Maryland Washington DC Condominium Construction Defects Law

By Maryland and Washington DC Condo Association Construction Defect Attorneys, Cowie Law Group, P.C.

This article discusses condominium association construction defect cases in Washington, DC and Maryland. The article focuses on the case known as Council of Unit Owners of Bentley Place Condominium v. The Milton Company. In that case, a Maryland jury awarded $6.68 million in damages to a condominium association for the repair of construction defects. Additionally, the association was awarded $500,000 in attorney’s fees. These damages were awarded against the condominium developer and builder and upheld on appeal.

Introduction: Maryland and Washington DC Condo Construction Defect Cases

Most Washington DC and Maryland condominium association and HOA construction defect cases settle before trial. Legal settlements of defect cases are typically reached through negotiation, mediation and/or arbitration, without ever having to file suit. See articles on “Resolving Condominium Construction Defect Claims in Maryland; A Guide for Maryland Condominium Associations” and “Resolving Condominium Construction Defect Claims In the District of Columbia; A Guide for Washington DC Condominiums.”

When it becomes necessary to file a construction defect lawsuit, most cases settle in mediation before trial or through arbitration. However, there are exceptions where pretrial resolution is not possible and arbitration is not available. One such case, in which Nicholas D. Cowie of Cowie Law Group. P.C., served as trial counsel, is known as Council of Unit Owners of Bentley Place Condominium v. The Milton Company, et al., In the Circuit Court for Montgomery County (“Bentley Place”).

The Bentley Condominium Construction Defect Case: Background

In the Bentley Place case, a Maryland condominium association sued condominium builder and developers, Milton Company, Tuckerman Lane Development Company, and developer Milton Schneiderman. The association alleged that the condominium had been designed and constructed in a defective manner with poor workmanship, resulting in leaking roofs, leaking windows, defective soundproofing between units, defectively designed structural beams, cracked ceilings, faulty HVAC systems. These and other construction defects and use of and faulty materials were shown to be in violation of applicable building codes and county approved plans and specifications. The association alleged that the builder and developers refused or failed to properly correct the construction defects.

The Bentley Place trial lasted four weeks in the Circuit Court of Maryland for Montgomery County. The trial involved evidence of multiple defects found to exist in the construction of the condominium. The condominium association’s expert witnesses provided testimony as to the estimated cost of repairs necessary so that the the condominium buildings would be in compliance with building codes, plans and specifications and applicable industry standards. Additionally, experts testified as to expenses already incurred by the association to correct defects and repair property damage caused by defects. Photographs and sections of water damaged walls and roofing materials were shown to the jury to demonstrate the interior water damage suffered by the unit owners as a result of leaks in the building exterior due to defective construction.

$6.68 Million Construction Defect Jury Verdict for Condominium Association

Following closing arguments, the jury awarded the condominium association $6.68 million in damages for the cost of repairing the construction defects and property damage caused by the construction defects. The jury found the condominium builder and developer liable under various legal theories, including breach of Title 10 express and implied statutory warranties, Title 11 condominium implied statutory warranties, breach of contract, negligent construction, negligent misrepresentation and violation of the Maryland Consumer Protection Act.

$500,000 Award of Attorney’s Fees to Condominium Association for having to pursue Construction Defect Claims in Court

Following the entry of the jury’s verdict, attorney Nicholas D. Cowie filed a post-trial motion seeking recovery of the condominium association’s attorney’s fees under Section 13-408 of the Maryland Consumer Protection Act (“Act”). The Act allows for recovery of reasonable attorney’s fees when unit owner purchasers of residential condominiums are misled about the quality and condition of the condominium.

The Act required the trial judge to determine the condominium association’s reasonable attorney’s fees following the jury’s award of damages in favor of the association on its consumer protection act claim. At a post-trial hearing on the motion, the trial court took evidence of attorney’s fees, including hours spent and tasks performed, and awarded the condominium association $500,000 as reasonable attorney’s fees under the Maryland Consumer Protection Act.

The Appeal of The Jury Verdict and Attorney’s Fee Award.

