Construction defect

March 20, 2023

Florida Legislature Considering Bills Proposing Changes to Condo Safety Reforms, Construction Defect Lawsuits

by Roberto C. Blanch

Roberto C. Blanch

As the 2023 Florida legislative session gets underway, there are several bills impacting associations and real estate that our firm’s South Florida community association attorneys will be keeping a close eye on and discussing in our blog.

Senate Bill 154 and House Bill 1395

Perhaps the most important of these are Senate Bill 154 and House Bill 1395, which deal with issues such as inspections and condominium association financial reserves that were addressed in the condo safety reform law that was passed last May with the adoption of Senate Bill 4D during a special legislative session. Under the new law, inspections are required for buildings that have been occupied for 30 years — or 25 years if they are within three miles of a coastline. After these initial inspections, the buildings will have to go through the process again every 10 years.

If adopted, the new bills could result in changes to the time by which buildings, including those within three miles of a coastline, will have to be inspected. The two bills include different timeframes by which the initial milestone inspection may have to be performed (e.g., SB 154 triggering all such inspections at 30 years with discretion for local officials and authorities having jurisdiction to compel some at 25 years depending on “local circumstances, including environmental conditions such proximity to salt water”; or HB 1395 requiring the initial inspections at 25 years for all buildings regardless of proximity to salt water).

March 13, 2022

Miami Herald Real Estate Counselor Column: “Water-leak Suit at Jacksonville Condo Makes Local Headlines, Reveals Telling Lessons”

by Siegfried Rivera

Siegfried Rivera

The firm’s latest “Real Estate Counselor” column, which is featured in the Neighbors section of today’s Miami Herald, was authored by shareholder Roberto C. Blanch and titled “Water-leak Suit at Jacksonville Condo Makes Local Headlines, Reveals Telling Lessons.” Roberto’s article focuses on a recent report that aired on both the ABC and NBC affiliates in Jacksonville that included footage of a severe water leak filmed by a condominium tenant. The owner of the unit terminated the tenant’s lease, and he eventually filed a lawsuit against the association after it allegedly declined coverage for extensive water damage including warped floors of costly imported wood, destroyed light fixtures and dangerous mold. The column reads:

. . . The news report, which can be viewed at tinyurl.com/3un2ktam, illustrates the significant impacts that water leaks can have in condominiums. It is important to note that not all water loss events in condominiums are the result of improper maintenance by the association, as some may result from clogged sinks and toilets, or other owner negligence and causes.

Condominium associations and their property management must periodically inspect and repair their buildings’ common-element pipes and other components. Any leaks that may arise should be quickly and proactively investigated to determine their source and prevent them from causing any further property damage or possible injuries to residents. Regardless of a leak’s cause or source, an association’s management and directors have an obligation to address and potentially eliminate it.

Associations should work with qualified insurance professionals to maintain adequate coverage against the types of damages that are likely to arise from leaks. They should also have a plan of action in place for the handling of water leaks, including pre-determined arrangements for their immediate remediation and a detailed process for reporting such incidents to the association’s insurance carrier.

July 7, 2021

Firm’s Gary Mars, Stuart Sobel Conduct National, Local Media Interviews, Appear Live on WLRN-FM South Florida National Public Radio

by Siegfried Rivera

Siegfried Rivera

In the hours, days and now weeks since the horrific tragedy of the Surfside condo collapse, the firm’s Gary Mars and Stuart Sobel have been among the most sought-after expert sources by local and national media. They have conducted extensive interviews with NBC News, the Miami Herald, South Florida Sun Sentinel, Daily Business Review, Law 360 and The Real Deal. In addition, Gary and Stuart appeared live in wide-ranging interviews on The Florida Roundup and Sundial, the news and public affairs shows produced and aired by WLRN FM-91.3, the South Florida National Public Radio affiliate.

Both of these interviews covered a great deal of ground, and we encourage all those interested in learning more about the questions involving the legal ramifications of this tragedy and the liabilities of the insurer, builders, engineers and architects to listen to both. Gary’s interview on The Florida Roundup aired on Friday, July 2, at 1 p.m., and it’s available to be heard in full by clicking here. He discusses the implications for condominium association boards from the collapse as well as the reforms that may be in store. He believes these should include federal relief, perhaps in the form of federally backed low interest loans for condominium associations in need of undergoing extensive repairs.

Stuart’s interview aired during the Sundial show at 1 p.m. on Tuesday, July 6. He discusses the extremely high qualifications of the judge and engineer assigned to the case, and he also shares his insights into the projections for the investigation and the ultimate compensation for the victims and their families. It is a wide-ranging discussion that also delves into the projected reforms that he foresees are likely to follow. Stuart’s interview is available by clicking here.

July 1, 2021

Firm’s Attorneys Share Insights With Media, Lawmakers and Community Associations in Aftermath of Tragic Condo Collapse

by Siegfried Rivera

Siegfried Rivera

The collapse of the Champlain Towers South condominium has been a human tragedy of unimaginable proportions, and the unspeakable grief and horror of its aftermath have been shared deeply by our law firm.

