A class-action lawsuit between a group of homeowners from Trilogy on Redmond Ridge and Shea Homes Inc. was dismissed after the two parties reached a settlement last month.
The terms of the settlement are confidential, but according to Shea’s recent public U.S. Securities and Exchange Commission filing, under its “Legal Claims” section, the company accrued “$13.3 million in connection with the settlement and related matters.” The filing continues, stating that one of Shea’s insurance carriers has denied coverage for the settlement and due to the uncertainty of this dispute, “there can be no assurance the ultimate outcome will not be significantly different than the recorded reserve. If, for example, the insurance carrier prevails, (Shea) could be obligated up to an additional $9.7 million for the settlement and related matters.”
The homeowners filed the lawsuit on Oct. 10, 2014 in federal court for the Western District of Washington against the California-based homebuilder for allegedly acting unfairly and deceptively in building, marketing and selling homes specifically marketed to elderly buyers.
Seattle-based law firms Levy–von Beck & Associates and Hagens Berman Sobol Shapiro LLP represented the plaintiffs, which comprised 967 homes in Trilogy and more than 1,500 residents.
Dave von Beck of Levy–von Beck & Associates said there are 1,522 homes in Trilogy.A tentative settlement was reached in January and von Beck said it had to be approved by all of their clients. The settlement was finalized March 25.
Von Beck said a large majority of their clients said they were fairly compensated.”The homeowners are very happy,” he said.
As previously reported, the lawsuit alleged that Shea “knowingly ignored architect plans and building codes by omitting required exterior waterproofing components such as metal flashings intended to prevent water intrusion and rot damage.” As a result, residents’ homes incurred anywhere from $5,000-$20,000 in damages, which include “garage floors that need pea gravel and moisture barriers, corbels and columns that need replacement, and windows, doors, patios, and decks that need flashing and new trim,” according to the earlier report.
Von Beck said their clients are now in a position to be able to begin repairing their homes.
