David Textiles Inc. v. JMH Construction
Published: May 25, 2004 | Result Date: Apr. 23, 2004 | Filing Date: Jan. 1, 1900 |Case number: BC304383 Arbitration – $675,537
Court
American Arbitration Association
Attorneys
Plaintiff
Defendant
Experts
Plaintiff
Tyler McLaughlin
(technical)
Steven R. Marvin
(technical)
Charles Montgomery
(technical)
Larry Mclaughlin
(technical)
Facts
The claimant contended that the respondent breached the contracts for the renovation of its property by failing to complete the job, missing deadlines, overbilling and negligently constructing certain aspects of the job. The respondent contended that the claimant breached the contracts by failing to pay the withholding amounts. The claimant had hired the respondent to renovate its property as a showcase for its fabric business. The respondent had drafted various contracts for the work. The contracts all contained a deadline of April 22, 2002 for the completion of the work, or a penalty was triggered to reimburse the claimant for its hold over rent expenses at its old locations. The respondent failed to meet the deadline, forcing the claimant to hold over for three months. The respondent also failed to complete the job, despite numerous "punch lists" from the claimant's moving consultant. The respondent finally obtained a certificate of occupancy in October 2002. The respondent wanted to be paid the final retentions of $105,329 when it obtained final sign off, but the claimant demanded that the respondent complete the punch list before releasing the final monies. The claimant also made the respondent aware of defects in the paving and grading work and wanted the respondent to make repairs. The respondent refused to perform any more work until it received payment, and filed a mechanic's lien and litigation to foreclose on the lien. The claimant demanded arbitration pursuant to the contracts.
Settlement Discussions
The claimant's final offer before the arbitration demand was for mutual releases upon completion of the punch list by the respondent. The respondent's final pre-demand offer was for the claimant to pay the respondent $105,329.
Damages
Before the hearing, the claimant's damage claim was $969,154 plus removal of the mechanic's lien. The respondent's cross claim was for $125,498. After the hearing, the claimant sought $1,232,770 on the claim and the respondent sought $267,634 on the cross-claim. The contracts provided for attorney fees and costs and expenses to the prevailing party.
Result
Arbitration award for the claimant and against respondent on all claims and cross-claims. Respondent to pay claimant $675,537 and to release its mechanics' lien. Respondent to pay claimant for missing the deadline, for failure to complete the work, for overbilling and for construction defects, and to pay claimant attorney fees, expert costs, AAA fees and arbitrator fees.
Other Information
The arbitration was held before Leslie Steven Marks of American Arbitration Association.
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