During construction of the County of San Mateo Health Center, legal disputes arose for which it was beneficial to consult with attorneys specializing in construction litigation. Your Board previously authorized an agreement with the law firm of Farella Braun & Martel, and, in particular, Alan Harris of that firm, to provide such expertise. A lawsuit was filed by the engineering consultant to the architects alleging that they are owed fees in connection with the hospital construction and the architect has cross-complained against the County. The County has responded to this suit and also filed a cross-complaint alleging negligence in the architect's provision of services. Mediation was attempted but was unsuccessful. Trial was originally set for October 19, 2001 in Alameda County, but has been postponed to March, 2003. The suit is currently in the discovery phase, which has involved a large amount of time in categorizing and providing the extensive number of documents. In addition, expert consultants have been hired to examine the issues related to the quality of the services provided by the architects and the mechanical engineers. This lawsuit, and in particular the extensive depositions and the need to go to trial after the refusal of the plaintiffs to settle, has increased the expected cost of the agreement with the law firm. With the expected cost of discovery prior to trial estimated to be an additional $500,000, this amendment raises the maximum amount payable under the agreement from $1,250,000 to $1,750,000 |
