The Gables Club, already the focus of published reports that
outdated building and fire codes are being used in the construction of
the new residential high-rise, is facing more controversy, this time
from within its own community.
The residents of The Gables Club, a luxury, twin-tower condominium
development at 10 Edgewater Dr., have filed a $5 million lawsuit
against the project's builder/developer and general contractor
claiming extensive building defects. In addition, the developer
himself, Marc Kovens, who is also a resident of the 16-story project,
has filed suit on his own behalf and that of The Gables Club
Condominium Association against several sub-contractors for shoddy
workmanship and the use of inferior materials.
The problems of The Gables Club were first publicized in last weeks's
Gazette in an article that detailed how construction of the second
tower, which began earlier this year, is being constructed according
to outdated building and fire codes that existed prior to Hurricane
Andrew, despite opposition from Coral Gables' officials.
The Coral Gables Building and Zoning Department ordered the new
building be built according to the code requirements updated in 1994
as a result of the destruction wrought by Hurricane Andrew two years
earlier. However, the Miami-Dade County Board of Rules and Appeals
unanimously voted to overrule the city and approve construction, based
on the South Florida Building Code established in 1988.
Now comes word that residents in the first tower, completed in
1996, are initiating legal action against Kovens due to serious
construction defects in their building which include faulty air
conditioning, roof and window leaks, cracks in stucco and slabs,
falling roof tiles, seawall corrosion, electrical problems, pool and
tennis court surface failures, and loose balcony hand rails, to name a
few. The plaintiffs allege in their suit, filed in December 2000, that
these defects jeopardize the fitness and salability of their units.
"We purchased a home here thinking that we could spend our
retirement years relaxing," said Kal Bass, a lead plaintiff in
the case. "What we did not expect was to deal with construction
defects that have seriously affected our use and enjoyment of our
condominium and community amenities."
The complaint details how the air conditioning does not work
properly in the summer months, and how residents' lives are
endangered by roof tiles falling to the ground below.
Thomas E. Miller, one of
the nation's leading experts in construction defect litigation, is
representing the plaintiffs along with local counsel. Miller described
the lawsuit as a representative action in which any future judgement
will benefit all residents, not just the 40 homeowners who have joined
the suit to date.
"The developer's
rush to meet the buyers' demand for high-rise condominiums with
expansive vistas has turned a promised luxury development into a
living nightmare," Miller said. "As the developer is taking
reservations on the yet-to-be built second tower of this development,
critical mistakes in design and construction have now been uncovered
in the now-completed first 99 units."
Kovens could not be reached for comment, but his own filing of a
lawsuit presents a bizarre twist in the legal wrangling now under way.
In January, Kovens filed suit against a number of sub-contractors
on the project, including Morse Diesel International, Hill York
Corporation, Robert Swedroe, P.A., McDowell Engineering Consultants,
Consul-Tech Engineering, Jaffer Associates, and Murton Roofing Corp.
Sam Hollander, who moved into The Gables Club in May 1997 and is
another lead plaintiff in the residents' suit, questions not only
Kovens' intent regarding his own lawsuit, but also the timing.
Hollander said protracted negotiations between residents and the
developer regarding complaints yielded nothing but a constantly
changing array of excuses.
He explained that only when residents set a deadline for resolving
the issue did Kovens file his own suit-on the very same day.
"We've tried at many different times, in many different ways
to work this out with the developer. He had three-and-a-half years to
address these construction issues and take action. Instead, he
procrastinated," Hollander said. "The day of the cut-off
date he decides to file suit. That's like the fox guarding the
chicken house."
Hollander alleged that Kovens' suit is nothing more than a
preemptive strike to ward off the residents' lawsuit and deflect
responsibility from himself. Moreover, Hollander charges that Kovens
controls the condominium association, but does not represent the
residents.
"His interests are far different from our own. He is the
developer; we are the residents. He is acting on his own for the most
part," Hollander said.
The residents' attorney also challenges Kovens' suit on legal
grounds.
"In 99 percent of the
cases filed over construction defects the homeowners' association
names the developer as the primary party at fault," Miller said.
"We're concerned that if he takes the lead with his lawsuit, we
won't get the $3 million to $5 million needed for repairs. We want
to make sure there's money available to us at the end of this."
Miller explained that his
firm's fees are paid through a straight contingency agreement.
The Miller Law Firm gets
paid only if it wins. As a result, the firm conducts extensive
research before accepting a case to ensure that the defendant is able
to pay damages. He said both the plaintiff's case and the defendant's
ability to pay meet all criteria.
"We really have to
believe in the case. We take on a substantial risk," Miller said.
"Insurance provides a very limited amount of money to the
developer for construction defects. We have to look at the financial
strength of the developer and the general contractor."
As part of the
investigation, Miller hired a highly respected engineering company,
Atkins Engineers, to assess the situation at The Gables Club.
"This report is the basis for our suit. It documents substantial
defects."
Miller added that his law
practice, The Miller Law Firm of Newport Beach, Calif., has earned a
national reputation in litigation against construction defects,
winning more than $350 million on behalf of his clients. The current
wave of new, so called luxury developments has generated a lot of new
business for his firm, he said, and a large portion of his client list
hails from South Florida.
"This is a significant
trend, particularly in the Miami area. We have been contacted by a
number of persons claiming construction defects from there,"
Miller said.
"I think it's the
result of the rapid growth and demand for that kind of product.
Whenever you find yourself in a building boom, it becomes commonplace
for builders to cut corners, and whenever that happens you're going
to end up with a need for significant repairs of several million
dollars to fix the problems."