Gray•Duffy, LLP Settles $800,000 Claim for $2,500 on Behalf of Homeowner’s Association

June 2014

Overview

Michael Eisenbaum of Gray•Duffy’s Encino office successfully negotiated the settlement of a claim of approximately $800,000 on behalf of the firm’s homeowner’s association client for a total of $2,500.

Discussion

Hoyt Vanderpool III, et al. v. DMB Ladera, LLC, et al. Gray•Duffy represented a Homeowner’s Association (HOA) in a lawsuit involving two single-family homes in San Clemente, CA that suffered extensive soil movement. The developer named the HOA in its cross-complaint, contending that the HOA’s common area slopes were negligently maintained causing the damage to the plaintiffs’ properties. After extensive investigation and discovery, Michael Eisenbaum established that it was unlikely the slopes were causing the problems on the individual lots, and that the HOA had a well-established, ongoing maintenance program for the slopes with extensive records. Ultimately, through several rounds of mediation, a settlement was negotiated directly with the plaintiffs who agreed to accept $10,000 to settle the case, which was split four ways among the HOA, its landscape contractor, its irrigation vendor, and its landscape consulting firm. Thus the HOA’s contribution was $2,500 for its portion of the settlement.

Please Note: This article is necessarily general in nature and is not a substitute for legal advice with respect to any particular case. Readers should consult with an attorney before taking any action affecting their interests.