Facts

ASR Constructors Inc. contracted with the Defendant Riverside County Regional Park District ("district") to build Phase 2 of the Rancho Jurupa Park Expansion Project ("project"). The project, when complete, resulted in a park for camping in recreational vehicles. The district agreed to pay ASR approximately $8.5 million for the construction. ASR's work consisted primarily of underground sewer and water lines, recreational vehicle roadways, campsites and hookups, along with water play area.

ASR had recently built Phase 1 of the project, at which time very little underground water was detected.

At the time of the construction, ASR encountered underground water as high as 18 inches below the surface. The existence of this water dramatically increased the price of the underground construction (some of which was to be performed at over 20 feet below the surface).

When the district refused to pay for the added costs associated with the existence of underground water, ASR completed the work and filed suit to recover the cost increase.

PLAINTIFF'S CONTENTIONS:
ASR contended that its bid would have been materially altered if the district had disclosed that the underground water was at levels of three to seven feet below the surface. ASR claimed that it was unaware of the high water level and that the district had superior knowledge because it had obtained a soils report that was never shared with ASR.

DEFENDANT'S CONTENTIONS:
The district contended that it warned bidders to expect a high ground water table, and ASR should have performed its own investigation of the underground water level, and that the district was not responsible for the increased costs to ASR due to the high water level.

Result

After a full day of mediation with Hon. John W. Kennedy, retired, the district paid $750,000 to ASR.

Other Information

FILING DATE: July 30, 2010.