A modern live/work condo building’s association of homeowners in San Francisco recovered significant damages for faulty construction yesterday, allotting around $700,000 per unit for repairs.
Insurance companies for the builder, general contractor and subcontractors funded the settlement, which came about after residents noticed leaking roofs and windows, unstable decks, plumbing problems and cracked stucco. Thomas E. Miller, attorney for the building’s association, said shoddy building practices were becoming increasingly common in situations like these:
“More builders today are setting up their developments as Limited Liability Company (LLC’s), folding the company after the project is completed. Oftentimes, home and condo owners don’t realize that insurance does exist to cover construction defects even after the builder disappears, declares bankruptcy, or just walks away.”
Miller’s firm has recouped more than $600 million in damages for clients who have experienced construction defects. Wayne Wilson, the building’s association president, commented on the settlement:
“We are very pleased with this settlement. It provides us with enough to fix the problems, and reinforce our homeowners’ investments in this building. Our homeowners were stunned to discover hidden defects after being lulled by representations of the live-work loft lifestyle and superior building components.”
The case was settled in “record time,” less than 18 months following the case’s filing in San Francisco Superior Court.