Owners Losing House to Hillside Awarded $898,000 : Courts: Jury finds homeowners group and developer are at fault for water damage caused by cracked sprinkler.

A San Clemente couple whose home is creeping down a hillside was awarded $898,000 in damages by an Orange County Superior Court jury that found a homeowners association and the developer responsible.

The case rested on whether a cracked sprinkler line maintained by the Coast Homeowners Assn. soaked Daniel and Donna McClintock’s property for two years, causing the slippage, attorneys for both sides said Wednesday.

“We had pretty good evidence that the waterline had leaked water,” said Robert Balmuth, an Irvine-based attorney for the McClintocks.

The homeowners association was required to pay $379,000 of the judgment. A $200,000 settlement was reached earlier with several other defendants.

Pavilion Homes was found responsible for $319,000 in punitive and actual damages for not informing the McClintocks that their house in the Seacliffs neighborhood was built on an ancient landslide. However, Balmuth said the firm declared bankruptcy last December.

In 1990, the McClintocks first noticed cracks in their outdoor deck that eventually grew more than a foot long. A geotechnical expert later found that the house’s foundation had tilted, Balmuth said.

Lee Durst, an attorney for the homeowners association, said the jury was confused over who bore the most responsibility for the damages and “they felt sympathy” for the McClintocks.

The Laguna Beach lawyer, who maintained during the weeklong trial that the sprinkler lines were not leaking, said his client is considering appealing the judgment reached Tuesday.

Balmuth said the property needs more than $500,000 in repairs to stabilize the ground, adding that the McClintocks must wait until they receive damage payment before starting the work.