Confidential
Settlement – $900,000Mediator
Court
L.A. Superior Torrance
Attorneys
Plaintiff
Michael K. Wolder
(Wolder & Associates)
Defendant
Experts
Plaintiff
Marc C. Viau
(technical)
Bill Sterling
(technical)
Brian Stratouly
(technical)
Defendant
Bill Thomas
(technical)
Peter G. Toghia
(Toghia Construction)
(technical)
Facts
In 1989, the defendants began construction of plaintiffs' 7,000 square foot custom home in Playa del Rey. The project was completed in 1991. Without moving in, the plaintiffs immediately put the home on the market and intended to hold an open house on the first available weekend. However, early Saturday morning, the plaintiffs received a call from the agent holding the open house at the entire living room ceiling had caved in as a result of leaks in the home from the rain the night before. The contractor agreed to come back and repair the ceiling and the leaks. The plaintiffs had to sell their existing home, move into the subject property and attempt to remedy the leaks and other defects which continually aggravated the home. Experts identified several major areas of concern and defective construction which caused or contributed to the water infiltration. The defects included defective flashing/black paper connections at doors and windows, breaches in black paper allowing water to infiltrate stucco, sealed drip screed which forced water into the home, defective door threshold conditions allowing water to seep in under the thresholds, failure to install proper waterproofing connections around an architectural feature commonly referred to as a "sono tube" which travels around the perimeter of the home, defective skylight and clear stormy window assemblies which allowed water to leak through the assembly themselves, improper drainage from decks to outlet at street, failure to install the roof and roof drains in a water tight manner, and failure to properly waterproof the below grade walls of the home and retaining walls. The plaintiffs also obtained the services of a health science expert to test and report on fungus and mold contamination which was occurring throughout the home and garage. Stachybotrys was found in several areas of the home as well as high levels of other toxic strains of mold. The plaintiffs brought this action against the defendant builder and certain subcontractors based on breach of contract, breach of warranty, diminution in value and negligence theories of recovery.
Settlement Discussions
The plaintiffs made a C.C.P. º998 settlement demand for $_________. The defendants made a C.C.P. º998 offer of compromise for $_____________.
Damages
The plaintiffs claimed $1.5 million in damages for cost of repair and relocation.
Other Information
The settlement was reached approximately two years and four months after the case was filed. A 3-day mediation was held before George Caulkins of AAA resulting in the reported settlement.
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