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CONFIDENTIAL

Nov. 7, 1998

Construction
Negligent Construction
Townhouse Complex

Confidential

Settlement –  $210,000

Judge

Charles W. Stoll

Mediator

Gerald A. Kurland

Court

L.A. Superior Glendale


Attorneys

Plaintiff

David Swedelson

Matt D. Ober


Defendant

William M. Slaughter
(Slaughter, Reagan & Cole LLP)

Elaine K. Fresch
(Hawkins, Parnell & Young LLP)

Lincoln V. Horton
(Horton Village Law Group APC)

Bruce P. Wolfe

Terri E. Hilliard

Holly J. Nolan

Lawrence G. Larson

Carol G. Arnold

Jeffrey J. Halfen

Kristi Weiler Dean


Experts

Plaintiff

Geoffrey Wm. Lunt
(technical)

Defendant

Simon Locke
(technical)

Peter Van Dijk
(technical)

Facts

Plaintiff homeowners association brought this lawsuit for construction defects and resultant damages sustained in the common areas and the 13 individual units of the association. The association's complex was originally built in 1982 and used as apartments. In about October 1992, defendants purchased the complex and made renovations prior to selling the units as townhouses in late 1993 to early 1994. Since that time, the association suffered substantial water intrusion from the roof, windows, doors and balconies. Drywall and framing defects were evident throughout the units. Improper sloping of balconies and walkways caused water to pond and to remain standing for extended periods of time. While defendant made some initial repairs to the association, these repairs were not successful, and plaintiff claimed they actually caused increased resultant damage to the association. The plaintiff brought this action against the defendants based on strict liability, negligence, breach of implied warranty and merchantability, breach of warranty and fitness, breach of fiduciary duty, fraud, negligent misrepresentation and breach of covenants, conditions and restrictions by developers.

Settlement Discussions

The plaintiff made a C.C.P. º998 settlement demand for $____________. The defendants made a C.C.P. º998 offer of compromise for $____________ .

Damages

The plaintiff claimed $300,000 in damages ($800,000 per defendant)

Other Information

The settlement was reached approximately one year and six months after the case was filed. A mediation was held before Gerald Kurland of JAMS, resulting in the reported settlement.


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