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Construction
Construction Defect
Construction Defect

NMS Family Trust v. Reinforcing Post Tensioning Services Inc.

Published: Feb. 26, 2000 | Result Date: Jul. 2, 1999 | Filing Date: Jan. 1, 1900 |

Case number: BC120126 Verdict –  $6,000,000

Court

L.A. Superior Central


Attorneys

Plaintiff

Larry D. Lewellyn
(Law Office of Larry D. Lewellyn)

Steven L. Zelig
(WLA Legal Services Inc.)


Defendant

Ari Lauer

Andrew R. Haut

Scott Richard Lord


Experts

Plaintiff

Gregory W. Axten
(technical)

Defendant

Kenneth E. Bondy
(technical)

Nabih Youssef
(technical)

Facts

Plaintiff, a family trust, owned an 80-unit apartment building in Granada Hills at the time of the Northridge
earthquake in 1994.
Building No. 1 suffered significant damage to the West end of the building. The elevated post tension deck
failed, which caused the deck and building superstructure to collapse.
Building No. 2 did not collapse but it did suffer significant damage because the elevated post tension deck did
not have sufficient quantities of steel reinforcing bars.
Building No. 3 was also damaged. Buildings No. 1 and No. 2 were repaired.
The property was repaired at a cost of $3.5 million and lost rents in excess of $2 million.

Settlement Discussions

In 1996, plaintiffs made a C.C.P. º998 offer to compromise of $1 million, the amount believed at that time to be the policy limits. The offer was rejected. In 1997, plaintiff was served a similar C.C.P. Section 998 offer, but defendants rejected the offer. According to the defendant, the plaintiffs issued a C.C.P. Section 998 offer for $4.97 million prior to trial. In 1998, defendant No. 1 offered $972,000, the plaintiffs countered with $1 million. The counter offer was rejected. There were no settlement discussions with defendant No. 2.

Damages

The subject property was non-operational for two and one half years following the earthquake.

Injuries

The subject property was non-operational for two and one half years following the earthquake.

Other Information

Jury awarded $420,000 interest per year. The judge will decide on the date interest began to accrue. According to the defendant, the jury did not award interest of $420,000 per year on damages. Instead, they awarded $420,000 in interest. Also, according to the defendant, the plaintiff settled with other parties at a value of approximately $3.3 million. A motion to have that amount credited against the verdict is currently pending. In addition, the plaintiff received another $3.5 million from first-party insurance, for which the court denied credit due to the collateral source rule.

Deliberation

six days

Poll

12-0 (on liability), 9-3 (on damages)

Length

57 days


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