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CONFIDENTIAL

May 27, 1995

Construction
Condominium Project

Confidential

Settlement –  $1,300,000

Judge

John Zebrowski

Court

L.A. Superior Central


Attorneys

Plaintiff

Gary W. Verboon

Adam S. Warshaw


Defendant

Mark Tenner

Kevin Dean Smith
(Wood, Smith, Henning & Berman LLP)

Robert A. Muhlbach

Tamara L. Green

Henry Stone

Thomas G. Wianecki
(Wesierski & Zurek LLP)

Michael F. Saydah

Larry E. Robinson

Douglass H. Mori

Michael A.J. Nangano
(Michael A.J. Nangano A Law Corp.)

Maxine Sher

John J. Tary

John W. Streeter
(John W Streeter ALC)

Daniel A. Berman
(Wood, Smith, Henning & Berman LLP)

Steven K. Camhi

Lisa Clark

Michael A. Fox

Michael W. King

Ron Anson

Nialene Harrel

C. Ryan Fisher
(Manatt, Phelps & Phillips LLP)

Paul S. Cooley

Steven H. Schwartz


Experts

Plaintiff

John M. Steinbrugge
(technical)

Michael A. Caggiano
(technical)

Les Weinberg
(technical)

Marshall Long
(technical)

Greg W. McClain
(technical)

John Hammond
(technical)

Chris Ball
(technical)

Cal Meuser
(technical)

Franklin Bames
(technical)

Allen Jacoby
(technical)

Luis De La Cruz
(technical)

Defendant

Robert F. Schwartz
(technical)

Neal Graham
(technical)

Jerome Batal
(technical)

William B. Grinnell
(technical)

David A. Levy
(Office of the County Counsel) (technical)

Roger C. Noppe
(technical)

Rick Harris
(technical)

Ernest R. Orchard
(technical)

J. Kevin Morrison
(Altair Law LLP) (technical)

Facts

This was a construction defects and misrepresentation case stemming from the development and marketing of a 57-unit condominium complex in North Hills, California. Construction was complete in 1990; the units then became occupied on January 15, 1990. The units originally sold for $99,000 to $145,000. Plaintiff was the homeowners association for the complex which sued on behalf of its membership for property damage and misrepresentation. Defendants were the developers of the project, the sales agent for the project, the construction manager, and the employees or agents of the developers who served as members of the board of directors of the association.

Settlement Discussions

Plaintiff contends that it demanded $2,300,000 decreased to $1,900,000 and that Defendants initially offered $250,000, increased to $450,000, and further increased to $750,000; Defendants final offer prior to settlement was $875,000.

Damages

Plaintiff claimed $2,300,000 in property damage for defects which included water penetration through roofs, decks, doorways, and balconies; improper installation and operation of heating and air conditioning; various plumbing defects; insufficient noise attenuation through party walls, floor-ceiling assemblies, and plumbing; roofing defects; garages that were constructed too short and too narrow, in violation of the building code; missing anchor bolts and hold-downs in 2 buildings; improper driveway drainage; and improperly installed rain gutters. Plaintiff further claimed $85,000 in damages for misrepresentation.

Other Information

This case was filed on March 10, 1993; one year, one month and twenty four days prior to this result.


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