CONTACTS 
0201 - Law Offices Langford               510 .......  fax or 800...
020101 - Mr. James R. Langford, III, Esq.
0202 - Law Offices, A.J. Keiley           408....      fax or 800...
020201 - Mr. Anthony J. Keiley, III, Esq.
0203 - Amer. Arbtrn Assn.                 415 981 3901 fax 781 8426
020301 - Ms. Marcela Taylor; Case Administrator =415 984 5433
020302 - Case Administration

SUBJECTS
Schedule
Preliminary Hearing
980206 Hearing
Joining Parties

0606 -    ..
0607 - Summary/Objective
0608 -
060801 - Follow up ref SDS 10 4223, ref SDS 9 3458.
060802 -
060803 - Received the AAA order issued to schedule discovery and other case
060804 - management preparing for the hearing based on the preliminary hearing
060805 - conducted on 980206.  Received the formal notice setting hearing to
060806 - begin 980622.  Received Claimant's demand for arbitration against the
060807 - General Contractor.  AAA requested arbitrator's consent to admit this
060808 - matter as a new claim in this case.
060809 -
060810 -     [AAA's 980225 letter replaces this 980219 letter based on adding a
060811 -     3rd party. ref SDS 12 2767]
060812 -
060813 - Submitted ref DIT 1 1290 granting consent to join GC.
060814 -
060815 -         [On 980304 received AAA letter transmitting Arbitrator's
060816 -         consent to the parties. ref SDS 14 3582]
060817 -
060818 - Reviewed contract between the Owner and the Contractor, and found
060819 - provisions on claims and arbitration. ref SDS 0 2534
060820 -
060821 -
060822 -
0609 -
0610 -
0611 - Progress
0612 -
061201 -  ..
061202 - Order on Prehearing Matters from Preliminary Hearing on 980206
061203 -
061204 - Received, ref DRT 1 2880, from AAA prepared by Marcela.  It notifies
061205 - the parties that Marcela has been assigned as the Case Administrator
061206 - to replace Nina King.
061207 -
061208 - This letter incorporates the arbitrator's order resulting from the
061209 - second preliminary hearing held on 980206. ref SDS 8 4450, which was
061210 - issued to AAA on 980213. ref SDS 9 3458, as Welch letter. ref DIP 2
061211 - 2668
061212 -
061213 -     [On 980227 received AAA letter dated 980225 that replicates the
061214 -     contents of this AAA letter dated 980219 except it is addressed to
061215 -     Foti and modifies amount of fees based on 3 party case. ref SDS 12
061216 -     2767]
061217 -
061218 -     [On 980227 issued letter to AAA making 980225 letter the official
061219 -     order replacing this 980219 letter. ref SDS 12 3519]
061220 -
061221 -
061222 -  ..
061223 - Payment of arbitration fees due by 980522
061224 -
061225 - The letter further instructs the parties to deposit equal shares of
061226 - arbitration expenses totalling approximately $6.4K each. ref DRT 1
061227 - 0937 to pay for 7 days of hearing. ref DRT 1 1627, per estimates by
061228 - parties on 980206. ref SDS 8 4311 and telecon with Marcela on 980220.
061229 - ref SDS 10 1701
061230 -
061231 - Parties are to deposit arbitration fees by 980522. ref DRT 1 1438
061232 -
061233 -     [On 980227 AAA's 980225 letter changes the amounts each respondent
061234 -     is to deposit based on 3 party case. ref SDS 12 8840]
061235 -
061236 -
061237 -
061238 -  ..
061239 - Schedule Another Preliminary Hearing on 980401
061240 -
061241 - AAA letter confirms another preliminary hearing on 980401. ref DRT 1
061242 - 2594, per second preliminary hearing on 980206. ref SDS 8 2640
061243 -
061244 -     [On 980227 received AAA letter dated 980225 that gives another
061245 -     notice of preliminary hearing on 980401, except it is addressed to
061246 -     Foti and includes the scope of the initial preliminary hearing for
061247 -     information purposes, since most of the issues have been resolved,
061248 -     ref SDS 12 2410]
061249 -
061250 -
061251 -  ..
