AGOURA HILLS WINS MUDSLIDE LAWSUIT\3 families will not be compensated for lower home values, stress.

Byline: R.A. Hutchinson Daily News Staff Writer

Three years after a mudslide wrecked one home and threatened others on Via Amistosa, a jury decided Tuesday that the city is not liable to three homeowners seeking compensation for lowered property values and stress.

City Manager David Adams said that the Los Angeles Superior Court jury, which began deliberations last week, relieved the city and its insurer of any financial liability in the case. Three other homeowners had settled out of court over the past 18 months.

"The city has zero liability. We're really thrilled with the decision. It's an example of why you go in and defend these lawsuits," Adams said. "Now we can go in and finish repairs on the property."

Heavy rains in February 1993 saturated a hillside below Calle Montecillo and above Via Amistosa, causing the slope to give way and knock a home owned by the O'Linn family from its foundation. The Ferbers, whose home was near the O'Linns' on Via Amistosa, abandoned their house after debris pushed up against its back wall.

The two families and four others subsequently sued, claiming the city was responsible for the slope failure and should compensate them for losses in property values caused by the mudslide. City officials argued they inherited the problem from Los Angeles County, which oversaw the development before Agoura Hills incorporated in 1982.

Craig Collins, an attorney with the Malibu firm of Berger and Norton, said he is disappointed by Tuesday's verdict. His firm represents the Akhtar, Lanaro and Alfonso families, who failed to reach settlements before the trial. Collins' four clients, including the Ferber family, had originally sought $6.6 million in damages with $2.1 million in property damage, repairs, medical bills and attorney fees, and the rest for emotional distress.

"I'm shocked and disappointed. We thought, as a matter of law, that the city is also responsible. The court disagreed," Collins said. "It's a tragic day for the people who lived out there and have had to deal with this for three years."

Collins said he would confer with his clients about appealing the decision.

Girard Fisher, who represents the city and its insurer, the Joint Powers Insurance Authority, said Tuesday's decision is an important one for the city and the authority, though it comes after months of costly litigation and failed negotiations to reach an out-of-court settlement.

"It was a big victory for the city. We're very pleased with the outcome," Fisher said. "This whole thing should not have happened. The city offered in the middle of 1994 to repair the slopes at no cost to the homeowners but they refused.

"They would have been in better shape than they were before the mudslide. It's been a very frustrating process for the city," Fisher said.

City officials, however, did reach settlements with Rasmussen Associates, which developed the site, and other parties involved with the building and grading in the area. Fisher said those various settlements yielded the city about $375,000.

In June of last year, city officials agreed out of court to pay $770,000 for the property of the Ferbers and O'Linns.