Facts

Plaintiff 1426 North Laurel Avenue Homeowners Association Inc. filed a suit against defendant Avraham Hassid, a real estate investor and developer. Hassid purchased the North Laurel Ave. property, and formed Sunset on Sunset LLC for the purpose of constructing the subject condominium building.

Defendant Varoozh Saroian is a licensed architect and a licensed general contractor.

The building was constructed in 2004 to include 19 separate condominium units. It consists of a subterranean garage, the ceiling of which is a raised structural concrete deck that also serves as the foundation for the wood-framed building above. The raised structural deck is supported by a series of concrete columns.

PLAINTIFFS' CONTENTIONS:
Plaintiffs are condominium owners at 1426 North Laurel Avenue in West Hollywood. Plaintiffs contended that after the sale of the units, extensive water intrusion occurred on the roofs and through windows and doors; doors and windows would not open or close; floors were unleveled; and cracks developed throughout the walls and foundations. Plaintiffs contended Hassid assured the owners that he would remedy the defects and he made several attempts at repairing roof leaks, all of which failed. Plaintiffs claimed Hassid made no attempts to repair any of the other problems.

Result

Plaintiff's verdict for $4,978,840 as follows: $4,227,051 cost of repair; $659,250 loss of use; and $92,539 investigation costs. The court entered judgment against defendants, jointly and severally and found that in addition to the documentary evidence, the testimony of Hassid established that plaintiff had met its burden of proof as to its alter ego contentions against Hassid.

Other Information

According to plaintiff, recoverable costs will be of approximately $30,000 and prejudgment interest of $1.99 million. EXPERT TESTIMONY: Salar Dehbozorgi testified that the raised structural deck was not constructed with proper camber, to allow deflection within acceptable limits when loaded with the weight of the building. Accordingly, dead loads from the building weight and live loads from occupancy and activity caused the structural deck to sag between the supporting columns; this in turn caused deflections and movement in the building itself. Neil Tomison testified as to extensive failures of windows and doors upon testing, and recommended repairs to be concurrently performed with resetting windows and doors. Jerry Vandewater testified that essential weatherproofing and drainage components of the roof were omitted; that the roof patio deck used improper materials, which were improperly installed; and that the developer's repair attempts were improper and inadequate. Keith Daniels determined the repairs recommended by other experts would require the building be vacated for nine months, and repair costs were $4.2 million. Jerry Tempkin determined the fair market value of the occupancy for nine months was approximately $660,000. FILING DATE: April 13, 2010.

Length

six days