Facts

In 2005, plaintiff Healdsburg Unified School District contracted with defendants to construct a new elementary school campus in Healdsburg. Wright Contracting Inc. hired a number of subcontractors to perform the construction work at the elementary school campus.

Plaintiff filed suit against Wright Contracting Inc. and the subcontractors as well, including Andy's Roofing, B&L Glass, Able Engineering, Richard Hancock Inc., Young Builders, M. Perez Co. doing business as Henley & Co., Trahan Mechanical, and Idex Global Services Inc., Devincenzi Concrete Construction, Danco Waterproofing, HMC Architects.

PLAINTIFF'S CONTENTIONS:
Plaintiff filed suit alleging defective construction with respect to stucco, roofing, windows, and drainage sloping at Healdsburg Elementary School, Fitch Mountain Campus. Plaintiff contended that storefront window assemblies were installed without end dams and that this error caused water to intrude into the school buildings. Plaintiff further contended that stucco was not adequately embedded into the lath wire and, therefore, was not installed per plans and industry standards. Plaintiff further alleged that various other defective assemblies at the school, including roofing and flat work, contributed to water intrusion.

DEFENDANTS' CONTENTIONS:
Defendant claimed that the alleged defects at the elementary school were minor and argued that if any defects had existed, these defects had been repaired previously or could be repaired at a very minimal cost.

Defendants further contended that stucco was adequately embedded in the lath wire and that the stucco system was performing well without any evidence of cracking or water intrusion. Defendants also contended that the statute of limitations had expired by the time the lawsuit was filed by plaintiff.

Damages

Plaintiff sought recovery of the cost of repair and investigative costs (Stearman). Defendants claimed the cost to repair all the defects alleged by the school district at the elementary school totaled less than $200,000.

Result

Defendants paid $3 million to the Healdsburg Unified School District to settle the case on the eve of jury trial. The settlement breakdown is as follows: $300,000 from Wright Contracting, $290,000 from Able Engineering dba Able Paving, $350,000 from B & L Glass Co., $175,000 from Danco Waterproofing, $350,000 from DeVincenzi Concrete Construction, $800,000 from M. Perez Co. dba Henley & Co., $50,000 from HMC Architects, $150,000 from Andy's Roofing Co. Inc., $197,500 from Trahan Mechanical Inc., $52,500 from Richard Hancock Inc., $50,000 from Idex Global Services, $125,000 from Young Builders, and $110,000 from Navigators Insurance Co.

Other Information

FILING DATE: June 27, 2012.