Facts

The plaintiffs were next door neighbors. Each owned a home adjacent to the 405 Freeway in the Westchester area of Los Angeles. CalTrans hired Balfour Beatty Construction Co. to widen the 405 Freeway, which in turn subcontracted with Condon-Johnson Associates to construct portions of a retaining wall designed by CalTrans. The plaintiffs alleged that the freeway widening project and faulty construction of the retaining wall caused withdrawal of lateral and subjacent support for their properties, resulting in subsidence and landsliding. The plaintiffs alleged their homes were left valueless.

PLAINTIFF CONTENTIONS:
The plaintiffs brought claims for inverse condemnation, nuisance, dangerous condition of public property, and trespass against CalTrans. In turn, CalTrans cross-complained for indemnity against Balfour Beatty, its general contractor on the job. Balfour Beatty cross-complained for indemnity against its subcontractor Condon-Johnson & Associates, which built specific portions of the retaining wall.

DEFENDANT CONTENTIONS:
The defendant denied liability and alleged that any damage was the result of work beneath contract standards performed by Balfour Beatty and Condon-Johnson & Associates. In turn, Balfour Beatty and Condon-Johnson & Associates denied liability and alleged that any damage was the result of defective project plans and specifications issued by defendant CalTrans which misrepresented subsurface soil conditions at the project site different from what was actually encountered at the project site location where the retaining wall was constructed.

Damages

Complete "taking" of both homes under the eminent domain clause of the California Constitution.

Result

$3.4 million. Full compensation for the loss of both homes, payment of attorney's fees ($900,000), expert fees ($100,000), and costs. Additional funds for moving expenses, not yet quantified, will also be granted as part of the settlement.