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CONFIDENTIAL

Aug. 27, 2005

Contracts
Breach of Contract
Statutory Claims

Confidential

Settlement –  $300,000

Judge

J. Michael Brown

Court

Humboldt Superior


Attorneys

Plaintiff

Michael J. Crowley
(Janssen Malloy LLP)


Defendant

Arthur Schwartz

Donald J. Hamman

Harvey L. Roberts Jr.


Experts

Plaintiff

Glenn Goldan
(technical)

Facts

The representative plaintiffs, Jennifer Watkins and Jon Broenen, were tenants of the Campus Apartments in
Arcata. On March 15, 2001, the City posted "danger" notices because the building had been deemed unsafe for
occupancy. The residents of the south side of the complex were told to vacate.
Watkins and Broenen filed a class action suit on behalf of the buildings tenants against the buildings owners,
Patrick Walsh, Anna Walsh, and their company, PPM Investments Inc. The plaintiffs claimed breach of
contract, violation of statutory duty, and violation of Business and Professions Code Section 17200.

Injuries

The plaintiffs claimed that they paid excessive rent for apartments that were unsafe for occupancy. They also claimed they were inconvenienced as a result of the evacuation.

Result

Farmer's Insurance Exchange paid $175,000; Anna and Patrick Walsh paid $110,000; and PPM Investments Inc. paid $15,000.

Other Information

A cy pres distribution was approved to Legal Services of Northern California, Redwood Regional Office and to Humboldt County Community Development Land Trust for settlement funds that could not be distributed for class members who had moved.


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