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SETTLEMENT INFORMATION

Rosa et al v. Morrison Homes

The Settlement 

 

Morrison Homes Settles Class Action Alleging Defective Foundations For $5.9 Million

 

The Case

 

 

The homes at issue in the lawsuit were built by Defendant Morrison Homes, a large developer that built approximately 450 tract houses in Salida in the mid-1990s.  In the lawsuit, Plaintiffs contend that Morrison Homes had a legal duty to construct these homes in a reasonably workmanlike manner such that the homes would be fit for habitation.  Plaintiffs contend Morrison did not build the foundations of the homes to these standards.  

This matter was filed on July 13, 2005.  Plaintiffs filed their First Amended Complaint, which is the operative complaint, on April 26, 2006.  Plaintiffs alleged the following causes of action: 1) Concealment; 2) Intentional Misrepresentation; 3) Negligent Misrepresentation; 4) Breach of Express Warranty; 5) Breach of Implied Warranty; 6) Violations of California Business and Professions Code §§ 17500, et seq.; and 7) Violations of California Business and Professions Code §§ 17200, et seq.

 

By Order dated April 30, 2009, the Court certified this matter as a class action.  Plaintiffs’ claims for concealment, breach of express and implied warranties, and violations of California Business and Professions Code §§ 17200 et seq. and 17500 et seq. were certified by the Court as class claims.  Further, the Court certified two classes, defined as follows:

 

Original Homebuyers: All current homeowners in the Eureka, Maravilla, and Heirloom subdivisions in Salida, California who purchased homes that were constructed and marketed by Morrison Homes.

 

Subsequent Homebuyers: All current homeowners in the Eureka, Maravilla, and Heirloom subdivisions in Salida, California who purchased homes that were constructed and marketed by Morrison Homes from another homeowner.

 

 

For the Class of Original Home Purchasers in the Eureka, Maravilla, and Heirloom subdivisions, Plaintiffs Deborah Bicknell, Steven Bicknell, Trent Brownlee, Jacqueline Cambra, Gary Howard, David Kositchek, Shirley Kositchek, Lynne Matheny, Deborah Montoya, Joseph Montoya, Dennis Noble, James Payer, Lorenzo Pino, Michael Rosa, and Nicole Rosa were appointed as class representatives.  For the Class of Subsequent Home Purchasers in the Eureka, Maravilla, and Heirloom subdivisions, Plaintiffs Victoria Eddy, Tamara Trock, and Anthony Trock were appointed as class representatives.  Schneider Wallace Cottrell Brayton Konecky LLP and Kahn Brown & Poore LLP were appointed as class counsel.

 

The Settlement Class includes all current homeowners in the Eureka, Maravilla, and Heirloom subdivisions in Salida, California who purchased homes that were constructed and marketed by Morrison Homes and all current homeowners in the Eureka, Maravilla, and Heirloom subdivisions in Salida, California who purchased homes that were constructed and marketed by Morrison Homes from another homeowner.

 

The terms of the Proposed Settlement are contained in the Settlement Agreement.  They include:

 

A total Settlement Fund of five million, nine hundred thousand dollars ($5,900,000).  A Settlement Class Member or Representative Plaintiff who submits a timely and properly completed Claim Form to the Claims Administrator shall be eligible to have Foundation Repairs, i.e. the identification of cracks and the filling and sealing of said cracks, performed at the Settlement Class Member’s house.  The amount of funds available per house will be approximately $6,131.00.  Inspections by court approved contractors will be made available to each home.  The actual scope of foundation repairs will depend upon the type of floor coverings in each home.