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Owner Did Not Waive Right to Damages by Terminating Design Contract for Convenience

Chinese Hosp. Ass'n v. Jacobs Eng'g Grp., Inc., 2019 BL 330340, 2 (N.D. Cal. Sept. 03, 2019)

Author: Christine Z. Fan

10/25/2019

Read the full post at Constructlaw

Owner Did Not Waive Right to Damages by Terminating Design Contract for Convenience

This case arises out of the alleged breach of contract and defective design for the construction of a new hospital in San Francisco. During construction, property owner and plaintiff Chinese Hospital Association (Chinese Hospital) became aware of alleged defects involving the designs provided by its subcontractor, architect-defendant Jacobs Engineering Group, Inc. (Jacobs). Chinese Hospital terminated its contract with Jacobs for convenience mid-construction.

To complete the project, Chinese Hospital and Jacobs entered into a Termination and License Agreement that allowed for Chinese Hospital to hire a replacement architect. Chinese Hospital ultimately completed the project with significantly increased costs and filed suit against Jacobs.

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