Record settlement reached in lawsuit over condo defects

Kim Smith

Thursday, Aug. 3, 2000 | 9:50 a.m.

A settlement of $16.25 million, the largest on record in Clark County, was reached Wednesday, midway through a construction defect trial.

Rock Springs Development Corp. and J.A. Black Construction Company agreed to pay Rock Springs Vista 3 Owners Association $16.25 million to settle a lawsuit filed in January 1998.

The owners of 576 condominiums filed the lawsuit claiming their condos, which were built from 1989 to 1991, were beset by plumbing, electrical, structural and acoustical problems.

Scott Canepa, who represented the homeowners along with attorney Terry Riedy, said this was the third lawsuit settled with the development corporation and construction company within the last four months.

The companies also agreed to pay $4.75 million each to the Bay Cliff Creeks Condo Association and Rock Springs Vista 8 Owners Association because of similar problems, Canepa said.

Wednesday was the ninth day of trial in the Rock Springs 3 case. Six experts had already testified, but the defense attorneys had not yet presented their side.

Canepa said the two sides have been negotiating for the past year.

Canepa said the previous highest settlement in a Clark County defect case was in February. In that case, Rhodes Design and Development Corp. and the now defunct H.B.R. Development Inc. and Halco Inc. agreed to pay $16.19 million to homeowners in the Casa Linda subdivision in North Las Vegas.

In that case, Canepa and Riedy alleged that 188 homes were structurally defective because they were built on expansive and corrosive soil.

All but $250,000 of Wednesday's settlement will be covered by insurance, Canepa said. The remaining amount must be paid by J.A. Black Construction Co. within 30 days.

Part of the reason the case was settled is that homeowners in another defect case had to wait through 10 years of appeals before being compensated, Canepa said.

A lawsuit filed by the Rock Springs Vista 10 Owners Association against J.A. Black Construction Co. and the Rock Springs Vista Development Co. is still pending, Canepa said.