Friday, July 19, 2013

Condo Developer, Engineering Firm To Cough Up $5.05M In Compensatory, Punitive Damages For Failing To Disclose Certain Construction Defects When Peddling Units To Homebuying Customers

From a client alert from the law firm Fox Rothschild LP:

  • A jury awarded $5.05 million to the Belgravia Condominium Association, after finding the developer, 1811 Belgravia Associated and PMC/Belgravia Associates, along with engineering firm O'Donnell & Nacaarato failed to disclose certain property defects to the buyers.

    "By awarding the association significant compensatory damages to repair the Belgravia building and, by further awarding punitive damages, the jury in this case sent a very resounding message to the developer that conduct like that engaged in by the developer and its representatives should not have occurred and would not go unpunished," said Robert Tintner, the association's attorney.

    According to the pretrial memorandum filed by the plaintiff, "The defendant and the developer compounded this fraud by failing to attach several subcontractor reports to the final report that was published to consumers in Belgravia's public offering statement, and by 'lowballing' the building's initial budget and reserves."

    "To purchase a condo unit in Pennsylvania, you should not have to hire an engineer and an attorney," Tinter said."

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