Local News in Brief : Orange : S&L; Pays $1.9 Million to Settle Families’ Suit

American Savings & Loan Assn. has paid $1.9 million to settle a lawsuit brought by 21 families in Orange who alleged that their homes were damaged because developers did not properly pack the soil before building, an attorney for the homeowners said Thursday.

The homeowners, who recently received from $30,000 to $90,000 each, had sought reimbursement for the expense of repairing several problems in their houses, ranging from cracked slabs to fireplaces separating from walls.

The settlement was reached June 30, after a marathon settlement conference with Superior Court Judge David G. Sills, attorney Wallace R. Davis said.

The trial would have taken six to 10 months because of the amount of evidence to be presented, he said.

The homes, on the Linda Vista tract near the intersection of Santiago Canyon Road and Hewes Street, were built in the mid 1970s, Davis said. American Savings & Loan, the developer, later sued the contracting firms responsible for building the homes, he said.