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O.C. Homeowners Sue Over Landslide Threat

Homeowners threatened by a landslide in a neighborhood in Orange filed a class-action lawsuit Thursday against Anaheim and a developer, claiming that hazardous conditions have cost them as much as $10 million in lost property values.

Lloyd Charton, attorney for the homeowners in the Vista Royale neighborhood, said homes that cost as much as $400,000 are worthless. “People are trying to sell their homes and they can’t sell them,” he said.

The lawsuit is the latest in a series of legal actions filed against the developer, 396 Investment Co. Homeowners have charged that the company knew of the unstable conditions, but did not properly solidify the slope with compacted earth.

Joan Gladstone, who represents the developer, has said previously that the company is trying to remedy the problem.

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Earlier this month, a judge ordered that an Anaheim-owned reservoir adjoining the subdivision be drained because it is contributing to the instability of the hillside.


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