$25.6M Verdict in Alameda County California for Property Damage Caused by Construction Negligence

Construction site negligence can have serious consequences—both financially and emotionally. In a recent high-stakes legal battle in Alameda County, a jury awarded over $25 million in damages to a local business owner whose commercial property was severely damaged due to negligent construction practices on an adjacent lot.

The Case: H.A. Marshall Properties v. Johnstone Moyer, Inc.

The case, H.A. Marshall Properties, LLC, et al. v. Johnstone Moyer, Inc., et al, was heard in Alameda Superior Court (Case No. RG19038080). Filed in April 2019, the lawsuit arose from a multi-year conflict between an auto body shop owner and real estate developers constructing a 103-unit luxury apartment complex next door.

After a four-week trial and 4.5 days of jury deliberation, the jury delivered a $25.6 million verdict on January 31, 2025. The plaintiffs received a net award of $20.29 million, including both compensatory and punitive damages.

What Happened?

The plaintiffs—owners of a commercial auto body repair shop in Oakland—alleged that construction activities at 2820 Broadway caused significant property damage and disrupted their business operations. They cited repeated trespasses, dangerous crane use, vibration damage, foundation settling, and structural cracking to their building.

According to the plaintiffs, developers:

  • Trenched too close to their property, undermining soil stability and causing the building to settle.

  • Used the roof of their building without permission for construction access.

  • Suspended crane loads over an occupied building, creating serious safety hazards.

  • Littered and damaged the gutter system, leading to water damage.

  • Ignored multiple requests to stop encroaching on private property.

The court found that Johnstone Moyer, Inc. was 50% at fault, while Broadstone on Broadway, LLC and Broadstone on Broadway Alliance, LLC shared 25% liability each. The jury awarded $21.54 million in economic damages, $100,000 in non-economic damages, and $4 million in punitive damages against Johnstone Moyer for willful misconduct.

Defendant’s Response

The defense claimed they took reasonable steps to address complaints. They argued that protective measures were implemented—like covering scaffolding, cleaning gutters, and adjusting crane operations. They also claimed to have provided proper notice before high-risk activities.

However, the jury found these responses insufficient and ultimately ruled in favor of the plaintiffs.

Key Takeaways for Property Owners and Developers

This case serves as a powerful reminder of the legal risks developers face when they fail to respect commercial property rights and properly manage construction impacts. It also highlights the importance of clear communication, proactive mitigation strategies, and respecting property boundaries.

For property owners adjacent to large developments, the case demonstrates how construction damage lawsuits can yield substantial compensation when backed by solid evidence and legal expertise.

Need legal guidance about property damage or construction disputes? Contact us to protect your rights and property.

Source Jury Verdict Alert

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