Facts

In 2003, the Roches and Davoodifars purchased adjoining properties from defendants. The defendants had developed these homes from raw land and completed construction after the sales. Within a year, both families suffered from various defective conditions, in particular, pools that appeared to be moving and reverse slope conditions that led water to flow beside and underneath both house foundations. Expert investigation revealed, among other things, the structures were constructed on partially compacted fill and as a result the pools were rotating and sinking and the stucco, floorings and doors were shifting and cracking.

PLAINTIFFS' CONTENTIONS:
Plaintiffs contended defendants built the homes as a group and all were liable for the defective conditions. The plaintiffs filed suit in 2005 alleging breach of contract, negligent construction and breach of the transfer disclosure law for failing to provide one transfer disclosure statement and for concealing the defective grading and flooding conditions in the other statement. The plaintiffs alleged the defendants were alter egos and joint venturers of each other.

DEFENDANTS' CONTENTIONS:
Defendants denied defective conditions and asserted that plaintiffs altered the grading after they left the properties. The defendants also contended the damages were aesthetic and superficial; that only one of them was on title as the seller and therefore the others could not be liable for transfer disclosure violations, and that only one of them was the builder and thus the others could not be liable for construction defect.

Settlement Discussions

There were no substantive settlement offers. Mediation with Ross Hart failed after defendants' insurance carrier denied coverage.

Result

Award to the Roches of $471,032 and to the Davoodifars of $463,255 for costs of repair and to all plaintiffs of $110,881 in attorneys' fees and costs. All defendants found jointly and severally liable as sellers, builders, alter egos and joint venturers of each other.

Other Information

All parties and claims were ordered into arbitration per real estate purchase contracts. The defendants' motions to vacate or correct the award made to the arbitrator and court were denied. Defendants' insurance company denied coverage after mediation was attempted. Counsel was instructed to withdraw from the case after agreeing to arbitration with plaintiffs. Defendants were without counsel to assist in preparation for arbitration. Defendants then retained the services of Grant, Genovese & Baratta, LLP a few weeks before the arbitration date to defend plaintiffs' allegations. FILING DATE: April 26, 2005.