FountainCourt HOA gets $8.8M settlement from Legend Homes
Legend Homes (aka Matrix Development Corp) just filed a motion in court regarding its settlement with the FountainCourt HOA. In November 2006, the FountainCourt HOA sent Legend Homes a Notice of Defects alleging 12 construction defects. This was followed by a supplemental Notice of Defects alleging another 12 defects.
The FountainCourt HOA’s complaint alleged damages in an amount in excess of $7,106,727, including:
- $5,906,727 to correct construction defects and deficiencies; and repair damages caused by such defects and deficiencies
- $1,200,000 for contingencies, a performance bond, insurance, architectural and engineering fees, construction administration, building inspections, loss of use, relocation of persons and personal property, diminution in market value and stigma damages
- Attorney fees
In the settlement agreement inked in Nov’08, the parties reached a settlement where the FountainCourt HOA would get $8,807,853. This amount consists of the FountainCourt HOA’s claimed damages less a 10% reduction for risk and uncertainty, plus costs of $120,000 and a “one-third attorneys’ fee on the foregoing amounts of $2,201,798″. WOW, look at the high level of the legal fees incurred by the HOA in this case!
