Last Seacliff Group Settles Claim Over Construction Defects

A group of Huntington Beach homeowners agreed Monday to settle a construction-defect lawsuit for $3.1 million, capping a legal battle against the builder that has resulted in one of the largest total settlements of its kind in Orange County history.

The payout by Seacliff Partners Inc., a Newport Beach builder, will allow the Masters Series homeowners association to repair roof leaks and other structural problems that have long plagued the 10-year-old development, according to Thomas E. Miller, the association’s attorney.

The agreement resolves the final lawsuit filed by three different homeowners associations at the Seacliff master-planned community. In March 1997, the 186-unit Club Series association received a $6.2-million settlement. A few months later, the 238-unit Club Series South association recovered $4.7 million.

Totaling $14 million, the settlements are among the highest any builder has ever paid to associations from the same community over construction defects, according to Miller.

“It is a large development, and it was complicated by the fact that there were a lot of defects that needed to be fixed,” Miller said.

The 104-unit Masters Series of homes--mostly detached, split-level dwellings--suffered from defects that caused widespread leaking through roofs, decks and sliding glass doors, Miller said. The other areas, which include townhomes and condominiums, were similarly plagued, he said.

Last year’s harsh winter conditions exacerbated many of the problems, he said.

Repairs already have been completed in the Club Series South group of homes and are underway at the Club Series homes. The repairs on the Masters Series will take about one year, Miller said.

Seacliff Partners was unavailable for comment.

The settlement is not the largest in county history. In recent years, a 267-unit San Juan Capistrano association has won settlements totaling $26.54 million from developers.

Those lawsuits by North Townhomes Owners Assn. charged that foundations had cracked because of porous concrete, resulting in extensive leaking and other structural problems.