Costco has agreed to pay a $7 million settlement with homeowners who say they were hurt by a wood aural flooring that came from a costco window.
The settlement, announced Monday in the California Supreme Court, says the company agreed to repair and replace the material.
Costco said it will pay the homeowners $7,500 a year in damages, plus $1,000 a month in attorney fees and costs.
The company said the settlement is “based on the amount of actual damage to the homeowners’ property” and that the window is “not likely to materially affect” the homeowners.
The case, brought by homeowners Linda L. and David G. Brown, stems from a 2006 incident in which the window fell on a neighbor’s house.
The homeowners said the awner, which cost $5,000, came from an old costco store in Woodland Hills, California.
The homeowner’s lawyer had said the window was installed by Costco employees.
Costcos spokeswoman Julie M. Johnson said in a statement that the company’s policy is to repair damaged items, and the homeowner did not request the window be repaired.
She said the company “will continue to monitor the condition of the ailing window to ensure that it is repaired.”
Costco was the subject of an audit in 2011 that found a contractor’s installation of a defective window on the exterior of a West Palm Beach, Florida, house.
The auditor found that the contractor “was not knowledgeable about the risks of using a new material.”
The company has paid out $3.6 million in settlement payments to homeowners in other lawsuits.