Confidential
Settlement – $1,100,000Mediator
Court
L.A. Superior Santa Monica
Attorneys
Plaintiff
Michael K. Wolder
(Wolder & Associates)
Defendant
Jerry C. Popovich
(Hawkins, Parnell & Young LLP)
Malcolm S. McNeil
(ArentFox Schiff LLP)
Experts
Plaintiff
William C. Sterling
(technical)
Marc C. Viau
(technical)
Ralph E. Phillips
(technical)
Facts
The plaintiffs were owners of a 5-unit luxury condominium complex located in Santa Monica. The plaintiffs claimed defective flashing/black paper connections at doors and windows, breaches in black paper allowing water to infiltrate stucco; sealed drip screed which had forced water into the home; defective door threshold conditions allowing water to seep in under the thresholds; failure to place back drains or similar drainage devices behind subterranean garage retaining walls allowing water to build up and penetrate through garage floors and walls; improper drainage from decks to outlets at the street; failure to install the roof and roof drains in water tight manner; and failure to properly waterproof the below grade walls of the homes and retaining walls. The plaintiffs further alleged electrical shortages in walls, telephone line problems within the walls; inadequate fall of the plumbing lines which caused the toilets and sinks to continually back up; improper plumbing connections to the toilets, tubs and showers which resulted in the line breakages and flooding, supposedly "high-end" carpets which are actually "seconds" and pieced together instead of full cuts; severe buckling of expensive hardwood flooring; and extensive mold and mildew in wall cavities and draperies. The plaintiffs brought this action against the defendant builder based on negligence, breach of warranty and strict liability theories. The plaintiffs also sued the realtor for non-disclosure of defects and litigation involving the same builder/developer and realtor on a similar project two blocks away.
Settlement Discussions
The plaintiff made a settlement demand for $1 million.
Damages
The plaintiffs claimed $1.8 million in damages.
Other Information
The settlement was reached approximately two years and three months after the case was filed. Defendant realtor settled with plaintiff prior to the mediation. A 3-day mediation was held before retired judge R. William Schoettler Jr., of JAMS resulting in the reported settlement. Per defendant, there were substantial insurance questions because of uninsured subcontractors and insolvent insurers. Ultimately, the matter was settled for the policy limit available to the developer and general contractor under the same policy.
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