The construction defect law firm Kerrane Storz, P.C., announced that it had achieved a win for the Parkes at Stonebridge Townhome Owners Association against Dream Finders Homes.
Dream Finders built the 92-unit townhome community known as Parkes at Stonebridge in Longmont, Colorado, from 2018 to 2021. According to a release sent from Kerrane Storz, soon after moving in, new homeowners noticed serious construction issues throughout the community, including crumbling driveways, heaving sidewalks and sagging garage awnings.
Depending on the season, sidewalks became dangerous due to ice buildup, ponding water and slippery algae growth, according to the release, which noted that multiple homeowners slipped and fell and were injured.When homeowners reported their safety concerns, Dream Finders responded with repairs that failed to fix the construction problems and caused new hazards.
After multiple failed attempts to negotiate a settlement, the association proceeded to arbitration against Dream Finders, where it prevailed on claims of negligence, breach of contract, breach of express warranty and breach of implied warranty.
The arbitrator awarded the association $5,733,471 for its cost of repairs and $679,732 for its litigation costs, for a total award of $6,413,204. In addition, the arbitrator awarded the association post-judgment interest on unpaid amounts until the award plus interest is paid in full.
According to the release, Dream Finders objected to the award for litigation costs, arguing that the purchase agreements for the townhomes prevented the recovery of these costs, but the arbitrator disagreed.
“We are thrilled with this award for our client and look forward to seeing the community make much-needed repairs,” Heidi Storz, lead attorney for the community, said in the release. “This decision will serve other Colorado homeowners by putting developers/builders on notice that they will be held accountable for poor construction despite boilerplate, take-it-or-leave-it waivers they may include in purchase agreements.”
The release noted that Dream Finders has paid part of its arbitration award, but, as of Oct. 30, it hadn’t satisfied its obligation to pay the post-judgment interest awarded to the association by the arbitrator. On that same date, the association filed a motion in Boulder County District Court seeking entry of judgment on the arbitration award.