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The Naumann Law Firm, PC recovers $1,165,000 in Construction Defect Lawsuit
SAN DIEGO, April 8, 2020/PRNewswire/ — The following is being issued by The Naumann Law Firm, PC.
The Naumann Law Firm announced today that attorneys, William Naumann Esq., and Loren Shiu, Esq., recently recovered $1,615,000.00 in damages on behalf of Las Palmas Business Park Owners Association.
The firm filed a lawsuit in the Orange County Superior Court on behalf of Plaintiff, Las Palmas Business Park Owners Association, against the converter, the general contractor and the subcontractors.
This case involved one of the largest business condominium conversions in Orange County. The business park was originally known as the Electric Farm. Units were leased until 2005 when the converter purchased the forty-year-old project and started renovations. The renovations included slurry sealing of large private streets and drives and, also, repairs to the old roofs. The converter also created a new owners association with new operating and reserve budgets. After only half the units were sold, the converter defaulted on its acquisition and construction loan. As a result, a new converter purchased the project with a deed in lieu of foreclosure. The new converter then proceeded to sell the remaining units.
It became clear in the depositions that the converters had inappropriately calculated reserves and represented that the streets and roofs were new. This left the association with no funds to properly repair and replace the streets and roofs. The converter argued that business associations are not required to have reserves or reserve budgets under various statues. Mr. Naumann and Mr. Shiu overcame these contentions by pointing out that the local municipal codes required proper reserves. The Association’s experts also determined that the repairs done to the streets and roofs, were performed improperly and led to multiple roof leaks.
Following multiple mediations before mediator, Ross Hart, the firm successfully obtained a settlement for the Association in the amount of $1,615,000.00.
Elaine Gower (858) 792-7474 (Media)
Copyright 2018. The Naumann Law Firm, PC. All rights reserved.
Press / Contact:
William H. Naumann, Esq.
The Naumann Law Firm, PC
Tel: (858) 792-7474
Copyright 2019. The Naumann Law Firm, PC. All rights reserved.