Confidential
Settlement – $87,500Court
L.A. Superior Burbank
Attorneys
Plaintiff
Defendant
Facts
This matter arises from an earthquake repair project in Studio City. The plaintiff is a general contractor who entered into a contract with the former property owners to demolish and reconstruct their earthquake-damaged home. There were various extras and change orders on the project. At some point during the construction work, the former owners of the property entered into an agreement to convey the property to the new owners. The said agreement was not disclosed to plaintiff. In October 1997, the defendant former owners unilaterally cancelled the construction contract and revealed that the property had been conveyed as part of the insurance bad faith settlement with the former owners' earthquake insurer. The plaintiff thereafter recorded a mechanic's lien with respect to the property and commenced an arbitration pursuant to the construction contract against the former owners. When the lien ripened, plaintiff also filed suit against the new owners in order to foreclose on the property. The plaintiff brought this action against the defendant based on breach of contract, quantum meruit and recovery on mechanics lien.
Settlement Discussions
The plaintiff settled the action to foreclose the mechanic's lien with the new owners of the property for $22,500. The new owners of the property cross-complained against the former owners of the property for non-disclosure and settled with them for $25,500. The plaintiff thereafter demanded that the former owners pay it an additional $74,537.28. The former owners offered $65,000 in new money, which was accepted.
Other Information
An arbitration was held on ___/____/19_____ before ______________ (name) of American Arbitration Association resulting in __________________ .
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