Golden Bay Fence v. Ray Wilson Co.
Published: Sep. 9, 2000 | Result Date: Aug. 7, 2000 | Filing Date: Jan. 1, 1900 |Case number: 97AS05037 Arbitration – $350,235
Court
Sacramento Superior
Attorneys
Claimant
Alan L. Martini
(Sheuerman, Martini, Tabari, Zenere & Garvin)
Respondent
Experts
Claimant
Jax Kneppers
(technical)
M. Patricia Fisher
(technical)
Respondent
David S. Moore
(technical)
Thomas C. Caruso
(technical)
Wiley R. Wright
(technical)
Facts
Defendant Ray Wilson Co. was awarded two prime contracts, exceeding $70 million, from the California
Department of Corrections concerning the construction of the California Substance Abuse Treatment Facility
and State Prison at Corcoron (II). Plaintiff Golden Bay Fence Plus Iron Works Inc. (GBF) was a fencing
subcontractor to Ray Wilson Co.
The plaintiff sued for fraud and intentional misrepresentation, seeking compensatory and punitive damages.
The plaintiff claimed it was owed in excess of $2 million for extra work, labor inefficiencies, loss of bonding
capacity and other consequential damages and statutory penalties under CaliforniaÆs Prompt Payment statutes.
The plaintiff also contended that Ray Wilson Co. forged the subcontract to induce plaintiff to perform extra
work.
Ray Wilson Co. contended that plaintiffÆs claims were inflated; the plaintiff did not suffer any labor over-runs
for which the defendant was responsible; the plaintiff failed to establish any causal link between its claimed
damages and defendantÆs actions; the delays in payments were caused by the plaintiffÆs own inadequate
contract administration. If a subcontract was altered, it was altered by the plaintiff.
The defendant denied all fraud allegations and contended that the plaintiff, and its president, conspired to seek
recovery of monies not due.
Settlement Discussions
As part of the settlement agreement, the plaintiff was paid $400,000 and defendant's potential liability was capped at $1.25 million.
Other Information
<A>An arbitration was held before Zela Claiborne of the American Arbitration Association, resulting in the reported award.</A>
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