Confidential
Settlement – $250,000Judge
Court
L.A. Superior Central
Attorneys
Plaintiff
Defendant
Experts
Plaintiff
Chris Ball
(technical)
Clayton McKeown
(technical)
Defendant
Ben Aviv Damari
(technical)
Facts
In 1988, the defendants were the developers, general contractors and seller(s) of a 10-unit apartment building in Hawthorne. The plaintiff purchased the building after its construction and had no involvement in the construction. The plaintiff sued the named defendants for various construction defects in the building, including defective roofing, defective decks, deficient framing, and plumbing defects. The named defendants in turn cross-complained against several of the design professionals and/or subcontractors who worked on the building during its erection. The developers' insurance coverage was problematic, with coverage gaps and lapses. The plaintiff brought this action against the defendants based on strict liability, breach of contract, negligence, breach of the covenant of good faith and fair dealing theories of recovery.
Settlement Discussions
The plaintiff made a $250,000 settlement demand from the developer entities in addition to an assignment of all contractual indemnity rights against the subcontractors. The plaintiff and the named defendants settled for $250,000 in cash and assignment to their indemnity rights against certain of the subcontractors.
Damages
The plaintiff estimated that the cost to repair the alleged defects, including rent and relocation was $375,000 as to the developer only.
Other Information
The settlement was reached approximately one year and three months after the case was filed. The indemnity claim and roofing and decking issues, are pending against the subcontractors.
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