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United States : Settlement reached in $42 million construction defect case.

A confidential settlement has been reached in what may be the largest construction defect lawsuit in Oregon history.

The case was filed Aug. 8, 2008 in Multnomah County Circuit Court by Wyndham Resort Development Corp. and The Resort at Seaside Condominium Association against Swinerton Builders, a San Francisco-based general contractor.

The roughly $42 million lawsuit accused Swinerton which was operating in Oregon as Swinerton Builders of Oregon of breach of contract, negligence and breach of warranty for construction defects at The Resort at Seaside, an eight-story, 414,970-square-foot beachfront condominium completed in 2003.

The lawsuit alleged that Swinerton failed to construct The Resort, at 26 Ave. A in Seaside, in conformance with the agreement, drawings, manufacturers instructions and requirements and building codes.

The list of complaints identified numerous defects, including misalignment of exterior surfaces that led to wind and water damage in the building s envelope, roof and windows. Damage included dry-rot fungus, water stains, mold, mildew, warping, rust and other damage to drywall, fireplaces, flooring and insulation in individual units and common areas. The lawsuit also alleged that construction defects led to sections of the building's exterior falling off.

A settlement was reached in Multnomah County Circuit Court Judge Stephen K. Bushong s courtroom in the last week. Terms of the settlement are confidential under the agreement.

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Date:Jul 26, 2010
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