October 10, 2025: Christopher Haskell, a partner of Price, Postel & Parma LLP, recently settled a significant multi-party construction defect case that resulted in a $5 million recovery for the Firm’s client, The Residences at Depot Street, L.P. Associates Jeff F. Tchakarov and Cory T. Baker assisted in the representation.
The Residences at Depot Street, L.P. is the owner of an 80-unit affordable housing community and amenities divided between two three-story buildings, intended to serve veterans, formerly homeless individuals, those with qualifying special needs, and low-income households in Santa Maria, California.
Defendant Wallace & Smith Contractors (“W&S”) served as the general contractor under a $23.2 million construction contract and was responsible for coordinating numerous subcontractors across the project. Construction was completed in September 2020. In the spring of 2021, the owner discovered defects at the property, including issues with the laminate flooring, balcony railings, fire doors, utility chase fireproofing, and exterior wood siding. After conducting repair investigations, Plaintiff filed suit against W&S in June 2022 for breach of contract and negligence, seeking damages exceeding $8 million.
Plaintiff alleged that W&S failed to install various components of the project in accordance with the contract requirements, applicable codes, and industry standards. W&S denied liability and contended that the alleged defects were attributable to design flaws, material specifications, climatic conditions, or tenant use and abuse. W&S also filed cross-complaints for indemnity against several subcontractors, asserting claims for breach of contract, breach of warranties, contribution, and declaratory relief. As new defects surfaced, additional subcontractors were brought into the action, and a web of cross-claims among the parties followed.
The parties engaged in extensive expert investigations and multiple days of mediation. Starting on September 3, 2025, the parties participated in mediation sessions with mediators Robert Mann and Ross Hart, Esq., as well as with the court-appointed settlement judge, Hon. Timothy J. Staffel (Ret.). Following three weeks of negotiations and several structured mediation conferences, the parties reached a global settlement on September 25, 2025, resolving all claims and cross-claims. Under the settlement, W&S and the subcontractor cross-defendants agreed to pay Plaintiff $5,000,000
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