Clash of the HOAs
One thing that home owners should note when there are multiple HOAs suing the builder for construction defects: Are there enough insurance proceeds for everyone in the game of bringing claims?
This issue has cropped up in Legend Homes’ bankruptcy. Remember our post on FountainCourt HOA gets $8.8M settlement from Legend Homes? Madison Heights COA just filed an objection to that settlement on Jan 7. The basis of objection is that both cases alleged similar types of water intrusion-related construction defects and the claim was in excess of $7 million as well, yet Madison Heights’ claim was still unresolved and the FountainCourt settlement could effectively reduce the overall policy coverage available to the former as a subsequent judgment creditor.
