Interesting Comment From a FL Lawsuit Article

Started by JohnC46 • 5 replies • 1350 views

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JohnC46 (South Carolina)
Posts: 14,265

Posted:

This was in an article on HOA Home Page News talking about an HOA suing the builder:

The case is unusual because construction defect claims are typically handled in secret. Virtually every modern sales contract prohibits home or condo owners from suing in open court, and instead forces them into a closed process called arbitration. But this case was filed not by individual condo owners, but by the Heron's Landing Condominium Association – a body not bound by individual sale contracts.

LarryB13 (Arizona)
Posts: 4,099

Posted:

My first thought is that the developer never saw that one coming.

Then I realized that condo associations do not normally own any of the property and the association is not a law firm. So under what authority does a non-owner non-lawyer prosecute a lawsuit on behalf of the owners?

The article says that a jury is being selected now, so whatever preliminary objections the builders may have raised have been overruled and we will have to wait a number of years for an appellate court to issue an opinion regarding the association's standing to bring a lawsuit.

JeffT2 (Iowa)
Posts: 880

Posted:

The article says they are suing over "cracked stucco, leaking roofs and improperly installed balconies," which are typically common elements under control of (and maintained by) the condo association.

The condo association may not have standing to sue over defects to the condo units (which are owned by individual owners), but the association does represent the owners when dealing with the common elements.

The article says the case is unusual, but I think it is perfectly normal for a condo association to sue a builder over defects in the common elements.

NpS (Pennsylvania)
Posts: 4,216

Posted:

Quote:

Posted By JeffT2 on 04/13/2016 7:44 AM
The condo association may not have standing to sue over defects to the condo units (which are owned by individual owners), but the association does represent the owners when dealing with the common elements.

Likely that association has standing under both circumstances. Not an unrelated 3rd party to the dispute.

Sikubali jukumu. Read all posts at your own risk.

JeffT2 (Iowa)
Posts: 880

Posted:

Maybe Kerry can chime in about her association's lawsuit.

KerryL1 (California)
Posts: 14,550

Posted:

There probably are 20 high rise condo buildings within a 1/2 mile radius from our urban CA one, most built since 2000. Every one of our associations have sued the developers for common area construction defects and/or when such defects cause damage to personal property (leaky curtain wall window system cause damage to a unit's flooring.)

But all had to first go through a lengthy process which included arbitration. Up to a certain time it was the Calderon Process. Construction after a certain date falls under SB800. Once filed by our defect attorneys, the SOL clock stopped. Much of this is mandated by CA civil codes. Neither we nor any other case I've heard about ever went to trial. But I recall we did have that option and our defect attorneys advised against it for several reason that I can't remember now. We did have some SOL issues.

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