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CONFIDENTIAL

Apr. 24, 1999

Construction
Construction Defect
Single Family Dwelling Subdivision Defects

Confidential

Settlement –  $2,750,000

Judge

Rufus L. Yent

Mediator

Gerald A. Kurland

Court

San Bernardino Superior


Attorneys

Plaintiff

Michael T. Whitaker


Defendant

Paul J. Delmore

John A. Simpson

Keith Bremmer


Experts

Plaintiff

Howard F. Stup
(technical)

Daniel J. McNicoll
(technical)

Salar Dehbozorgi
(technical)

John Hammond
(technical)

Joseph S. Yarman
(technical)

Clayton McKeown
(technical)

Dale Feb
(technical)

Chris Ball
(technical)

Defendant

Gregory Mowat
(technical)

James Eddington
(technical)

Ted Bumgardner
(technical)

George Swink
(technical)

Peter S. Curry
(technical)

Barry Bevier
(technical)

Glenn Asakawa
(technical)

Michael Stevens
(technical)

H. Stanley Espenship
(technical)

Facts

This construction defect action involved seventy-eight (78) single family homes in a Victorville. The defendants were the developer and various subcontractors. The homes originally sold in the range of between $99,000 to $135,000. The plaintiffs brought this action against the defendant based on strict liability, negligence and breach of contract and warranty.

Settlement Discussions

The plaintiff made a settlement demand for $7.2 million. Per plaintiff, the defendant made an offer for $ 199,000.

Other Information

The settlement was reached approximately two years after the case was filed. The framing subcontractor initally did not settle. Per defendant, all other subcontractor defendants contributed to the settlement in varying amounts. The plaintiffs' settlement demand against this non-settling party was $500,000. The plaintiffs received an assignment of the Developer's indemnity claims and additional insured rights against this party. This claim settled for $850,000 two days before trial was set to begin.


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