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CONFIDENTIAL

May 8, 1999

Construction
Negligence
Strict Liability

Confidential

Settlement –  $5,500,000

Judge

John C. Woolley

Court

Orange Superior


Attorneys

Plaintiff

Thomas E. Miller
(Miller Law Firm)


Defendant

John A. Simpson


Experts

Plaintiff

Christopher A. Allen
(technical)

Malcolm Lewis
(technical)

William "Bill" Thomas
(technical)

Denis J. Dunn
(technical)

Ernie Orchard
(technical)

Donald Waller
(technical)

James Shrope
(technical)

Facts

Tthe defendant developer developed property in Orange County, California, including a 275 unit residential condominium complex in 1990, the homeowners began to notice leaks and other problems with the units. The plaintiff brought this action against the defendants based on breach of implied warranty of merchantability, breach of implied warranty of fitness for intended purpose, strict liability and negligence.

Settlement Discussions

The plaintiff association was offered only $1 million in December, 1996, during the Calderon pre-litigation process.

Damages

The plaintiff association claimed resultant damages from construction defects due to architectural deficiencies and code violations including, but not limited to; roof and deck leaks, related flashing failures, and water intrusion through windows and sliding glass doors in the amount of $7 million.

Other Information

The settlement was reached approximately two years after the case was filed. Mediations was held over six months, resulting in the settlement. Ross R. Hart, of the American Arbitration Association in Los Angeles was appointed by the court as the discovery referee and initial mediator in this action. Thereafter, Ross Hart appointed Alan E. Harris, and Randall W. Wulff, both of the firm of Farella, Braun & Martel, as co-mediators to facilitate continued mediations between the parties.


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