061252 - Notice of Arbitration Hearing Date
061253 -
061254 - Follow up ref SDS 8 1309.
061255 -
061256 - Received the formal notice setting the hearing for 980622 beginning at
061257 - 1300, per preliminary hearing on 980206. ref SDS 8 1309, confirmed in
061258 - my letter to AAA. ref DIP 2 1860, and the order issued by AAA received
061259 - today, ref DRT 1 1723, per above. ref SDS 0 2343
061260 -
061261 -     [On 980227 received AAA letter dated 980223 that replicates the
061262 -     contents of this AAA letter dated 980219 except it is addressed to
061263 -     Foti. ref SDS 12 2410]
061264 -
061265 -
061266 -
061267 -
061268 -
061269 -
0613 -

SUBJECTS
Joining Parties
Demand for Arbitration, 980227

0805 -
080501 -  ..
080502 - Claimant Files Demand for Arbitration Against GC
080503 -
080504 - Received, ref DRT 3 1987, which is a letter from the AAA case
080505 - adminsitrator, Marcela Taylor, to the Claimant's counsel, Anthony J.
080506 - Keiley, III, Esq, which acknowledges receipt of Claimant's new demand
080507 - for arbitration against the general contractor.
080508 -
080509 - AAA letter says joined Respondent, Mark Foti, General Contractor, may
080510 - file a response to Claimant's additional Demand for Arbitration within
080511 - 10 days from date of letter, 980219. ref DRT 3 1544
080512 -
080513 -    ..
080514 -   Arbitrator's Consent for New Claim
080515 -
080516 -   AAA requests Arbitrator's consent under rule R8 for Claimant's claim
080517 -   against the General Contractor to be admitted. ref DRT 3 1639
080518 -
080519 -   Submitted ref DIT 1 1290 granting consent to join GC, per following
080520 -   analysis:
080521 -
080522 -         [On 980304 received AAA letter transmitting Arbitrator's
080523 -         consent to the parties. ref SDS 14 3582]
080524 -
080525 -      Rule R8 says...
080526 -
080527 -         A party may at any time prior to the close of the hearing
080528 -         increase or decrease the amount of its claim or counterclaim.
080529 -         Any new or different claim or counterclaim, as opposed to an
080530 -         increase or decrease in the amount of a pending claim or
080531 -         counterclaim, shall be made in writing and filed with the AAA,
080532 -         and a copy shall be mailed to the other party, who shall have
080533 -         a period of ten (10 days from the date of such mailing within
080534 -         which to file an answer with the AAA.  After the arbitrator is
080535 -         appointed no new or different claim or counterclaim may be
080536 -         submitted to that arbitrator except with the arbitrator's
080537 -         consent.
080538 -
080539 -   Rule R8 could be construed to mean that the Arbitrator must consent
080540 -   to a change from the original claim.  In this case, the request to
080541 -   join a claim against another party seems like an administrative
080542 -   matter for AAA.  The arbitrator's role is to ensure fairness to the
080543 -   parties by avoiding escalation of claims not previously notified. In
080544 -   the case, claims between Owner and Contractor are to have first been
080545 -   submitted to and decided by the Architect, ref SDS 0 3992, which
080546 -   provides the protection of unjust suprise or lack of time to prepare
080547 -   a defense.
080548 -
080549 -   The Contract says the Owner may bring a claim against the General
080550 -   Contractor within a reasonable time. ref SDS 0 2511
080551 -
080552 -   I prepared, ref DIT 1 1290, granting consent for Claimant's claim
080553 -   against Mark Foti to be admitted to the claim against Weinmann.
080554 -
080555 -
080556 - AAA letter confirms its receipt from Keiley, ref DRT 3 2384, and
080557 - submits to the Arbitrator the following documents:
080558 -
080559 -
080560 -   a.  Stipulation of parties to add GC as Respondent
080561 -
080562 -       Letter, ref DRT 3 3922, from Keiley (Claimant's counsel) to AAA
080563 -       notifying AAA that parties have agreed by stipulation to add an
080564 -       additional respondent the general contractor, Mark G. Foti,
080565 -       which was discussed at the second preliminary hearing on 980206.
