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CONFIDENTIAL

Apr. 24, 1999

Construction
Single Family Dwelling
Single Family Dwelling Subdivision Defects

Confidential

Settlement –  $8,000,000

Judge

Tully H. Seymour

Court

Orange Superior


Attorneys

Plaintiff

Fred M. Adelman

Alois Peter Jr.


Defendant

Randall D. Gustafson
(Lincoln, Gustafson & Cercos)

Mark Collinsworth


Experts

Plaintiff

Salar Dehbozorgi
(technical)

Dale Feb
(technical)

Chris Ball
(technical)

Stephen Jacobs
(technical)

Joseph S. Yarman
(technical)

Howard F. Stup
(technical)

Clayton McKeown
(technical)

Defendant

Russell E. Rack
(technical)

Mark C. Vanderslice
(technical)

Kevin Rugee ADA
(technical)

Don Clark
(technical)

Seb J. Ficcadenti
(technical)

Samuel Safino
(technical)

Facts

This construction defect action involved 200 single family residences constructed by defendant construction company in Anahiem Hills. The defendant company was a bankrupt developer. The defendant company cross-complained against approximately 35 subcontractors, the soils engineer, and the mass graders. Many of the subcontractors were also bankrupt. The defendant construction company primary insurance coverage was virtually exhausted and only one excess policy had broad from coverage. Many of the subcontractors had similar insurances issues. The plaintiffs brought this action agaisnt the defendant construction company and subcontractors based on strick liability, negligence, and breach of implied warranty.

Settlement Discussions

Per plaintiff, the plaintiffs made a C.C.P. º998 settlement demand on the developer for $10 million which was rejected.

Other Information

A global settlement with the exception of the two subcontractors, was achieved approximately two years and nine months after the case was originally filed in the amount $7.9 million. The mediation was held before Alexander Polsky.


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