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CONFIDENTIAL

Oct. 16, 1999

Construction
Single Family Dwelling
Negligence

Confidential

Settlement –  $995,000

Judge

John C. Woolley

Court

Orange Superior


Attorneys

Plaintiff

A. Nicholas Georggin

James A. Krutcik


Defendant

Andrew K. Ulich


Experts

Plaintiff

Raymond Itaya
(technical)

Chris Ball
(technical)

Salar Dehbozorgi
(technical)

Ernest R. Orchard
(technical)

John J. Nicholas
(technical)

Tom Stelter
(technical)

Dale Feb
(technical)

William "Bill" Thomas
(technical)

Facts

In 1989, the defendant developer constructed eight single-family residences in Laguna Niguel. The plaintiffs bought the homes between 1988 and 1989. After living in them for a few months, the plaintiffs claimed, they began to notice various construction problems, such as window leaks, roof leaks, door leaks, deck leaks and cracks. The defendant's attempts to repair failed. The plaintiffs brought this construction defect action against the defendant developer based on negligence, breach of contract, breach of warranty and strict liability theories of recovery. The developer cross-complained against the subcontractors for indemnity.

Settlement Discussions

The plaintiffs made an initial settlement demand for $1.475 million. The defendant made an initial settlement offer of $250,000 with an assignment.

Damages

The plaintiffs claimed approximately $1.5 million in damages.

Other Information

The settlement was reached approximately three years after the case was filed. A settlement conference was held on June 28, 1999, before Judge John C. Woolley, resulting in global settlement.


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