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CONFIDENTIAL

Nov. 29, 2001

Contracts
Construction Defect
Townhome Complex

Confidential

Settlement –  $1,968,440

Facts

The plaintiff homeowners association instituted this suit, alleging defective design and construction of a 27-unit
condominium complex used as faculty housing, and alleging toxic mold contamination of structures. The
plaintiff contended that the project was defectively designed and built and that this resulted in leaking roofs,
windows, balconies and defective siding.
Defendant and cross-defendants, including the general contractor and various subcontractors, disputed the
nature and scope of the plaintiffÆs alleged damages and estimated costs of repair.

Settlement Discussions

The plaintiffs made a demand of $2 million of which $999,999 was made by way of a C.C.P. Section 998 demand. The defendants submitted no offer. The action was settled for less than the plaintiffÆs demand.

Damages

The plaintiffÆs claimed cost of repairs amounted to $3,376,608.


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