Facts

On Aug. 18, 2000, plaintiff Laborers' International Union of North America Local 261 AFL (Union) executed a written agreement with defendants AeroSea Corporation and Dennis Ho for a building project located at 3251 18th Street in San Francisco. The project centered around the construction of an office tower with approximately 49,950 square feet and 87 parking spaces. Defendants agreed to finance, design, and construct the project. Per their agreement, defendants would locate a credit-worthy tenant to pre-lease 60 percent of the building.

PLAINTIFF'S CONTENTIONS:
Union contended that AeroSea and Ho falsely represented that they had special expertise in financing this type of project and that the project could be constructed within Union's requested budget. Union argued that AeroSea and Ho's actions caused them to be unable to construct the project and AeroSea and Ho knew that the project was not financially viable when it signed the contract.

DEFENDANTS' CONTENTIONS:
Defendants denied the allegations.

Damages

Union sought damages in the amount of $2.7 million in various fees paid for the project and $373,752 in attorney fees.

Result

Union agreed to a settlement in the amount of $797,767 which included damages and prejudgment interest, and to which AeroSea and Ho are jointly and severally liable.

Other Information

FILING DATE: Oct. 14, 2005.