A construction defect case. The HOA identified 18 separate areas of deficiencies in the construction of the Cambridge Terrace project: Roofs; framing; area separation assemblies; bathrooms; floors; stucco/exterior plaster; hardboard siding/wood trim; windows; acoustical; stairways; site work/exterior elements; interior gypsum board; garages; nonstructural framing; mechanical; electrical; civil; seismic elements; and miscellaneous items. On the eve of trial the developer/general contractor and the Association reached a $6,500,000.00 settlement.

Plaintiff's Technical Expert Witnesses:
Architectural: William L. Russell Russell Architecture
2079 Garnet AvenueSan Diego, CA 92109 Tel. 619/273-5827 fax 619/273-2181
Structural: Edwin H. Johnson Atkinson, Johnson & Spurrier, Inc.
4121 Napier Street San Diego, CA 92110 Tel. 619/275-1530 fax 619/275-2510
Mechanical: William J. Sevier Sevier Siskowic Engineers
8989 Rio San Diego Dr., Ste. 240 San Diego, CA 92108 Tel. 619/299-2161 FAX 619/299-5415
Civil engineer: Peter J. Pountney Pountney & Associates, Inc.4455 Murphy Canyon Road San D

Defendant's Technical Expert Witnesses:
Eric Klock - Architectural, Carl Josephson - Structural, Wilmot Macklin - Cost estimator, William Sevier - Mechanical, Eugene Cook - Civil, Dan Lubman - Acoustical, Don Blackstone - Appraiser, Bill Thomas - Windows

Defendant Insurance: USF&G, Scottsdale; Golden Eagle and TransAmerica

Facts and Background:  
Plaintiff, the Cambridge Terrace Owners Association, represents the interest of the owners of the 108 condominium units at the Cambridge Terrace project. The project was constructed in 1988 through 1989 with the closing of the first escrows occurring in the second half of 1988. By its lawsuit, the Association sought to recover the costs associated with repairing the numerous construction deficiencies throughout the common areas of the project. The project was developed by a partnership called Cambridge Terrace which had as its general partners, Odmark & Thelan (formerly Odmark development Associates) and Great American Development Company. Odmark & Thelan was itself a general partnership consisting of two corporations: Odmark Development Company (owned by Ted Odmark) and Ontarioville Holding Company (owned by John Thelan). The general contractor for the project was a related entity called Newmark Construction Company. Newmark Construction Company was a general partnership consisting of Odmark & Thelan and HBK Company, Inc. The present action is actually the continuation of an earlier action, filed May 1, 1991, which was dismissed without prejudice on about February 28, 1992. This dismissal was pursuant to a mediation agreement between the developer and the general contractor and the Association. In order to entice the Association to drop its lawsuit, the developers/general contractor paid the Association $120,000 for its legal fees and costs to date. The mediation team investigated the project and determined that it would cost approximately $2,100,000 to fix the project. The developer/general contractor and their insurance companies refused to settle the case by paying the $2,100,000. The developer/general contractor and their insurance carriers refused to offer the Association anything until they had refiled their lawsuit, and then it was only $1,500,000. The developer/general contractor became aware of numerous problems in the design and construction.

Injuries and/or Damages: Plaintiff $9 million, Defendant $2 million

Defense:
Contended that many of the issues were not defects and that the defects that were found could be fixed for less.

Settlement Amounts: $6,500,000.00

Attorney for client: Mitchell S. Golub and Mickey McGuire

Attorney for defendant:
Charles R. Grebing, Esq. Kimberly Cary, Esq. WINGERT, GREBING, ANELLO & BRUBAKER
600 West Broadway, 7th Floor San Diego, CA 92101-3370 619/232-8151 fax: 619/232-4665
Counsel for Defendants: ODMARK DEVELOPMENT ASSOCIATES ODMARK & THELAN GREAT AMERICAN DEVELOPMENT COMPANY CAMBRIDGE TERRACE, a general partnership ONTARIOVILLE HOLDING COMPANY ODMARK DEVELOPMENT COMPANY William A. Nebeker, Esq. Michael J. Kielty, Esq. MOWER, KOELLER, NEBEKER, CARLSON & HALUCK 225 Broadway, 21st Floor San Diego, CA

Individual Defendants:
A construction defect case. The HOA identified 18 separate areas of deficiencies in the construction of the Cambridge Terrace project: Roofs; framing; area separation assemblies; bathrooms; floors; stucco/exterior plaster; hardboard siding/wood trim; windows; acoustical; stairways; site work/exterior elements; interior gypsum board; garages; nonstructural framing; mechanical; electrical; civil; seismic elements; and miscellaneous items. On the eve of trial the developer/general contractor and the Association reached a $6,500,000.00 settlement.