Suit over faulty home is settled

Diana Sahagun

Tuesday, April 4, 2000 | 11:30 a.m.

After a seven-year battle with Falcon Homes over faulty construction, a settlement has allowed North Las Vegas homeowner Russ Lewis and his family to close one chapter of their lives and start another -- debt-free and on the road to becoming new homeowners.

The family, its attorney and Falcon attorney Brian Terry refused to comment on the settlement because of a gag order all parties signed barring them from talking to the press.

Richard Kersenbrock, a construction expert who was heavily involved in the Lewis case, confirmed the $200,000 settlement. He was allowed to sit through the settlement conference, which he described as "six hours of pure hell" for the Lewis family.

Donna and Russ Lewis sat with their attorney, Cal Potter, in one room, while Falcon attorneys and insurance representatives sat in another, he said. A local mediator, Joe Bon Jovi, went back and forth to negotiate the settlement.

The final offer totaled $205,000, which includes Falcon re-purchasing the house for approximately $125,000 and a portion going toward the cost of the Lewises' attorney fees, mediation fees, and expenses, he said.

"He just about breaks even," Kersenbrock said of the offer. "He just gets back to where he was seven years ago," with a few thousand dollars in his pocket.

Kersenbrock, who is in regular contact with the Lewis family, said they have already begun to search for a new home.

In addition to dissolving the construction-defect case against Falcon, the settlement means Falcon will drop its suit against Russ Lewis.

Lewis bought his home from Falcon in 1993 and immediately began reporting problems to the company. Dissatisfied with Falcon's response, Lewis posted signs on his property, wrote letters to elected officials and the Department of Veterans Affairs, and filed a complaint with the state Contractors Board.

Falcon sued Lewis, claiming that the loud complaints constituted slander, libel and harassment of Falcon employees.

The Falcon matter is not over yet. On April 18, Falcon President Fred Ahlstrom will appear before the Contractors Board on charges of faulty construction of the Lewis home. At a disciplinary hearing in February, the board continued the matter for 90 days to give attorneys a chance to prepare a settlement. The board has the choice of either dismissing the charges or disciplining Ahlstrom.

As part of the gag order, Lewis cannot attend the hearing, but Kersenbrock says he will be there and hopes "the board will do its duty" and take action against Ahlstrom.

"In no way should the case be closed," he said. "(The settlement) has not solved the violation."