Homeowners Awarded $7.8 Million Over Defects

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.

Construction defect lawsuits have become increasingly common in recent years. Homeowners have been helped by the implementation of “strict liability” laws, which say that homes are defective if the builders fail to construct them as well as they should be built.

Diane Wedner