Representative Defect Cases – Commercial/Institutional
American Honda Parts Distribution and Training Center
American Honda’s parts distribution and training facility
in Gresham, Oregon experienced a roof collapse during a Christmas
snowstorm. Thereafter, extensive design and construction defects
were discovered throughout the facility. Aldrich Eike
was retained to pursue claims against the project architect/engineer,
the general contractor, the structural steel subcontractor and
the special inspector on the project. The case presented significant
legal and technical factual hurdles, including statute of limitation
issues, causation issues, contract vs. tort issues, construction
vs. design issues, property damage vs. defect issues (including
present vs. future damage), comparative fault and contributory
negligence issues, tilt-up construction and engineering issues,
snow load analysis issues, repair costs, accounting issues and
allocation and apportionment issues. Following a five-week trial
and three days of deliberation, the jury returned a verdict in
favor of American Honda for $11.8 million in total damages – the
largest construction defect jury verdict in Oregon.
Wild Horse Resort and Casino
Aldrich Eike represented the Confederated Tribes
of the Umatilla Indian Reservation regarding defects in a large
casino expansion that resulted (in large part) from the general
contractor going bankrupt and abandoning the project before substantial
completion. Defects involved the flooring system, the roof system,
and the HVAC system. A settlement with the general contractor’s
liability insurer and bond company was achieved, as well as settlements
with certain subcontractors. A three week arbitration was necessary
to resolve the HVAC claims, in which the Tribe prevailed and
was awarded damages and attorneys fees. All total, the Tribe
achieved a 2.4 million dollar recovery for the defects and damages
on a very difficult claim.
Devonwood Equestrian Center
Aldrich Eike represented the owner of a large equestrian
arena building that suffered from roof and framing defects. On
the second day of trial, a high six figure settlement was reached
that reimbursed repair costs and damages despite the numerous
legal and factual difficulties the case presented.
Irvington Corner Retail Center
Aldrich Eike represented the owner/developer of a
boutique retail center that suffered from stucco defects in its
high end artisan finish. The first day of trial, a settlement
was reached that reimbursed repair costs. A special challenge
in this matter was addressing tenant impacts during repairs.
Four Points Hotel
Aldrich Eike represented the general contractor in
litigation against subcontractors for reimbursement of repair
costs the general contractor incurred in repairing subcontractors’ defective
work for owner. The general contractor obtained a substantial
six-figure settlement which reimbursed all costs and attorney
fees, while maintaining a positive relationship with the owner.
Community Action Organization
Community Action is a private non-profit corporation organized
to provide services to low income families and children in Washington
County. Aldrich Eike agreed to represent Community
Action at a discounted rate in its suit against the original
builder of its administrative building and Head Start childcare
center. We successfully negotiated a settlement over half a million
dollars despite significant legal and factual hurdles.
Gerber Properties
Aldrich Eike represented the owner of two office buildings
regarding construction defects. The original contractor
repaired the defects, and repair costs were reimbursed by insurance
carriers.
University Station
Aldrich Eike represented the owner/developer of University
Station in Salem, Oregon. Again, the Aldrich Eike firm
adopted a two-pronged approach to seek reimbursement of repair
costs (property insurance claim; litigation against the builder)
netting a seven figure recovery.
Pacific Place Retail/Office Center
Aldrich Eike represented the owner/developer of the
Pacific Place Retail/Office Center in two separate litigations
to recover repair costs. The first litigation was filed against
the builder (and its subcontractors and suppliers) for defects
and water intrusion damages. The second litigation was filed
against the owner/developer’s property insurance company
for coverage for the severely damaged and rotten structural members
(i.e., “collapse” conditions). In the property insurance
litigation, the federal court issued an opinion on insurance
coverage that is beneficial to property owners throughout Oregon.
See Richardson v. Travelers Insurance Company, 2004 WL 1173186
(D. Or. May 25, 2004). See also Schray v. Fireman’s Fund,
402 F Supp 1212 (D. Or 20050). Both cases were successfully resolved,
and allowed the owner/developer full recovery of repair costs
and attorneys fees.
