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CONFIDENTIAL

Feb. 27, 1999

Contracts
Breach of Contract
Delayed Damages

Confidential

Settlement –  $106,020

Judge

Kenneth R. Freeman

Court

L.A. Superior Central


Attorneys

Plaintiff

Mark A. Feldman
(Feldman & Associates Inc)

Jeffrey Lewis
(Jeff Lewis Law APC)


Defendant

Ralph T. Evans

Samuel J. Muir

Craig D. Guenther

Tomas A. Guterres
(Collins Collins LLP)

David M. Orbach

Debra Braasch


Facts

The defendant school district (the district) received $25 million from the State of California to modernize its schools. The district competitively bid, and in some cases re-bid each modernization project multiple times to ensure it received the lowest possible contract price for each school. 12 general contractors were awarded contracts to modernize 16 separate schools. The plaintiff was the lowest bidder for two school district's elementary school project (the projects). The plaintiff entered into a contract with the district to serve as the general contractor for the projects. On Aug. 26, 1996, the plaintiff filed a complaint against the district to recover its unpaid retention and delay damages resulting from the district's breach of the contract with the plaintiff. The district filed a cross-complaint against the plaintiff and its surety alleging damages from incomplete work, a claim for liquidated damages and violations of California's False Claims Act. The district's cross-complaint also named the project manager as a cross-defendant. A number of cross-complaints were then filed by and between the project managers, project architects, and inspectors of record. The plaintiff brought this action against the defendant based on breach of contract.

Settlement Discussions

The plaintiff made a C.C.P. º998 settlement demand for $________. The defendant made a C.C.P. º998 offer of compromise for $______________.

Other Information

The settlement was reached approximately two years and three months after the case was filed. A mediation was held on March, 2, 1998, before Kenneth Gibbs, resulting in no settlement.


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