Our firm’s community association law attorneys have made helping condominium communities to contend with construction defects a particular focus of our work. We believe reforms should be considered to require engineers to report certain serious conditions to local building departments wherever they find them. This would take discretion out of equation and immediately involve building inspections, permits being issued and repairs being completed. We also suggest there should be new federal/state government aid and/or low-interest federally backed loans for condominium associations that now engage in major structural repairs.

Our attorneys are also concerned by the great deal of misinformation that is currently circulating over the legal liabilities of association board members. We note that lawsuits against a condo association are ultimately against the building’s insurer and possibly all the unit owners, as the owners can be held responsible for their association’s liabilities. The firm’s attorneys have been reaching out to our clients to remind them of importance of prioritizing engineering findings in their turnovers to new board members and property managers, and to focus on structural issues over aesthetics and fund reserve accounts for any necessary repairs.

Our firm’s attorneys have also been sharing their insights on these and other issues with major media outlets as well as some of Florida’s lawmakers and policymakers, and we have scheduled a free live webinar on 40-year recertifications and structural maintenance for today at 1 p.m. (click here for information and online registrations). The Sun Sentinel and Daily Business Review immediately turned to our board certified construction and condominium law experts for their input in the aftermath of the collapse. A front-page article in the Sun Sentinel that appeared in the Friday, June 25, edition titled “How to Know if Your Condo Tower is Safe” includes insights from firm partners Stuart Sobel (pictured here) and Roberto C. Blanch. The article reads:

June 8, 2021

Jason Rodgers-da Cruz’s Work for Latitude Condo Association Chronicled by Daily Business Review: This Miami Case Was Too Big For the Courtroom: Organizing Convention Center Trial ‘Like Setting Up a Show’

by Siegfried Rivera

Siegfried Rivera

The efforts of firm shareholder Jason M. Rodgers-da Cruz, together with Patrick S. Montoya of the Coral Gables-based law firm of Colson Hicks Eidson, were the subject of a front-page article headlined “This Miami Case Was Too Big For the Courtroom: Organizing Convention Center Trial ‘Like Setting Up a Show’” in today’s edition of the Daily Business Review, South Florida’s exclusive business daily and official court newspaper. The article discusses how it was going to be impossible for all of the jurors, defendants and their legal counsel to safely hold a trial at the Miami-Dade County Courthouse under Covid restrictions for a lawsuit by firm client Latitude on the River Condominium Association against eight defendants over the property’s allegedly faulty fire-sprinkler system. Even though the case was ultimately settled confidentially before proceeding to trial, the duo’s plans to hold the proceedings in the James L. Knight Convention Center are now serving as a blueprint for remote courtroom proceedings for large multi-party cases with adequate social distancing precautions. The article reads:

. . . The case, which took more than five years of litigation and multiple hearings, involved a class-action lawsuit brought by Latitude On The River Condominium Association Inc. against eight defendants over an alleged faulty fire sprinkler system with incompatible components.

Miami-Dade Circuit Judge Jennifer Bailey allowed plaintiffs attorneys Jason M. Rodgers-da Cruz of Siegfried Rivera and Patrick S. Montoya of Colson Hicks Eidson to work with her staff to plan for the massive jury trial. Jury selection was scheduled to start at the end of April.

February 4, 2020

Georg Ketelhohn Quoted in Daily Business Review on Construction Defect Suit Against Developer, Builders of Midtown Doral

by Siegfried Rivera

Siegfried Rivera

Firm shareholder Georg Ketelhohn is quoted in an article in today’s Daily Business Review discussing the firm’s efforts on behalf of the condominium association for the 537-unit Midtown Doral in its construction defect lawsuit against the community’s developer, builders and design professionals. The firm’s suit, which was filed in December, alleges defects including leaky plumbing with erratic water pressure, rooftop pools of rainwater on the roof, and exposed rebar in cracked concrete.

Located at Northwest 107th Avenue and 74th Street, Midtown Doral was completed in 2016 with four eight-story condo buildings and 70,000 square feet of retail space.

The firm’s lawsuit on behalf of the association is against general contractor Delant Construction Co. in Miami, architectural firm Pascual, Perez, Kiliddjian & Associates in Doral, and MD Residential II LLC, an affiliate used by the development partnership. The suit alleges breach of implied warranties against the developer and general contractor as well as a professional negligence count against the architect.

September 6, 2019

Articles in Miami Herald, Daily Business Review, South Florida Business Journal, The Real Deal and Law 360 Chronicle Firm’s $40.6M Verdict For Association’s Failed Robotic Garage

by Siegfried Rivera

Siegfried Rivera

Firm shareholders Helio De La Torre and Lindsey Thurswell Lehr, together with associate Berenice M. Mottin-Berger, have worked for more than four years in representing the BrickellHouse Condominium Association in litigation over the property’s failed robotic parking garage. Their work yielded a truly exceptional result last week when a Miami-Dade Circuit Court jury awarded the association $40,590,990 in damages against BrickellHouse Holding LLC, the developer of the 46-story tower in Miami’s Brickell area, and many of South Florida’s most respected media organizations took notice. The verdict yielded major articles this week in the Miami Herald, Daily Business Review, South Florida Business Journal, The Real Deal and Law 360 about the trial team’s success in demonstrating to the jury that the developer, a subsidiary of Newgard Development Group, breached statutory warranties owed to the association and its unit owners.

