Design-builder recovers $120 million in Presidio Parkway project dispute

Client(s) Flatiron/Kiewit, a Joint Venture

Jones Day represented the design-build joint venture ("DBJV") responsible for designing and constructing the Presidio Parkway Project, the first public-private partnership sponsored by the California Department of Transportation ("Caltrans"). The project replaced the existing Doyle Drive roadway—which connected the Golden Gate Bridge with San Francisco through the Presidio National Park—and included construction of two viaducts and two tunnels. The design-build contract between the DBJV and the concessionaire was just under $300 million. The DBJV incurred significant additional costs as a result of abuse of the permitting process and interference with design discretion vested in the contractor by Caltrans and the Presidio Trust.

Jones Day assisted the DBJV in pursuing its claims against Caltrans through the dispute review board ("DRB") process required by the contract. After Caltrans lost a number of DRB hearings and refused to accept the DRB findings, Jones Day filed suit against Caltrans for declaratory and injunctive relief when Caltrans undertook efforts to frustrate the DRB process and delay consideration of the claims. After filing the lawsuit, the DBJV obtained a favorable settlement of an additional $120 million plus the deletion of certain disputed remaining work.

Golden Link Concessionaires LLC v. State of California Department of Transportation, No. CGC15546962 (Cal. Super.)