Facts

Plaintiff Traviatta is the homeowner's association of a 23-unit condominium project, built in 2004, located in Rexford Drive in Los Angeles. The project was developed and sold by Deerot Rexford LLC, and its principal, Mark Leichter. Shortly after taking possession of the residential units, the new owners discovered construction defects.

Investigation revealed a myriad of additional significant deficiencies, including, significant deflection of up to 3.9 inches in the elevated concrete podium deck, which continues to cause damages to the units and common areas, massive water intrusion at the front elevation of the structure causing the growth of Poria, a wood destroying mushroom species, severely sloping floors, reverse sloped decks and balconies, wracked doors and windows, roof leaks, various instances of water intrusion caused by several trades, and failure to conform to plans, specifications, and applicable building code requirements. In many instances, doors and windows could not be opened, and if opened, could not be closed or locked and damages to finishes throughout.

During the course of the 2½-year litigation, both the developer and general contractor entities filed for bankruptcy protection. The developer was uninsured and the general contractor's insurance carrier denied coverage. The trades involved in the alleged defects include, but are not limited to, concrete, rebar, sheet metal, architect, plaster, waterproofing, HVAC, and electric. The case proceeded to bench trial against the concrete subcontractor, TBCI.

PLAINTIFF'S CONTENTIONS:
Plaintiff contended that TBCI's work fell below the standard of care relating to the construction of the elevated concrete podium deck because of failure to comply with approved plans and specifications as produced pursuant to subpoena by the Department of Building & Safety – plans required the use of 4,000 psi concrete and TBCI constructed with 3,000 psi concrete, failure to comply with applicable building code requirements, failure to consolidate/vibrate concrete properly resulting in voids and honeycombing, and other defects relating to the garage concrete slab resulting in significant cracking.

Plaintiff also contended that the defects caused substantial deflection of up to 3.9 inches in the elevated deck, which caused extensive damages throughout the wood condominium structure above. Plaintiff presented evidence that all approved plans were in evidence, that the structural engineer did not authorize a deviation from the approved plans, and that building inspector and/or structural engineer approval could not exculpate TBCI from liability for its negligence, and that TBCI's negligence was a substantial factor in causing the excessive deflection and resulting damages.

DEFENDANT'S CONTENTIONS:
TBCI contended that there must have been a different set of approved plans used to construct the elevated podium deck. It alleged that project structural engineer approved the use of 3,000 psi concrete and that a concrete subcontractor may rely on the structural engineer in instances where engineer approval conflicts with approved plans and specifications.

TBCI argued that a contractor is not required to have knowledge of applicable building codes or trade specific industry standards.

Settlement Discussions

Prior to trial, TBCI offered $250,000. Near the close of plaintiff's case in chief at trial, TBCI offered $500,000. During trial, plaintiff demanded $850,000 to settle. Plaintiff's last written settlement demand to TBCI was $1.6 million.

Result

Monetary recovery included pretrial settlements with 13 parties totaling $2,146,500. Plaintiff entered into post-trial settlement with TBCI for $1.1 million, for a total settlement of $3,246,500. The matter proceeded to bench trial against remaining defendant, TBCI, resulting in a tentative decision for plaintiff in the amount of $2,639,288. Post-trial, plaintiff settled with TBCI for $1.1 million. TBCI filed a formal request for statement of decision. Based upon subsequent settlement, the court did not provide statement of decision. Settlements (pre and post-trial) included: $1.1 million from TBCI $750,000 from Coast Rebar Inc. $375,000 from Proulx Company Inc. $245,000 from Kamran Tabrizi & Associates $275,000 from California Plastering Inc. $325,000 from Hershfeld Sheet Metal Inc. $50,000 from Professional Mechanical Contractors $30,000 from Insul Flow Inc. $15,000 from Spray Tech Painting Inc. $10,000 from West Coast Waterproofing $37,500 from Platinum Realtors and Yaron Hassid $10,000 from Nick Electric $9,000 from Ducan Inc.

Other Information

EXPERT TESTIMONY: At trial, plaintiff's expert testified that concrete subcontractor's failure to follow approved plans and specifications, failure to comply with building codes, use of concrete with less compressive strength than specified for elevated structural podium deck, and failure to properly vibrate/consolidate concrete during installation caused significant deflection of up to 3.9 inches and substantial resulting damages throughout 23-unit condominium structure above. Defendants' expert testified that there must be an additional set of approved building plans that were not produced by the Department of Building and Safety pursuant to a subpoena and that alleged approvals by building inspectors and structural engineer exculpated TBCI from liability. ARBITRATIONS: Five mediation sessions with George D. Calkins II of JAMS resulted in settlements with 13 defendants totaling $2,146,500. TBCI offered $250,000 before commencement of bench trial, which was rejected by plaintiff. FILING DATE: April 29, 2008.