CD Litigation - After the fact, now it's my problem?

First of all pardon this rant… Situation: Our association went through a construction defect litigation that was – well frustrating – 230 homes about 200 originally signed to op in – the rules of “classification” changed mid way through -about 27 units were finally in “the-class” (including two board members) (three person board – but the two continually failed to appoint anyone for the unfilled spot per the governing docs.) Have taken the lawyers before the state bar because we can’t prove they actually tried to enjoin the other 180 some homes. It’s a they said/we said issue - Here is the rub: 30 some additional homes were used for invasive testing to support the case – these unit owners have additional problems as a result of the invasive test, such as leaking roofs.

The NEW board of three – including one of the previously mentioned two – has written the attorney on behalf of these people, have filed with the state bar. This attorney has yet to answer our request for information or assistance – but did want homeowners to sign up for a second CD lawsuit. NOW the homeowners are making complaints about THIS board. Two of us were not even on the Board when all the CD testing stuff was going on. We’re trying to help- Beyond going to the state bar, and documenting our requests to the CD attorney and communicating our actions to the association - what else do you suggest? Has anyone else had a “after the CD litigation horror story?” How did you resolve it. - And don’t even get me started on the “follow the money” that would be a whole other thread! Any suggestions - Don’t you love being a volunteer Board Member?

First problem: Association had street failure. CD attorney started searching for unit problems in the SFR community. - Found some alleged problems - created a "class" the class got de classified - only the 27 people who signed the original fee agreement with the attorney ended up in "the class". But this wasn't communicated to any of the people who had invasive testing to support the case. When the suit was settled - the 27 go settlements and the other 30 people with invasive testing were out of luck because they were not enjoined to
"the class" and now some of the areas where the invasive testing was done has even worse problems - like leaking roofs. - Now THIS board is stuck answering the issues of THAT board and trying to get that attorney to deal with the problems created by the CD litigation.

Can you define "street failure"? - I've never heard that before

Susan - that started out as a big sink hold in one of the cul-de-sacs, and the board asked on the advice of a geo-technical engineer who lives in the neighborhood, to ask them to do core samples in that phase. - They didn't, just filled the hole in with asphalt. In another phase it was "alligatoring" in the cul-de-sac within the first 3 years, and in other areas of the same phase, it was raveling.

Regarding PaulM's comment which is related - The streets belong to the municipality and the bonding was released, because all the issues were in the cul-de-sacs.

So to take this to the next level of discussion - Lesson 1: when a community is being transitioned, it is a good topic of discussion to have with your developer as to the ownership of the underground lines for utilities, water, sewer, etc. and just where the ownership stops and starts (a curb may only be 4 - 18 inches, (rolling / s curb verses standard curb) but it's a very important discussion.)

So the board has had a discussion with an asphalt company and started repairs as identified on the map which was used in the suit. Lesson 2:Interview and walk the project with at least three different asphalt companies and let them tell you about the "world of streets and asphalt" and short and long term maintenance plans. - You are a volunteer board member, and I doubt many of us know the "world of asphalt". Pick the one that will be able to help you in the long run with a solid plan -

Lesson 3: Reserve Studies - you will need one. If your developer doesn't provide one at transition (state law here requires that)get one done your self and walk with the reserve specialist to become aware and to answer any questions he may have - like what is under the ground for which your association may have responsibility.

Lesson 4: CD Litigation is a pain - it will tear your community apart. Always...ALWAYS - have a discussion with your developer and continue to go back through to them over and over and over and over and over ....again documenting everytime. Be nice! It's their reputation. Remember - our situation started with a street failure issue. The CD attorney came in and said yeah street issues ok - but went to the houses in half a heart beat.... then the "not so fun" began which is where this thread began.

No one else must have ever been through this, because I am not seeing any post litigation - advice.

PaulM

CD litigation = construction defect litigation.

We are assuming the bond was released, that is what the board members were told. The board walked with the developer prior to the bond release inspection pointing out the concerns. If the municipality approved the alligatoring and raveling, what else can one do? The board is not comprised of experts, that's why they hired an attorney..... who then created a bunch of other problems. - with regards to the streets, he evidentally had the board to defer the maintenance that was called for in the reserve study to preserve the condition of the defect until it could be settled..... asphalt continues to deteriorate, homeowners get upset - Next lesson - communications.

JanP1: ..."If the municipality approved the alligatoring and raveling, what else can one do?"

First of all, you and I know not to assume anything!!! Have you spoken with the local officials to learn IF THEY are charged with inspecting and approving all NEW building within their jurisdiction; and, further, did they inspect and sign off an OK that this Assn. was developed and completed in compliance with code and standards.

If it was, why, then, after 3 years were there construction defects? Something is wrong. You need to follow up with the building inspectors, authorities and the professionals involved at the time of development.

The building inspector lives in our neighborhood and was enjoined to the original suit.

Donna - You only paid that engineer $25K to go down there with gators and snakes, not once but twice?????? Are you flipping kidding me - the engineer was under paid!!!

Florida engineers are a special breed. They come equipped with very very thick high boots, handguns and attitudes almost as mean as the Gators.

No, this was just SOP before Turnover but we did have a hint that some of the lakes were lower than others. With them all being interconnected, they should all be on the same level and that was a clue to get a study done. Actually, I guess that the $25,000 was a deal from them. It took about 4 days so they did move fast. We had very good plans and platts from our developer so it was easy to know what should be where and how it should be done. Funny, with all of the infrastructure, it was only the lakes that were in problem and it was not the Developer who caused the problems.

Donna- and back to gator humor - So if the engineer, while hired to inspect the lake with gators and snakes, has to kill a gator - who owns the gator steaks? Are gator steaks edible? Does PETA just hate this???

Memo to self - think twice before moving to Florida - good: sunshine, warm, oceans, entertainment, shopping, golf courses, dolphins and pro football Dolphins bad: gators, hurricanes, snakes, bugs, jelly fish, sharks.

Jan, under bad should be the pro football Dolphins!!
But maybe with the addition of "the big tuna" things will improve for the dolphins!