On
October 26th, 2007, a three member American Arbitration Association panel unanimously found the
Pennsbury School District liable for wrongfully terminating and breaching its contract with Milestone Construction Management, Inc. and wrongfully withholding payments to Milestone in bad faith. The
Bucks County, Pennsylvanian school district was ordered to pay over
$1,000,000.00 in damages to Milestone and to Milestone's bonding company. In addition, the panel ordered the school district to indemnify Milestone in an amount not to exceed
$333,352.39 for payments made by the bonding company to several of Milestone's subcontractors and suppliers. On
December 30, 2008, the court granted Milestone Construction Management's Motion to Compel Pennsbury School District to proceed back to arbitration to finalize the claim of indemnity based on the amount Milestone Construction was required to pay Centennial Insurance Company under the indemnity agreement.
The Arbitrators' decision was handed down after more than thirty days of testimony involving dozens of witnesses.
The school district contracted with Milestone in the Spring of 2003 to perform the general construction for additions and alterations to Manor Elementary School, located in Levittown, PA. Despite significant problems with the plans and specifications that had been prepared by the Architect, Daley and Jalboot, and delays in obtaining required permits, the school was open and ready for the start of the 2003-2004 school year.
Milestone is represented by Bruce L. Phillips, esquire, of Venzie, Phillips and Warshawer, in Philadelphia.
Milestone Construction Management, founded in 1999 by Rocco Cavallo, is a full service construction management firm, providing a wide range of preconstruction and construction services throughout the Delaware Valley.
SOURCE Milestone Construction Management
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