Developer to Pay $3 Million in Suit Over Shifting Land

A developer has agreed to pay $3 million to a homeowners group in a San Clemente subdivision plagued by shifting earth, the group’s lawyer said Friday.

The tentative settlement involves a payment by Genstar Inc. and its insurer, Liberty Mutual Insurance Co., to the Broadmoor/San Clemente Homeowners Assn.

Slides and movement of land destroyed many slopes and some common area in the 200-home development beginning in the late 1970s.

The damage was mainly to common-use areas, according to Patrick E. Catalano, lawyer for the association.

“There are some homes that are cracking, but nothing like other landslides,” said Catalano. “Most of the homes are in good shape.”

All of the homes are habitable.

Catalano said the lawsuit alleged that the problems were caused by defective grading and drainage.

The settlement will cover past repairs to the slopes and preventive maintenance, according to Catalano.

The city, also a defendant in the lawsuit, is not involved in the settlement and has yet to take a legal position on the settlement, according to Thomas S. Salinger, the city’s attorney.