Result: Settlement of claims against our client prior to a trial that was in excess of 11 months.

This matter involved alleged construction defects at a 261-condominium project that was initially built in approximately 1970, and subsequently underwent a conversion from 1990 –1996. Plaintiff’s allegations included causes of action for negligent misrepresentation, fraud, and alter-ego claims against the developer entities, including, primarily, our client, Investec Construction, Inc., the general contractor at the project. Plaintiff’s Verified Statement of Claims included a cost of repair estimate in excess of $60 million, while the First Amended Complaint included a prayer for punitive damages against our client. Moreover, plaintiff also alleged that it had already incurred over $4.5 million to remove and replace all the alleged defective cast iron drains and vents at the project, and to remediate all of the mold that had been identified at the project.

Shortly before trial, our firm was able to secure a settlement with plaintiff for $5.5 million, which included an assignment from plaintiff to our client of all direct claims against four subcontractors, which allowed our insurance carriers an opportunity to recover $750,000. Trial in this matter started on January 29, 2003 against approximately 14 non-settling subcontractors, and lasted until December 2003.