Hi all,  Long time reader -first time writer.

Has anyone had occasion to deal with a situation where a developer (pre-turnover) files a construction defect action against GC and subs.  The defendants want to resolve the litigation but since there has been no turnover the developer arguably cannot bind the Association.  In fact, the Association is not even a party.  The concern is that the developer cannot release the Association and therefore can take the money and potentially do nothing (or something less then actually required to cure the alleged defects).  The developer is supposedly close to turnover but I suspect that they want the settlement before turnover so that they can have control of the money.  Has anyone had the pleasure of this type of situation?

Thank you!

Robert A. Carlson
Partner
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I have. We convinced the court to stay the action until turnover.  Absent that, you could try your luck with developer indemnity against future association claim, but ....

Sent from my iPhone

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On Jul 3, 2014, at 4:32 PM, "Robert Carlson" <rcarlson@lee-lawfirm.commailto:rcarlson@lee-lawfirm.com> wrote:

Hi all,  Long time reader –first time writer.

Has anyone had occasion to deal with a situation where a developer (pre-turnover) files a construction defect action against GC and subs.  The defendants want to resolve the litigation but since there has been no turnover the developer arguably cannot bind the Association.  In fact, the Association is not even a party.  The concern is that the developer cannot release the Association and therefore can take the money and potentially do nothing (or something less then actually required to cure the alleged defects).  The developer is supposedly close to turnover but I suspect that they want the settlement before turnover so that they can have control of the money.  Has anyone had the pleasure of this type of situation?

Thank you!

Robert A. Carlson
Partner
<image001.jpg>
100 N. Biscayne Blvd., Suite 605
Miami, Florida 33132
T  305.377.2323    F  305.377.2320
www.Lee-Lawfirm.comhttp://www.lee-lawfirm.com/

CONFIDENTIALITY NOTICE:  This e-mail message and the information it contains are intended to be privileged and confidential communications protected from disclosure.  If you are not the intended recipient, any dissemination, distribution or copying is strictly prohibited.  If you have received this e-mail message in error, please notify the sender by e-mail at rcarlson@lee-lawfirm.commailto:rcarlson@lee-lawfirm.com and permanently delete this message.

CIRCULAR 230 DISCLOSURE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication, or any attachments thereto, was not written to be used and cannot be used for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any tax-related matters addressed herein.

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