Venue Selected for SSFUSD/Mismanagement of Measure J Funds Trial

South San Francisco, CA   December 5, 2017  Press Release by USS Cal Builders, INC.

CALIFORNIA JUDICIAL COUNCIL RULES USS CAL BUILDERS’ CASE

AGAINST SOUTH SAN FRANCISCO UNIFIED SCHOOL DISTRICT WILL MOVE FORWARD

IN SAN FRANCISCO COUNTY SUPERIOR COURT

Excess of $25M Sought for Unpaid Construction Projects Funded by Measure J

OAKLAND, Calif.; December 5, 2017 — USS Cal Builders, Inc.’s lawsuit against the South San Francisco Unified School District (SSFUSD), Case No. 16CIV02834, will be heard in San Francisco County Superior Court based on a ruling yesterday by the California Judicial Council and on a recommendation by the San Mateo Superior Court. The complaint, filed against the District on Dec. 14, 2016, seeks payment for contracts, funded by Measure J, relating to work performed at 16 schools, with amounts which may exceed $25M.

“In all my years of practice, I cannot recall another construction client that has maintained as detailed and complete records,” says Richard Finn of Burnham Brown in Oakland, an attorney for USS Cal Builders.

Craig C. Lang of Feldman & Associates, the attorney for USS Cal Builders who filed the lawsuit states, “USS Cal Builders can and will demonstrate that the work it performed was authorized and approved by the Board and nothing was done without the Board’s knowledge. This is a case that did not need to result in a lawsuit. USS Cal Builders looks forward to resolving this in the courts now that the venue for the trial has been determined.”

USS Cal Builders is suing SSFUSD for breach of written contract, including more than $2.7M in unpaid retention funds, failure to pay more than $8M for approved extra work performed, delayed progress payments, failure to approve and process payment applications, failure to process and negotiate change orders in a timely manner, and failure and refusal to cooperate and act in good faith. In addition to amounts potentially exceeding $25M, USS Cal Builders will be entitled to two percent per month in delinquent payment penalties, attorneys’ fees and related costs.

The School Board was alerted as early as 2014 that the funds available under Measure J would be insufficient to finance the remainder of the projects. Project accounting records demonstrate the shortfall was the result of the Board’s expansion of the scope of the work at the projects’ locations.

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To view the SSFUSD Measure J forensic audit CLICK HERE

To view the Community request for investigation CLICK HERE

To view more on SSFUSD Measure J CLICK HERE

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UPDATE:

Everything South City contacted the South San Francisco School District for a response to this information and thank Michael Krause, SSFUSD Assistant Superintendent, Business Services, for updating us with the following:

The South San Francisco Unified School District is pleased that its Cross-complaint against USS Cal Builders, Inc. will finally be heard in San Francisco Superior Court, together with the dozen other lawsuits USS Cal Builders, Inc. and its many subcontractors have filed against each other.  The District denies that USS Cal Builders, Inc. is entitled to any further payments from the District on the Measure J projects.  The District is seeking recovery of damages for defective construction, delays, incomplete work, and improper change order requests.  The District looks forward to resolving this dispute on the evidence presented in court.