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With Good Stuff, Capital Pacific Got Headache, Too

Homebuilder Capital Pacific Holdings Inc., Newport Beach, may have gotten more than it bargained for when it acquired J.M. Peters Inc. in 1992. Peters in 1987 built the Niguel Summit luxury homes that were destroyed in a March 19 landslide in Laguna Niguel.

As the purchaser of J.M. Peters, Capital Pacific acquired its assets and liabilities, including potential liabilities stemming from the homebuilder's past operations. A third company, Hon Development, Laguna Hills, built the slope and pads on which the houses were built.

These entities have been litigating the issue of liability for the sliding hillside since 1994 when homeowners in the Crown Cove condominium complex at the base of the ...

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