Full Dismissal Secured for Subcontractor in Luxury Residential Construction Defect Case

April 2026

GDEL’s client, a paving contractor, was named as a defendant in a construction defect case involving a luxury residence in Palm Springs, California. The developer sold the property in June 2021 for $4.7 million. After moving in, the homeowners alleged numerous design and construction defects and pursued claims through binding arbitration, ultimately obtaining an award of approximately $1.3 million. 

Although our client served as a subcontractor on the project, a detailed investigation by GDEL attorney Stepan Naldzhyan into the underlying arbitration proceedings confirmed that none of the alleged defects or resulting damages were attributable to its scope of work. Relying on these findings, Naldzhyan successfully demonstrated that the claims against our client lacked merit. As a result, our client was dismissed from the litigation without any liability or settlement payment.

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.