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CONFIDENTIAL

Jul. 20, 2002

Contracts
Breach of Contract
Construction Defect

Confidential

Settlement –  $626,000

Judge

Thomas Craigo

Court

L.A. Superior Central


Attorneys

Plaintiff

Mark M. Fang


Defendant

Edward R. Huguenin
(Huguenin Kahn, LLP)


Experts

Plaintiff

Gabriel Berghouse
(technical)

Facts

The husband and wife claimants hired the respondent general contractor to construct a 7,000 square foot home for
them in San Marino.
The house, a $1.5 million home, was completed within six months.
Some years later, the claimants noted areas of the floor settling and water intrusion as well as water
accumulation in the yard.
The claimants maintained that the moisture build-up caused dry rot and mold growth. The claimants sued the
contractor, the architect, various soil engineers and several subcontractors.

Settlement Discussions

The parties settled for $626,000. All of the defendants contributed to the settlement. The claimant had originally demanded $2,500,000 and the respondents' original offer was less than $200,000.

Damages

The plaintiff sought to recover more than $2.5 million to repair the defects.


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