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Verdicts / Settlements - DefendantsWalnut Grove Condominium Owners Assoc. vs. Eastways Development Corp., et al.
CASE NO.: NEC 43210
VERDICT DATE: March 26, 1992 TOPIC: Real Estate Fraud RESULT : $290,000 total (verdict); $250,000 compensatory, $40,000 punitive; Chung Eli Mao and Walnut Grove Condo Project, Ltd. found 70% negligent, Masonry Waterproofing, Inc. found 30% negligent. Eastways Development Corp. was not negligent. INJURY: $105,938 to repair belowgrade water leaks through exterior walls. Underground storerooms, garages, stairways and laundry rooms had leaks. AREA: Norwalk, CA JUDGE: John L. Donnellan (Retired) PLAINTIFF ATTORNEY : Janine K. Jeffrey & David Reily, (Irwin & Kimball), Los Angeles DEFENDANT ATTORNEY: for Mao/Condo: Richard M. Koep (Hill, Genson, Even, Crandall & Wade), Los Angeles; for Masonry: Alexander Robertson (Negele, Knopfler , Pierson & Robertson ), Universal City; for Eastways: Frank Goseco (Tuverson & Hillyard), Newport Beach FactsPlaintiff was an owners association of a 28unit condominium project located in Rosemead. The condos were previously owned and developed by Defendants Mao and Walnut Grove Condominium Project, Ltd. The units were sold in 1982. Mao and the Partnership originally hired Eastways Development Corp. as the general contractor. However, after the owners obtained the construction loans, they assumed the role of general contractor and replaced Eastways. Masonry Waterproofing, Inc. was the subcontractor hired to install belowgrade waterproofing on the exterior block walls of all seven of the buildings. An interim Settlement Agreement was reached in July 199o, wherein the Defendants agreed to hire a repair contractor to rewaterproof the belowgrade walls at a cost of $105,938. The repair work was to be inspected by an independent expert mutually agreed upon by the parties. After 90% of the repair work was completed, and the independent expert had passed four of the seven buildings, the Plaintiff objected to the repair efforts. They claimed the four buildings passed by the expert still leaked. The case proceeded to trial as to the three remaining buildings not yet passed by the expert. Plaintiff Claimednegligence, strict liability, breach of warranties, intentional misrepresentation and active concealment against all Defendants. Mao, Walnut Grove Condominium Project, Ltd. and Masonry Waterproofing, Inc., intentionally misrepresented the condition of, and actively concealed the waterproofing defects. Masonry Waterproofing failed to protect the original waterproof membrane from damage during the back fill operation. Defendant Arguedthat Masonry Waterproofing did install cardboard as a protection board. The subsequent waterproofing performed by the repair contractor had replaced all of the damaged waterproof membrane and the Plaintiff could not prove any current damages. The repair contractor had not completed all of the work and was willing to do any further necessary repairs at no cost to the Plaintiff. Insurance CompanyEastways: State Farm Fire & Casualty; Masonry Waterproofing, Inc: Consolidated American and Reliance Insurance Companies. OfferMao & Walnut Grove Condo Project: None; Masonry Waterproofing, Inc: $50,000, Eastways Development: None. Demand$400,000 Trial Time10 days Jury Time4 days |