Devlin/McNally Construction v. Drolapas CA1/5
Mission Hub LLC (Tenant) leased certain commercial real property (the Property) from Owner. Tenant subsequently contracted with Contractor for construction work on the Property. During the construction, disputes arose between Contractor and Tenant, and Contractor placed a mechanics lien on the Property.
On June 13, 2018, Contractor and Tenant executed two documents. The first was on Contractor’s letterhead with the heading, “Final Change Order – Final Contract Amount and Settlement Agreement Terms” (hereafter, Final Change Order). The Final Change Order stated its “purpose . . . is to memorialize the Final Contract Amount and the Settlement Agreement Terms and Payment schedule.” It also provided the parties agreed “the terms of the settlement shall be incorporated into a separate Settlement Agreement and Mutual Release substantially in the form attached as Attachment 2 to this Final Change Order.”
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