ECC Construction Inc. v. Oak Park Calabasas Homeowner's Association
Published: Jul. 6, 2002 | Result Date: May 31, 2002 | Filing Date: Jan. 1, 1900 |Case number: LC032986 Verdict – $7,118,070
Judge
Court
L.A. Superior Central West
Attorneys
Plaintiff
David R. Lira
(Engstrom, Lipscomb & Lack)
Keith D. Griffin
(Girardi & Keese)
Defendant
Experts
Plaintiff
Seb J. Ficcadenti
(technical)
Farhat H. Siddiqi
(technical)
Defendant
Rodney B. Spears
(technical)
Thomas E. Chesley
(technical)
Janet Hickenbottom
(technical)
James Howard
(technical)
John McClung
(technical)
John Opsal
(technical)
Facts
In mid-1994, ECC Construction Inc. entered into a construction contract with the Oak Park Calabasas
HomeownerÆs Assn. to repair the damaged Oak Park condominium complex after the Northridge earthquake.
The contract called for major repairs to the exteriors of all 32 buildings, individual unit interior repair and
foundation repair. The contract price for the repair was $4 million. In a separate scope of work phase of the
trial, the trial court determined that certain "supplemental work" was agreed to through assignment of
insurance proceeds, a value of about $2 million.
The homeownerÆs association stopped making payments on the contract in early 1995, claiming ECC could not
provide sufficient invoices for the work performed. Despite the non-payment, ECC completed the job in April
1995.
ECC brought suit against Oak Park for breach of contract and fraud in July 1995. Oak Park filed a cross-
complaint against ECC for construction defects and fraud. ECC filed a cross-complaint against the framer,
Bednar Building Co., and 30 other subcontractors for indemnity. All subcontractors except Bednar settled
before trial.
Settlement Discussions
The plaintiff submitted a demand of $1 million before filing the suit, and during litigation, $4 million. The defendant made no offer.
Damages
The plaintiff claimed damages for the amounts withheld from the contract and the assignment of the insurance proceeds, which totaled approximately $2.4 million. The plaintiff also sought a sizable amount of interest that had accumulated on the withheld sum over the last seven years of litigation. Finally, the plaintiff requested punitive damages. The defendant Oak Park claimed approximately $3 million in defective work and fraud damages plus interest. Oak Park also sought punitive damages.
Other Information
Near the end of the jury phase, ECCÆs motion for nonsuit on the alter ego theory was granted. Following 90 trial days, the 12-member jury awarded the plaintiff $7,118,073 including $268,000 in punitive damages. Each of Oak ParkÆs claims for construction defect and fraud were denied. On ECCÆs claims, the jury voted 11-1 on every cause of action. The award breakdown was $4,132,434 (breach of contract); $1,170,519 (fraud) and $1,567,120 (failure to pay retention). ECCÆs claim for attorney fees and costs under the contract is currently pending.
Deliberation
14 days
Length
90 days
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