Jurists Must Now Decide Condos’ Fate : Litigation: Appeals court hears final arguments in a suit alleging Huntington Harbour development was built over an earthquake fault.

In an unusual case with statewide implications, the 4th District Court of Appeal on Friday heard final arguments in a case involving an $18-million condominium complex allegedly built over an earthquake fault.

The three-member appeals court will decide the case within three months. If the court rules that the complex is on a fault, a violation of state law, the project might have to be demolished.

At issue are a cluster of 36 condominiums, called the Huntington Harbour Bay Club, on waterfront land near Warner Avenue and Pacific Coast Highway in Huntington Beach.

Three residents of the city’s posh Huntington Harbour area sued both the city and the developer, contending that the condominiums were built illegally. Their suit also claims that the developer also failed to clear the land title and that the site is legally a part of state tidelands.

The case has drawn the interest of the State Lands Commission, the state attorney general’s office and officials of the Legislature. State officials say the case has raised major legal questions about earthquake-safety construction laws and about tidelands ownership.

In brief closing arguments on Friday, attorneys for both sides summarized issues in the case.

Jonathan Lehrer-Graiwer, the attorney for the protesting Huntington Harbour residents, told the court that the condo project had been built through a “web of deceit.” He charged that both the builder, Coultrup Development Co. of Seal Beach, and Huntington Beach city government had erred.

But David L. Colgan, the attorney for Coultrup, said the project had dutifully fulfilled all legal requirements. He told the court that he believes the 18-month-old lawsuit has unjustly “reviled” the personal reputation of Jon Coultrup, managing partner for the project.

Last February, Orange County Superior Court Judge Robert D. Monarch ruled in favor of the Coultrup project and against the protesting homeowners in Huntington Harbour. The three homeowners, Barbara Devlin, Joseph Scheitzach and John Kerkes, appealed.

The appellate justices asked few questions Friday, and they ruled against Lehrer-Graiwer’s motion to present new evidence regarding the tidelands matter. Lehrer-Graiwer said that he had a document from the State Lands Commission that only recently came to light. He said the document would prove that the state office has long claimed an easement on the site. But the court’s ruling did not permit introduction of the document.

A key issue in the case involves geology. The homeowners’ suit contends that the condos were built within 50 feet of the active Newport-Inglewood fault. But the developer contends that the project is outside the fault line. The state’s 1973 Alquist-Priolo Act forbids new construction in fault areas.

An aide to Sen. Alfred E. Alquist (D-San Jose), who co-authored the earthquake safety law, said in September that Alquist and other legislators are watching the Huntington Beach case.