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CONFIDENTIAL

Jun. 7, 1997

Construction
Negligence
Indemnity

Confidential

Settlement –  $615,000

Judge

Terry L. Smerling

Court

L.A. Superior Pasadena


Attorneys

Plaintiff

Nicholas A. Boylan
(Law Office of Nicholas A. Boylan, APC)

David P. King


Defendant

Gary G. Dye

Nicholas M. Wieczorek

Jeffrey M. McConnell

Jeff Briggs


Experts

Plaintiff

Fred J. Meyer
(technical)

Rodney B. Spears
(technical)

Randal Lim
(technical)

Donald Waller
(technical)

Edward K. Takahashi
(technical)

Defendant

Jay R. Gorman
(technical)

Barry L. Houseal
(technical)

Robert M. Ellis
(technical)

Facts

The plaintiff homeowners, association of a 76-unit condominium development located in Duarte claimed that the defendant developers (settled) were responsible for construction defects. The developer defendants settled that case, in part, by payment of $1.8 million plus an assignment of all of the developers' express indemnity claims against the subcontractors that built the project. Most of the subcontractors settled before trial, leaving three subcontractors (the plasterer, the sheet metal contractor and the exterior concrete flatwork contractor) to proceed to trial. The plaintiff brought this action against the defendants based on a negligence theory of recovery.

Settlement Discussions

The plaintiff made a settlement demand for $800,000. The defendants made no settlement offers.

Damages

The plaintiff claimed $1.2 million in damages.

Other Information

The settlement was reached approximately two years and six months after the case was filed. MEDIATION: A mediation was held before Ross Hart of AAA. It did not resolve the matter. Plaintiff's counsel stated that the mediation was "very disappointing, wasteful and unproductive." He added that the parties negotiated the $615,000 settlement themselves.


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