Judgment against Catalina Pacific upheld in California court

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Attorneys for Glendora, Calif.-based California Portland Cement Co. will appeal a May 11 Fourth District California Court of Appeals ruling that upheld a $5.4 million judgment against the company and its ready mixed business, Catalina Pacific Concrete. The judgment followed a September 2001 court finding that Catalina Pacific, as a supplier to the 40-unit Mesa Vista townhome development in San Juan Capistrano, Calif., was negligent by virtue of not providing durable, sulfate-resistant concrete.

In a suit on behalf of the Mesa Vista South Townhome Association, Irvine, Calif. counsel Kasdan Simonds alleged that foundations in the development — built in 1993 — are being destroyed slowly by sulfates, which are typical in southern California soils and can undermine concrete integrity by effecting expansion through reaction with hardened-paste compounds. The plaintiffs maintain that gradual deterioration could present a risk of structural failure and is attributable to a concrete of “excessive porosity,” owing to a 0.60 to 0.65 water-cement ratio. Kasdan Simonds contends that Catalina Pacific and its customer, foundation contractor CDR Concrete, were bound by Uniform Building Code guidelines stipulating that Type V (high sulfate) portland cement concrete should have a maximum 0.45 water-cement ratio.

The $5.4 million judgment reflects the court's determination that Catalina Pacific played a substantial role in the concrete mix design. It also recognizes an earlier decision regarding the interpretation of California's “economic loss rule” which, according to Kasdan Simonds, holds that in the case of negligence, a manufacturer's liability is limited to damages for physical injuries. The original court ruled that the economic loss rule did not bar the Mesa Vista South Townhome Association from receiving damages from California Portland whose counsel, Monteleone & McCrory in Santa Ana, Calif., has one month to petition the California Supreme Court for a case review.

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