Facts

Marie Gray sued multiple defendants, including Geo Environmental Inc., the soils engineer, relating to alleged construction defects to her Irvine home.

Geo Environmental filed cross-complaints against Mark Falcone the General Building Contractor, and its pool subcontractor, Contemporary Pools & Spas, among others. Falcone and Contemporary Pools in turn filed their own cross-complaints.

PLAINTIFF'S CONTENTIONS:
Gray contended that there were cracks in the walls, sticking doors, tilting floors, and separations in the pool deck of the property, which were affected by differential settlement of fill soil underlying the property. She claimed that defendants, as the ones who originally constructed or otherwise performed work on the property, were liable for the damages she incurred in remedying the defects. Geo Environmental was the geotechnical engineer of record for the original construction of the home.

Plaintiff asserted claims for strict liability, negligence, breach of implied warranty, and violation of building standards as set forth in California Civil Code Section 896. The strict liability and breach of implied warranty claims were dismissed as against Geo Environmental in the pleading stage.

DEFENDANTS' CONTENTIONS:
Geo Environmental contended that the distress observed at the property was due, in whole or in part, to remodeling work performed by Falcone and its subcontractors, including Contemporary Pools, after the original construction was completed. Plaintiff, who had directly retained Falcone to perform this remodel work, did not sue Falcone or any of Falcone's subcontractors.

Damages

Plaintiff alleged a cost-of-repair in excess of $1,400,000.

Result

Pursuant to the settlement reached between the parties, in which no party admitted wrongdoing, plaintiff will receive a total of $800,000, which includes $555,000 from Geo Environmental, $175,000 from Falcone, and $70,000 from Contemporary Pools. Geo Environmental, Falcone, and Contemporary Pools release all claims as against each other for waiver of costs.

Other Information

FILING DATE: July 7, 2014.