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CONFIDENTIAL

Feb. 6, 1999

Breach of Contract
Construction Contract
Construction Contract

Confidential

Settlement –  $1,390,840

Judge

Edward M. Ross

Mediator

Alexander S. Polsky

Court

L.A. Superior Central


Attorneys

Plaintiff

Alois Peter Jr.


Defendant

Leroy Gire


Facts

This case involved a 1.5 mile section of the Century Freeway (105 Freeway). The electrical subcontractor was hired by the general contractor. The electrical contractor's work mainly related to underground ducts and wiring for the light rail system. The prime contract between the general contractor and the transportation department required that the electrical contractor's claims allegedly caused by the department must be arbitrated directly with the state and those allegedly caused by the general contractor could be brought in a separate action against the general contractor in the Superior Court. The defendant general contractor assigned the right to arbitrate to the subcontractor, who prevailed against the transportation department and won over $1 million including interest and attorney fees; the subcontractor then settled prior to issuance of the Final Award. The defendant contractor made no contribution to the settlement. The subcontractor then filed against the defendant contractor alleging damage for breach of contract, and pursuant to mediation, settled all claims against the defendant for $37,500.

Settlement Discussions

The plaintiff made a C.C.P. º 998 settlement demand for $____________. The defendant made a C.C.P. º 998 offer of compromise for $______________.

Damages

The plaintiff claimed several hundred thousand dollars in damages. The electrical contractor's damage claims included estimating price changes, restocking cost, unallowed discounts, unpaid material cost, increased labor cost, delay damages, extended overhead and lost profits.

Result

Pls. provide the city of locale of experts Dana Haynes ______________, Phil Kiefer _____________

Other Information

The settlement was reached approximatley two years and six months after the case filed. The subcontractor's claims against the transportation department were arbitrated in a five-day arbitration with state appointed arbitrator Alexander Polsky. Based upon a statement of decision by the arbitrator, that case settled for a total of $1,353,341 including $293,793 for lost profits. After mediation of the case between the subcontractor and the prime contractor, that case settled for $37,500.


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