Thomas Edison
Aldrich Eike represented Thomas Edison School with
regard to construction defect claims. Aldrich Eike
negotiated a repair agreement with the original contractor and
architect. Repair costs were reimbursed by the insurance carriers,
leading to a successful resolution after minimal litigation.
Wilsonville Business Center/148th Airport Way Industrial Park
Aldrich Eike represented the developer/owner of two
office complexes regarding construction defects. Aldrich Eike worked out an agreement wherefore the original contractors
and subcontractors would come back and conduct repairs, and the
developer/owner would be reimbursed full repair costs from the
insurance carriers. The case involved minimal litigation.
Representative Defect Cases – Apartment
Buildings
The Commons
Aldrich Eike represented the owners of a 3-building,
284-unit, mixed-use residential community that provided low-income
housing, senior housing, and traditional market-rate apartments.
The case represented many technical and legal challenges and
required a full team effort to resolve. Our office obtained a
settlement of $5.7 million dollars, which will likely provide
funding for nearly all of the necessary repairs.
Willamette Estates
Aldrich Eike represented the owner/developer/builder
of a large luxury Apartment complex named Willamette Estates
in Salem, Oregon in pursuing claims against the civil engineer
and architect of record for the construction of the project.
The claims were for expenses and repair costs incurred in defending
claims levied against the client for alleged violations of the
United States Department of Housing and Urban Development Fair
Housing Act. The civil engineer and architect were defended by
seasoned attorneys from the two largest law firms in Oregon,
Stoel Rives and Schwabe Williamson and Wyatt. After over two
years of fierce technical code driven litigation, Aldrich Eike obtained a large six figure settlement from a combination
of the civil engineer and architect and their insurance carriers.
Terrazzo Properties
Aldrich Eike represented the owner of a 51 unit apartment
complex that suffered from a variety of construction defects,
including foundation, siding and roof defects. Utilizing efficient
litigation strategies, the Aldrich Eike firm successfully negotiated
a seven figure settlement that reimbursed ongoing repair costs,
well in advance of trial.
Nuevo Amanacer
Nuevo Amanacer is a non-profit low-income housing complex for
persons performing agri-farm related work in Marion County. Aldrich Eike represented the owners in their first-party
insurance claim, and successfully obtained nearly $300,000 for
collapse-related damages to both phases of the complex. In addition,
Aldrich Eike litigated against the contractors of the
Phase II development and resolved those claims for a settlement
of an additional $475,000.
Cascade Crossing
Aldrich Eike represented the owner of a six-building,
74 unit apartment complex in Portland suing the original builder
for defects related primarily to deck construction. We
obtained a settlement from the builder sufficient to completely
rebuild all decks at the property.
Emerald Village
Aldrich Eike represented the owner of a 96-unit apartment
complex in Springfield, Oregon suing the original builder for
defects related to vinyl siding installation. Near the end of
litigation, the builder agreed to completely remove and re-install
the siding, and the builder paid an additional amount to cover
the owner’s attorney fees.
Aginsky
Aldrich Eike represented the owners of an apartment
complex that suffered damage as a result of a re-roofing process
gone awry. Recovery was made against the roofing contractor
for damages after litigation despite a lien claim by the roofer.
Fanno Creek Apartments
Aldrich Eike represented the owner/developer/general
contractor regarding reimbursement for repair costs spent to
correct failing decks at a large apartment complex. Aldrich Eike adopted a two-pronged approach to seek reimbursement: first,
we obtained settlement with the property insurance company regarding
collapse conditions on the decks; secondly, we filed legal action
against responsible subcontractors leading to settlement.
Representative Defect Cases – Condominium/Townhomes
Streetcar Lofts Condominiums
Aldrich Eike represented the condominium association
in pursuing design and construction defect claims against the architect,
developer and general contractor of this signature condominium
project in Portland’s Pearl District. Following the
building’s construction in 2001, many of the condominium
owners experienced water intrusion into their units from a myriad
of design and construction defects, but the developer contractor,
and architect claimed they had fixed all problems and that caulking
maintenance by the HOA was the answer. On the eve of trial,
the Aldrich Eike Team obtained a $2.1+ million settlement (more than
four times what the defense had contended was necessary for repairs),
which allowed the building to finally be properly repaired, resolving
once and for all the water intrusion issues with the condominiums.
