WHAT SHOULD YOU EXPECT WHEN ENTERING A DEFECT
LITIGATION SUIT?
By
Darlys Walker
Published August 29, 2018
Most boards have
never filed suit against anyone for anything more than a violation
or delinquency issue. When faced with the decision to sue over
construction defects, there are some key things to remember! Yes
this coming from a tremendous amount of experience.
1.
Most common question is how long will it take to resolve?
The best answer
is 2-3 years, plus! There are many steps to be taken and usually
lots of parties are involved.
2.
Will my fees go up due to attorney fines?
The answer
depends on the financial position of your community. In the majority
of the cases I’ve seen the answer is yes.
3.
Can
we use reserve funds to pay for the litigation?
Ask your legal
counsel. Over the years I have had most attorneys say NO. But on two
occasions they have said yes! Be sure to get their opinion in
writing!
4.
Can
we go ahead and make the necessary repairs?
Ask your legal
counsel. Many declarations require that both sides have opportunity
to have engineers and other experts perform inspections and
destructive testing before repairs can begin.
5.
We
don’t know what the boards are doing with the lawsuit, they don’t
tell us anything!
Litigation is
stressful for the board and owners alike. Most information is
confidential between the board and legal counsel. By holding
quarterly town hall meetings with owners, allowing the attorney to
give a generic update will foster support for the board and lessen
the stress and gossip!
6.
Do
we have to disclose the lawsuit to potential purchasers?
YES! Have your
attorney draft a letter for the owners to use should they choose to
sell their home.
Remember, this
process is going to take a while and the board has to come together
to make many decisions for the betterment of the community.
