Confidential
Settlement – $623,500Court
Santa Cruz Superior
Attorneys
Plaintiff
Anthony Marsh
(Law Office of Anthony Marsh)
Defendant
David J. Streza
(Vogl Meredith Burke LLP)
Experts
Plaintiff
John T. Holland
(technical)
Jeffrey Beam
(technical)
Daniel Dyckman
(technical)
Defendant
Kevin Bacon
(technical)
Facts
The defendant built a single family residence for the plaintiffs that was completed on Sep. 18, 1997. The house was located on a bluff in Santa Cruz immediately above the North end of the Monterey Bay and is fully exposed to the elements. Starting in 1999, various leaks occurred through the roof, windows and doors. Mold was discovered behind sheet rock walls in 2001, at which time the walls were stripped and mold remediated. The plaintiffs alleged various defects in the construction of the house including personal injuries from exposing to molds. The defendant claimed that the cost of repair was $257,000 and that the designer and the engineer, who were not sued, were responsible for a substantial portion of the repair. There were significant coverage issues in regard to the defendant and the roofing subcontractor, with several of the insurers in receivership and various exclusions in the policy, including for continuing loss and all work product.
Settlement Discussions
The case settled as to all parties except the roofing subcontractor for $623,500 plus an agreement to repair certain kitchen windows. The defendant served all of its rights against the roofing company to the plaintiff and that case will proceed to trial.
Damages
The plaintiffs sought $450,000 for the costs of repair and investigation. The plaintiffs also claimed damages for loss of use, prior repairs and attorney's fees.
Other Information
A mediation was held before Gary R. Nagle. Defendant Tom Curtiss Construction Inc. paid $300,000 in settlement and the remaining settlement proceeds came from other subcontractors.
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