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CONFIDENTIAL

Dec. 7, 1996

Construction
Construction Defects
Condominium

Confidential

Settlement –  $2,087,000

Judge

Fumiko H. Wasserman

Ross Hart

Court

L.A. Superior Central


Attorneys

Plaintiff

Matthew L. Grode

Leslie Steven Marks


Defendant

Richard P. Riley

George Knopfler
(Signature Resolution)

Lisa Bandy Dunn


Experts

Plaintiff

Harry A. MacDonald
(technical)

James W. Griffin
(technical)

Gary Ludden
(technical)

Defendant

Richard Gorman
(technical)

Paul S. Bennett
(technical)

John R. Bardin
(technical)

Kevin V. Keegan
(technical)

John Lawson
(technical)

Douglas Bennett
(technical)

Sam Huff
(technical)

Bill Sterling
(technical)

Facts

Between 1989 and 1994, the defendant development company constructed a 368-unit condominium project in Newhall. Shortly after completion, members of the plaintiff homeowners association began experiencing water intrusion through their windows, roofs and walls. The homeowners association brought this action against the developers, the general contractor, and the subcontractors based on negligence, strict liability and breach of warranty theories of recovery.

Settlement Discussions

The plaintiff made a settlement demand for $2.5 million. The defendant and cross-defendants countered with an approximate $1.5 million global settlement package.

Damages

The plaintiff claimed $8,070,732 in cost-of-repair damages.

Other Information

The settlement was reached approximately two years and nine months after the case was filed. MEDIATION: A five-day mediation was held before Ross Hart, Esq., of American Arbitration Association resulting in the reported settlement.


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