Aldrich Eike represents two distinct Condominium Complexes in Florence, Oregon in construction defect litigation against two different developers and numerous contractors and subcontractors. One case involves 11 residential units and a commercial space and the other consists of 34 individual condominiums. Both complexes are primarily vacation homes and rentals. These two cases present unique issues involving lost rental income, provincial coastal labor forces and the severe weather exposure of the Oregon coast. Aldrich Eike has unique experience in litigating these types of cases, which will prove to be an asset to these two communities.
Nehalem Hilltop Condominium - Oregon Coast
Aldrich Eike represented a 19-unit self-managed condominium association against the developer and builder of the homes, which were constructed in 2004-2005 and sold, some sold through auction. The condominiums were self-managed by the owners without the benefit of a property manager, which created a unique opportunity for Aldrich Eike to assist the Association with not only their construction defect claim, but also their day-to-day HOA operations. When the homeowners came to our firm, they had already performed investigation of the construction defects and damage to select portions of the homes (the ocean facing elevations), which identified water intrusion and damage near the windows. The owners worked with the builder’s insurance company directly and had negotiated a potential settlement of $56,000 with the insurer. Cautious, the owners retained Aldrich Eike to review the settlement agreement/release proposed by the insurer for the builder. Aldrich Eike immediately identified that the proposed release related to the entire project, all homes, all defects and damage, whether known or UNKNOWN, even though the investigation had been limited to only the ocean facing elevations of the homes. This is a common practice of insurance companies to try to pull the wool over the eyes of unsuspecting and trusting homeowners before they retain qualified legal counsel. Ultimately, Aldrich Eike pursued all claims on behalf of the owners and negotiated a settlement of $550,000, nearly 10 times what was initially offered by the insurer. The owners fully repaired their homes in 2014 with the settlement funds. Those repairs included replacement of all siding and trim, roof work, deck work, and waterproofing windows and doors. This case presents an example of a unique fee structure virtually unheard of in construction defect cases, but offered by Aldrich Eike. Aldrich Eike and the owners’ association began on an hourly fee structure where the owners paid Aldrich Eike for its work each month on an hourly basis. As the case progressed, it was apparent it would be a protracted battle and the owners decided to convert their agreement with Aldrich Eike to a contingency fee basis where fees were taken out of the ultimate settlement, and the owners were credited back every dollar they paid on an hourly basis before the switch to a contingency fee structure.
Pine River Properties
Aldrich Eike represented two separate owners of a total of 15 rental rowhomes on Columbia Boulevard in Portland. One of the owners was also the builder of the rowhomes. By working together in the same litigation, each owner was able to maximize their total recovery against the insurer for the builder and each subcontractor. The case settled for more than $440,000, which amounted to approximately $30,000 per unit.
Villas At Forest Park
Aldrich Eike represented the owners association at the Villas at Forest Park, a 34-unit condominium complex in northeast Portland. The project was built in two phases between 1997 and 2004, originally built as apartments. In 2006, a developer purchased the project and converted it to condominiums for sale. By 2011, it became readily apparent the condos suffered with all too common construction defects and property damage as a result of cut corners both in original construction and the conversion in 2006. On behalf of the owners, Aldrich Eike pursued claims against both the contractors involved in the original construction of the project, as well as the conversion developer/seller and contractors. After hard fought litigation, including litigating past seemingly iron clad “AS-IS” language in the individual sale agreements to each owner, Aldrich Eike obtained over $400,000 in settlement money, through mediation, protracted written discovery, and depositions. That money was spent repairing the buildings, which now have new siding, new trim, and repaired decks and roofs. At the end of the case, the owners had a celebratory BBQ at the project, graciously attended by Aldrich Eike, the property manager, the HOA board and nearly all owners. A good time was had by all.
Water's Edge Condominiums - Oregon Coast
Aldrich Eike represented the owner’s association of a 56-unit condo complex on the central Oregon coast. The complex sits right on the ocean with decks and sliding doors on each condo facing the ocean. The units were constructed in 1996 as a hotel, and converted to condominiums as part of a construction defect litigation in 2005. Another Portland law firm represented the owners in that 2005 construction defect claim which involved water intrusion. That case settled in 2006 and the money received was spent completely residing and rebuilding the building. By 2011, it was readily apparent that the complete reconstruction performed in 2005 was catastrophically failing, allowing widespread water intrusion and rot. Aldrich Eike stepped in and represented the owners in pursuit of claims against the repair contractors who performed the reconstruction in 2005. This would be the owner’s second construction defect litigation in less than 6 years which presented particularly unique challenges to the legal team to counter arguments from the contractors that all of the defects and damage complained of by the owners was actually from original construction in 1996, and not the 2005 work. Ultimately, Aldrich Eike negotiated a $600,000 settlement just weeks before trial through a mediation process. The owners took the funds and were able to repair all of the construction defects and damage in 2012.
