FULLERTON : Homeowners Settle Suit Against Builder

A group of condominium owners who claimed they were the victims of shoddy workmanship have reached a $7.5-million settlement with the developer, the plaintiffs’ attorney said.

The agreement calls for a cash payment from Quail Ridge Associates to the Quail Ridge Homeowners Assn. Quail Ridge Associates is a joint venture between Newport Beach-based builder/developer Konwiser Corp. and the National Life Insurance Co. of Vermont.

Built in 1977, the 144-unit Quail Ridge complex is located at Associated Road and Rolling Hills Drive in Fullerton.

In a 1985 lawsuit against the developer, the homeowners alleged major construction defects, including corrosive soils, inadequate foundations, inadequate compaction of soil, expansive soils, plumbing defects and defective balconies. During the litigation, the homeowners contended that at least $12 million would be needed to repair the condo complex. But Quail Ridge Associates argued that repairs could be made for $4 million.

“To my knowledge, this is one of the largest up-front cash settlements in Orange County’s history,” said Wes Davis, the plaintiffs’ attorney.

As part of the settlement, retired Judge Jerrold S. Oliver of Judicial Arbitration and Mediation Services Inc. ruled that the homeowners can move ahead with plans to sue the insurance companies that represented Konwiser Corp. for an additional $5.5 million, Davis said. The companies to be listed in that suit include Maryland Casualty Co., Commercial Union Insurance Cos., Argonaut Insurance Cos. and Mission American.

Attorneys for Quail Ridge Associates did not return calls from The Times.