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WHEN FAMILY CASTLE NEEDS ROYAL OVERHAUL; HOMEOWNERS' FIX: HAGGLE OR SUE BUILDER?


Byline: Jenifer Hanrahan Daily News Staff Writer

Stu and Arpegea Cannold thought they had found 2,200 square feet of happiness - on a cul-de-sac, no less - when they moved into the California Marquis tract in Palmdale.

The newly married couple's two-story Mirella II model features a veranda in the front, a balcony off the master bedroom, cathedral ceilings cathedral ceiling
n.
A high, open, usually slanting or pointed ceiling.
 in the living room and a three-car garage. But the Cannolds say their dream home quickly turned into a house of horrors.

The couple claims serious construction defects caused water leaks and left windows jammed shut. Air-conditioning ducts stop short of the back bedrooms and half-inch-wide cracks opened up on interior concrete slabs Concrete slab

A shallow, reinforced-concrete structural member that is very wide compared with depth. Spanning between beams, girders, or columns, slabs are used for floors, roofs, and bridge decks.
.

The Cannolds, along with 25 of their neighbors, filed a lawsuit in February against builder Kaufman and Broad, one of California's most prolific developers.

``Structurally, it looks like a sound house,'' Stu Cannold said. ``Kaufman and Broad is a large builder. You would think it would be the Cadillac of the line. But I didn't do my homework.''

Perhaps neither did scores of Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region,  homeowners and homeowner associations that have brought lawsuits against their builders for construction defects.

Since the recent rebound in new home construction, at least three lawsuits have been filed locally over construction defects. They include:

Allegations of defects by 65 other homeowners in the California Marquis development; they filed a lawsuit in June but will meet with an arbitrator before going to court.

Acceptance of settlements - ranging from about $15,000 to $23,000 - by owners of 11 other homes in that tract who alleged a wide range of structural defects, including roof and window leaks.

Award of a $6.2 million settlement in August to the Seco Canyon Homeowners Association in Saugus, which sued Santa Monica Santa Monica (săn`tə mŏn`ĭkə), city (1990 pop. 86,905), Los Angeles co., S Calif., on Santa Monica Bay; inc. 1886. Tourism and retailing are important, and the city has motion-picture, biotechnology, and software industries.  developer Paragon Homes Inc. for problems ranging from leaking roofs, decks and sliding glass doors, plumbing deficiencies and electrical and wiring failures due to assorted code violations at the condominium condominium

In modern property law, individual ownership of one dwelling unit within a multidwelling building. Unit owners have undivided ownership interest in the land and those portions of the building shared in common.
 complex.

Caveat emptor [Latin, Let the buyer beware.] A warning that notifies a buyer that the goods he or she is buying are "as is," or subject to all defects.

When a sale is subject to this warning the purchaser assumes the risk that the product might be either defective or
 

``You take it for granted when you buy a house brand new you're not going to have to replace things for 15 years,'' said condo resident Helen Masciotra. ``You buy it in good faith.''

But consumer experts and lawyers who represent homeowners in construction defect litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute.

When a person begins a civil lawsuit, the person enters into a process called litigation.
 say savvy buyers should not blindly trust builders.

Generally unaware of the problems plaguing the home-building industry, buyers assume a new home will be relatively defect-free. As a result, they don't take the time to scrutinize scru·ti·nize  
tr.v. scru·ti·nized, scru·ti·niz·ing, scru·ti·niz·es
To examine or observe with great care; inspect critically.



scru
 a new home like most buyers do when they purchase a resale home.

A typical developer employs 30 to 40 subcontractors on each house - leaving open hundreds of opportunities for error.

In the Cannolds' case, Kaufman and Broad admitted to some defects in the homes, but denies most of the major allegations in the suit.

``This is simply a case of a small group of homeowners being told by their lawyer to hold out for more money,'' said Bart Pachino, Kaufman and Broad senior vice president and general counsel.

Besieged be·siege  
tr.v. be·sieged, be·sieg·ing, be·sieg·es
1. To surround with hostile forces.

2. To crowd around; hem in.

3.
 builders say they are hammered by frivolous lawsuits that have caused liability insurance rates to skyrocket, threatening the construction of affordable housing.

They cite a recent study by the University of Southern California's Lusk Center Research Institute that showed that almost 80 percent of home builders in the state have faced construction-defect lawsuits since the mid-'80s.

The vast majority of cases brought against builders involve construction defects in condominiums or townhomes - leading most builders to stop building multi-family housing altogether, according to according to
prep.
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

3.
 the study.

Two sides to the story

While consumer experts say certain common problems, such as water leaks, are compounded in attached housing since homeowners literally share the problem, building industry advocates blame lawyers who see large payoffs in representing hundreds of homeowners.

``There's a big difference between addressing problems when they occur and getting the homeowner a remedy vs. taking two or three years to litigate a laundry list laundry list A popular term for a long list of Sx, diseases, or etiologies that share something in common–eg, differential diagnosis of acute abdomen  of claims,'' said Juan Acosta, legislative advocate for the California Building Industry Association, a home builders trade association. ``I don't want to quibble QUIBBLE. A slight difficulty raised without necessity or propriety; a cavil.
     2. No justly eminent member of the bar will resort to a quibble in his argument.
 with someone who says, `I have a problem in my house. I want it fixed.' But let's do it in a way that's less costly, less time-consuming and doesn't scare insurers.''

From a homeowner's standpoint, pursuing litigation is far from easy money. Lawsuits are expensive, time-consuming and emotionally draining. Litigation can drag on Verb 1. drag on - last unnecessarily long
drag out

last, endure - persist for a specified period of time; "The bad weather lasted for three days"

2.
 for years, and during that period it may be difficult for a homeowner to sell. Housing values may drop.

In the Saugus condominium complex, homeowners' association A homeowners' association (abbrev. HOA) is the legal entity created by a real estate developer for the purpose of developing, managing and selling a community of homes.  meetings grew contentious; one resident even threatened to sue the homeowners association for suing. The Seco Canyon Homeowners Association shelled out $600,000 for expert inspections to document the problems.

``In hindsight, if you can deal with the developer without involving litigation, it is probably the best way to go,'' said Richard Howe, president of the Seco Canyon Homeowner's Association Board of Directors.

CAPTION(S):

2 Photos

Photo: (1) Check for flaws in your newly built house, buyers advise.

Tom Mendoza/Daily News

(2) Arpegea Cannold and her husband, Stu, are suing the builders of their Palmdale home over construction defects.

Jeff Goldwater/Daily News
COPYRIGHT 1997 Daily News
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1997, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:L.A. LIFE
Publication:Daily News (Los Angeles, CA)
Date:Sep 6, 1997
Words:857
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