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SAWHORSE
Seven million award upheld in defective homes case
By Dennis Webb*Saturday, October 10, 2015A judge this week affirmed an arbitrator’s award of $7.36 million to 20 homeowners in a case involving construction on sinking soils in the Ironbridge golf course subdivision outside Glenwood Springs.Ninth Judicial District Court Judge James Boyd also upheld the arbitrator’s finding that defendants Hansen Construction and Steve Hansen also owe about $1.4 million in attorney fees and more than $660,000 in legal costs.Boyd has yet to rule on whether to uphold a jury’s decision that the homes’ developer, LB Rose Ranch, LLC, should pay homeowners more than $6.7 million in the case.LB Rose Ranch is a subsidiary of Lehman Brothers, which went bankrupt in 2008.The homes in question were built on salt-laden evaporate, a soil linked to sinkholes and subsidence in several areas of western Colorado. Foundation problems resulted in cracking and shifting of the homes, and two of the Ironbridge homes were condemned as a result.Mari Perczak, an attorney for the plaintiffs, has said the soil can be problematic when it becomes wet, and problems can be prevented through proper foundation construction, grading and drainage. The homes also can be fixed through proper foundation engineering, she said.Perczak said of Boyd’s ruling, “Our clients, the 20 homeowners here, are relieved that the long process is coming to an end. They can now restore their homes to normal condition and are grateful for the many long days, nights and weekends spent by the arbiter, judge and jury.”The jury had determined that parties involved in building and engineering the homes also had engaged in wrongful conduct, but that the developer was wholly responsible as the one that hired or otherwise engaged those parties in the project.Collecting on the jury award would be complicated by the bankruptcy of Lehman Brothers and LB Rose Ranch. Perczak has said collection efforts would target the developer’s insurer on the project, but likely would require another lawsuit and more waiting for homeowners.The defendants in the arbitration case and LB Rose Ranch all have raised concern over the possible double recovery of damages by homeowners based on the jury and arbitration awards. Boyd wrote in an order, “All parties agree Plaintiffs are entitled to a single recovery of their damages, not a double one,” and plaintiffs have agreed for now to have collections on judgment placed in the court registry “to facilitate the proper application of sums collected to any judgments entered.”Said Perczak, “Under Colorado law, there are no lottery winners when it comes to construction defect lawsuits. Thankfully, we were able to find a source of recovery for these folk.
By Dennis Webb*Saturday, October 10, 2015A judge this week affirmed an arbitrator’s award of $7.36 million to 20 homeowners in a case involving construction on sinking soils in the Ironbridge golf course subdivision outside Glenwood Springs.Ninth Judicial District Court Judge James Boyd also upheld the arbitrator’s finding that defendants Hansen Construction and Steve Hansen also owe about $1.4 million in attorney fees and more than $660,000 in legal costs.Boyd has yet to rule on whether to uphold a jury’s decision that the homes’ developer, LB Rose Ranch, LLC, should pay homeowners more than $6.7 million in the case.LB Rose Ranch is a subsidiary of Lehman Brothers, which went bankrupt in 2008.The homes in question were built on salt-laden evaporate, a soil linked to sinkholes and subsidence in several areas of western Colorado. Foundation problems resulted in cracking and shifting of the homes, and two of the Ironbridge homes were condemned as a result.Mari Perczak, an attorney for the plaintiffs, has said the soil can be problematic when it becomes wet, and problems can be prevented through proper foundation construction, grading and drainage. The homes also can be fixed through proper foundation engineering, she said.Perczak said of Boyd’s ruling, “Our clients, the 20 homeowners here, are relieved that the long process is coming to an end. They can now restore their homes to normal condition and are grateful for the many long days, nights and weekends spent by the arbiter, judge and jury.”The jury had determined that parties involved in building and engineering the homes also had engaged in wrongful conduct, but that the developer was wholly responsible as the one that hired or otherwise engaged those parties in the project.Collecting on the jury award would be complicated by the bankruptcy of Lehman Brothers and LB Rose Ranch. Perczak has said collection efforts would target the developer’s insurer on the project, but likely would require another lawsuit and more waiting for homeowners.The defendants in the arbitration case and LB Rose Ranch all have raised concern over the possible double recovery of damages by homeowners based on the jury and arbitration awards. Boyd wrote in an order, “All parties agree Plaintiffs are entitled to a single recovery of their damages, not a double one,” and plaintiffs have agreed for now to have collections on judgment placed in the court registry “to facilitate the proper application of sums collected to any judgments entered.”Said Perczak, “Under Colorado law, there are no lottery winners when it comes to construction defect lawsuits. Thankfully, we were able to find a source of recovery for these folk.
