Business briefs for June 28, 2001

Thursday, June 28, 2001 | 10:38 a.m.

LV tech firm in deal with educational and hotel sites

Las Vegas-based software firm PurchasePro said it licensed its software to Frankfort, Ky.-based GovernmentFirst, which plans to build a marketplace for government and educational agencies to buy supplies online.

GovernmentFirst (egovernmentfirst.com) said it signed a deal with the West Kentucky Educational Cooperative as its charter client.

The 28 schools in Western Kentucky are expected to purchase products like office and classroom supplies and general maintenance and janitorial products using the cyber-marketplace.

In a similar deal, PurchasePro licensed its Internet-based purchasing software to BuyEfficient, a San Clemente, Calif.-based subsidiary of Sandstone Hotels, which manages and operates hotels across the country.

Subcontractors targeted in defects case

Capital Pacific Homes, which was ordered Tuesday to pay $2.5 million in damages to owners of 90 homes with defects in a North Las Vegas development, said it hopes to recover its costs from 10 subcontractors it accused of negligence and shoddy work.

A Clark County District Court jury awarded the $2.5 million in a construction defect lawsuit filed in October 1999 originally by some 139 homeowners at Falls at Hidden Canyon against Capital Pacific.

"The houses were built on expansive soils, which means the soils expand when wet, which caused the walls, stucco and ceilings in some homes to crack," said Jeffrey Kerrane, the homeowners' attorney. "Capital settled with 49 of the 139 homeowners in March and paid about $3.6 million, which averages about $76,000 a home."

The trial that began April 3 will enter its second phase on July 3, when the same jury is expected to determine the liability of the 10 subcontractors sued by Capital Pacific in November 1999.

Betsy Gonzalez, Capital Pacific's attorney, said the builder initially sued about 25 subcontractors, alleging negligence and breach of contract, and has settled with 15 of them.

"The subcontractors are responsible for the construction problems at Falls. They were negligent. The remaining 10 that we're suing are the design professionals, the subcontractors who did mass grading, the concrete subcontractors and landscapers for the 90 homes," she said.

Kerrane said the homeowners, who initially sought damages of about $9.9 million, were mixed about the $2.5 million award.

"There were 90 different verdicts for each homeowner. Some of them received $140,000 or more, some received between $60,000-$85,000. Those who received adequate monetary awards feel they can make the proper repairs. But there were 13 homeowners who received nothing," he said.

Gonzalez said the jury "largely adopted the (builder's) position because its repair cost estimates were more reasonable. The trial has been about determining the true method of and cost to repair (the defects.) Our experts explained what the repair method was and why and how much it would cost."

"We had initially proposed repairs of $2.2 million. The verdict reflects that it is inappropriate for the plaintiffs' attorneys to argue that it will cost more to repair a home than the cost of the home itself," she said.

The development is between Scott Robinson Boulevard and Cheyenne Avenue, west of Martin Luther King Boulevard.

Insurer sues over removal of aircraft at McCarran

An aviation insurance carrier sued to recover damages from a Las Vegas company, claiming it negligently removed a disabled aircraft from a runway at McCarran International Airport.

AIG Aviation Insurance Services Inc., which said it provided insurance coverage to a client, DP Air Inc., for a 1975 Hawker 600A aircraft, sued Jake's Crane & Rigging Inc. in Clark County District Court.

The suit said the aircraft was damaged when it was forced to land at McCarran on Aug. 17, 1999, with its landing gear retracted. AIG said Jake's failed to use "spreaders," a device that would have prevented further damage to the plane.

The defendant could not be reached for comment on the allegation.

Automaker wins order against Henderson firm

Luxury automobile maker Ferrari S.P.A. of Modena, Italy, won an order to stop a Henderson company and its owner from selling kits that allegedly use Ferrari trademarks and design patents to make replicas of its luxury cars.

Ferrari had sued Exotic Rebodies Inc. and its owner, Joseph Zyskowski, in U.S. District Court, alleging they infringed on Ferrari's ornamental design patents and used its Prancing Horse design to sell kits to make replicas of Ferrari automobiles including Ferrari's F40, F50 and F355 models.

The defendants were ordered to destroy all molds used to make the kits and to reimburse Ferrari $5,400 in attorneys' fees.