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CONFIDENTIAL

Mar. 5, 1998

Construction
Negligent Construction
Single Family Residence

Confidential

Settlement –  $612,000

Judge

David B. Finkel

Court

L.A. Superior Santa Monica


Attorneys

Plaintiff

Paul H. Lasky

Eric Lawton


Defendant

Gabriel H. Wainfeld
(York & Wainfeld)

Gary S. Gray


Facts

In 1991, defendants designed and constructed plaintiff's luxury, single family residence in the Venice Canals. Shortly after the plaintiff moved in, he observed continuing problems, including water intrusion which became apparent after rains. These problems were reported to defendant construction manager. Each time they were reported, he promised to repair the problem and represented to plaintiff that he was attempting to do so. Thereafter, the problems re-occurred. Plaintiff suffered ongoing water intrusion, structural and deck problems. The plaintiff brought this action against defendants, the designer and construction company, based on negligence, breach of contract and breach of warranty theories of recovery.

Settlement Discussions

The plaintiff made a settlement demand for $999,999. The defendants made an offer of $300,000.

Damages

The plaintiff claimed cost of repair in excess of $580,000, plus emotional distress damages.

Other Information

The settlement was reached approximately two years after the case was filed. MEDIATION: A mediation was held over two months before Ross Hart of the American Arbitration Association resulting in the reported settlement. Per plaintiff, this case was settled prior to the recent court of appeal decision of Erlich v. Menezes recognizing a cause of action for emotional distress absent physical injury in a construction defect case.


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