Orenco Station Live/Work Townhomes
Aldrich Eike represented the Association of Unit Owners
and individual unit owners at Orenco Station Live/Work Townhomes,
a unique 6-building, 28-unit multi-use townhome development, consisting
of commercial, retail, and residential units. This case is
the pinnacle of a new litigation strategy developed by Aldrich Eike whereby, during the course of litigation, repairs are
completed on a single test building to establish necessary repair
scope and costs. The defect, damage, and repair cost information
gained from the test building is then applied to the remaining
buildings. This approach was successful in achieving a settlement
of $1,675,000 at mediation in June 2010, over three times the amount
the developer/builder team claimed would be sufficient to fully
repair the buildings.
Hilltop Condominiums
In 2008, the Aldrich Eike firm obtained a $2.3 million dollar
verdict for a 108-unit conversion condominium association for deck
repairs against the conversion developer. Over 30 witnesses were
called over the course of a complex six-week bench trial. The verdict
reflected 100% recovery of deck damage. The Aldrich Eike Team also obtained
a net attorney fee award of approximately $125,000 against the
developer. After judgment was entered, the developer’s insurance
company filed a related lawsuit claiming the Association’s
award was not covered by insurance.
In February of 2010, the Aldrich Eike Team took this second lawsuit
to trial. The Association prevailed on the insurance coverage claim,
received an additional attorney fee award of $414,350, and an award
of post-judgment interest, resulting in a net award of over $2.8 million.
This extraordinarily difficult case involved many complex insurance
coverage issues, including issues never before decided by an Oregon
court. The issues included developer coverage under a condominium
policy, known loss exclusion, mold and fungus exclusions, allocation
of covered and uncovered loss, and recovery of the underlying attorney
fee award under the supplementary payments provision. The results
of this case have already had significant impact on construction
defect and coverage cases throughout Oregon.
Linden Village
Aldrich Eike represented the Association of Unit Owners
at Linden Village Condominiums, a 30-unit, 15-building condo complex
in Milwaukie. The ultimate result was settlement on the eve of
trial for just under $1 million, which was sufficient to perform
all necessary repairs. This settlement was obtained in spite of
insurance coverage exclusion hurdles, complex defense motion practice,
and a framing subcontractor who was unwilling to settle. After
multiple mediations, Linden Village was successful in settling
with the developer, who subsequently went to trial against the
framing subcontractor. During that trial in January 2010, the developer
hired attorney Kevin Eike as an expert witness to testify,
which resulted in a verdict against the framer of more than double
all previous settlement offers. The developer also used the Association’s
expert and repair bids to present to the jury at trial.
Alderbrook
Aldrich Eike took over a construction defect case against
a national builder that had been languishing for years. Within
five months of takeover, the claim was successfully resolved for
$1.5 million on the eve of arbitration. Aldrich Eike
developed an accelerated and aggressive litigation/arbitration
protocol, and repair analysis protocol, to successfully wrap up
the project quickly and cost effectively. Full repairs, including
complete tear-off and window replacement, were able to commence
directly after settlement as the repairs were designed and funded,
and the repair contractor bid had been accepted.
Marshall Wells
Aldrich Eike represented the association of owners at
the Marshall Wells Lofts, a 7 story 1910 concrete warehouse which
was converted into 167 luxury loft style homes located on 14th
and Lovejoy in the prestigious Pearl District of northwest Portland
on two separate occasions. First, Aldrich Eike
negotiated a resolution for a confidential settlement amount with
the developer, general contractor, and design professionals who
converted the building into loft style homes. As part of
that settlement process, the association and Aldrich Eike
retained the services of a well known architectural building science
professional to inspect the building with the purpose of determining
the extent and cost of necessary repairs. A few years later,
when it was apparent the amount received was insufficient to repair
the building, Aldrich Eike represented the association
in pursuing a claim against the architectural building science
professional who was hired to assist the HOA in the prior claim
against the developer, general contractor and design professionals. This
claim against the architectural building science professional was
resolved at mediation for a confidential amount after litigation
had been filed and depositions occurred.
