CV 100030, Pacific Mechanical Corp. v. City of San Luis Obispo, filed 1/21/10

Defendant/Cross-complainant’s Attorneys:  David M. Cumberland & Joshua M. George

Verdict: $224,662.78 on cross-complaint               Dept. 9, Hon. Charles S. Crandall

Plaintiff was hired by Defendant in 2003 to build a water reclamation facility at a cost of $5.4 million with performance of the contract to be completed within four hundred days.  Completion of the project was postponed by six hundred days.  Defendant granted change orders worth $600,000 and made final payment of $4.8 million.  Plaintiff submitted payments requests totaling $1.2 million that included $750,000 for additional change order charges, as well as payment requests for $2.5 million in delay and disruption charges, not including claims for attorney’s fees, interest and penalties.  Defendant cross-complained alleging that Plaintiff did not maintain construction scheduling, failed to employ qualified superintendents, failed to increase manpower to achieve completion and failed to submit narrative reports of construction progress.  Defendant/cross-complainant alleged increased costs in excess of $1.5 million associated with the six-hundred-day delay.  After twenty-seven days of trial testimony, the jury found for Defendant/cross-complainant, awarding $102,850.82 for failure to timely perform  and $121,811.96 for failure to perform work competently.  Defendant/cross-complainant made a pre-trial offer of $300,000 that included a waiver of the cross-complaint claims.  During trial, Plaintiff/cross-defendant made a settlement demand of $4.5 million.  Post-verdict, court ordered attorney's fees of $527,483.65 and costs of $150,330.68 for City of San Luis Obispo.

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