Homeowners’ Suit Alleges Developers’ Grading Led to Slide

Thirteen homeowners in San Juan Capistrano filed a lawsuit Wednesday alleging that extensive grading by developers caused the hillside beneath their subdivision to collapse in May.

The homeowners are seeking millions of dollars in damages, said their attorney, Ken Kasdan of Irvine.

The suit, filed in Orange County Superior Court, named as defendants the developers of Pacific Point, a 350-unit project being built in the area, including directly below the damaged homes in Meredith Canyon.

The complaint alleges the developers should have known the homes along Via La Mirada were built on an ancient but dormant landslide. Developers also ignored earlier complaints of damage when 8 million cubic yards of soil were moved a month before the landslide, the suit said.

The developers “failed to take reasonable precautions to sustain [the] land,” the lawsuit said.

The defendants include SJD Partners Ltd., Pacific Point Partners LP, SJD Development Corp., One Chestnut Inc. and several other subcontractors. They could not be reached for comment.

Kasdan, citing a new land study, warned that the ground is still moving beneath the homes, which could possibly cause them to slip down the hillside. As a result, the city has restricted grading on the site so that the hillside will not be further weakened.

So far, three homes have been red-tagged, meaning the families have vacated the property. Two homes have been yellow-tagged, and owners have been warned that they should not live in the homes. Several other homes also have suffered damage, Kasdan said.

The hillside beneath the exclusive subdivision collapsed May 21, swallowing several backyards and patios, as well as a swimming pool. No injuries were reported.

Officials have been investigating the hillside to learn whether grading in the canyon and along adjacent hills for the Pacific Point project created the damage, or whether El Nino rains played a role.