Orenco Station
Aldrich Eike represented multiple townhome associations
(hundreds of units) and individual owners in a construction defect
claim against the developer. Estimated repair costs were in excess
of $15 million. Aldrich Eike put the developer on notice
of the defects and then worked with the developer to negotiate
a settlement in which the developer agreed to perform the full
scope of repairs under supervision of the Association’s expert
at no cost to the owners, without a release to the developer for
the repair work, all without litigation. The developer then successfully
performed over $15 million in repair work at no cost to the owners,
and reimbursed the owners for the cost of their expert’s
supervision of the repairs. This case is an example of the success
of efficient lawyering and responsible developers.
Quimby Townhome Condominiums
Aldrich Eike represented the Quimby Townhome Condominium
Association (30 units) in Northwest Portland with regard to defects
and damages. A significant multimillion dollar settlement on the
eve of trial was reached for the Association, allowing full (+)
reimbursement of repair costs and attorney fees. This result was
a premiere example of teamwork between the Association Board, Association
Committees, Community Manager, and the Aldrich Eike firm to achieve
a great result.
Springville Townhomes
After three weeks of jury trial, the Aldrich Eike firm achieved
a multi-million dollar settlement for the Springville Townhomes
Owners Association (71 units). Many homeowners testified in the
litigation, in addition to experts and adverse witnesses from the
developer/contractor side. This case is a proto-type for management
of future Association trials in complex construction defect litigation.
This was another example of great teamwork with the Association
Board, Association Committees, Community Manager and Aldrich Eike.
Vista House Condominiums
Several years after turn-over, the owners of a premier condominium
complex (24 units) in the west hills of Portland discovered potential
problems regarding the weatherproofing of the structures. What
the owners initially thought was a maintenance problem turned into
a nightmare of construction defects. After nearly two years of
contentious litigation, Aldrich Eike used its expertise
to obtain a very substantial multi-million dollar settlement (one
of the largest, if not the largest, condominium defect settlement
in the Portland metro area) for the owners.
16th Place Condominiums
Aldrich Eike represented unit owners in the 16th Place
Condominium Association (11 units) with regards to defects and
damages. The case had serious insurance coverage questions involving
bankrupt and shell corporations (including back up insurers), but
was successfully settled. The owners obtained a mid-six figure
settlement to reimburse repair costs.
Denney Road Row Homes
Aldrich Eike represented unit owners in the Denney Road
Rowhomes Unit Owners Association (14 units) with regards to defects
and damages. A seven figure settlement was achieved on the eve
of trial and literally in the courthouse, allowing reimbursement
of repair costs and attorney fees. Litigation was hard fought,
and the unit owners were efficiently and effectively involved in
obtaining the result.
Roth Estates
Aldrich Eike represented unit owners (5 owners) in Roth
Estates with regard to construction defect and damages; and recently
obtained a six figure settlement. The case was settled with minimal
litigation.
Shiloh Heights Townhomes
Aldrich Eike represented unit owners in the Shiloh Heights
Townhome Association (8 units in two buildings) in Southwest Washington
with regard to defects and damages. The case had serious insurance
coverage questions involving bankrupt and shell corporations, but
was successfully settled. The owners obtained a mid-six figure
settlement to reimburse repair costs.
Orenco East Village Condominiums
Aldrich Eike negotiated a settlement for the Orenco
East Village Condominiums (210 units) in a litigation against the
builder and developer of those condominiums. The large multi-million
dollar settlement (one of the largest, condominium defect settlements
next to Vista House, in the Portland metro area) is one of the
most efficient obtained by Aldrich Eike. Fees were less
than 10% of the total settlement. A significant factor in this
great settlement was the work of the committees set up by the Association
Board and Aldrich Eike, as well as the work of the community
manager.
McKenzie Lofts Condominiums
Aldrich Eike negotiated a settlement for the Association
(74 units) where the developer/builder/architect designed a repair
plan, performed over $1,500,000 worth of repairs, and provided
the owners with additional five year “bulletproof” warranty.
