Confidential
Settlement – $1,750,000Judge
Court
Riverside Superior
Attorneys
Plaintiff
Thomas E. Miller
(Miller Law Firm)
Defendant
Randall D. Gustafson
(Lincoln, Gustafson & Cercos)
Experts
Plaintiff
John J. Nicholas
(technical)
Thomas R. Hayes
(technical)
Awtar Singh
(technical)
Thomas E. Chesley
(technical)
Dan R. Werdowatz PE, SE
(technical)
Bill Sevier
(technical)
Peter Poutney
(technical)
Defendant
Don Clark
(technical)
Kevin Rugec
(technical)
Sam Saffino
(technical)
Facts
Between 1988 and 1990, the defendant developer and subcontractors developed and constructed a project consisting of 132 condominium units located in Southern California. The plaintiffs alleged that they began experiencing roof leaks and drainage problems throughout the project. The purchase price for the units ranged from $149,000 to $171,000. The plaintiffs brought this action against the defendant based on negligence, breach of warranty and strict liability theories of recovery.
Settlement Discussions
The plaintiff made a $2,400,000 settlement demand. The defendants made a $1,000,000 settlement offer. Through negotiations and mediations, the action was eventually settled for $1,750,000. The defendant developer in this matter paid $1,107,500. Per the plaintiff, other significant settlement figures were from the framing, roofing, and plastering subcontractors.
Damages
The plaintiffs estimated that the cost of repair would be $2,436,000, including $35,000 (site drainage); $232,000 (fire safety); $398,000 (electrical); $231,000 (roofs); $108,000 (structural); $232,000 (windows/doors); $400,000 (finishes).
Other Information
The settlement was reached approximately one year and six and a half months after the case was filed. The mediator for the settlement conferences was David Jenkins.
For reprint rights or to order a copy of your photo:
Email
jeremy@reprintpros.com
for prices.
Direct dial: 949-702-5390