Construction Defects

Ken Kasdan, partner in the Irvine law firm of Capretz & Kasdan, began his legal career as a generalist. But that beginning was in Orange County, where lots of houses are built. Over the past decade, Kasdan's practice has emphasized construction-defect litigation. He recently won an $8.7-million settlement from the William Lyon Co. and its subcontractors to repair a defective condo complex built by Lyon Co. in Lake Forest.

Re "Transit and the greater good," Column, June 8 Hector Tobar's one-sided view of Beverly Hills and the subway is unfair. The Beverly Hills City Council unanimously endorsed the Westside extension; that is, until the L.A. County Metropolitan Transportation Authority switched from a Century City station on Santa Monica Boulevard to Constellation Avenue. The Santa Monica station had been planned for years. Then Metro's switch of one block - catering to the wishes of Century City developers - shifted the route under a public high school, potentially jeopardizing the safety of 80-year-old buildings and more than 2,000 students and teachers.

A home is not like a toaster. If there's a defect in a toaster, you can easily buy a new one. But construction defects in their home can have a devastating impact on a family's life. This may explain the spate of lawsuits against California's largest home builder, Kaufman & Broad. But maybe the firm's general counsel, Barton Pachino, has a point, too, when he says advertising and promotion by lawyers have something to do with it.

The governing board of the Los Angeles Community College District voted Wednesday to sever ties, at least temporarily, with an Irvine contractor accused of submitting fraudulent claims on construction projects at two campuses and performing substandard work at one of them. FTR International will be barred from doing business with the district for five years after the Board of Trustees agreed with the findings of a hearing committee that the firm misrepresented work on its $48-million contract to build the Allied Health and Science Center at Los Angeles Valley College and the Health and PE Center at Los Angeles Mission College.

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.

To most people, construction defects are about as close to their lives as quasars and black holes. They read about them, but that's about it. However, if you are unlucky enough to have purchased a home that suffers from construction defects--and thousands of Southern California residents have done so--then it's certainly not an abstract concept. Construction defects can wreck homes, financial security and lives.

Even on a rainy day, Joe Sinsangkeo can gaze out the window of his son's bedroom and see down the coastal bluff to the ocean. But if he shifts his gaze down to the floor of his condominium, the carpet is sopping wet and the walls bubble with watermarks. Three years ago, Sinsangkeo, 35, bought this "dream home" perched on an oceanfront bluff in the exclusive gated community of Laguna Sur Villas in Laguna Niguel.

When you and I buy auto insurance, we can obtain lower rates if we have no moving violations, because we're a better risk. Unfortunately for Orange County builders, liability insurance companies can no longer afford to differentiate between builders with perfect records and those with a history of problems--either one is likely to be sued. We know several builders with as many as 20 lawsuits pending against them--reputable, large builders who have been in business for years.

Less than half of the reinforcing originally ordered to correct construction defects in the new Los Angeles subway has been performed, according to transit officials who immediately ordered repairs and testing to determine the structural soundness of the tunnel. The discovery of the reinforcing deficiencies Thursday led Metropolitan Transportation Authority executives to fire from the project a top construction management official who oversaw completion of the 4.4-mile Red Line.

Shelly and Jeff Comings could have handled ants, even spiders in their brand-new Riverside home. But when winged beetles drilled through the walls of the four-bedroom house about a month after they moved in, the couple thought they'd better investigate how much damage the insects could cause.

Question: I bought a new house three years ago. The structure has concrete block walls and a slab foundation. I've noticed white mineral deposits on some of the interior walls around the doors and windows, and moisture on some walls when it rains. Recently, the Pergo floors buckled, and some electrical outlets are no longer working. I've notified the builder, but he shows no interest or concern. What should I do? By the way, the builder is also carrying the note on the property.

Construction defects: A story in the Jan. 27 Real Estate section on construction defects recommended that new-home buyers hire an independent licensed inspector. California does not license home inspectors.

Leaky plumbing, roofs and windows and improper property drainage can result in rot and mold when water gets where it's not supposed to be ("Just a Patch or a Plague?" by Janet Eastman [July 10]). This is often the result of improper construction and building code violations. It is not the fault of homeowners, but blaming them has become a convenient cop-out for builders and insurance companies that well know the difference between a little mold in the shower and mold inside walls from construction defects.

After months of negotiations between builders, trial lawyers and legislative leaders, Gov. Gray Davis signed legislation Sept. 20 that overhauls the state's construction defects laws. The new law defines defects and spells out builder and homeowner obligations. It also lays out pre-litigation, inspection and right-to-repair procedures, and defines the rules of litigation.

A Laguna Niguel homeowners association was awarded $7.8 million for damages due to construction defects by Shea Homes, the country's second-largest residential builder. The defects alleged in the Orange County case included leaking roofs, decks and windows, and the accumulation of ground water at the Breakers at Brand complex. Mold was present in 95% of the development, according to the suit. The association's complaint was filed in July 1999 and the trial began in April.

Regarding "Newly Built, but Not Worry Free" by Diane Wedner, May 12: Builders need to place themselves in the shoes of their customers. Homeowners trust builders to provide them with well-constructed homes. In return, builders receive hundreds of thousands of dollars from each homeowner. Why should anyone be surprised when homeowners demand properly built homes? Their home usually represents the largest and most important investment they will ever make. The Aas decision, which prevents homeowners from suing builders to recover damages to repair building-code violations before a hazard occurs, is a bad decision.

Homeowners in a downtown Santa Ana low-income condominium complex have sued the project's developers, alleging that shoddy construction has led to water damage and health problems for several residents. Residents of the Spectrum Condominiums have complained for years about collapsing roofs, faulty plumbing, flooding and electrical hazards.

Construction defects: A story in the Jan. 27 Real Estate section on construction defects recommended that new-home buyers hire an independent licensed inspector. California does not license home inspectors.

Shelly and Jeff Comings could have handled ants, even spiders in their brand-new Riverside home. But when winged beetles drilled through the walls of the four-bedroom house about a month after they moved in, the couple thought they'd better investigate how much damage the insects could cause.

California builders--who have long blamed negligence lawsuits for choking off condominium construction--hailed a court ruling this week that will limit such litigation. But don't expect condos to come back any time soon, despite their popularity among buyers anxious to get a foothold in an increasingly tight housing market. The cost of insurance to protect builders from the threat of construction defect lawsuits is expected to remain prohibitively high.