Article Courtesy of The
Palm Beach Post
By Mike Diamond
Published June 1, 2021
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The Tuscany Property Owners Association has settled a construction-defect
lawsuit against GL Homes for $125,000 just a month after it sued the
county’s largest homebuilder.
The lawsuit, filed April 7, alleged that GL Homes performed its work in “a
substandard and defective manner.”
New members who recently took control of the association board, acknowledged
to Tuscany homeowners during a recent Zoom meeting that the case against GL
Homes was weak. and Richard Cartlidge, Tuscany's lawyer, said it was
unlikely the community, off Atlantic Avenue west of Delray Beach, would have
prevailed in court.
Cartlidge said GL Homes was never given the opportunity to make repairs on
its own, a factor that would have made it difficult for Tuscany to prevail.
The settlement was reached after a recent session with a court-appointed
mediator. The association's board disclosed that GL Homes’ initial offer was
just $58,000.
Residents pressed the board for details as to how much has been spent in the
dispute with GL Homes. The association disclosed that the figure is more
than $200,000 but President George Schellinger said continuing the lawsuit
would amount “to throwing good money after bad.”
During the Zoom meeting, board members defended the decision to settle,
blaming previous board members for not working with GL Homes to make
necessary repairs after the homebuilder turned over the development to the
resident-controlled association.
When a builder is close to completing a development, it turns over
management to an association controlled by homeowners. If the builder and
the association cannot come to an agreement as to what needs to be repaired
at turnover, the issue can sometimes lead to litigation.
A previous board hired an engineering firm to review the condition of the
common areas. The 2019 report found multiple defects that included cracked
concrete, broken roof tiles, cracks in the stucco finish, defective
electrical power, entry/exit gates that constantly malfunctioned,
deteriorated sidewalks and improper slopes on roadways.
But attorney Cartlidge and board members said at the Zoom meeting that the
engineering report was flawed and misleading. The estimated costs of repairs
were not reliable, according to Cartlidge. He noted that the report called
on GL Homes to pay $200,000 for windows not installed properly at the
clubhouse. Those repairs can be done for much less than that figure, he
said.
Heather Keith, assistant general counsel for GL Homes, said the homebuilder
was surprised that Tuscany filed a lawsuit “with such exaggerated claims
when mediation was already scheduled. Thankfully, we managed to reasonably
resolve their relatively minor issues and Tuscany agreed to dismiss the
lawsuit only a few weeks after it was filed.”
Cartlidge explained at the Zoom meeting that the $125,000 settlement will be
enough to pay his legal fees and for repairs that still need to be done.
GL Homes began building the 458 single-family home community in 2016. The
homes range in size from 1,500 to 2,800 square feet. The development is west
of Jog Road. It is accessible from Atlantic Avenue from Stone Quarry
Boulevard.
The Tuscany settlement is in stark contrast to the settlement between GL
Homes and Valencia Reserve, a retirement community west of Boynton Beach.
The Palm Beach Post reported last August that GL Homes agreed pay $850,000
to the Valencia Reserve Homeowners Association to settle a lawsuit alleging
that the homebuilder left the community with serious construction defects.
GL Homes, in a prepared statement, told The Post that it was confident it
would have prevailed at trial but decided to settle to resolve a matter that
had lasted more than five years.
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