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CONFIDENTIAL

Dec. 13, 1997

Construction
Construction Defects
Condominium Complex

Confidential

Settlement –  $2,100,000

Judge

Ross Hart

Court

L.A. Superior Pomona


Attorneys

Plaintiff

Lon F. Hurwitz

Julie Humphreys


Defendant

Lawrence M. Burek

Ernesto F. Aldover Jr.
(Pettler, Miller & Aldover LLP)

Stephen R. Thames

Sharon G. Friedman

Mona J. Jeffery J.D.

Catherine M. Page
(Page & Jorgensen LLP)

R. Scott Walton

Frank T. Sabaitis
(Sabaitis, Lunsford & Moore)

Stephen L. Hewitt
(Hewitt & Raphael)

George B. Hinman

Dennis J. Ponson

Michael T. O'Callaghan


Experts

Plaintiff

Charles O. Laines
(technical)

Don Greek
(technical)

Tom Richards
(technical)

Richard D. Bowen
(technical)

Gregory W. Axten
(technical)

Leland Saylor
(technical)

Daniel McNicholl
(technical)

Facts

Plaintiff homeowners association sued defendant general contractor and various subcontractors, alleging its 62-unit complex was defectively designed and constructed. The owners alleged leaking, defective roofs, windows, improper drainage, soils movement, deteriorating streets/pavements, inadequate stucco, defective plumbing products and installation. The plaintiffs also alleged there was improper and inadequate post-completion repairs. The plaintiffs brought this action against defendants based on negligence, strict liability, breach of contract and breach of warranty theories of recovery. The defendants filed cross-complaints against various subcontractors. The defendants and cross-defendants denied liability and disputed the extent of alleged damages.

Settlement Discussions

Various demands and offers were exchanged.

Damages

The plaintiffs claimed damages of $3 million after expert discussions and information exchange.

Other Information

The settlement was reached approximately three years and four months after the case was filed. MEDIATION: A mediation was held before Ross Hart of AAA resulting in the reported settlement.

Deliberation

five days

Length

five days


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