Liability for Seawalls : Accept Agreement or Face Lawsuits, Landowners Told

Attorneys for the state of California have threatened to scuttle a tentative settlement with Las Tunas Beach property owners in Malibu and pursue litigation against them over a series of rotting seawalls unless a majority of the homeowners sign the agreement soon.

Officials from the state attorney general’s office met with about 20 homeowners in Malibu last week to try to convince them to join other property owners who have agreed to the settlement, which would require them to assume future liability for the barriers.

“If you don’t want to sign the agreement, then we’ll just finish the lawsuit,” said Greg Taylor, assistant attorney general. “We are at a point now where there’s nothing left to negotiate. It’s your last, best offer. We want to get a resolution now.”

‘Coercive’ Statements

Homeowners and their attorneys, who have been haggling with the state over a solution for more than a year, responded by calling the statements “coercive and bullying” and vowed to refuse to sign the settlement.

“The whole thing was just fruitless,” said homeowner Lee Crowe. “Everybody stands up and screams and nobody listens. They’re just trying to twist our arms again. It’s a snow job.”

The concrete barriers, called groins, were built 59 years ago at the eastern Malibu site to protect the beach. The concrete eventually broke away and salt water corroded the exposed metal supports, leaving behind the lines of sharp, twisted spikes that today jut out along the beach.

Several years ago, the state filed a suit against 92 Las Tunas property owners and the Title Insurance & Trust Co., the forerunner of Ticor Title Insurance Co., which originally sought state permits to build the groins. The state wanted the homeowners and the insurance company to assume all future liability for them.

Nearly 30 attorneys representing the state, Ticor, the homeowners and their insurance companies have been haggling over a solution to the problem. Last month, the attorney representing a majority of the homeowners, the state and Ticor announced that they had reached a tentative agreement. However, about 15 homeowners refused to sign it, and since then, it appears others have joined their ranks.

“I don’t think they even have a majority now,” said Jeanne Flaherty, an attorney representing homeowners Roy and Paula Harrow.

Under the agreement, a geologic hazard abatement district would be formed and eight deteriorated groins would be replaced by three new concrete barriers at an estimated cost of $1.7 million.

Ticor would put up $850,000 and the property owners’ insurance companies would pitch in $400,000. The money would be placed in escrow and the homeowners would be assessed the remaining $450,000.

The assessment would be about $20,000 per homeowner, but those who agree to the settlement would have $15,000 of their assessment paid from the escrow account. Those who don’t sign the agreement would have to pay the entire assessment bill by themselves.

It remains unclear now what will happen if the state chooses to toss out the agreement. Taylor said the agreement could proceed if a majority of the homeowners sign it before April 8. However, if enough homeowners back out of the deal, he said, the insurance companies may choose to drop out.

The state also believes the groins offer no protection to the beach and could decide to pull them out, he said.

“If the agreement doesn’t go forward, then the other lawsuits will be heard,” Taylor said. “If we don’t get a sufficient number of signees, we can try and settle with Ticor and then just let the courts decide the rest. It appears that there will never be a consensus in this case.”

Many of the homeowners say the agreement is unfair since they could be required to pay thousands of dollars in future assessments to maintain the groins. In addition, they are angry because they were not responsible for installing the groins and because the state did not maintain the groins over the years.

The state declined to hear an alternate proposal from some of the attorneys, who want to create a large, state-operated public beach area at Las Tunas.

Taylor said a similar proposal was pursued by the state several years ago and then jettisoned at the last minute by a majority of homeowners. Now lawyers for the homeowners maintain that it is the only proposal that will get unanimous approval.

Robert Collins, deputy attorney general, told homeowners at the meeting Wednesday night that assuming future liability for the groins would not be as big a risk as they fear. Three lawsuits have been filed by joggers during the past 10 years, and, in each case, they have settled out of court.

“Everyone takes risks in life, but the liability you’re being asked to assume is insignificant when you compare to the risk you take driving your car each day,” he said. “Either you can take care of it now or you’re going to have to pay an awful lot of money down the road.”