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Wong v. 396 Investment Co.5/17/2005
A landslide caused significant damage to numerous residential properties. The owners of those properties filed dozens of lawsuits against the developer and dozens of other parties. More than two years into the litigation, the parties discovered that a leaking reservoir in the immediate vicinity of the landslide might have been the cause. Various plaintiffs filed complaints or amended complaints against the owner of the reservoir - the City of Anaheim (Anaheim). The developer, 396 Investment Company (396), formerly known as The Fieldstone Company, filed a cross-complaint for equitable indemnity against Anaheim.
The various lawsuits were consolidated. After a multi-phase trial lasting several months, the court found that the reservoir seeped 34,164,000 gallons of water per year. This means that each year the reservoir seeped an amount that exceeded 50 percent of the reservoir's 60,000,000-gallon design capacity. The court further found the plaintiffs had established that the 34,164,000-gallon annual seepage from Anaheim's reservoir had caused the landslide and held Anaheim liable in connection with damages numerous plaintiffs had suffered to their homes. It entered fourteen judgments in favor of the owners of certain residential properties, one judgment in favor of 396, and one judgment in favor of the Vista Royale Homeowners Association (Vista Royale).
Anaheim has filed 32 notices of appeal, from those respective judgments and from various orders, including the judgment and certain orders in favor of Robert K. Wong, individually and as trustee of the Robert K. Wong Irrevocable Trust, and in favor of May L. Wong, individually and as trustee of the May L. Wong Irrevocable Trust (the Wongs). Anaheim makes hundreds of pages of argument on appeal, under 73 topic headings. Notably, it argues that even though the plaintiffs established a 34,164,000-gallon annual seepage rate, they did not establish causation. This argument does not hold water. We also reject most of Anaheim's many other arguments, including but not limited to those pertaining to design immunity, estoppel by deed, easements, exclusion of evidence, jury instructions, and sliding scale settlement agreements.
We affirm the judgment in favor of the Wongs except as to the amount thereof. The judgment is remanded and the court is ordered to determine the proper amount of the offset, taking into consideration the total amount of money the Wongs received from 396. After making that determination, the court shall modify the judgment as appropriate to reflect the proper offset. We also affirm the attorney fees award in favor of the Wongs.
I. FACTS
A. OVERVIEW OF LITIGATION
(1) Phase I
As stated in the court's Phase I statement of decision: "This litigation consists of approximately two dozen consolidated and related actions, the first of which was filed on May 3, 1996. The litigation concerns claims for damages to houses and common areas in the Peralta Pointe and Vista Royale developments in the City of Orange alleged to have arisen from (1) a failing slope located between the two developments and/or (2) defective construction. [ ] The parties include the individual plaintiffs, defendant/cross complainant, Fieldstone [now known as `396'], . . . Anaheim and others. Pursuant to the August 4, 2000, stipulation of the parties and order of the court the trial of these consolidated and related actions was severed into two or more phases. The parties also stipulated the jury and the court, in the two parts to Phase , would determine which party or parties were `legally responsible' for causing the earth movement."
The August 4, 2000 stipulation provided in
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