Confidential
Settlement – $3,567,500Judge
Court
L.A. Superior Van Nuys
Attorneys
Plaintiff
Defendant
Richard H. Glucksman
(Chapman, Glucksman, Dean, Roeb & Barger)
Raymond Meyer Jr.
(Bremer, Whyte, Brown & O'Meara LLP)
Keith G. Bremer
(Bremer, Whyte, Brown & O'Meara LLP)
Facts
In or about 1990, the defendant developer constructed a 23-unit condominium complex in Calabasas. Shortly after completion of the project, members of the plaintiff homeowners' association began to experience water intrusion through their windows and roofs. The plaintiff homeowners' association commenced this action against the developer and various subcontractors to recover monetary damages caused by these deficiencies based on negligence, strict liability and breach of warranty theories of recovery. The plaintiff's structures then suffered significant damage as a result of the Jan. 17, 1994 earthquake. The plaintiff claimed that, but for the structural deficiencies in the project, the earthquake damage would not have been so severe. The plaintiff received a partial payment of earthquake insurance benefits ($846,000) in 1994. In or about February 1996, a fire caused significant damage to two of the project's units. The fire spread through the two units because of the lack of adequate fire blocking. The plaintiff's insurer expended approximately $300,000 undertaking the repair of these units. In addition to insuring the plaintiff for earthquake and fire damage, the same insurance carrier also issued the developer's CGL policy. Consequently, during the course of this action, the insurance carrier asserted a right of subrogation in the amount of approximately $1.2 million to recover monies paid for earthquake and fire damages which was caused or exacerbated by the construction defects.
Settlement Discussions
The plaintiff made a global settlement demand for $2.75 million, plus a waiver of the insurer's subrogation rights of $1.2 million. The defendants made a global settlement offer of $1.2 million, increased to $2 million.
Damages
The plaintiffs claimed $3 million in damages (per the plaintiff) or $5.2 million (per the defendant)
Other Information
The settlement was reached approximately three years and five months after the case was filed. A three-day mediation was held before Judge James Kolts, retired, of ADR Services. Thereafter, a + day mediation session was held before Ross Hart, Esq., of the AAA, resulting in the reported settlement.
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