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Dr. Khana Ltr <br />SCHLUETER v. W.D.O. <br />September 25, 1987 <br />Page 2 <br />Under these circumstances, the best that can be done is as <br />follows: <br />1. Require indemnity from the developers, though as Ms. <br />Larson explained to Mr. Valinoti there is a good chance <br />that their insurance carriers will dispute coverage as <br />they have in Schlueter. <br />2. Require disclosure to current and future buyers of the <br />wells' failure to satisfy the secondary standards via a <br />covenant running with the land that will put them on notice <br />of the water problems. <br />3. Attempt to attempt to obtain disclosures and covenants <br />on the existing properties, which were occupied despite <br />the developers' failure to bring the wells into compliance <br />with the secondary standards. <br />Unfortunately, without holding construction in the Los <br />Ranchos/Wakefield Court area, there is no way to escape suit <br />by future buyers. And, since it remains to be seen whether <br />disclosures to current and past property owners exists, it is <br />quite possible they will sue as did the plaintiffs in Schlueter. <br />Before we proceed with steps 1 through 3 outlined above, I need <br />your approval. Significant legal fees may result, though as I <br />will explain below we have made and will continue to make every <br />effort to protect your interest at reasonable cost. Please <br />advise as whether I have your approval to proceed. <br />As to Schlueter, the most recent hearings resulted in setting <br />a Settlement Conference for the week of November 2, 1987 which <br />may require an appearance by someone from the Health District <br />with authority to approve payment to plaintiffs in settlement <br />of this matter. In an effort to extricate the Health District <br />from this suit prior to the lengthy Settlement Conference, Ms. <br />Larson has obtained court's permission to have. our Summary <br />Judgment Motion heard on November 3, 1987 before the Settlement <br />Conference begins. Hopefully, we will be successful with a <br />rather straight forward Motion, sufficient enough to get the <br />facts before the court but not exhaustive so as to minimize our <br />fees. <br />For your information, I have attached declarations which have <br />already been filed in this matter detailing costs to other <br />defendants in responding to one of plaintiff's motions ranged <br />from $1,200 to $2,600. As you can tell from our billing, many <br />motions have been filed in this matter so you can imagine what <br />the defense costs to other defendants have been. Further, I do <br />