Allocation of responsibility for one aspect of repairs (roof/deck
structure) was arbitrated, with a successful result for the HOA.
Orenco Place Townhomes
Aldrich Eike recently settled a case for the association
and owners of the Orenco Place Townhomes Association (64 units)
with the developer and builder with respect to defects. After hard
fought litigation, the case was settled for a favorable seven figure
sum, allowing repairs and reimbursement of attorney fees. The pro
active involvement of the Association Board, committees, and community
manager was critical to the result.
Quail Hollow Townhomes
Aldrich Eike negotiated a settlement for the owners
(6 units) where the builder/developer funded several hundred thousand
dollars of repairs.
Bridgeton Road Townhomes
Aldrich Eike negotiated a settlement for the owners
(6 units) where the builder/developer and other responsible subcontractors
funded a repair contractor to perform several hundred thousand
dollars of repairs to the townhomes.
Sellwood Commons Condominiums
Aldrich Eike prosecuted a construction defect and damage
claim for unit owners and the association (10 units) regarding
siding and deck problems at the Sellwood Commons Condominiums.
The case was successfully settled. The owners obtained a mid-six
figure settlement, enough to fund repairs and reimburse attorney
fees.
View Point Rowhomes
In what started to be a siding, window and deck defect problem,
the View Point Rowhome owners (3 units) discovered serious structural
deficiencies with respect to retaining walls and the structure
of their building, which forced them to move out. Aldrich Eike successfully negotiated a buy-back of the units from the
developer, and a reimbursement of attorney fees and other costs,
for a seven figure sum.
Pearl Lofts Condominiums
Owners in the Pearl District’s flagship condominium project
(24 units) discovered extensive window problems and defects in
the building envelope. The developer, general contractor, and window
manufacturer attempted repairs, (which did not work), and then
refused to undertake further repairs. The owners retained Aldrich Eike to prosecute the claim, which was one of the first construction
defect cases filed for a condominium in the Pearl District. Combining
an aggressive litigation and public relations strategy, a seven-figure
settlement was obtained that allowed the owners to fully repair
their units without financing, and reimburse the owners’ attorney
fee expense.
Villas on the Lake I Condominiums
Aldrich Eike negotiated a settlement for the owners
(14 units) where the builder/developer funded and performed several
hundred thousand dollars of repairs to the condominiums.
La’Torre Condominiums
Dean Aldrich represented a general contractor in one of the first
trials in the Portland metropolitan area regarding significant
and widespread condominium construction defects. The general contractor
had settled out with the homeowners (20+ units) for a seven figure
amount and the builder then successfully went to trial in an action
against the developer/architect and subcontractors in order to
obtain contributions for those parties’ share of the damages.
This case was initially responsible for establishing Dean Aldrich’s
expertise in the field of construction defect litigation, which
in turn led to the formation of the Aldrich Eike firm, P.C.
Representative Defect Cases – Single-Family Homes
Catlin Crest Homeowners
Aldrich Eike represented owners of a home in the Portland
West Hills with leaky windows. The homeowners filed a product defect
and breach of warranty lawsuit against the window manufacturer
and window supplier. During a 9-day jury trial in October 2010,
the window folks attempted to blame the general contractor, framer,
and siding subcontractor. The jury did not respond to these arguments.
The jury found that the windows and the window installation instructions
were defective, and that the window manufacturer did not honor
its warranty, and that the fine print exclusions were not valid. The
highest combined pretrial settlement offer from the window manufacturer
and supplier was $10,000. The jury awarded the homeowners $573,956.43
in damages, and the judge awarded an additional $56,599.93 in prejudgment
interest and costs, for a total award of $630,556.36.
Yamhill County Winery Owner
The owners of a winery in Newberg discovered construction defects
immediately upon moving into their new home at the winery in September
2007. The owners immediately contacted the builder to discuss repairs,
who in turn, demanded $80,000 more in addition to the full contract
price which had already been paid. After two years of unsuccessful
attempts to resolve the issues, the owners retained the Aldrich Eike firm to provide a defense for the payment claim and to pursue
the construction defect claim in binding arbitration.
