Plaintiffs in $4.7 million construction defect case mum after ruling

Source:, February 28, 2017
By: Charmaine Little

Plaintiffs in a major construction lawsuit that ended with a San Diego law firm recovering nearly $5 million have decided to stay silent after the ruling was in their favor.
The law firm, which represented Laurel Bay Community Association, won $4.7 million in the case that was filed Aug. 21, 2013, against the developer and converter, Hammer Development LLC and Hammer Laurel Condominiums LLC. The suit was also a complaint against the original contractors, Simpson Laurel Bay LP, SHLP Laurel Bay LLC and GWC Contractors LP. The development was slated to be a new apartment complex in 2004 before it was turned into a set of residential condominiums in 2005.
Commercials Metal Company is listed as one of the primary plaintiffs in the high-profile case. It refused to speak on the $4.7 million ruling.
“We do not comment on litigation matters,” Susan Gerber, manager of public relations for Commercial Metals Company, told the Northern California Record.
Suspicions of construction issues began after a water disturbance was spotted in the building’s multilevel parking garage and went through the cracks on the wall and damaged areas where the wall and floor intersected, according to a news release from The Naumann Law Firm. This was only the beginning of water troubles as more leaks were then found on each level of the parking garage.
The ruling was a win for The Naumann Law Firm after investigations and testing found that the water damage was due to a failure to properly waterproof at podium-level planters. There was a connection between the leaks and where the planters were placed.
William H. Naumann and Loren K. Shiu were the attorneys on the case. Co-counsel David M. Peters also took part as the lawyers proved why the developer and convertors were at fault for the water damage because of defective planters and the water intrusion problems. The defendants denied any responsibility and, instead, blamed the association for not keeping up and maintaining the property as the reason for the damages.
Still, Judge Ronald Styn ruled in favor of Laurel Bay Community Association in San Diego Superior Court. Robert E. May also served as the discovery referee and James Roberts was the mediator, according to information provided by The Naumann Law Firm. Attorneys could not be reached for comment.
AO Reed Company, CMC Rebar’s, Fibrwrap Construction, and Fontana Steel were the other plaintiffs in the case along with Gabbard Hardware Co, JD2 Inc., Lavalley Corp, Modern Masonry, Paul Hansen Inc, Streamline Electric & Highmark Construction, Whillock Contracting Inc., Wirtz Tile & Stone Inc, Does 1 to 500, and Zurich American Insurance Company according to case details.
Other defendants were AO Reed & Co., AV Builder Corp, Great Western Housing, GWC Contractors LP, Hammer Lauren Condominums LLC, LM Waterproofing Inc., LOHSE, LOHSE 2 LLC, Roel Construction Co. Inc., SHLP Lauren Bay LLC and Simpson Laurel Bay LP.

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