R|O recently represented a couple who sold their custom-built family home where they had raised their children over the past 16 years. Subsequent to the sale, and during the heaviest rainfall in Southern California since 2002, the house experienced water intrusion. The buyer sued the sellers, demanding damages in excess of $500,000. The buyer alleged that the sellers failed to disclose the water intrusion issues. R|O argued on behalf of the sellers that the sellers had no knowledge of the water intrusion issues due to the drought and that the issues they had experienced after the house had been built 16 years prior, had been resolved.

Notwithstanding a denial of liability, R|O retained an expert who opined that the damage was really worth only $37,500. R|O made an statutory offer to compromise in that amount, which was rejected. After arbitration, an award was granted to the buyer in the amount of $37,248.61. Because the buyer received less than what the sellers offered, she had to pay the sellers $22,306.19 in post-offer costs.

Written by Alisa E. Sandoval

Alisa E. Sandoval is a Senior Associate at Richardson|Ober|DeNichilo.