Gray•Duffy Negotiates Favorable Settlement in Major Water Intrusion Lawsuit with Allegations of Business Interruption Loss

May 2010

Overview

Brian Plessala of Gray·Duffy’s Encino office successfully negotiated a settlement of less than 1% of the original claim alleging property damage and business interruption damages.

Discussion

Eminence Home Health Care, Inc. et al. v. Western Tel Com Development, Inc., et al.

Gray·Duffy represented defendant Western Tel Com Development, Inc., and AT&T as additionally insured.  AT&T was contracted by Western Tel Com to install the base telecommunications station (BTS) unit on the roof of the subject property.  Western Tel Com cross-complained against the subcontractor involved in the construction of the roof framing that supported the BTS unit.  Evidence established that water intrusion and property damage had occurred; however, the nature and amount of damages were vigorously disputed.

The plaintiffs filed their complaint on May 22, 2008, estimating a combined loss of more than $400,000.  After extensive discovery conducted by Mr. Plessala, significant weaknesses in plaintiff’s claims were revealed and the case went to mediation on May 11, 2010.  At that time, the plaintiffs made a settlement demand of $282,503.29.  The plaintiffs eventually lowered their demand to $29,750 to both Western Tel Com and the subcontractor. The plaintiff settled with the subcontractor separately for $7,500 and made a final demand to Western Tel Com for $7,500.  As the case proceeded to trial, the plaintiff eventually accepted Gray·Duffy’s final offer of $2,600.

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.