Palo Alto: School district to pay $570K to settle lawsuit
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Daily News Staff Writer
Updated: 12/18/2014 08:19:19 AM PST
The Palo Alto Unified School District announced Wednesday it will pay $570,000 to settle a lawsuit brought against it by Taisei Construction Corp.
The Santa Clara-based firm was hired in 2011 to construct a high-tech media arts center and a two-story math and social studies building at Palo Alto High School. Completed earlier this year, the project was part of the district’s $378 million Strong Schools Bond Program.
Taisei filed a $25 million claim against the district in April 2013, but ultimately sued for roughly $3.8 million. The firm said it was entitled to costs associated with numerous changes the district made to the project.
The suit also named San Francisco-based project architect Deems Lewis McKinley and San Jose-based construction manager Gilbane Building Co. They will contribute to the $570,000 settlement, according to a district news release.
Under the terms of the agreement, Taisei will indemnify the district against all potential claims brought by subcontractors, as well as remain responsible for warranty and latent defect claims.
"These buildings opened this past fall and are exceptional additions to the Palo Alto High School campus," Superintendent Glenn "Max" McGee said in a statement. "This settlement puts an end to the legal process and attorney fees. Even after paying the settlement amount, this project came in under budget and the remaining amount can be put to…