201701.18
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Settlements Agreed for Construction Defects in a Los Angeles Condo Complex

Settlements amounting to almost $8 million have been agreed for construction defects in a Los Angeles condo complex situated in the popular Arts District.

The Barker Block is a 310-unit condominium complex in the popular Arts District of downtown Los Angeles. Initially a large storage area for the Barker Brothers department store, work to convert the building into residential units started in 2003, and the first units were released in 2006.

Completion of the development was delayed by the financial crisis until 2014, by which time owners of units in the first phase were already complaining of water intrusion issues due to ill-fitting windows and leaking roofs. The problems spread to affect the pool decking and the underground garage.

On behalf of the individual owners, the Barker Block Home Owners Association claimed compensation for construction defects in a Los Angeles condo complex against the architects and the developers of both the first and second phase units.

The architect – Nakada and Associates – settled the claim against them for $590,000 last November, but insurers for developers KOR Group (first phase) and CityView (second phase) resisted pressure to settle the claims for construction defects in a Los Angeles condo complex almost until court action was necessary.

Eventually, a settlement of $7.3 million was agreed – an amount that will be paid directly to the Home Owners Association to address faulty and inoperable systems inside the Barker Block complex. Speaking at the end of the lengthy negotiation process, Russell Roney – the President of the HOA Board of Director – said:

 “If we did not pursue these funds, and accepted the builder’s appalling position to specially assess ourselves, all owners would have faced tens of thousands of dollars each to pay for these repairs.”

Although the individual residents who have been affected most badly by the construction will not see any of the settlements personally, the improvements made to the doors, seals and roofs will ensure that they experience no further issues due to construction defects in a Los Angeles condo complex.