Gray•Duffy Negotiates Favorable Settlement in Construction Defect Arbitration Claim for 3.3% of Original Claim

April 2010

Overview

Patrick Roberts of Gray·Duffy’s Encino office obtained a significant settlement in a high stakes commercial construction defect arbitration matter involving specialized waterproofing for a large commercial building.

Discussion

The plaintiff was the owner of a large commercial building in Los Angeles with a subterranean space used for a large retail operation.  Mr. Roberts’ client, a specialty waterproofing contractor, provided the subterranean water-proofing installation pursuant to the engineers’ plans and specifications.  The plaintiff contended that the building was so dramatically impaired that it had a minimal useful life, and at arbitration, the plaintiff’s “blackboarded” total damages related to water intrusion issues were in excess of $15 million. 

The matter was arbitrated over a period of 13 days, after months of expert depositions on the issues relating to the technical nature of the plans and specifications for the waterproofing installation.  The original demand to Mr. Roberts’ client was $3.9 million prior to arbitration.  After the commencement of arbitration, the parties continued to mediate the issues, resulting in the firm’s client paying 3.3% of the “blackboarded” demand provided by the plaintiff at arbitration.

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.