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CONFIDENTIAL

Apr. 24, 1999

Construction
Construction Contract
Water Damage

Confidential

Settlement –  $6,850,000

Judge

Gene T. Porter

Court

Clark County District, Nevada


Attorneys

Plaintiff

Terry W. Riedy

William Dodge Leon

Scott K. Canepa


Defendant

Gregory G. Dahl

Thomas V. Mazeika

William Dodge Leon

James J. Pisanelli
(Pisanelli Bice PLLC)

Mark A. Kemp

Bruno Wolfenzon

Richard E. Desruisseaux

F. Edward Mulholland II

Philip Goodhart

David L. Barron

William J. Killip Jr.

Thorsten J. Pray

Kevin E. Helm

Elizabeth G. Gonzales

James W. Pengilly

Gregory M. Schulman

Theodore Parker

Paul F. Eisinger

Frank J. Pagliaro Jr.

Randall D. Gustafson
(Lincoln, Gustafson & Cercos)

Nancy D. Savage

Gary E. Schnitzer

Marsha L. Stephenson


Experts

Plaintiff

Linda Stetzenbach
(technical)

Harry A. MacDonald
(technical)

Milton N. Burgess
(technical)

Warren Barnhart
(technical)

Michael Dunwoody
(technical)

Stanley C. Livingston
(technical)

David Wieland
(technical)

Thaumas P. Ehr
(technical)

Salar Dehbozorgi
(technical)

Tommy Lee-White
(technical)

Defendant

Wes Daniels
(technical)

Alan Curtis
(technical)

Raymond W. LaTona
(technical)

Neil Reynolds
(technical)

George Swink
(technical)

Michael Solender
(technical)

George Brizendine
(technical)

Tom W. Thomas
(technical)

Gary Zinn
(technical)

Daniel Chudnovsky
(technical)

John Premo
(technical)

Larry J. Johnson
(technical)

Floyd T. Harris
(technical)

Thomas Tomeo
(technical)

Robert E. Ash
(technical)

John Hammond
(technical)

Thomas E. Anderson
(technical)

Lain Swainston Sr.
(technical)

Bruce D. Bowman
(technical)

John Hardisty
(technical)

Rodney Wiedenkeller
(technical)

Martin Newson
(technical)

Jim Knowles
(technical)

Steve Helfrich
(technical)

Robert C. Hendershot
(technical)

Charles M. Salter
(technical)

Kevin Jordan
(technical)

Peter Cruz
(technical)

Philip John Templin
(technical)

Philip Kroeze
(technical)

Matti J. Prabhu
(technical)

Donald Clark
(technical)

Floyd T. (Tom) Harris III
(technical)

Ellen Rosenbaum
(technical)

Jeffrey Beam
(technical)

Noble Frye
(technical)

Charles P. Brechler
(technical)

Michael S. Roberts
(technical)

Facts

The Condominium Association was constructed by the defendant developer and defendants general contractors in the late 1980s and early 1990s. The defendant developer liability corporation, was formally dissolved approximately one month after the last condominium was sold to the public. Beginning in the early 1990s, the plaintiff Homeowners Association began to notice water intrusion problems, primarily at the windows and roofs. The Association attempted to repair the problems, but were unsuccessful in abating the conditions. In 1996, the Association retained counsel to conduct an investigation of the construction conditions. On April 6, 1996, the plaintiff placed defendant developer and defendants general contractors were put on NRS 40.600 et seq., notice, with no response from any of the three entities. The plaintiff association filed suit in June, 1996 against the defendant developer and defendants general contractors. One defendant general contractor brought a cross-claim against the other defendant general contractor and a third party claim against the defendant subcontractors. The plaintiff brought this action against the defendants based on violation of NRS 40.600 et seq., negligence, negligence per se, breach of implied warranties of habitability, merchantability and fitness for use; strict laibility and nuisance.

Settlement Discussions

The plaintiff made NRCP 68 offer of judgment of $1 million to the developer and general contractor. The defendants made no offer.

Damages

The plaintiff sought to recover repair costs, stigma damages, loss of use, relocation costs, attorney's fees and entitlements pursuant to NRS. 40.600 et seq.

Other Information

The settlement was reached approximately two years and seven months after the case was filed. Although there was substantial agreement on the existence and cost to repair defects, settlement efforts were substantially hampered by insurance issues, which were ultimately resolved on the eve of trial.


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