windows were defectively manufactured and that cross-defendant Gino Rinaldi did not properly install door thresholds.

Settlement Discussions

The case settled for $220,000 plus some minor repairs performed by two cross-defendant subcontractors. The defendant, Anderson & Sweeters, paid $128,000 and $92,000 was paid by various defendants and cross-defendants.

Damages

The plaintiffs claimed damages of $218,500 plus loss of use and attorney's fees. The defendants conceded total repair costs for about $97,000, but wanted a credit for $22,750.

Result

The case settled for $220,000 before Jack Schwartzman, plus some minor repairs performed by two cross-defendant subcontractors. The defendant, Anderson & Sweeters, paid $128,000 and $92,000 was paid by various defendants and cross-defendants.


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