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Lawsuit Overturned

Tutor-Saliba announces reversal of $60 million judgment

TUTOR-SALIBA PERINI, J.V. ("TSP") by and through its attorneys, Castle & Associates, P.C., is pleased to announce that on January 25, 2005, the California State Court of Appeal issued an opinion reversing one of the worst decisions in California public works construction jurisprudence. The case concerned the lawsuit filed by TSP against the Los Angeles County Metropolitan Transportation Authority ("the MTA"), and the MTA's cross-complaint against TSP, which ultimately resulted in a verdict against TSP on August 20, 2001 for $60 million, including $31 million in attorney's fees. The Court of Appeal found that the trial court, Judge Joseph R. Kalin, abused its discretion and violated TSP's due process rights in issuing mid-trial terminating sanctions that prevented TSP from defending itself against the MTA's lawsuit alleging violation of the California False Claims Act and Unfair Competition Law. The Court of Appeal reversed and directed the trial court to enter judgment in favor of TSP on the MTA's claims under the Unfair Competition Law, and remand the remainder of the case to the trial court for further proceedings, including a new trial on TSP's claims against the MTA that had been dismissed prior to trial on summary adjudication. The Court of Appeal also reversed a significant portion of the trial court's orders unjustly awarding monetary sanctions against TSP and it attorneys.

Among it extensive resume of projects throughout all of California, TSP is responsible for vast portions of the LA Metro Red Line System, which reliably serves the Southern California community.

For further information, please contact Nomi L. Castle, Castle & Associates, 1925 Century Park East, Suite 210, Los Angeles, CA 90067, (310) 286-3400.