Approve Acceptance of Settlement Agreement With Ellis Construction Co. and Related Parties for Defects in the Construction of Deer Park and Oak Park Elementary Schools 

On January 15, 2013, the Board approved the filing of a lawsuit against Ellis Construction Co., The Architectural Practice, Inc. and any and all related sureties and insurers for breach of contract, breach of warranty and other claims related to the construction of Deer Park and Oak Park Elementary Schools. The District engaged Broad and Cassel, one of the Board’s authorized outside counsel for construction law matters, to assist with the litigation.

Pursuant to court directed mediation, Ellis Construction Co. and their related sureties and insurers have agreed to compensate the District in the amount of $950,000, representing approximately fifty percent of the construction costs incurred by the District in remediating the defective work. Staff recommends acceptance of the settlement offer and approval of the attached settlement agreement. The District's lawsuit against The Architectural Practice, Inc. and related insurers is not affected by this settlement and is proceeding to trial.

The Settlement Amount recommended for approval is $950,000.