In July 2010, the Aldrich Eike Team defended the owners at arbitration
against the contractor’s claim for nonpayment of the additional
$80,000, while also asserting a counterclaim against the builder
for failure to provide a proper accounting of the construction
costs under the AIA contract. The owners prevailed on the accounting
payment claim and the builder was only awarded $4,001 for costs
that fell outside of the contract. The owners were also awarded
$110,000 for attorney fees and costs for the accounting claim.
In September 2010, the Aldrich Eike Team arbitrated the construction
defect claim. The owners were ultimately awarded $125,000, including
$20,000 in compensation for the cost of investigation of the defects.
Street of Dreams Homeowner
Aldrich Eike represented an owner of a $2.4 million
Street of Dreams home in the southeast Portland hills in defense
of a $676,000 nonpayment claim filed against the owner by the builder. In
addition to the lawsuit filed against the homeowner by the builder,
the home had multiple liens filed against it by subcontractors
and suppliers which were also defended by the Aldrich Eike firm.
A countersuit by the homeowner was filed against the builder for
construction defects. The case was brought to verdict after
a 5-day arbitration. After hearing both the builder’s
payment claim and the homeowner’s defect counterclaim, the
result was a verdict of $4,575.66 net to the homeowner, plus a
reimbursement of $99,500 in attorney fees.
Southern Oregon Homeowner
Aldrich Eike represented two separate homeowners in
an over age 55 planned community located just east of Grants Pass.
During the real estate boom of the mid 2000s, a California developer
bought this 28-lot subdivision and promised buyers 24-hour security,
a clubhouse, and a new nearby medical facility. After building
out half of the 28 lots, the developer lost funding and abandoned
the project, leaving owners well short of what they were promised.
To add insult to injury, the homes were improperly constructed
and could not be sold. In both cases, the Aldrich Eike firm was
able to work with clients, adverse counsel from southern Oregon,
and a Josephine County retired judge mediator to negotiate favorable
resolutions, providing clients with much needed resources to fix
their homes.
West Linn Acreage
Homeowners hired a general contractor to construct their dream
home in 1999 on a 60-acre estate in West Linn, Oregon. Within a
year after construction, they were experiencing significant water
intrusion issues. Unbeknownst to the homeowners until discovered
in litigation by the Aldrich Eike firm attorneys, the builder
had experienced water intrusion that had damaged interior finishes
before the home was even complete and had covered up the damage.
The builder and his subcontractors came back and attempted repairs
on repeated occasions after the homeowners moved in, but the repairs
were unsuccessful. The homeowners hired the Aldrich Eike firm
to represent them in pursuing construction defect claims against
the builder of the home. Repairs were significant and included
complete removal and replacement of siding, and removal and reinstallation
of all windows and doors on the French estate style home. Repairs
were completed before the case was settled/resolved in order to
eliminate the risk of spending more on repairs than ultimately
recovered on the case. The Aldrich Law office obtained
a settlement of over $300,000 at mediation, which provided the
necessary funds to reimburse the homeowners for money spent on
repairs.
West Linn Homeowners
West Linn homeowners hired a general contractor to construct their
dream home. Within a year after construction, they were experiencing
significant water intrusion issues. The builder came back and attempted
repairs, but the repairs were unsuccessful. The homeowners hired
the Aldrich Eike firm to represent them in pursuing construction
defect claims against the builder of their custom home. The Aldrich Eike Team worked with the defense in selecting a repair contractor and
battling over the repair scope. Repairs were significant and included
complete removal and replacement of siding, removal and reinstallation
of all windows and doors, and reconstruction of five decks on this
four-story home. Aldrich obtained a settlement of $549,500, more
than full recovery of repair costs, at a judicial settlement conference
just prior to trial in March of 2010.
Forest Heights Homeowner
Aldrich Eike represented a Forest Heights homeowner
in a complex construction defect claim against the original builder
and its subcontractors, the window manufacturer, the realtor, the
home inspector, and repair contractors. This homeowner purchased
her home from a former Portland Trailblazer, and as part of the
sale, commissioned a home inspection, during which problems with
the EIFS siding and decks were discovered on the rear elevation.
