Confidential
Settlement – $640,184Judge
Mediator
Court
Ventura Superior
Attorneys
Plaintiff
Defendant
George F. Allen
(George F. Allen, Attorney at Law)
Experts
Plaintiff
Tony Robinson
(technical)
Robert J. Greenberg
(technical)
F. David Chavez
(technical)
Gerald Benson
(technical)
Defendant
James Weaver
(technical)
Geoffrey Hichborn
(technical)
James P. Gray
(ADR Services Inc.)
(technical)
Bert Howe
(technical)
Michael Neff
(technical)
John G. Ellis
(technical)
Kenneth E. Bondy
(technical)
Facts
In 1995, the defendant developer built 48 homes in Thousand Oaks, Calif. In about 1995 the homeowners noticed water intrusion and other construction defects at 8 homes in the tract. The plaintiffs brought this action aginst the defendants based on strict liability, negligence, and breach of warranty theories of recovery. After facts were discovered showing that the developer knew the home sprang "serious" and alarming" leaks (according to their internal documents) while the homeowners were in escrow to buy their homes, plaintiffs added causes of action for intentional and negligent nondisclosure.
Settlement Discussions
The plaintiffs made a settlement demand for $1.2 million. The defendants made an offer for $20,000 per house which was later increased to $30,000 per hourse. The $30,000 offer was accepted by a 9th homeowner at a Mandatory Settlement Conference.
Damages
$1,165,000 for repairs to the homes plus about $100,000 for relocation expenses and (nominal) for property damage.
Other Information
The settlement was reached approximately one year and eight months after the case was filed. A meditation was held before Gerard Karland, of JAMS/Endispute resulting in a settlement for the peripheral parties only. The case started as a single house case. On Feb. 18, 1998, the plaintiffs filed a second amended complaint adding 8 additional homeowers. The defendant's real estate appraiser was disqualified for an ethical violation because he talked to plaintiffs when he and defendant's counsel knew they were represented. In Dec. 1998, the defendant's documents were discovered in a small trailer in Calabasas showing the defendant's knowledge of the existence of leaks, including a file labeled "January 1995 Leaks" and documents showing that 42 of the 48 homes leaked while under construction. In August, 1998, the defendants verified production of documents and responses to requests for admission claiming that no such documents existed, and produced certain innocuous documents that came from the same trailer. On the date the case settled, there was pending plaintiffs' motion in limine $30,000 in monetary sanctions and issue sanctions for the concealment of the documents. There are 10 more homeowners in the same tract suing the defendant in a differenct action.
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