080566 -       ref SDS 8 1945
080567 -
080568 -       The letter shows signature of James Langford, Esq, counsel for
080569 -       Respondent agreeing to stipulation.
080570 -
080571 -   b.  Demand for Arbitration Against GC
080572 -
080573 -       Fax cover sheet dated 980218 submitting 15 total pages:
080574 -
080575 -       Letter dated 980218, ref DRT 3 1492, which submits the demand
080576 -       for arbitration. ref DRT 3 1608  This letter cits para 10.8 of
080577 -       contract between Claimant and Respondent GC.
080578 -
080579 -       Demand for Arbitration dated 980212 names
080580 -
080581 -                      Mark G. Foti
080582 -                      3396 Sequoia Avenue
080583 -                      Redwood City, CA  94061
080584 -                      650 366 7301
080585 -
080586 -          ...demand does not list counsel for respondent.
080587 -
080588 -          ...demand says nature of dispute is:
080589 -             ..
080590 -             Claim against general contractor by owner for
080591 -             damages caused by breach of contrct and/or negligence.
080592 -
080593 -                 Demand does not state what contract provisions were
080594 -                 breached.
080595 -
080596 -               [On 980226 AAA advises that Respondent does not
080597 -               understand this claim. ref SDS 11 3212]
080598 -
080599 -               [On 980227 issued schedule for Claimint to specify
080600 -               claims by 980317. ref SDS 12 3386]
080601 -
080602 -
080603 -          ...demand shows dollar amount of claim:  $100,000
080604 -
080605 -                 Demand does show if this is an additional amount to
080606 -                 that claimed against the architect.
080607 -
080608 -                 The "punch list" submitted with Claimant's statement
080609 -                 of claim, ref DRP 5 1763, seems to include claims that
080610 -                 appear to relate to defective work, ref DRP 5 2206,
080611 -                 and failure to perform by the general contractor, per
080612 -                 second preliminary hearing on 980206. ref SDS 8 3088
080613 -
080614 -
080615 -       Abbreviated Form of Agreement Between Owner and Contractor
080616 -          ..
080617 -          This document is nearly impossible to read, because it
080618 -          is a fax of something that has been copied and faxed many
080619 -          times.
080620 -
080621 -          ...dated 940701
080622 -
080623 -               [On 980302 AAA will issue instructions for parties to
080624 -               submit legible documents for the case record. ref SDS 13
080625 -               1987]
080626 -
080627 -          ...shows architect as Kevin Weinman, the respondent in the
080628 -          instant case.
080629 -
080630 -          ...270 CD for completion
080631 -
080632 -          ...Article 6.1.4 seems to list drawings A1 - A20 and S0 -
080633 -          S10.  Cannot recognized any listing of mechanical or
080634 -          electrical drawings.
080635 -
080636 -          ...Article 7.2 says:
080637 -
080638 -             The Contract Documents shall not be construed to create a
080639 -             contractual relationship of any kind (1) between the
080640 -             Architect and Contractor, (2) between the Owner and a
080641 -             Subcontractor or ... (3) between any persons or entities
080642 -             other than the Owner and Contractor.
080643 -
080644 -          ...Article 9.7 says:
080645 -
080646 -             The Contractor shall be responsible to the Owner for the
080647 -             acts and omissions of the Contractor's employees,
080648 -             Subcontractors and their agents and employees, and other
080649 -             persons performing portions of the Work under a contract
080650 -             with the Contractor.
080651 -
080652 -          ...Article 9.8 says:
080653 -
080654 -             The Contractor shall review, approve and submit to the
080655 -             Architect shop Drawings, Product Data, Samples and similar
080656 -             submittals required by the Contract documents with
080657 -             reasonable promptness.  The Work shall be in accordance
080658 -             with approved submittals.  When professional certification
080659 -             of performance criteria of materials, systems or equipment
080660 -             is required by the Contract Documents, the Architect shall
080661 -             be entitled to rely upon the accuracy and completeness of
080662 -             such cerfication.
