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Costs mounting in mold lawsuit

Number of plaintiffs in expensive case alleging negligence, fraud and nosebleeds may require gym as a legal venue.

March 03, 2009|By Brianna Bailey

There was nothing but dirt on the spot in the Ocean Heights subdivision in Newport Coast where Michael Sarver asked Margi Quick Sarver to marry him a decade ago.

The couple paid about $1.8 million and spent about another $500,000 in upgrades for their Italian-inspired Ocean Heights home on the spot with marble floors, vaulted ceilings and several fireplaces in 2000. Bedrooms on the upper floor of the two-story home open up onto a large, stone-paved patio overlooking the Pacific Ocean.

“You could see all the way to Catalina. It seemed like the perfect spot and we thought this would be a place where we wanted to retire,” Margi Quick Sarver said. “We’re looking at having to rebuild now in our 50s.”

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The couple claim that the cracked, stucco walls of their 5,400-square-foot dream-home are now full of toxic mold that gives them headaches and nosebleeds.

The Sarvers and 16 other homeowners, including prominent Newport Beach residents such as sports agent Leigh Steinberg and plastic surgeon Milind Ambe, are suing luxury home builder Taylor Woodrow Homes, now Taylor Morrison Homes, for negligence and breach of contract, among other claims.

The homeowners allege that their multimillion-dollar houses need repairs that could cost in excess of $1 million because of leaky walls and roofs that were never properly fixed. Now the homes are petri dishes for toxic mold, the Sarvers and other homeowners contend.

The lawsuit has dragged on four years, with legal costs exceeding $200,000 a homeowner in some cases. A few Ocean Heights residents have dropped out of the suit since its 2005 start because of bankruptcy or divorce, Margi Quick Sarver said. At one point, legal fees in the case mounted $10,000 a month per homeowner.

Under California law, the homeowners can’t ask to recover the cost of their legal fees in the construction defect case.

The Sarvers claim that it will cost more than $2 million to repair the water damage and get rid of the mold in their home.

The case is slated to go to trial March 30, but Orange County Superior Court Judge Gail Andler has said there is no courtroom in Orange County big enough to house all the attorneys involved.

There are 37 different law firms involved in the suit representing numerous construction contractors, insurance and building materials companies. The judge has said the trial may have to be moved to a gymnasium to house all of the attorneys and parties involved.

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