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CONFIDENTIAL

Mar. 15, 1997

Construction
Construction Defects
Townhome Complex

Confidential

Settlement –  $770,000

Judge

Barbara A. Lane

Mediator

Ross Hart

Court

Ventura Superior


Attorneys

Plaintiff

David A. Loewenthal


Defendant

Jay M. Borgeson


Experts

Plaintiff

Raymond E. Steinberg
(technical)

Hal Fremer
(technical)

Gary C. Masterman
(technical)

Defendant

Bert W. Howe
(technical)

Seb J. Ficcadenti
(technical)

Facts

In 1988 to 1991, the defendant developer/general contractor built a 24-unit townhome complex in Thousand Oaks, with actual construction being performed by numerous subcontractors. Commencing in approximately 1993, residents of the townhomes began experiencing severe water intrusion through the roofs, as well as through subterranean living rooms. The plaintiff homeowners association brought this action against the developer and various subcontractors based on breach of contract, strict liability, breach of warranty and negligence theories of recovery.

Settlement Discussions

The plaintiff made an initial settlement demand for $1.4 million. The defendants made a global settlement offer of $500,000 (per the defendants) or an initial settlement of $375,000 (per the plaintiff).

Damages

The plaintiff claimed approximately $1.4 million (per the plaintiff) or $2.51 million (per the defendants) in cost or repair damages.

Other Information

The settlement was reached approximately two years after the case was filed. MEDIATION: A mediation was held on Dec. 4, 1996 before Ross Hart of the American Arbitration Association, resulting in the reported settlement.


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