News Archive
New Law too Late for Steeplechase
"If the code had been followed we wouldn't have seen this damage. "Larry Duignan Attorney and Consumer Advocate
Using the 1994 Northridge Earthquake-damaged Steeplechase Condominiums in Calabasas to illustrate their point, supporters of Senate Bill 339, "The New Homeowner Protection Act," gathered in front of several red-tagged buildings at the complex to show the need for tighter controls over contractors who violate building codes.
Introduced by Senator Byron Sher (D-San Mateo), who said, "There are too many homes in California being built in sub-standard fashion, threatening the lives and safety of citizens," the bill intends to prevent construction problems before they occur by calling for greater on-the-job scrutiny. Because the bill creates a presumption of negligence when building codes are not followed, developers stand to be penalized.
"If the code had been followed we wouldn't have seen this damage," said Larry Duignan, an attorney and consumer advocate, as he pointed to one of the four Steeplechase buildings on Lost Hills Road which were condemned following the earthquake over three years ago. Residents in 28 units were forced to move out, many still paying mortgages.
"It took the earthquake to show how bad they were," said Bob Newsome, a Steeplechase owner who estimates he's lost $75,000 in value on his two-bedroom condo purchased new for $160,000. Susan Heffler, who bought her unit in 1989, said, "I've lost over 50 percent of my investment and I can't move." Neither Newsome nor Heffler lives in a red-tagged unit.
Alex Robertson , an attorney for the homeowners, said, "the ground shaking experience in Calabasas [20 miles from the Northridge epicenter] was below what the building code said you had to design to." Robertson added, "The city report concluded in every single building there were missing structural connections between the wall and the foundation."
Homeowners earlier won $5 million in settlements against the primary Steeplechase builder, Oxford Investment of Bethesda, MD, and in 1993 filed a second suit against Lost Hills of Calabasas Inc., a Curry Riach subsidiary, following a string of complaints about construction defects such as missing shear walls, roof and window leaks ruptured plumbing lines. Total repairs are estimated at $15 million.
One source speculated that because Steeplechase was built in the late 80's, toward the end of the construction boom, it was difficult for Oxford to find and employ fully competent subcontractors. Curry Riach, a long-time Calabasas developer, partnered with another company called Cabot, Cabot and Forbes to complete the residential grading, and then sold the project to Oxford for actual construction.
In the homeowners' current lawsuit, both grading and construction are called into question, but Ernie Boychenko, a spokesperson for Curry Riach, said, "We were very, very passive. We were not active at all." As long-time Calabasas homebuilders, said Boychenko, "If we build it, we take full responsibility. But we know the product we put up is quality because we know we don't have the headaches later."
Oxford Investment could not be reached for comment about the lawsuit.
Ironically, the Steeplechase Homeowners Association had purchased earthquake insurance, but discontinued it in 1993. The association said after spending over $300,000 fixing construction defects, little was left to pay earthquake premiums which had reached $35,000 a year.
While SB 339 seeks more protection for homeowners, six other bills are pending on behalf of the builders whose industry fears tort reform is too slow in coming. In part, the developers want to shrink the outside limit for being sued from 10 years to six.
"They're all geared to make it very difficult for homeowners, to file construction defect lawsuits," said Robertson . "The real focus should be on how did these problems get to be here in the first place."
Said one homeowner, "You can't let the builders keep feathering their nest."