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CONFIDENTIAL

May 6, 1995

Construction
Condominium Project

Confidential

Settlement –  $2,353,180

Judge

David M. Rothman

Robert Hibschweiller

Court

L.A. Superior Santa Monica


Attorneys

Plaintiff

Kenneth S. Kasdan
(Kasdan, LippSmith, Weber & Turner LLP)

Andrew D. Weiss
(Law Offices of Andrew D. Weiss)


Defendant

Michael S. Drucker

Hilmer U. Jarboe

Michael W. King

Pamela S. Cooke

Andrew Cohn

Joel A. Osman
(Parker Shaffie LLP)

Steven A. Simons
(Law Office of Steven A. Simons)

Todd Phillippi

Paul V. Wayne
(Tharpe & Howell)

Roger M. Franks

Willie Wang

John G. Tavetian

John Rosenfeld

Michael O'Connor

Michael A. Fox

Gerald B. Malanga

Mark K. Kitabayashi
(Lozano Smith APC)

Lisa K. Garner
(Gordon & Rees LLP)

Bruce M. Gubersky

Jeanette E. Jerles

Raymond A. Tabar

Charles T. Brown

Michael A. Coletti III
(Law Offices of Michael A. Coletti III)

Alfred W. Gerisch

John V. Gaule

Lawrence Borys

David S. Schleuter

Steven H. Schwartz

Robert M. Young Jr.

Carrin A. Gidekel

Dennis F. Shanagher

Michelle E. Rose

Melinda Jane Stewart


Experts

Plaintiff

Chuck Osterman
(technical)

Peter S. Curry
(technical)

Dean J. White
(technical)

Marshall Long
(technical)

John J. Nicholas
(technical)

John A. Drake
(technical)

Richard Thornberry
(technical)

John R. Bardin
(technical)

James Lee Bynum
(technical)

Defendant

Charles Helin
(technical)

William B. Grinnell
(technical)

Lee Saylor
(technical)

Wade C. Johnson
(technical)

James R. Quiter
(technical)

Gordon Bricken
(technical)

Bruce A. Davy
(technical)

Rodney L. DuBois
(technical)

Gary Ludden
(technical)

Jack Weston
(technical)

Lynn W. Bockemohle
(technical)

Lawrence D. Brown
(technical)

William C. Sterling
(technical)

James R. LaCroix
(technical)

Steve M. Daderian
(technical)

Paul S. Bennett
(technical)

Steven C. Wright
(technical)

Steve Schemerhorn
(technical)

John M. Springman
(technical)

D. Sidney McVicker
(technical)

David F. Jolly
(technical)

Donald R. Hughes
(technical)

Robert L. Johnson
(technical)

Walter Saunders
(technical)

Ernest R. Orchard
(technical)

T.H. "Nick" Carter
(technical)

D. William Otey
(technical)

R. Dean Colin
(technical)

Facts

This action involved alleged construction defects and deficiencies in a 10-unit luxury condominium development located on the ocean. The construction commenced in 1988 and was completed in 1990; occupancy of all but one unit was completed by the end of 1990. The remaining unit never sold and was rented to Defendant developer; however, repairs to this unit was included in this lawsuit. The price range per unit was $750,000 to $1,200,000.

Settlement Discussions

Defendants contend their offer prior to the MSC was $900,000 and Plaintiffs' demand was $3,500,000.

Damages

The defects claimed included lack of firestopping; improper penetrations of fire-rated assemblies; improper construction of fire-rated assemblies; water intrusion into the subterranean garage; improper deck and balcony offsets and slopes; water intrusion at windows and French doors; lack of bonding and cracking in exterior stucco; improper construction, painting, and installation of exterior metal railings; cracking of interior drywall and tiles; improper preparation and painting of exterior metal surfaces; improper construction of stairs at spa; excessive lengths of laundry dryer vents; missing or inadequately-installed anchor bolts and lag bolts; improper shear wall nailing; lack of adequate acoustical separation between units and between units and common areas; electrical defects including installation of improper outlets, improper installation of fuse panels, and overall poor quality of electrical work; and settlement and cracking of an exterior patio wall and concrete parking apron. Plaintiffs' final damage estimate for the cost to repair the construction, including the cost to relocate the residents of the project, was $3,900,000.


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