Bear Hollow litigation ends in $1.8M for condo association | ParkRecord.com

Bear Hollow litigation ends in $1.8M for condo association

Alan Maguire, The Park Record

Bear Hollow Restoration, LLC, a company formed by Hamlet Homes to develop Bear Hollow Village, was ordered Tuesday to pay $1.8 million in damages to The Lodges at Bear Hollow Condominium Association, Inc., at the conclusion of a four-year long lawsuit revolving around construction defects.

The property at issue is a three-building, 97-unit condominium project located near the Utah Olympic Park, and is part of a larger development.

The basis for the lawsuit, in Utah’s 3rd District Court in Silver Summit, are the Association’s claims "that the implied warranty of workmanlike manner and habitability has been breached" in three ways, according to the special verdict form: (1) "that water intrusion has led and/or will lead to damage to the buildings’ structural components (e.g., walls, columns)"; (2) that the water damage "will lead to loss of the buildings’ fire safety rating; and (3) "that falling stones render the buildings unsafe."

The eight-person jury returned a unanimous verdict, finding for the Association on each charge.

"Hamlet Homes built the project between 2006 – 2010," attorneys for the Association said in a statement Wednesday. "In the Spring of 2011, the Association became aware of water intrusion problems in the exterior wall assemblies of buildings, and the Association board hired a forensic building envelope specialist to investigate the source of the water intrusion. The investigation uncovered a host of construction defects, including building code violations and missing components that are essential to keeping water out of the building walls."

"We are delighted with the jury’s verdict," said Ted McBride of Vial Fotheringham in Salt Lake City, who represented the Association. "The verdict sends a clear message to developers and builders that there are severe financial consequences for cutting corners in new construction. The jury confirmed that our community won’t tolerate sub-par work."

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Roy Hood, president of the Association board, said "we are delighted with the result and we’ll put the funds to good use in repairing the property damage as soon as the Association receives the funds."