“The association has been left without parking for its residents in the promised 480 vehicle garage since November 2015,” explained De La Torre to reporters after the verdict. “Since that date, residents have been parking offsite and incurring increased costs due to the failed robotic parking system sold by the developer. The board of directors and a team of consultants have worked very hard to find a solution for the garage and bring the owners the justice they deserve.”

Thurswell Lehr concluded:
“As a result of the verdict, the condominium association will now be able to move forward with the replacement of the garage in order to restore the parking for the building that the owners and residents deserve.”

BrickellHouse is located at 1300 Brickell Bay Drive and features 374 residences. The 46-story tower was one of the first post-recession condo buildings constructed in the Brickell area. After its completion in October 2014, the problems with the 480-space robotic parking system were immediately apparent. The developer retained control of the condominium association through September 2015, and the robotic parking system was completely shut down in November 2015.

Below is a video depicting how the garage was designed to use a fleet of autonomous robots that move beneath the vehicles to lift and move them throughout the building and elevators. Click here to read the Miami Herald article in the newspaper’s website, click here for the Daily Business Review article (registration required) and click here for The Real Deal.

September 1, 2016

Article on Firm’s Case in Today’s Daily Business Review: “Caribbean Construction Firm Scores $4M Judgment”

by Siegfried Rivera

Siegfried Rivera

In addition to our firm’s work involving construction defect litigation on behalf of Florida community associations, our construction law board certified specialists and attorneys also regularly represent construction firms in disputes with property owners, developers, design professionals and insurers. Firm partners Steven M. Siegfried, Stuart Sobel and Berenice M. Mottin-Berger were featured in an article about their work on behalf of one of the firm’s construction clients that appeared in today’s Daily Business Review, South Florida’s exclusive business daily and official court newspaper. The report, which was titled “Caribbean Construction Firm Scores $4M Judgment,” chronicles the highly contentious litigation and arbitration that led their securing a $4.3 million judgment against DeVry Education Group (NYSE: DV) for Moorjani Caribbean Ltd., a Barbados-based construction company.

Click here to read an excerpt from the DBR’s report in our construction blog that includes a link to the complete article in the newspaper’s website.

August 31, 2016

Helio De La Torre Featured in Article on BrickellHouse Lawsuit in The Real Deal

by Siegfried Rivera

Siegfried Rivera

Firm partner Helio De La Torre was quoted in an article that appeared today in The Real Deal, an online media outlet that focuses exclusively on South Florida real estate news. The article, which was titled “BrickellHouse’s Condo Association Runs into Another Snag in Robotic Garage Predicament,” focuses on the firm’s lawsuit against the developer of the 46-story Miami tower over the property’s failed robotic parking garage. The article reads:

“The condo association has been left with this mess,” lawyer Helio de la Torre told The Real Deal. “We have to clean up this mess.”

On Aug. 23, de la Torre’s client, BrickellHouse Condominium Association, filed an amended lawsuit against Hernandez, his company BrickellHouse Holding LLC and Hartford Steam Boiler Inspection and Insurance Company, seeking additional damages for the possibility that some condo owners may be left without a parking space if the building’s troublesome robotic parking garage is replaced with a new system.

The association initially sued the developer in January and amended its complaint three times in March to add more counts regarding the failure of the the 374-unit building’s robotic parking garage. Court documents allege buyers were promised South Florida’s first fully automated parking system that would deliver their vehicles in and out of the building without drivers inside the cars.

June 8, 2016

Beware of Faulty Fire Sprinklers

by Siegfried Rivera

Siegfried Rivera

Fire sprinkler systems, part of a building’s “Life Safety System,” are a crucial component of condominium buildings because they help protect against damage to life and property in the event of a fire. While maintaining these systems in proper working condition is important, making sure that the fire sprinkler system was properly designed and has compatible materials from inception is imperative.

Our firm, led by Steven M. Siegfried, Alton C. Hale, Jr., Jason M. Rodgers-da Cruz, Nicholas D. Siegfried and Stuart Sobel, together with Ervin Gonzalez and Patrick Montoya of Colson Hicks Eidson, P.A., has filed a class action lawsuit on behalf of a number of condominium associations. By this action, we are seeking compensation sufficient to replace the hybrid fire sprinkler systems installed in these buildings. The hybrid systems include CPVC and Allied ABF steel pipes. These materials are incompatible with each other, and as a result of this incompatibility, cracks have or will develop in the CPVC resulting in system failure over time.

We strongly recommend that condominium associations — and also other high-rise buildings such as office building and hotels — determine whether their fire sprinkler system contains steel pipe manufactured by Allied with the markings “ABF” that were installed in conjunction with CPVC pipes. Particular attention should be taken, especially if the building was built during the years 2004 to 2010, so that if present, this defect can be identified and addressed.

Those with any questions or in need of assistance in determining whether their building is affected by this defect may contact us at our Coral Gables office at 305.442-3334 or via email at sbonilla@siegfriedrivera.com.