Leaks lead to large settlement

June Casagrande

Less than a week after Frank and Barbara Peters moved into their

dream home overlooking the ocean, they came home to find that rain

had left a puddle in the kitchen area next to the phone. From there,

things went steadily downhill as they watched more water leak into

their $1.2-million-plus, 3,000-square-foot condominium with every

rainfall.

The Peters and their neighbors the Albers have reached a landmark

$1.26-million combined settlement with construction company ETCO

Development of Westminster for construction defects in the decks of

their two adjacent condominiums on Breakers Drive.

“It started out as a dream home for us and ended up the flip-side

of a dream -- a nightmare,” Peters said. “At one point, I think, I

had 13 holes stopped up in the ceiling in my kitchen, dining area and

living room.”

Some of the holes were one and two feet wide where workers had

gone in to try to find the source of the leaks. The defects were in

the outdoor deck that forms the roof over an open indoor living area.

More than half a dozen attempts by the developer to fix the

problem were unsuccessful, Peters said. So he and his neighbors hired

an attorney.

John Manly, attorney with the Costa Mesa firm Manly & McGuire,

said that the settlement amount is extraordinary.

“I don’t know of any other settlement this high for just two

units,” Manly said.

ETCO Development works regularly in Newport Beach, often on small

projects such as the two-unit development where the Peters and the

Albers bought their beachfront condos. A representative of ETCO could

not be reached for comment on Friday afternoon.

City officials said they were unaware of any significant problems

with the developer’s projects in Newport Beach.

The Peters paid out of pocket to repair the six-figure damages and

now will get their money back from the settlement.

“We were never sure we’d get reimbursed, so it’s very satisfying

having the house repaired,” Peters said. “Now, it’s just a matter of

getting over the trauma.”

* JUNE CASAGRANDE covers Newport Beach and John Wayne Airport. She

may be reached at (949) 574-4232 or by e-mail at

june.casagrande@latimes.com.