The parties have reached a tentative $25 million partial settlement with Champagne Industries, Inc. and various related companies in an action filed against Champagne, Ryland Homes, and Cascade Wood Products on behalf of owners of residences within the state of Colorado, that have Champagne Imperial Windows, as of the date of the court's final approval of the settlement agreement. The action alleges that Imperial Windows are inherently defective and cannot be repaired. The claims deadline will be 90 days from the date of first publication, radio advertising or Website posting of the final notice approved by the court.

The action alleges that the Champagne companies breached implied and express warranties and violated the Colorado Consumer Protection Act when they sold the defective windows. The action seeks damages against Champagne for the cost to repair or replace the windows, consequential damages that have resulted to other parts of the home from the windows, inconvenience associated with the problems homeowners suffered due to the windows being installed in their homes, personal injuries, pain and suffering, emotional distress, and loss of use of the homes.

The action alleges that Champagne designed, fabricated, distributed, sold and made warranties regarding the performance, and condition of the Imperial window. The Imperial window is an aluminum-clad wood window that appears to be wood when viewed from inside a home and aluminum when viewed from outside the home. Approximately 128,000 Imperial windows were manufactured between 1986, and the parties estimate that there are approximately 4,800 homes in the State of Colorado in which the Imperial windows were installed.

Eligible homeowners will have two options:

(1) They can elect to receive a liquidated payment in the amount of $700 by simply executing and filing a claim with the claims administrator; or

(2) If they can provide proof of damage of the following window-related damages, they may be entitled to receive a repair/replacement payment of up to $5,000:

a. Window sill track failure, and
b. Failed dual glazing seal, and
c. Failed or broken glazing bead, and
d. Damaged or deteriorated weather stripping,
or
e. Organic growth on any window parts or component, or
f. Rotting of wood window parts or components, or
g. Leaking from the window into the wall cavity or onto any interior floor or wall surfaces.

In addition, certain homeowners may also purchase new Atrium vinyl or aluminum clad casement windows at a greatly reduced price, obtain slider tracks and have the claims administrator bid their separate window replacement along with many others with the expectation that when the work is bid as part of a much larger contract, the cost to repair or replace the homeowners' windows will be significantly reduced.

Proof of damage may be made by submitting an estimate for repair or replacement of windows by a licensed contractor or receipt of payment for same that indicates the type of damage that has been or needs to be repaired. Those homeowners who elect to replace their windows can also have their scope of replacement work combined by the claims administrator with other homeowners who will then seek bids on the all jobs combined to lower the cost to each homeowner. Upon receipt of their individualized estimates, homeowners will have 14 days to change their mind and instead elect to receive the standard repair/replacement payment. The claims administrator will have the authority to enter into these contracts with qualified contractors and also to determine the manner and method of payment, whether it be directly from the settlement fund or from individual homeowners.

The benefits of the settlement run with the land and are transferred automatically to any subsequent owner of a residence that has Imperial Windows. Subsequent purchasers will be entitled to all the benefits if the eligible homeowner complied with the terms of the settlement.

After final approval of the settlement, the claims administrator will mail to all class members explanatory materials and directions on how to submit claims. Claims that are submitted will then be evaluated and the class members notified as to eligibility for payment under the settlement. A $100 processing fee must be paid by each class member to the claims administrator in order for a claim to be processed and approved and payment to be made pursuant to the repair/replacement option. No administrative fee is required to be paid if the liquidated payment of $700 per home is chosen by the homeowner.

If you do not exclude yourself from the settlement, you will (1) be provided and must file with the claims administrator a claim form within 90 days of the date you are mailed the notice indicating approval of this settlement and the liquidated payment and repair/replacement payment claim forms, or (2) if you do not receive a mailed notice, you will have 90 days from the date of first publication, radio advertising or website posting of the final notice to file a claim form with the claims administrator.