DCS was contacted by the Board of Directors of Ladera Vista, a 235-unit condominium development in North Scottsdale. The Association was plagued by a number of problems, including deterioration of decks and balconies, as well as water intrusion from roofs and windows…
The Association had been negotiating directly with the developer of the project for over a year before they called to get professional advice and support. The Board was concerned that the repairs offered by the developer were not permanent and did not encompass all of the problems the Association was experiencing.
The Developer of the project included two provisions in the CC&R’s, that attempted to restrict the community’s ability to recover damages from themselves. First, that all claims against the Developer would be arbitrated, and second that a 75% affirmative vote was required to sue the Developer. DCS asserted the position that both of these provisions were unconscionable and contracts of adhesion, thus not valid.
The Judge in this matter was never forced to make a decision on either of the issues, because the Association was successful with the help of our firm in negotiating a complete resolution to the matter, without the need for extended litigation. Currently, the Association is undergoing complete repairs to the community all paid for by the developer.
How was this accomplished?
First, DCS recommended a forensic architect and civil engineer to do intrusive testing to determine what type of construction defects existed, how extensive they were, and to recommend permanent repairs for the problems. Additionally, DCS advanced 100% of the experts and investigative costs for the Association.
Second, once the experts had quantified the problems, we presented the problems to the developer and their experts. The goal of the negotiations was to agree on the scope and nature of repairs, who would supervise those repairs, and most importantly who would pay for them.
After a series of meeting and mediations with the Developer, they finally agreed to make the necessary repairs and pay for an independent architect to supervise the repairs. Finally, the developer agreed to pay our fee, as well as the costs advanced for the experts.
The ultimate cost to the Association was zero, and the matter was resolved in less than twelve months.