The condominium developer and builder appealed the monetary damages award against them in the trial court. The appeal was titled: “The Milton Company v. Council of Unit Owners of Bentley Place Condominium.” Maryland’s appellate courts, in reported opinions, upheld the the jury’s 6.8 million construction defect verdict and the $500,000 attorney fee award in favor of the condominium association. See Maryland’s intermediate appellate court, the Appellate Court of Maryland, opinion at 121 Md. App.100, 708 A.2d 1047 (f/k/a the Court of Special Appeals). See also Maryland’s highest appellate court, the Supreme Court of Maryland, opinion at 354 Md. 264, 729 A.2d 981 (f/k/a the Court of Appeals of Maryland).

The Significance of The Bentley Place Condominium Construction Defect Case

Highest Jury Award

The Bentley Place condominium construction defect case was a landmark victory for condominium associations in Maryland and the Washington DC metropolitan area. According to the Baltimore Sun and Washington Post, it was the largest construction defect jury award for a condominium in Maryland. The case demonstrates that, with experienced construction defect attorneys, a condominium association can hold developers and builders accountable for construction defects and recover significant damages.

Right of Condo to Recover Attorney’s fees

The Bentley Place case is also significant because of the court’s enforcement of the association’s right to recover attorneys’ fees. The award made the developer legally responsible for paying the association’s legal costs for seeking correction of defects that the developer refused to repair.

The Maryland consumer protection act is specifically intended to level the playing field between consumers of condominiums and condominium developers. Developers often have much more money than associations and their unit owner members. As such, they are better able to afford expensive lawyers and pursue protracted litigation. The right to recover attorneys’ fees helps to ensure that associations have access to the same level of legal representation as developers. See article, entitled “Condominium Association’s Right to Recovery Attorney’s Fees in Construction Defect Cases.” Reasonable attorney’s fees are recoverable under the Maryland consumer protection act even if the amount of fees is disproportionate to the amount recovered.

The Washington DC Consumer Protection Procedures Act also allows a condominium association to recover reasonable attorney’s fees in a construction defect claim against a condominium developer. See article: “Washington DC Consumer Protection Procedures Act allows a Condominium Association to Recover Attorney’s Fees, Litigation Costs and Treble Damages in a Condominium Construction Defect Case.”

Legal Standing of Condo Association to Sue on Behalf of Unit Owners

Finally, the Bentley Place condominium construction defect case is important because the court affirmed a condominium association’s statutory authority to assert legal claims for construction defects. In Bentley Place, the condominium association recovered for defects and damages in both the common elements and units on behalf of two or more of its unit owner members. This authority is essential for protecting the rights of condominium unit owners regarding common element defects, and it allows associations to hold builders and developers accountable for defective construction of residential condominiums. See articles entitled “Maryland Condominium Association’s Authority To Sue In Construction Defect Cases” and “Maryland’s Highest Court Reaffirms Condominium Association’s Broad Powers In Construction Defect Cases.” Both the Maryland and Washington DC condominium acts grant legal standing to condominium associations to pursue construction defect claims.

Conclusion: Experienced Maryland and Washington DC Condo Association Construction Defect Attorneys Make a Difference

In conclusion, the Bentley Place condominium construction defect lawsuit highlights the importance of hiring an experienced condominium association construction defect attorneys such as Cowie Law Group, P.C. Condominium associations have the right to recover damages and attorney’s fees, and this fact can be used in most cases to leverage favorable settlements for condominium associations and HOAs without ever having to file suit. It is important for associations to understand their rights and seek legal representation early to protect those rights with regard to construction defects as they are time sensitive. If you are a member of a condominium or homeowners association board of directors that is experiencing construction defects, you should contact an attorney experienced in condominium association construction defect attorneys at Cowie Law Group for a free consultation to discuss your association’s legal options.

Note About Author: The Bentley Place Condominium Association was represented by Nicholas D. Cowie, a partner at the law firm of Cowie Law Group. Mr. Cowie is a recognized authority on condominium construction defect law in Maryland and Washington, D.C. He has successfully represented hundreds of condominium associations in lawsuits against developers, builders and contractors, and regularly resolves construction defect disputes on behalf of homeowner’s associations (HOA), property owners, and others involved in or affected by the construction industry. Mr. Cowie and Cowie Law Group partners Stanford Kimmel and George Bealefeld also served as legal counsel in the Eden Brook Condominium case in which a jury awarded 5.6 million dollars to a Maryland association for construction defects. See article: Maryland and Washington DC Construction Defect Attorneys Obtain 5.6 Million Dollar Construction Defect Jury Award for Maryland Condominium.