Condo Owners Settle for $4.9 Million

Homeowners of a Baldwin Park condominium complex beset by roof leaks--some so severe that ceilings collapsed in the rain--have settled with the developer for $4.9 million.

“The leaks . . . would run across the lights,” said David Muse, president of the Park Shadows homeowners association. “You would notice brown spots. In other cases the stucco would fall down and cause damage.”

There also were cracks in walls and ceilings and problems with the decks and stairs, said the homeowners’ attorney, Michael A. Hearn of Anaheim Hills.

The defects became apparent within a few years of the opening of the complex in 1988, Muse said. The homeowners association notified the developers, Devere Anderson Enterprises of Encino, of the problems and in 1991 filed suit in Pomona Superior Court. Several weeks ago the group accepted the $4.9-million settlement.

The suit alleged that the developer used flawed construction materials, failed to supervise the work, knowingly sold the defective homes and failed to satisfactorily repair the damage when first notified of problems in January, 1990. Of 264 units built, 114 showed signs of damage, Muse said.

The price of the homes started at about $102,000, Muse said, making them affordable to first-time buyers. But the problems they faced were more than they bargained for.

“Usually, if it’s someone’s first home they sink everything they have in it,” said Bob Fisher, a spokesman for Hearn’s law firm. “When they have to pay legal fees or whatever they need to make repairs, it wipes them out.”

Spokesmen for Devere Anderson could not be reached for comment.

The construction problems, and the ongoing suit, also hurt residents’ ability to sell their properties.

“Some of the defects prevented people from selling homes, especially when the market was high in 1992, and some had problems refinancing because the homes were in litigation,” Muse said. “Some were actually selling at a lower rate than they had purchased the home for.”

The $4.9 million will be used to renovate the roofing for the complex, a project Muse said will probably start in March, 1995.