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CONFIDENTIAL

May 20, 2000

Construction
Strict Liability
Negligence

Confidential

Settlement –  $424,500

Court

Alameda Superior


Attorneys

Plaintiff

Clinton A. Johnson


Defendant

Steven W. Shumway

Raymond L. MacKay
(Office of the Alameda County Counsel)

Paul R. Geissler

Mark T. Guerra

James L. Crew

Donald Mattos


Experts

Plaintiff

Ken Klien
(technical)

Richard Lawson
(technical)

Defendant

Jerry P. Acker
(technical)

Facts

PlaintiffÆs home sustained significant water damage due to major leaks. PlaintiffÆs bought the house five
years after it was built. The exterior insulation and finish system (EIFS) was improperly installed.

Settlement Discussions

The plaintiffs demanded $700,000. The defendants offered $150,000. There were multiple mediation sessions.

Damages

Roof replacement, $45,000; interior repairs and dislocation costs $140,000; remove and replace EIFS, $250,000; plus expert fees, attorney fees and interest.


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