Oasis Palm Desert HOA v. Covington Technologies – $15M

Construction Defects

Case Summary:

Construction defects involving leaking roofs and windows, stucco problems and various other defects. Action against developers was based on strict liability, breach of warranty and negligence. Settlements totalling $15,688,665.00

Plaintiff’s Technical Expert Witnesses: Over 25 experts, a complete list available upon request

Defendant’s Technical Expert Witnesses: Too numerous to mention

Date, Time and Place of Incident(s):
Between 1984 and 1992 defendant developers constructed a 462 unit condo project in Palm Desert. Plaintiff HOA claimed construction defects including leaking roofs and windows, stucco problems and various other defects. Plaintiff HOA brought an action against developers based on strict liability, breach of warranty and negligence theories of recovery. Partial settlement offer accepted two weeks before trial date.

Defense: None

Notes:
Plaintiff made a C.C.P. 998 demand of $18 million which was rejected. Earlier in the case, plaintiff took another partial settlement of $1.5 million which, together with this partial settlement brings total partial settlements to over $11 million. Plaintiff is still pursuing its direct action against various subcontractors and jointly prosecuting cross actions for indemnity and defense dollars against all remaining non-settling parties.

Settlement Amounts: $15,688,665.00

Other Verdict Details:
Plaintiff entitled to over $20,000 prejudgment interest for beating the 998 demand. $8,500.00 cost award. Motion for new trial denied.

Lenth of Trial: 14 Days

Attorney for client: C. Brant Noziska and Neal H. Rockwood

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