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Masma Construction Inc.

This is a settlement for the Defective Product lawsuit.

San Rafael, CA: (Aug-08-07) Homeowners of Novato condominiums brought a lawsuit against Masma Construction Inc., alleging that the company's building practices caused water damage to their homes. The suit claimed that the Larkspur company used nonstandard building practices in constructing the central walkways of the South Novato Boulevard luxury complex. Within a year of occupancy, residents began complaining about a lot of water coming from the elevated walkways and balconies. Masma Construction built the condominium complex in several phases, beginning in 1997 and ending in 2000. The homeowners' claim against the builder involved 68 of the 106 units. Residents claimed that damage to the condominiums, and the refusal of the builder to address the problem, made it difficult for condo owners to sell their homes. As a result, many owners were unable to take advantage of a white-hot market before a downturn in the housing market.

In a settlement reached, the Larkspur construction company has agreed to pay a $5 million compensation to the condo owners. Sources state that the settlement is one of the highest per-unit construction defect recoveries recorded. The $5 million settlement paid to the Edgewater Condominiums will be used to reconstruct the problem walkways. [MARIN INDEPENDENT JOURNAL: CONDO CONSTRUCTION]

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Published on Aug-9-07


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