Las Brisas Homeowners Group Settles for $7 Million in Suit Over Leaks, Cracks
The Las Brisas Condominium Homeowners Assn. has reached a $7-million settlement in a lawsuit over leaky roofs and cracked foundations with the developer of the 40- to 50-acre site in Bernardo Heights.
Lawyers for both sides said the settlement, agreed to March 13 and unsealed Thursday, was appropriate. Bill Rickelman, an attorney who worked on the homeowners’ case, said the compromise came after more than five weeks of trial.
“Technically, when the plaintiff rested, at the conclusion of the plaintiff’s case . . . that’s when the defense was willing to offer that money. Prior to that, they were offering less than $2 million,” Rickelman said. “They had a $2-million figure, but they weren’t willing to offer it all.”
Jerold H. Goldberg, an attorney for the Arizona-based Universal Development Corp., said, “I think that it (the settlement) was appropriate. . . . There were numbers that were even higher than that,” referring to an initial request by the homeowners for $11 million.
“Of course, our initial (offer) was less than what our final settlement was. . . . It was substantially less than $7 million.”
Settlement Called Fair
Herman (Bud) Vedder, president of the homeowners association, said the settlement was fair. “I feel we did the best we could under the circumstances. We’re happy it’s over.”
The developer will not have to pay the entire $7 million; Universal Development has sued its insurance company and subcontractors hired to do the work, according to Herb Palmtag, UDC senior vice president.
The horseshoe-shaped development of 186 units was built in several phases and completed about 1985. But, shortly after moving in, many residents complained of leaking roofs and windows, cracking slabs and other problems associated with soil settlement, Rickelman said. The problem areas involve homes on Avenida Villaha, Paseo Lucido and Calle Tamega.
“Something like 70% of the units leaked. . . . They had roofers out there to repair and patch and nothing really seemed to work,” Rickelman said. “They also had hinges on French doors with removable pins so an alert burglar could easily remove the door by removing the pins. Usually, such hinges are inside.”
Rickelman said many of the homes sat on as much as 75 feet of fill. Windows and pot shelves (brick ledges for potted plants) leaked “enough to come in and ruin somebody’s wallpaper or drapes, enough to cause us to ask for window replacement.”
30 Units Excluded
About 30 units built during one of the project’s final phases have been excluded from the settlement, Rickelman said. This reserves for those homeowners the right to file another lawsuit should settlement problems occur.
Goldberg said the developer does not expect any further soil settlement, given the age of the project.
“From the developer’s point of view, the project was a sound project. There were some problems, and the developer was willing to address those problems. But there were demands that exceeded the true nature of the (problems),” Goldberg said. “The developer feels the amount paid is substantially in excess of the amount that in our view was required to address the problems that were raised.”
The homeowners association is now responsible for spending the $7 million on repairs and has hired an architect to supervise the process.
