I.W. Bison litigation April 8, 2008, Emeryville, CA

http://www.emerybayvillage.com/4.08%20Disclosure%20of%20Commencement%20of%20Arbitration%20Proceedings..pdf

This is the html version of the file http://www.emerybayvillage.com/4.08%20Disclosure%20of%20Commencement%20of%20Arbitration%20Proceedings..pdf.Google automatically generates html versions of documents as we crawl the web.Page 1Z,™L,,com LAW OFFICES OF ANN RANKIN ™ l£$ÌTZ3911 HARRISON STREET, OAKLAND, CA 94611 central areaTERRY WILKENS TEL: (209)441 -0490twilkens@arairankin.com „,„„„,_„ , .WEBSITE: www.annrankin.com toll freeUSE STROM E-MAIL: info@annrankin.com TEL: (800) 354-4529Is tro m (rtiannraiikin.comApril 8, 2008MembersEmery Bay Village Homeowners' AssociationC/o Ms. Michelle NewWalsh Property ManagementP.O. Box 2657Castro Valley, CA 94546Re: Disclosure of Commencement of Arbitration ProceedingsDear Association Members:I am writing this letter as general counsel for Emery Bay Village Homeowners'Association to disclose the commencement of arbitration proceedings by theAssociation as Petitioner against I.W. Bison, the Construction Manager for theAssociation's recent remedial exterior work, and against G.B. Group, the generalcontractor for the work, as Respondents.The arbitration is pending before the American Arbitration Association, asrequired by the contracts between the Association and the Respondents.

Following the conclusion of the remedial work, the Association experiencednew water intrusion problems and other issues that had not manifested before thework was performed, and questioned the manner in which some of the work hadbeen performed. The Association obtained a report from a consultant recommendedby I.W. Bison; the consultant, Mr. Jack Wiecks, indicated that some of the work hadbeen done incorrectly. However, since Mr. Wiecks has an ongoing businessrelationship with I.W. Bison, Mr. Wiecks declined to provide the Association withfurther assistance.

The Association then sought the assistance of Mr. Michael Hirsch of AppliedMaterials and Engineering In Oakland, a well-recognized local constructionconsultant. Mr. Hirsch made a detailed study of the construction documents and ofRespondents' work on-site, and issued a written report finding that the work of bothBison and G.B. Group was done below the applicable standard of care. Mr. Hirschassisted the Association to obtain a bid from a reputable contractor for the requiredcorrective work. The bid was for a significant amount, in excess of $3,000,000. As aresult, the Association initiated an arbitration against the Respondents. By thearbitration proceeding, the Association is seeking funds to remedy the defective workPage 2Emery Bay Village HOA4/8/2008Page 2and legal fees.Prior to initiating the request for arbitration, the Association, through legalcounsel, had contacted Bison and G.B. Group in writing to inform them of theproblems and to request negotiation or mediation. Bison responded by blaming theBoard of Directors for all of the problems; Mr. Hirsch's findings were that Bison'sposition in this regard was unjustified. G.B. Group did not respond to the letter at all.Arbitration is a private proceeding. An arbitrator is appointed to conducthearings, listen to testimony, review documentary evidence, and make a bindingaward. The arbitrator's award can be converted into a judgment through a summarypetition to Superior Court. Arbitration is usually considerably faster than formallitigation, because the parties don't have to wait for a courtroom and a judge tobecome available. The parties can select an arbitrator who is an architect or who hasother technical expertise in the construction industry, and who may, therefore, bebetter able to understand the technical issues of the case than a judge or a jurycould.The Association's claims have not yet been proven, and we expect Bison andG.B. Group to deny them, to blame the Association for the problems, and/or tosuggest that any remedial work can be done at a lower cost than that suggested bythe Association's contractor, and/or to contend that the requested work is normalmaintenance and is not indicative of defective construction. I believe that theAssociation's consultants are skilled and reputable, and will assist the Association toput on an effective case.The Association intends to conclude this proceeding as quickly as possible,and to do its best to recover money from the Respondents in order to get funds fromthem or from their insurers to remedy the problems with the work. I will continue toprovide you with written updates concerning the status of this matter. TheAssociation's budget does not permit me to answer questions from individual owners,so if you do have any questions, please direct them to the Board of Directors or tothe Manager, and they can contact me if they require assistance to answer yourquestions.Very truly yours,LAW/eifFICEjÎO^ANN RANKINAnn Rankin