Condo Owners Win $6.62 Million for Developer’s Substandard Work

Disgruntled homeowners at the upscale Villas Mallorca condominium complex near UC San Diego were awarded $6.62 million Wednesday against the developer of the project for repair of leaky roofs and faulty subterranean garage walls.

Superior Court Judge Franklin B. Orfield handed down the judgment after a non-jury trial in which both the homeowners association and the developer submitted testimony from construction experts on the extent of poor construction and the cost of repair.

San Diego attorney James K. Eckmann, who handles many cases involving tenant suits against developers, called the judgment the largest of its kind in the county.

“Although there have been settlements (between plaintiffs and defendants) that have been larger, this is the biggest judgment of its kind,” Eckmann said.

The homeowners association and the developer, NDK Properties Corp. of Orange County, agreed before the trial on which experts would submit testimony, allowing the trial to be shortened considerably from the time necessary for a jury trial. As part of the agreement, neither side can appeal Orfield’s judgment.

Attorney Phillip Green of Newport Beach, representing NDK and its owner, M. David Kelly, declined to comment on the judgment.

Homeowners at the 136-unit condominium noticed soon after its completion in 1982 that the two-story building had defects, Eckmann said, including problems with the Spanish-tile roofs, garage walls and deck railings. The building is on La Jolla Village Drive across from the May Co. department store at the La Jolla Village Square shopping mall.

After failing to obtain repairs from the developer, the association filed the lawsuit, he said.

“The suit went through various unsuccessful pretrial efforts to settle the case,” Eckmann said, adding that no money was offered by the developer during the pretrial discussions.

Eckmann said that experts presented by the developer’s attorney estimated repairs at approximately $2.5 million while those presented by the homeowners estimated $8 million would be needed.

“The judge had his own experts appointed as well and he had photographs and other details on which to base his decision,” Eckmann said.

Eckmann said that the next step will be to collect the money awarded by Orfield.

“The proceeds will be invested in the project repairs,” he said.