The seller gave a credit of approximately $150,000 for repairs
found by the home inspector. The repair contractors performed the
siding and deck repairs, but failed to remove and reintegrate the
windows with the siding. Further complicating matters, the realtor
for the client was from the same office as a realtor who handled
a prior sale of the same home. This realtor had information that
inspections had been done during the prior sale only two years
earlier, which called for complete removal and replacement of the
EIFS siding on all four elevations of the home, but failed to disclose
this information to the client. Another obstacle to resolution
(and the subject of summary judgment motions) was an agreement
signed by the client to release any claims against the seller,
and also to assign to the seller any claims against the original
contractors. The Aldrich Eike Team was successful in contacting the
former seller and obtaining a declaration stating that he never
meant the agreement to be a present release or assignment, and
reassigning the claims back to the client.
After engaging in hard-fought litigation, including extensive
document discovery, depositions of all parties, two rounds of summary
judgment motions by all defendants, and one mediation, the Aldrich Eike firm was successful in obtaining $222,000 in settlement at
mediation just two months prior to trial.
Salem Homeowners
Aldrich Eike represented Salem homeowners in a construction
defect claim against the general contractor, who was the homeowners’ own
company. This home was originally built as part of a 1997 Salem
Tour of Homes, and then put on the open market to be sold. After
over 15 months on the market, the owner of the general contractor
company decided to purchase the home for his and his wife’s
personal use. The homeowners began to experience leaks after moving
into the home, and sued their own company for the defects. Aldrich Eike was able to obtain $85,000 in settlement from
the client’s company’s insurer and subcontractors at
a judicial settlement conference.
Skyline Heights Homeowner
Aldrich Eike represented the owner of a large luxury
home in claims against the builder of the home. The homeowner,
a local Real Estate Broker, had contracted with the builder for
construction of the custom home and was involved intimately in
the construction process, yet was unaware of the widespread defective
construction until the home started leaking and consultants were
hired to evaluate the construction of the home. The home had significant
deck and structural issues, as well as exterior envelope failures,
which included cultured stone and lap siding. The case resulted
in a $263,000 settlement, enough to fully repair the home and reimburse
the homeowner for attorney fees.
West Hills Homeowner
Aldrich Eike represented a West Hills homeowner in a
construction defect issue that involved significant structural
issues with a constructed elevated concrete driveway. In an effort
to avoid litigation, the Aldrich Eike firm convinced the contractor’s
insurance company to enter into a statute of limitations tolling
agreement while damages and liability were evaluated. After proving
to the insurance company that the driveway was improperly constructed
and providing repair bids establishing damages, the case was ultimately
settled without the need of filing a stressful, time consuming,
and expensive lawsuit. After settlement monies were received, the
home was fully repaired.
Forrest Heights Homeowner
Aldrich Eike represented a Forrest Heights homeowner
in a construction defect action involving their custom home. The
case involved repair costs in excess of $220,000 which involved
completely removing all of the Exterior Insulation Finish System
(EIFS) synthetic stucco siding from all four elevations of the
home, removal and reinstallation of over 50 windows, reconstructing
three decks, and performing significant excavation to remedy drainage
defects. After filing suit, documentary discovery, depositions,
and two mediations, the case was favorably resolved with a $252,000
monetary settlement to our Client on the eve of trial.
Skyline Heights Homeowner
Aldrich Eike represented a Skyline Heights homeowner
in their construction defect action involving their custom home
against their builder and its subcontractors. Repairs were extensive
(in excess of $300,000) and involved removing and replacing all
of the defectively installed brick veneer and cedar siding, removal
and reinstallation of the windows, and reconstructing both traditional
and waterproof membrane decks. The case was favorably resolved
with a $325,000 monetary settlement at mediation.
West Hills Homeowner
Aldrich Eike represented a West Hills homeowner in
a construction defect action involving their custom home that was
built in 1997. Facing repair costs in excess of $100,000, a claim
was submitted against the builder and the builder’s insurance
companies. After filing suit, documentary discovery, and depositions,
the case resolved at mediation with a monetary settlement in excess
of $150,000.
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