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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.