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offered to settle for an initial payment of $500,000 and $25,000
each month thereafter until F&D’s cost to complete the project
had been reimbursed, not to exceed $4 million. On November 9,
1999, National proposed to settle for $5 million, payable from
1999 through 2001, with incentive credits for early payments.
Also in the November 9, 1999, letter National admitted that its
obligation, at that time, to F&D under the indemnity agreement
and the performance bond was over $2,500,000. On November 18,
1999, F&D proposed adjustments to the payment plan and incentive
structure, as follows: payments of $5,250,000 from 1999 to 2001
or $4,750,000 if paid in full on or before July 1, 2000. As of
December 31, 1999, F&D had incurred over $2,500,000 in its
attempt to complete the construction project.
On or around June 22, 2000, F&D sued the indemnitors under
the indemnity agreement for $7,296,070, representing the costs
F&D incurred to complete the construction project. On October 5,
2000, National agreed to pay $4,638,500 to F&D in two
installments, with $2,500,000 to be paid within 2 days after the
agreement was signed and $2,138,500 to be paid on or before
January 15, 2001. In a separate settlement agreement among
National, the District, and F&D, the District agreed to pay F&D a
portion of the remaining outstanding amount due under the
original construction contract between National and the District.
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Last modified: May 25, 2011