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CONFIDENTIAL

Mar. 23, 2002

Contracts
Construction Defect
Negligence

Confidential

Settlement –  $7,168,800

Court

L.A. Superior Central


Attorneys

Plaintiff

Norman S. Wisnicki

Leslie Steven Marks


Defendant

Kenneth H. Coronel

Julia Bergstrom

Thomas F. Zimmerman

Diane O. Palumbo
(Palumbo Lawyers LLP)


Experts

Plaintiff

Gary Ludden
(technical)

Jim Griffin
(technical)

Manny Shahraki
(technical)

Bryan Morrell
(technical)

Mark Yochim
(technical)

Howard I. Littman
(technical)

Vahe Kardjian
(technical)

John J. Nicholas
(technical)

Defendant

Rick Harris
(technical)

Malcolm Lewis
(technical)

Awtar Singh
(technical)

Bert W. Howe
(technical)

Seb J. Ficcadenti
(technical)

Richard H. Dodd
(technical)

Facts

This lawsuit involved a 448-unit condominium complex located in Santa Clarita. Assn. members complained of
various damages, including water intrusion at the roofs, windows and decks and other issues.
The plaintiff alleged deficiencies in the common areas of the project regarding architectural, structural,
electrical, plumbing, roofing, mechanical and soil components of the project. Some of these defects caused
water intrusion related damage at the project.
The developer defendant contended that the plaintiffÆs $24 million cost of repair was excessive and that some
of the alleged defects resulted from earthquake damage.
The developer cross-complained against 40 subcontractors.

Settlement Discussions

The plaintiffÆs settlement demand was in the amount of $9,850,000. After numerous mediation sessions conducted over the course of months, final settlement was reached in the amount of $7,168,000 with the active assistance of Ross Hart of the American Arbitration Association.


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