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CONFIDENTIAL

Jan. 24, 1998

Construction
Strict Liability
Condominium

Confidential

Settlement –  $1,432,560

Mediator

Alexander S. Polsky

Court

L.A. Superior Lancaster


Attorneys

Plaintiff

Mark B. Wilson
(Klein & Wilson)


Defendant

Jeffrey A. Kiburtz
(Covington & Burling LLP)

Donald L. Scoggins

David Richmond

Anne M. Michaels
(Office of the Monterey District Attorney)

J. Alan Frederick
(Marrone Robinson Frederick & Foster)


Experts

Plaintiff

Thomas E. Chesley
(technical)

Peter J. Pountney J.D.
(technical)

Jack Weston
(technical)

Mark C. Vanderslice
(technical)

Carl H. Josephson
(technical)

Facts

Plaintiff was the homeowner's association for a 48-unit condominium project in Lancaster. Between 1992 and 1995, plaintiff discovered numerous defects in the project. The plaintiff brought this action against the defendant developers, contractors and subcontractors based on strict liability and negligence theories of recovery.

Settlement Discussions

In May 1997, plaintiff made a C.C.P. º998 settlement demand to the general contractor for $900,000 which was accepted and paid. On Aug. 29, 1997, plaintiff made a C.C.P. º998 for $200,000 to the developers. After plaintiff recovered over $1 million from other parties, the developers made a C.C.P. º998 settlement demand to plaintiff for $110,000, which was silent as to attorney fees. On Sept. 12, 1997, plaintiff accepted the developers' offer and the court entered judgment against the developers in that amount. Plaintiff executed upon the developers' assets and received a check from the sheriff in the amount of $110,515.24. Plaintiff then filed a motion for attorney fees against the developers which was settled for $40,000.

Damages

Plaintiff claimed damages in the amount of $2.1 million.

Other Information

The settlement was reached approximately two years and six months after the case was filed. Several mediation sessions were held in July 1997 before Alexanders S. Polsky of JAMS/Endispute resulting in settlement with most of the defendants. Subsequent settlement discussions resulted in a final settlement with all remaining defendants.


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