SAN FRANCISCO--(BUSINESS WIRE)--Owners of residences at a premiere San Francisco luxury condominium building have recouped $5.4 million in a landmark construction defect case that sets a state record for per-unit recovery.
The 32-unit building, Chelsea Court, located at 851 Van Ness Avenue in San Francisco, recovered $5.4 million for claims related to shoddy workmanship and construction defects. The settlement was reached in mediation and the majority of it is being funded by insurance companies for the builder and thirteen subcontractors.
Saddled with excessive water intrusion, roof and window leaks and ensuing mold inside units, deck failures, and exterior walkway life-safety issues, the Chelsea Court Owners Association was able to recover for damages that amounted to nearly $169,000 per unit, California’s largest per-unit recovery known to be on record to date. These units were marketed as part of a luxury development that was sold in 2002 by Gentium Homes.
“More builders today are facing complaints of shoddy construction,” said lead attorneys Thomas E. Miller, Jeffrey B. Cereghino and Charles Merrill in a joint statement. “What most condo owners don’t realize is that insurance does exist to cover construction defects even if the builder declares bankruptcy, or tries to walk away from the LLC it set up to build and sell the units.”
According to Susana MacKenzie of Property Management Consultancy, “We contacted independent experts immediately upon receiving complaints of water intrusion and mold. Being proactive and bringing this to resolution will now restore these homeowners to the lifestyle they expect and deserve.”
Detailed information regarding this litigation can be accessed via the San Francisco Superior Court website at www.sftc.org, case number CGC-09-487281.