On June 16, 2011, the Bronxville Board of Education approved a comprehensive and final settlement of all outstanding claims and litigation pertaining to the construction of the “C” wing, and related renovations, of the Bronxville School. This project, begun in 2000 and completed in 2004, experienced significant delays and cost overruns that have been the basis of multiple damage claims and legal action, including four lawsuits that have run since 2004 - one in NYS Supreme Court and three in Federal District Court.
The settlement reached provides for the District to pay $3 million to Liberty Mutual. The payment includes the balance on the Picco contract of $1.2 million (held by the District since construction was completed) and reimbursement for appropriate change orders of $530,000 incurred during construction by Liberty. No monies were paid by the District to Picco. In addition, various third parties will pay the District $675,000, partially offsetting the Liberty payment. No additional monies will have to be raised by the District to satisfy this settlement. The net cost of $508,846 will come from an existing construction account and an insurance reserve established by the Board in 2006.
Board President James Hudson praised John Priesing, former Board member and President, who pursued the community’s interests long after his tenure with the Board ended. Dr. Hudson also expressed gratitude to Richard Dresdale and Richard Rugani for their commitment and effort related to this project. The settlement, Hudson said, puts the district in a stronger position going forward, reducing legal costs and removing the uncertainties of the case with respect to budgeting and finance. The District plans to send a comprehensive description of the settlement to all residents after appropriate papers have been filed with the Court.