Mealey’s Litigation Report: Construction Defects
Vol. 3, #10, November 2002

$4.2M Award Set, Parties Await Ruling On Insurance

GOLDEN, Colo.- The parties involved in a construction defects case in which a jury has returned a $4.2 million verdict had a hearing Nov. 7 to resolve insurance coverage issues stemming from the lawsuit, a source told Mealey Publications (Doug T. Hoang, et al. v. Monterra Homes v. Arapahoe Drain Systems Inc., et al., No. 99CV2425, Colo. Dist., Jefferson Co.).

Doug T. Hoang, Hieu T. Van, Gregory and Joan Storbakken and Allan and Marsha Walts sued Monterra Homes and Jack D. Arbess, alleging negligence, breach of contract, breach of implied warranty, soil and hazard claims and breach of the Colorado Consumer Protection Act (CCPA).

Monterra Homes sued and Arapahoe Drain Systems Inc. and Martin Design. Arapahoe settled for an undisclosed amount.

Verdict

On Jan. 18, a jury awarded the plaintiffs $4,214,847 .

The jury found Monterra liable for all claims, except for breach of contract in its third-party complaint against Martin Design.

Martin Design was ruled to have breached its contract with Monterra, but the jury awarded Monterra no money for damages.

Damages

All parties were awarded economic damages with prejudgment interest, noneconomic damages with prejudgment interest and out-of-pocket litigation costs.

Hoang and Van received $1,372,877.25; the Storbakkens received $1,478,455.49; and the Walts were awarded $1,363,514.60.

The plaintiffs are represented by Scott F. Sullan and Curt T. Sullan of Vanatta, Sullan, Sandgrund & Sullan in Greenwood Village, Colo.