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CONFIDENTIAL

Dec. 14, 2004

Contracts
Construction Defect
Mold

Confidential

Settlement –  $75,000

Judge

Michael B. Orfield

Court

San Diego Superior


Attorneys

Plaintiff

Richard R. Leuthold


Defendant

William C. Getty


Experts

Plaintiff

Andrew Gillespie
(technical)

Connie Jenkins
(technical)

Defendant

Colin Young
(technical)

Elliott Levenson
(technical)

Michael J. Wintheiser
(technical)

Scott B. Arens
(technical)

Facts

The plaintiff purchased a manufactured home from Western Homes Corporation in 1998 for $65,000 and subsequently entered into a contract with Canamex Construction Company for site development, grading foundation, septic/leech field and installation of the home at the residential lot purchased by the plaintiff for this purpose. The construction contract was for approximately $55,000. Subsequent to taking occupancy of the residence, the plaintiff discovered and alleged that Canamex's work was defective and substandard in that it failed to properly install and construct the plumbing, including tub and shower drains which caused water problems, plumbing leaks and a mold condition. The defendants and cross-defendants contended that the home was manufactured properly without product defects; that the site work, foundation and installation was not negligently performed; that the plumbing defects were minor and did not necessitate a re-plumbing of the home, and the minimal mold discovered was caused by the plaintiff's over-watering and other causes. According to the defendant, the contract between the plaintiff and Canamex entitled the plaintiff to recover her attorneys fees of over $25,000 at the time the case settled prior to trial.

Settlement Discussions

PLEASE CAN YOU SUMMARISE?

Damages

Construction defects resulting in moisture problems and mold condition.

Result

The case was settled at $75,000 ($42,000 from Canamex Construction Company Inc. due to the plaintiff's contractual right to recover attorneys fees; $20,000 from Western Home Corporation; and $13,000 from Cal-Kool Air Condition and Heating).


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