080663 -
080664 -          ...Article 10.1 says:
080665 -
080666 -                        Administration of the Contract
080667 -
080668 -                This Article may address scope of Architect's duty to
080669 -                provide Contract Administration cited in contract
080670 -                between Owner and Architect. per discussion at second
080671 -                preliminary hearing, ref SDS 8 3088, and prior review
080672 -                on 980129. ref SDS 6 1878
080673 -             ..
080674 -             The Architect will provide administration of the
080675 -             Contract and will be the Owner's representative (1) during
080676 -             construction, (2) until final payment is due and (3) with
080677 -             the Owner's concurrance, from time to time during the
080678 -             correction period described in para 18.1 [????].
080679 -
080680 -          ...Article 10.2 says:
080681 -
080682 -             The Architect will visit the site at intervals appropriate
080683 -             to the state of construciton to become generally familiar
080684 -             with the progress and quality of the completed Workd and
080685 -             to determine in general if the Work is being performed in
080686 -             a manner indicating that the Work, when completed, will be
080687 -             in accordance with the Contract Documents. However, the
080688 -             Architect will not be required to make exhaustive or
080689 -             continuous on-site inspections to check quality or
080690 -             quantity of the Work.  On the basis of on-site
080691 -             observations as an architect, the Architect will keep the
080692 -             Owner informed of progress of the Work and will endeavor
080693 -             to guard the Owner against defects and deficiencies in the
080694 -             Work.
080695 -
080696 -          ...Article 10.3 says:
080697 -
080698 -             The Architect will not have control over or charge of and
080699 -             will not be responsible for construction means, methods,
080700 -             techniques, sequences or procedures, or for safety
080701 -             precautions and programs in connection with the Work,
080702 -             since these are solely the Contractor's responsibility as
080703 -             provided in Paragraph 9.1 and 16.1.  The Architect will
080704 -             nto be responsible for the Contractor's failure to carry
080705 -             out the Work in accordance with the Contract Documents.
080706 -
080707 -          ...Article 10.4 says:
080708 -
080709 -             Based on the Architect's observations and evaluations of
080710 -             the Contractor's Applications for Payment, the Architect
080711 -             will review and certify the amounts due the Contractor
080712 -             and will issue Certificates for Payment in such amounts.
080713 -
080714 -          ...Article 10.5 says:
080715 -             ..
080716 -             The Architect will interpret and decide matters
080717 -             concerning performance under and requirements of the
080718 -             Contract Documents on written request of either the Owner
080719 -             or Contractor.  The Architect will make initial decisions
080720 -             on all claims, disputes or other matters in question
080721 -             between the Owner and Contractor, but will not be liable
080722 -             for results of any interpretations or decisions rendered
080723 -             in good faith.  The Architect's decisions in matters
080724 -             referring to asthetic effect will be final if consistent
080725 -             with the intent expressed by the Contract Documents.  All
080726 -             other decisions of the Architect, except those which have
080727 -             been waived by making or acceptance of final payment,
080728 -             shall be subject to arbitration upon the written demand of
080729 -             either party.
080730 -
080731 -          ...Article 10.6 says:
080732 -
080733 -             The Architect shall authority to reject Work which does
080734 -             not conform to the Contract Documents.
080735 -
080736 -          ...Article 10.7 says:
080737 -
080738 -             The Architect will review and approve or take other
080739 -             appropriate action upon the Contractor's submittals such
080740 -             as Shop Drawings, Product Data and Samples, but only for
080741 -             the limited purpose of checking for conformance with
080742 -             information given and the design concept expressed in the
080743 -             Contract Documents.
080744 -
080745 -          ...Article 10.8 says:
080746 -             ..
080747 -             All claims or disputes between the Contractor and
080748 -             the Owner arising out of or relating to the Contract, or
080749 -             the breach thereof, shall be decided by arbitration in
080750 -             accordance with the Construction Industry Arbitration
080751 -             Rules of the American Aribtration Association currently in
080752 -             effect unless the parties mutually agree otherwise and
080753 -             subject to an initial presentation of the claim or dispute
080754 -             to the Architect as required under Paragraph 10.5. Notice
080755 -             of the demand for arbitration shall be filed in writing
080756 -             with the other party to this Agreement and with the
080757 -             American Arbitration Association and shall be made within
080758 -             a reasonable time after the dispute has arisen.  The award
080759 -             rendered by the arbitrator or arbitrators shall be final,
080760 -             and judgement may be entered upon it in accordance with
080761 -             applicable law in any court having jurisdiction thereof.
