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M. Claims & Litigation History City of Sunny Isles Beach | Request for Qualifications No. 15-08-02 September 23, 2015 Page 57 Response Hensel Phelps is or within the past five years has been involved in the following significant litigation matters related to Hensel Phelps’ project work. Dallas/Fort Worth Airport Board v. Hensel Phelps, Kone et. al. Cause No. 11- CV 02743 This action was filed in March 2011 in Dallas County, Texas by DFW and alleges liability for deterioration in glass panels installed as part of the automated people mover project performed by HPCC in 2006. The cost of repair is estimated to be between $500,000 and $750,000. The Parties agreed to stay the litigation to allow HPCC to evaluate the allegations and potential repair options in conjunction with the OCIP insurer providing coverage to the Owner, HPCC and Kone for such claims. Following this evaluation, the OCIP insurer agreed to fund the repairs in the amount of $603,000 and the parties recently resolved all claims and disputes and agreed to dismiss the lawsuit. Penterra Plaza v. Simpson Housing, Hensel Phelps, Bergner Architect, et. al. . No. 11-CV 1023 This action was filed in February 2011 in the City and County of Denver by the Home Owners Association for the Penterra Plaza project constructed in Denver, Colorado in 2003. The action was filed against the Developers, Designers, and Hensel Phelps alleging liability for errors in the sale, development, design and construction of the project. The action was stayed while the parties engaged in a joint investigation of the alleged issues and damages. The parties mediated extensively issues relating to liability, scope of repair and cost of repair and reached global resolution of all claims through the mediation process. Hensel Phelps (through its insurer) contributed to the settlement, but the specific terms of the settlement are subject to a confidentiality agreement among the parties. Diestro, Inc. v. Hanover, Strata Prop. et. al. Case No. 37-2011-0008394-CU- OR-CTL This action was filed in January 2011 in San Diego County, California by Diestro against a number of owners, developers, contractors and subcontractors, including Hensel Phelps, involved in the development of properties adjacent to a Diestro property in downtown San Diego. The suit seeks recovery for settlement damage to an existing structure allegedly resulting from excavation on the adjacent properties, including the Indigo Hotel project completed by Hensel Phelps. Initial investigations indicate that repair costs could range from $500,000 to $900,000 and also indicate that Hensel Phelps responsibility for the damage is very minimal. The action was in the initial stages of discovery when an initial mediation effort resulted in a negotiated resolution of all claims against Hensel Phelps and its subcontractors and consultants on the Indigo project. Neither Hensel Phelps nor its insurer contributed to the court approved settlement. Carrigg v. Hensel Phelps (O’Leary Asphalt) (Arbitration) This arbitration action was commenced in December 2010. Claimant’s demand passes through a lower tier subcontractor’s, O’Leary Asphalt (OAI), demand regarding failed asphalt paving work on the DISA Project in Fort Meade, Maryland. OAI seeks $996,000 for extra work and other impact costs and Hensel Phelps has counterclaimed for $465,000 in costs incurred correcting the defective work and otherwise completing portions of OAI’s work. The parties engaged in extensive mediation that led to a complete settlement of the matter for $100,000 and dismissal of the arbitration action and a related Miller Act suit filed (and then stayed) in federal district court. In addition, Hensel Phelps is, on occasion, named in a small number of personal injury, property damage or payment actions relating to subcontractor/supplier incidents or disputes, which are customary in the construction industry. These actions are being defended by responsible subcontractors and their insurance carriers or sureties. Please contact Robert Majerus, General Counsel, at 970.346.7255, or Scott Johnson, Corporate Counsel, at 970.346.7355, if additional information is desired.