LV-area homeowners settle defect suit for $12.7 mil.

Wednesday, Sept. 24, 2003 | 11:01 a.m.

Owners of 323 homes at a Rhodes Homes development have received a $12.7 million settlement after suing Rhodes, its three subsidiaries and 47 subcontractors over construction defects ranging in scope from faulty plumbing to bad tile jobs, with bad roofs and frames the most significant problems.

Rhodes Homes and its subsidiaries paid about $3 million into the settlement pool. Other significant chunks were paid by Rhodes Framing, which paid $1.7 million, and Mestas Roofing Inc., which paid $2 million into the settlement.

The Palm Gardens development, located at Tropicana Avenue and Jimmy Durante Blvd. east of Boulder Highway, has 599 units. The homeowners of the 323 homes that were included in the suit will all be satisfied with the agreement, the plaintiffs attorneys said.

"We're very happy for our homeowners," said Barry Mitidiere, an attorney for the plaintiffs, adding that his clients will use the settlement money to fix their homes.

Attorney David Lee, who represented the defendants, said, "This was one of the most complicated and difficult cases we've been able to put together." He added that his clients were glad to be able to settle the lawsuit quickly.

The original complaint was filed in December 1999 against Rhodes Homes and its subsidiaries -- Rhodes Design and Development Corp., Palm Gardens Ltd., and Palm Gardens Corp. -- as well as the 47 subcontractors.