Confidential
Settlement – $232,500Judge
Court
San Bernardino Superior
Attorneys
Plaintiff
Defendant
Michael G. Martin
(Graves & King LLP)
Experts
Plaintiff
Richard Sinnett
(technical)
Facts
The defendant represented that he was an experienced contractor with respect to high-end and custom homes.
Based on these representations, the plaintiffs contracted with defendant to construct a custom home for
$705,000.
During the course of the construction, the parties agreed to 30 change orders adding approximately $75,000 to
the cost of the home.
The plaintiffs contended that the work was negligently performed and the project eventually abandoned.
Settlement Discussions
The plaintiffsÆ initial demand was their expertÆs estimate of the repair plus overhead for a total of $400,000. CIGA on behalf of York offered zero based on the contention that there is no coverage for willful acts and that most, if not all, of the claimed defects were to the defendantÆs own work product and outside the scope of the policy. The plaintiff countered for $232,000 which was accepted.
Other Information
<M>A mediation was held before Tom Pistone of American Arbitration Association.</M>
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