Homeowners Group Settles Condo Suit

Members of a homeowners group--who complained of leaky roofs, cracked pipes and numerous other defects in condominiums they purchased almost four years ago--reached an out-of-court settlement Monday with builders who will provide $11.8 million for repairs.

The agreement was reached between the Valencia Vistas Homeowners Assn., Westcreek Properties--developer of the Valencia Vistas condos--and several of the subcontractors Westcreek hired to build the complex.

The news of the settlement was received with mixed feelings by Roger Gonzalez, former president of the Vistas homeowners group, who said that he was happy an agreement had been reached but wondered whether the money didn’t come too late.

“The experts say that an El Nino is coming,” said Gonzalez, who moved into the complex in 1992. “We’re going to have a lot of rain and I don’t know how many of the roofs here can take a lot more water. We’ve had a lot of roofs already cave in.”

The homeowners filed suit against Westcreek in September 1993, contending the builder was negligent and built the condominiums with “architectural deficiencies and code violations,” according to records filed in Los Angeles Superior Court.

When most of the complex was completed in 1992, water from winter rains began seeping into many of the new condos, Gonzalez said. Water leaked in through roofs, decks, sliding glass doors, even electrical sockets, he said.

At first, the developer tried to fix the defects, Gonzalez said. “They sent contractors out here several times,” he said. “But they never could completely fix the problem. Westcreek spent a lot of money trying to make repairs.”

But the number of defects continued to rise. The homeowners began picketing and warning potential buyers that they should avoid the Vistas. Westcreek countersued the homeowners association and eventually sued the subcontractors. The suit against the homeowners was dropped as part of the agreement.

Barry MacNaughton, an attorney for Westcreek, said that the company would receive a little more than $4 million in damages from insurance companies representing the subcontractors.

“We’re pleased that the matter has been resolved,” MacNaughton said. “We’re also pleased with the amount.”