Congratulations to Partner Patrick Au on his excellent Arbitration result. The subject action pertains to a redevelopment project involving three large commercial buildings in downtown Los Angeles. BWB&O’s client contracted with the general contractor to design and install new fire protection systems for the project. During hydrostatic testing of the system, a fitting failed, causing a release of water in one of the buildings, resulting in the postponement of permanent power to that building.
The general contractor argued that the subject incident caused a ninety-day (90) delay in obtaining a Temporary Certificate of Occupancy (“TCO”) for the entire project. Through documentary evidence and witness testimony, Mr. Au was able to establish that permanent power was not on the critical path and that there were other concurrent delays on the project, which were the driving force in obtaining TCO. Ultimately, the Arbitrator found that the subject incident did not delay obtaining TCO for the project at all.
The general contractor sought approximately $2.9 million in damages. The Arbitrator awarded approximately $250,000 for direct repair costs associated with the subject incident, which was uncontested prior to the Arbitration.