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Contract law case in another state settled

When multiple parties sign an agreement that is legally enforceable under California law, it is imperative that they clearly understand the terminology and implications of the agreement before adding their signatures. Otherwise, legal problems may arise down the line if one party accuses the other of not fulfilling his or her obligations in accordance with the agreement. Contract law can be complex and problems may be difficult to resolve; however, it is sometimes possible to settle legal problems out of court, which is what happened in a recent case in another state.  

This particular case involved the vice president of administration services at a community college. He initiated a lawsuit citing several contract billing grievances, as well as issues regarding an alleged conflict of interest of one of the parties. In 2018, the plaintiff’s case was rejected and summary judgment was granted. However, an appellate court judge reversed that decision in early 2021.  

The vice president claimed that improper billing had taken place 

A construction company had installed a new branch to the community college for a price of $40 million. The plaintiff’s claim stated that, instead of paying for supplies out of pocket and billing per hour, the college was billed per square foot and was charged for supplies. The plaintiff also stated that one of the defendants, a former college employee, had hired the construction company even though it was not the lowest bidder for the project. In addition to these issues, the president of the construction company reportedly sat on the college architectural advisory committee. 

All parties agreed to a settlement 

As it turns out, construction litigation was resolved in this case because the parties agreed to settle out of court. The plaintiff has accepted more than $130,000 for emotional trauma and lost wages, as well as monies that will cover his legal fees. It is wise for anyone in California who is considering litigation to resolve a construction contract law issue to consult with an experienced contract law attorney ahead of time, in order to explore what options are available to resolve the issue in the swiftest and most economically feasible manner possible.