$9.6M awarded to Jacksonville condo owners

By Deborah Goonan, Independent American Communities

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On the heels of yesterday’s blog, Condos: Affordability or quality construction. You can’t have both comes a report of a Landmark construction defect lawsuit in Jacsksonville, Florida.

 

DR Horton negligent in Jax condo case, jury awards $9.6 million (First Coast News Video and transcript)

Highlights:

Heron’s Landing property manager Karen Floyd celebrated the verdict. “There are so many developer/builders that build these complexes, walk away from it, and don’t look back,” she told First Coast News. “And they’re not ever held accountable. I think this is a landmark case where the builder/developer has been held accountable now.”

The case has featured thousands of exhibits and dozens of witnesses, including some prominent residents. Fifth District State Attorney Brad King testified that a condo he bought for his college aged children in lieu of a rental had extensive leaks, plumbing failures and stucco problems.
Magistrate John Sampson, who typically presides over Duval County Drug Court, also serves as President of the Heron’s Landing Condo Association Board. He testified the problems were extensive – and compared it to a “cancer.”

DR Horton attorneys did not comment following the case, but both the condo owners and their lawyers anticipate the company will appeal. Regardless, plaintiffs’ attorneys will face DR Horton again soon. They have a similar claim against the company from an almost identical Jacksonville development, called Windsor Falls.

The case is an extremely rare airing of structural defect claims. Virtually all new home contracts require that defect clams be handled in secret arbitration proceedings. In this case, the Condo Association rather than the individual homeowners sued, contending isn’t bound by contracts signed by homeowners.
http://www.firstcoastnews.com/mb/news/local/after-36-days-herons-landing-case-goes-to-jury_/204604084

 

What makes this case so unusual is the fact that the condo association sued DR Horton and, in this case, actually got a jury trial in lieu of a secret arbitration. Arbitrations are almost universal in new construction home sale contracts. That’s because builder and construction lobbies have used their influence to pass laws in states across the U.S.  – allowing Developers to deprive home and condo owners of their full due process rights.

In most cases, homebuyers are not given the option to opt out of mandatory arbitration proceedings for matters involving construction defect claims.

First Coast News reports that, because the condo association sued the developer, they were able to get around the legal requirement for arbitration, which only applies to individual homeowners.

It’s also very intriguing that this case involved so many “high profile” witnesses, including Fifth District State Attorney Brad King, as well as Magistrate John Sampson of Duval County Drug Court, who just so happens to serve as the condo board president at Heron’s Landing.

The Heron’s Landing – D.R. Horton trial was presided by Circuit Judge Jim Daniel, and lasted 38 days. Legal complaints were first filed in 2013. During that time, condo owners have been living with leaks and property damage caused by faulty stucco, poorly installed windows and doors, and a leaky roof, among many other complaints of poor workmanship.

It remains to be seen whether or not $38,000 per condo is sufficient to completely replace exterior walls, windows. Heron’s Landing has 240 units.

Condo owners have testified that property values of their units have been considerably reduced as a result of numerous defects and prolonged litigation. A quick Google search reveals recent condo sales of $100K or less, and many units renting between $1150-$14500 per month.


3 thoughts on “$9.6M awarded to Jacksonville condo owners

  1. Great News, for all the condo owners. But what bothers me concerning this case, is the fact that one of property owners was a Fifth District State Attorney plus a Magistrate was also involved which more than likely got this court cases much needed attention by the court system. While I see this as a victor to some degree it leaves me with empathy for the rest of property owners who do not have the luxury of affordable remedies’ to present their cases as well even to the Florida Department of Law Enforcement and The State Attorney’s Office. In cases of extortion given by any homeowners association that is within the State of Florida. As a homeowner, I have seen where homeowners who have tried to file with the County Prosecutors office to be turned away and state it is a civil matter, it is an outright crime (White Collar Crimes) so you tell me why is it that most homeowners who live in an HOA are not afforded to the same treatment of respect as a victim of this industry not only by the HOA industry itself, but from County Prosecutors and the Court system as well. IN saying homeowners within an HOA get screwed by the whole gambit of this industry unless someone is in a position of power. Oh you know that DR Horton will appeal again giving the homebuilder or developer another extension of crimes against the unknowing, these types of companies are pure greed at our expense to the point of putting us in the poor house. These HOA’s do not protect the values of properties that is a false statement in itself and by all rights these people/companies should be held accountable, but what do you do when the developer still has control of the hoa.

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  2. Deborah:

    I am not sure the term “intriguing” is correct in this instance. A better description might be “exposing” or “enlightening” or some other similar adjective.

    Allow me to suggest that the case proves that laws in the country are fair only if you are rich or are in politics or in this case, part of the judicial system. I will suggest further that there may be hundreds of similar cases around the country where the home owners have paid thousands or hundreds of thousands of dollars in legal fees and have come away empty handed.

    Every HOA needs a judicial insider to put forth their case against an unscrupulous contractor, HOA Board, Management Company, HOA members, etc. The threat or damage can come from a multitude of directions.

    It is great to see and read about this event but all readers must understand that the HOA had the “big guns” to drive the case to and through the court system.

    I enjoy your web site and really appreciate being on your mailing list. You are doing an excellent job that deserves all the support that can be given.

    Keep up the great work.

    Jim Bothwell

    >

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  3. This is amazing how many law suits does DR Horton have costing your average income folks left to pay the bills. We are having to choose daily needs to pay additional penalties just trying to get through the legal system amd keep our places habitable. Property values have gone down yet DR Horton continues to build and make their fortune on behalf of others misfortunes. And the lawyers keep making money off us looking out for our interests. This needs to stop fix what we payed for and make it right.

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