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CONFIDENTIAL

Sep. 19, 1998

Construction
Negligent Construction
Breach of Warranty

Confidential

Settlement –  $5,200,000

Mediator

Howard B. Weiner

Court

L.A. Superior Van Nuys


Attorneys

Plaintiff

Gary C. Nawa


Defendant

Richard Kahanowitch


Experts

Plaintiff

Robert R. Powell
(Powell & Associates) (technical)

Larry Beals
(technical)

Eric Hinds
(technical)

Westley Vann
(technical)

Tim Vande Vegte
(technical)

Raymond Fuess
(technical)

Leonard Liston
(technical)

Ron Estrin
(technical)

Jeff Reith
(technical)

Gary C. Masterman
(technical)

Defendant

Gavriel Berghouse
(technical)

Kenneth Hobbs
(technical)

Richard Lownes
(technical)

Bert W. Howe
(technical)

Alan A. Wright
(technical)

Facts

This case involved a 66-unit upscale condominium project in Woodland Hills. The Jan. 17, 1994, Northridge earthquake allegedly revealed extensive construction defects throughout all aspects of the project. A majority of the defects involved framing issues. Following the earthquake, which struck 18 days before the 10-year statute of limitations ran, the homeowners association filed suit against the defendants who acted as the developer, designer, general contractor and sales force on the project at the time of construction. The plaintiff brought this action based on negligence. The developer filed a cross-complaint against all subcontractors.

Settlement Discussions

The plaintiff made a settlement demand for $10 million (in 1995). The defendant made an offer of $1 million in 1997, plus assignment of certain rights against the subcontractors.

Other Information

The settlement was reached approximately four years and three months after the case was filed. A final mediation was held on May 29, 1998, before retired Justice Howard B. Weiner, of Private Dispute Resolution in San Diego, resulting in the reported settlement. The cross-complaint against the framer is being pursued by the developer.


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