AN ORAL CONTRACT? IN THIS DAY AND AGE? WHAT COULD POSSIBLY GO WRONG? P.2

On Goldstein's recommendation, a roofing and waterproofing consultant, Commercial Roofing Solutions (CRS), investigated further. In a scathing June 2006 report, it reconfirmed that R & L was not a certified Procor contractor (adding that the company had never even previously worked with Procor), and because of this there was no manufacturer's warranty; and that it never did the flood test. CRS concluded that, basically, the entire roof deck needed to be torn up and the waterproofing properly applied. R & L said it would do so, but didn't. Hence, the lawsuit.

Goldstein, for its part, claimed it was only hired to prepare the design specifications and to inspect the structural work. Anita Terrace and Pinnacle contended Goldstein's responsibilities were much broader.

You can see the problem here of having an unwritten, oral contract, yes? 

After all the testimony was taken and the evidence examined, Judge Orin R. Kitzes determined on July 12, 2013, that

"…Goldstein breached the terms of its agreement and that its breaches proximately caused Anita Terrace's damages. Goldstein had a contractual duty to competently advise Anita Terrace during the bidding phase of the Project and to perform due diligence with respect to the contractors which it selected to bid on the Project. … Goldstein's failure to ensure that the waterproofing membrane was properly installed through the performance of a flood test before the concrete was poured was a critical mistake.  … Goldstein represented to Pinnacle that it had inspected the waterproofing work which R & L had performed, that the work was done in a good, workmanlike manner and that R & L was therefore entitled to payment for work completed. In fact, Goldstein had not inspected the waterproofing work and the work was defective."

And now? Well, now the case has to go trial.

Outside of this, Anita Terrace, seems to be doing OK, with a lot of capital improvements in recent years including an attractive lobby renovation. (See above.) And while some of this might have happened even with a written contract, there would have been considerably less confusion about everyone's roles and responsibilities. Lesson learned: When you're working with a vendor, including a professional consultant, get it in writing.

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