SAN FRANCISCO, May 26, 2011 /PRNewswire/ -- A 20-unit live-work loft and condominium building, located at 655 5th Street at Townsend, recovered $1,410,000 today for claims related to shoddy workmanship and construction defects within 18 months from the filing of their claim. The settlement was funded by the insurance companies for the builder, general contractor and subcontractors.
Saddled with excessive stucco EIFS cracks and water penetration, roof and window leaks, deck failures, and plumbing issues, the board at this association was able to recover for damages that amounted to over $70,000 per unit. These units were marketed as part of a development that was sold in 2000 by a single asset LLC, the asset being this condo project.
According to the association's attorney, Thomas E. Miller, whose firm has recovered over $620 million for construction defect claims, "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."
Wayne Wilson, President of the 655 5th Street Homeowners Association, states, "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."
Saddled with excessive stucco EIFS cracks and water penetration, roof and window leaks, deck failures, and plumbing issues, the board at this association was able to recover for damages that amounted to over $70,000 per unit. These units were marketed as part of a development that was sold in 2000 by a single asset LLC, the asset being this condo project.
According to the association's attorney, Thomas E. Miller, whose firm has recovered over $620 million for construction defect claims, "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."
Wayne Wilson, President of the 655 5th Street Homeowners Association, states, "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."
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