080762 -             Except by written consent of the person or entity sought
080763 -             to be joined, no arbitration arising out of or relating to
080764 -             the Contract Documents shall include, by consolidation,
080765 -             joinder or in any other manner, any person or entity not a
080766 -             party to the Agreement under which such arbitration arises
080767 -             unless it is shown at the time the demand for arbitration
080768 -             is filed that (1) such person or entity is substantially
080769 -             involved in a common question of fact or law, (2) the
080770 -             presence of such person or entity is required if complete
080771 -             relief is to be accorded in the arbitration, (3) the
080772 -             interest or responsiblity of such person or entity in the
080773 -             matter is not insubstantial, and (4) such person or entity
080774 -             is not the Architect or any of the Architect's employees
080775 -             or consultants.
080776 -
080777 -      [See consideration on 980401.
080778 -
080779 -
080780 -          ...Article 15.2 says:
080781 -
080782 -             Payments may be withheld on account of (1) defective Work
080783 -             not remedied, (2) claims filed by third parties, (3)
080784 -             failure of the Contractor to make payments properly to
080785 -             Subcontractors or for labor, materials or equipment, (4)
080786 -             reasonable evidence that the Work cannot be completed for
080787 -             the unpaid balance of the Contract Sum, (5) damage to the
080788 -             owner or another contractor (6) reasonable evidence the
080789 -             the Work will not be completed iwth the Contract Time and
080790 -             the the unpaid balance would not be adequate to cover
080791 -             actual or liquidated damages for the anticipated delay, or
080792 -             (7) persistant failure to carry out the Work in accordance
080793 -             with teh Contract Documents.
080794 -
080795 -          ...Article 18.1 says:
080796 -
080797 -             The Contractor shall promptly correct Work rejected by the
080798 -             Architect for failing to conform to the requirements of
080799 -             the Contract Documents, whether observed before or after
080800 -             Substantial Completion and whether or not fabricated,
080801 -             installed or completed, and shall correct any Work found
080802 -             to be not in accordance with the requirements of the
080803 -             Contract Documents within a period of one year from the
080804 -             date of Substantial compliance with the contract or by
080805 -             terms of an applicable special warranty required by the
080806 -             Contract Documents.  The provisions of this Article 18
080807 -             apply to Work done by Subcontractors, as well as to Work
080808 -             done by direct employees of the Contractor.
080809 -
080810 -          ...Article 20.2 says:
080811 -
080812 -             If the Contractor defaults or persistently fails or
080813 -             neglects to carry out the Work in accordance with the
080814 -             Contract Documents or fails to perform a provision of the
080815 -             Contract, the Owner, after seven days written notice to
080816 -             the Contractor and without prejudice to any other remedy
080817 -             the Owner may have, may make good such deficiencies and
080818 -             may deduct the cost thereof, including compensation for
080819 -             the Architects's services and expenses made necessary
080820 -             thereby, from the payment then or thereafter due the
080821 -             Contractor.  Alternatively, at the Owner's optino and upon
080822 -             certification by the Architect that sufficient cause
080823 -             exists to justiyf such action, the Owner may terminate the
080824 -             Contract and take possession of the site and of all
080825 -             materials, equipment, tools and construction equipment and
080826 -             machinery thereon owned by the Contractor and may finish
080827 -             the Work by whatever method the Owner may deem expedient.
080828 -             If the unpaid balance of the contract Sum exceeds costs of
080829 -             finishing the Work, including cempensation for the
080830 -             Architect's services and expenses made necessary bhereby,
080831 -             such execss shall be paid to the Contractor, but if such
080832 -             costs exceed such unpaid balance, the Contractor shall pay
080833 -             the difference to the Owner.
080834 -
080835 -
080836 -
0809 -