Condo Owners Settle Suit Against Builder for $8 Million

The Somerset Condominiums in Beverly Hills are touted as luxury homes, with their gymnasium, their 24-hour desk and valet, and at least two celebrity owners.

But some buyers have claimed that the 102-unit complex suffers from decidedly un-luxurious defects, including faulty roofing, wiring and plumbing.

This week, the Somerset Homeowners Assn., which represents many condo owners, accepted an $8-million settlement of its lawsuit against the complex and its developer, Prestige Homes, a subsidiary of Culver City-based Goldrich & Kest Industries.

The money will be used to repair the units, some of which may need new foundations and air-conditioning systems, according to the plaintiffs’ attorney David Romney.

Goldrich & Kest also agreed to house displaced homeowners and tenants in apartments while repairs are being made, in effect adding nearly $1 million to the settlement, Romney said.

News of the settlement came six weeks after a civil trial started in Santa Monica Superior Court. The homeowners had filed suit in 1991 after discovering numerous building defects at the 8-year-old property.

“In our opening argument, we described [Somerset] as a Rolls Royce property that was put together like a Ford Pinto,” Romney said.

Attorney Paul Fine, who represented Goldrich & Kest, confirmed the basics of the settlement but declined to provide details. “We have no comment about the case and the reasons for the settlement,” he said.

A Goldrich & Kest spokesman also declined to comment.

The firm has become a noted builder of homes for the Westside’s well-heeled. Owners at the Somerset include major league baseball player Dave Winfield and ‘60s TV star Morey Amsterdam.

But the company has also been the target of other complaints about workmanship and overly aggressive business tactics.

Homeowners at the Promenade condominium complex in Downtown Los Angeles sued the firm in 1984, alleging that one of the buildings was “seriously defective.” The disposition of that case could not be determined.

In 1985, Goldrich & Kest lost its lawsuit against the city of San Fernando seeking to overturn a referendum that barred the company from constructing a 42-unit apartment building.