Condo Builder Settles Suit Over Alleged Defects for $4 Million

An Orange home builder has agreed to pay $4 million to a Rancho Santa Margarita condominium association over allegations of building defects that led to leaky roofs and dry-rotted patio decks, an attorney said Tuesday.

Superior Court Judge Leonard Goldstein approved the settlement of a March, 1993, lawsuit by the Vista La Cuesta Homeowners Assn. against Century American Builders over the alleged shoddy construction of the 138-unit condo complex.

In addition, Century American agreed to allow the association to pursue the home builder’s $1.7-million claim against a subcontractor, Far West Roofing Inc., said lawyer Thomas E. Miller.

The settlement came two weeks before the case was scheduled to go to trial. The lawsuit alleged that the condominiums were plagued by problems stemming from the lack of waterproof paper behind stucco walls, window and roof leaks, and dry rot.

“I think it’s a well-deserved settlement. It will give the association the money they need to restore their property values,” Miller said. All the money will go to make repairs.

Lawyers for Century American could not be reached for comment.