Palo Alto Unified School District Announces Settlement in Construction Lawsuit

From the Palo Alto Unified School District:

PAUSD Board of Education President, Melissa Baten Caswell, announced at a meeting of the Board held on December 17, 2014, that a settlement has been reached in the lawsuit filed by Taisei Construction Corporation.

The recommended settlement was related to the construction of the Paly Media Arts and Classroom Building Project by Taisei.

The lawsuit against the District, the architect DLM, and the construction manager Gilbane was in the amount of $3,793,000.

The District will pay a settlement to Taisei in the amount of $570,000. The settlement includes the other parties, with both DLM and Gilbane also making payments.

The settlement includes agreement that Taisei will indemnify the District against all potential claims brought by subcontractors and also that Taisei will remain responsible for warranty claims and latent defect claims.

“These buildings opened this past fall and are exceptional additions to the Palo Alto High School Campus. This settlement puts an end to the legal process and attorney fees,” said Superintendent Glenn “Max” McGee. “Even after paying the settlement amount, this project came in under budget and the remaining amount can be put to further improvements on the campus.”

A formal settlement agreement will be available when executed by the parties.

This project included a spectacular high-tech Media Arts Center with nine classrooms, other instructional spaces, and a classroom building with 27 classrooms currently housing mathematics, history, and social science instruction.

This project is a part of the $378 million Strong Schools Bond Program. More information regarding the Strong Schools Bond Program is available in the most recent Annual Report.