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CONFIDENTIAL

Oct. 2, 1993

Breach of Contract
Construction Defects
Townhouse Development

Confidential

Settlement –  $205,000

Judge

Joseph R. Weil

Court

L.A. Superior Van Nuys


Attorneys

Plaintiff

Joseph R. Serpico


Defendant

Nolan B. Henderson

Dominic J. Fote

Chan B. Reader
(Hartsuyker, Stratman & Williams-Abrego)

Gary E. Kinnett


Experts

Plaintiff

Raymond Itaya
(technical)

Clark Porche
(technical)

Jerry A. Ryan
(technical)

Defendant

Besim O. Bilman
(technical)

Michael Clements
(technical)

Robert T. Jacobs
(technical)

Facts

The subject of this lawsuit is an 86-unit townhouse development in Thousand Oaks, constructed in 1981 by Defendants. Certain units developed roof leaks where sloped tile roofs adjoined vertical stucco walls between living room and bedrooms. During discovery, Defendant's experts discovered defects in the attic firewalls in the type "C" units. 135 type "C" units had a roofing defect consisting of over-spanned structural roof rafters.

Settlement Discussions

Plaintiffs contends their demand was $570,000 and Defendants offer was $110,000 (at trial in January, 1993).

Damages

Attic fire walls $500,000; roof bracing repair $250,000; past roof repairs $70,000; estimated roof replacement $275,000.

Other Information

This case settled at a voluntary settlement conference before Honorable Robert R. Weil, retired.


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