By Will Soutter
A Hayes Valley condo building has recovered $1.7 million for construction defects. The contemporary condominium building is located at the 525 Gough Street building. It consists of 2 commercial units and 21 residential units.
515-521-525 Gough Street Owners Association. (PRNewsFoto/The Miller Law Firm)
The numerous defects in construction included intrusion of water into interior ceilings, floors and walls, and breakdown of weatherproofing systems on the decks, windows, doors and roof. The recovery of $75,000 per unit was done in less than two years through mediation. The case had been filed in Superior Court.
Thomas E. Miller, attorney at The Miller Law Firm, stated that under 'The Right to Repair Law' builders in California can repair the construction defects under pre-litigation, before filing a lawsuit. The 515-521-525 Gough Street Owners' Association sent a notice to the builders about the defects. But, the builders did not respond to the notice. Many builders set up their companies as Limited Liability Companies (LLC), which they wind up after completion of the project. This depletes the assets of the company and the members in the LLC do not respond. The owners of the building are left with no other option other than filing a lawsuit.
Mary Jacobs at Eugene Burger Management, stated that filing a lawsuit is a difficult proposition for Homeowners Associations. However, taking action against the party responsible for causing the damages will be the best approach to address the issue. The Gough Street Owners' Association has made a significant recovery through filing this lawsuit.