Woodland Hills : 25 Picket Firm Over Quake Claim
Former residents of a quake-ravaged Tarzana condominium complex picketed Prudential Insurance Co. on Wednesday, charging that the company failed to honor a homeowners’ association insurance policy.
About 25 picketers, who lined the sidewalk in front of a Prudential facility at 5800 Canoga Ave. in Woodland Hills, charged that the company stalled on paying off the claim.
For the record:
12:00 a.m. Dec. 13, 1995 For the Record
Los Angeles Times Wednesday December 13, 1995 Valley Edition Metro Part B Page 3 No Desk 2 inches; 58 words Type of Material: Correction
Settlement offers--A Nov. 16 story reported the role of the Prudential Insurance Company in the repair of earthquake damage to the Tarzana Falls condominium complex. Barry T. Mitidiere, attorney for Tarzana Falls Homeowners Assn., has clarified that LMI Insurance Company, doing business as VIK/Brothers LMI Insurance Company, made the settlement offers to repair damage to Tarzana Falls, not Prudential.
“These guys are screwing us around,” said Al Arnold, one of the former residents of the 50-unit complex.
In August, 1994, Prudential agreed to pay the Tarzana Falls Homeowners’ Assn. $5.1 million to repair damage from the Northridge earthquake, said Barry Mitidiere, an attorney for the homeowners. The condominium owners moved out in December, 1994, so renovations could begin, he said, but then, after repairs had begun, Prudential changed its mind, offering $3.1 million instead.
About $4 million in renovation work has been done so far, Mitidiere said, and to date, the insurance company has paid out $2.4 million. He said the contractor, Glendale-based Kenco Construction Inc., quit in August, fearing it would not be paid in full.
The homeowners say they have been burdened with paying mortgages on their condominiums as well as rent for apartments elsewhere, creating a financial strain on them that has led to seven foreclosures.
A spokeswoman for Prudential, Laurita Warner, said Prudential sold the company that held the policy, Prudential LMI Commercial Insurance, to Vik Bros. of Mansfield, Ohio, in December, 1992. Because of the sale, Prudential would not be legally responsible for the claim, Warner said.
“From what we have been able to gather, [the homeowners’] claim is with the Vik Bros.,” said Warner, who said she needed more time to research the matter.
Why, she was asked, did Prudential offer to make a settlement, if it was not responsible for the claim?
It could be that the homeowners are mistaken, Warner said, and that it was Vik Bros. and not Prudential that made the offer.
Warner said Prudential would try to work with the homeowners’ association to resolve the problem.
