Gray•Duffy, LLP creative negotiation strategy leads to favorable settlement on behalf of contractor involved with the construction of a private golf course.

January 2014

Overview

Michelle MacDonald of Gray•Duffy’s Encino office obtained a favorable resolution on behalf of a contractor defendant for an amount representing merely 15 percent of the total settlement.

Discussion

Grizzly Creek v Pacific Aquascape This case involved the construction of a private golf course in Portola, CA in 2004. Gray•Duffy’s client was responsible for the installation of a covered bridge traversing an artificial pond incorporated into the golf course. Immediately adjacent to the bridge was a water feature in which water percolated through a small wall of artificial boulders. The plaintiff claimed that the foundation of the water feature settled, allowing water to escape which in turn further undermined the pond liner, bridge and adjacent structures. Specifically, the plaintiff investigated the distress to the waterfall feature and concluded that it was the result of water seepage below the pond membrane liner caused by defective design specifications, materials and faulty construction of the water feature and pond. The contractor responsible for the pond asserted that Gray•Duffy’s client caused the issues by damaging the pond liner during construction and installing a foundation which failed and placed stress on the adjacent structures including the pond. Gray•Duffy established during the litigation that the damage was caused by the work of another subcontractor and the damage to the liner was the result of poor design. It was also determined that the plaintiff may have waived certain damages as a result of a subsequent sale of the premises. The case resolved for approximately one fifth of the claimed damages and Gray•Duffy’s client paid only 15 percent of that figure, which was the least amount from the five settling parties on the defense side.

Please Note: This article is necessarily general in nature and is not a substitute for legal advice with respect to any particular case. Readers should consult with an attorney before taking any action affecting their interests.