Condominium towers are complex construction projects. Most are built as towers in excess of 20 floors. A defect in one unit may be indicative of defects in several other units.
Back in 2018, the condo owners in the Regalia on the Ocean Condominium, a condominium tower in Sunny Isles Beach, sued the contractors, architects, engineers, and other parties involved in the design and construction engineers for alleged flaws such as cracking tiles, unsafe steam rooms and flawed sliding glass doors and railings on balconies.
According to news reports, the case was recently settled for a complex set of payments involving almost all parties. The biggest item of the settlement package is a payment of $9.6 million in cash payments to the association and an $8.5 million reduction of the $10.5 million cost for the purchase and installation of new balcony sliding glass doors for all 39 units.
The cash payment to the association will be used for repairs to bathrooms, balconies, and front driveway pavers. The payment of these amounts will be the responsibility of the insurers, the general contractor, the architect and some of the subcontractors involved.
The condominium was originally developed by a Brazilian real estate investor and others in 2014. They eventually ceded building control to the homeowners’ association.
Implications of settlement
The settlement terms of this case demonstrate how complicated construction litigation can become. Even the homeowners’ association did not make all its money back, when the payments for the numerous repairs are subtracted from the basic settlement amount of $17.5 million. Indeed, the distribution of the settlement amounts may lead to more litigation.
Anyone who owns an interest in a condominium may have a claim against any of the parties involved in the design and construction of the building. The settlement of the various claims for design or construction defects will not necessarily resolve all of the various claims.