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Construction
Breach of Fiduciary Duty

St. Francis Bay-One Crescent Way Condominium Owners Association v. St. Francis Bay Inc., Top Vision Development, James E. Roberts-Obayashi Corp. and Bay City Mechanical Inc., Broadway Mechanical Contractors Inc., Hanson Glass and Mirror Co., North Bay Waterproofing, S. Nava & Son Plastering Co. Inc.

Published: May 4, 2013 | Result Date: Mar. 29, 2013 | Filing Date: Jan. 1, 1900 |

Case number: CGC-11-515334 Settlement –  $2,800,000

Court

San Francisco Superior


Attorneys

Plaintiff

Thomas E. Miller
(Miller Law Firm)

Rachel M. Miller
(Miller Law Firm)


Defendant

Arthur S. Moreau III
(Klinedinst PC)

Edward C. Schroeder Jr.
(Selman Breitman LLP)

James Andrew Melino

Richard George Arneal

Truman Phan-Quang

Edward C. Schroeder Jr.
(Selman Breitman LLP)

Steven M. Cvitanovic

Chijeh Hu

Dale B. Goldfarb


Facts

St. Francis Bay-One Crescent Way Condominium Owners Association filed a construction defect lawsuit against several defendants, including St. Francis Bay Inc., Top Vision Development, James E. Roberts-Obayashi Corp. and Bay City Mechanical Inc., Broadway Mechanical Contractors Inc., Hanson Glass and Mirror Co., North Bay Waterproofing, S. Nava & Son Plastering Co. Inc.

The Association managed and maintained a 64-unit building near Candlestick Park that was completed in 2001. An investigation revealed significant construction defects, including insufficient and dangerous exterior column that supported elevated walkways. Forensic experts also discovered significant dry rot, moisture, and even a bottle of soda left in the column.

Contentions

PLAINTIFF'S CONTENTIONS:
Plaintiff contended that failed builders repairs led to the investigation of the construction defects. The walkways were deemed immediately unsafe, requiring an emergency shoring.

DEFENDANTS' CONTENTIONS:
Defendant claimed that water intrusion at the exterior elevated walkways was discovered in 2007 and repairs were attempted in good faith. A subsequent investigation revealed, however, new and on-going damage to exterior columns that supported the elevated walkways.

Result

The Association agreed to settle the claim for $2.8 million.

Other Information

There was no payment by defendant Top Vision Development.


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