Hunt Ortmann Represents Mallcraft Inc. in a US $15 Million Settlement against the Glendale Community College District
LOS ANGELES – May 28, 2019 – John D. Darling, Omel A. Nieves, Jennifer Tung, and Paul J. Rogoff of Hunt Ortmann Palffy Nieves Darling & Mah, Inc., achieved a significant settlement on behalf of its client, general contractor Mallcraft, Inc., against the Glendale Community College District. Mallcraft sued Glendale after the school district terminated it in 2016 for allegedly falling behind schedule in constructing a new $37 million dollar classroom building.
Led by Messrs. Darling and Nieves, Hunt Ortmann analyzed hundreds of change orders, requests for information, drawings, specifications, and project schedules in order to expertly navigate through, and convincingly present, dozens of complex issues ranging from scheduling disputes to HVAC design. Working in tandem with exceptional experts, and with unparalleled client cooperation, Hunt Ortmann persuasively argued that Mallcraft was entitled to more time to complete the project, and that Glendale terminated Mallcraft without cause.
Glendale settled the case for nearly $11 million dollars after the first week of a four-week arbitration. Prior to arbitration, Glendale had also agreed to pay approximately $4 million dollars for work Mallcraft completed, but for which it had not been paid—bringing Mallcraft’s total recovery to nearly $15 million dollars.
As quoted in the May 29, 2019 issue of the Daily Journal, Darling added, “This was a successful effort to save a 50-year-old company in the San Gabriel Valley and the people that work there, who are very good people. That was a [great] outcome for Mallcraft and, I think, ultimately a good outcome for an important community icon, Glendale Community College District.”
Based in Altadena, California, Mallcraft was founded over fifty years ago by its Chairman, Gerald Fishbein, who recently celebrated his 89th birthday. Mr. Fishbein’s daughter, Beth Hansen, serves as Mallcraft’s President. Mallcraft had never been terminated from a project prior to its wrongful termination by Glendale.
The Glendale Community College District is a constituent community college district of the California Community College System that serves the cities of Glendale and La Crescenta-Montrose. It is governed by a five-member elected Board of Trustees, responsible for policies and regulations for the district.
About Hunt Ortmann Palffy Nieves Darling & Mah, Inc.
Based in Pasadena, Calif., Hunt Ortmann is one of the foremost authorities on California construction law, contracts, dispute resolution and litigation. In addition, the firm offers a host of complementary legal and business services aimed at assisting clients with employment and labor counseling, insurance, real estate and other commercial issues. For nearly five decades, Hunt Ortmann’s team has applied their multi-faceted understanding of the construction space and related industries on behalf of clients that include developers, general contractors, subcontractors and materials suppliers, as well as public and municipal entities, among others.