69th Ave Rowhomes Rosemount Estates
Aldrich Eike represented five individual rowhome owners located off Interstate 84 and the 69th Street exit in Portland. The team pursued the builder/developer on behalf of the owners, some of whom were original purchasers and some who had purchased their rowhome from someone who had purchased it from the developer years prior, all in one lawsuit in Multnomah County Circuit Court. After discovery, depositions and mediation, the case was ultimately settled for an amount that was sufficient to pay for complete repairs to all of the rowhomes and cover the owners’ attorney fees, costs, and expert witness fees. After the case settled, Aldrich Eike administered repair contracts and repair funds during repairs on behalf of each owner. At the end of the project, Aldrich Eike delivered a full repair documentation package (complete with investigation reports, repair contracts, photographic documentation, and warranties) which provided each owner with all documentation and disclosures necessary to sell their rowhome should they choose to do so.
Aldrich Eike obtained a $2.3 million dollar verdict for a 108 unit conversion condominium association for deck repairs. The verdict reflected 100% recovery of deck damage. And repair cost evidence presented by the association. Over 30 witnesses were called over the course of the complex six-week trial. Attorney fees were also awarded. This extraordinarily difficult case involves appeals, insurance disputes, and collection activity. The Aldrich Law Office recently concluded an insurance coverage trial that presented numerous and important insurance coverage issues under a condominium policy.
Aldrich Eike took over a case that had been languishing for years. Within 4 months of takeover, we had developed a strategy for success against a national builder and obtained a seven-figure settlement, which of repair costs for a full scope repair. This case was significant in aspects of owner involvement and communication, repair scopes and bid coordination/analysis, and aggressive representation. The case highlighted a new process being developed by The Aldrich Law Office in construction defect resolution and repairs.
Aldrich Eike represented the homeowners association of this 30 unit condominium development located in Milwaukie, Oregon. The association filed litigation against the developer and the general contractor of the project, ultimately obtaining just short of $1 million dollars in settlement for the owners within a few weeks of trial after depositions and two mediations. This settlement was obtained in spite of substantial insurance coverage hurdles to jump through related to strong coverage exclusions in the general contractor’s insurance policy. In the case, the developer paid one of the subcontractor’s share of the settlement to the association and pursued that subcontractor at trial. The Aldrich Law Office attorney Kevin A. Eike, who represented the association in the underlying case, testified in that trial which resulted in a substantial verdict against the subcontractor. The developer also used the association’s expert and repair bids to present to the jury at trial.
Aldrich Eike represented the association of owners at the Marshall Wells Lofts, a 7 story 1910 concrete warehouse which was converted into 167 luxury loft style homes located on 14th and Lovejoy in the prestigious Pearl District of northwest Portland on two separate occasions. First, The Aldrich Law Office negotiated a resolution for a confidential settlement amount with the developer, general contractor, and design professionals who converted the building into loft style homes. As part of that settlement process, the association and Aldrich Eike retained the services of a well known architectural building science professional to inspect the building with the purpose of determining the extent and cost of necessary repairs. A few years later, when it was apparent the amount received was insufficient to repair the building, Aldrich Eike represented the association in pursuing a claim against the architectural building science professional who was hired to assist the HOA in the prior claim against the developer, general contractor and design professionals. This claim against the architectural building science professional was resolved at mediation for a confidential amount after litigation had been filed and depositions occurred.
Orenco Station Townhomes
Aldrich Eike represented multiple townhome associations (hundreds of units) and individual owners settlement and performance of repairs costing in excess of $15 million all without litigation. The cases are an example of the combination of efficient lawyering and responsible developers.
Quimby Townhome Condominiums
Aldrich Eike represented the Quimby Townhome Condominium Association (30 units) in Northwest Portland with regard to defects and damages. A significant multimillion dollar settlement on the eve of trial was reached for the Association, allowing full (+) reimbursement of repair costs and attorney fees. This result was a premiere example of teamwork between the Association Board, Association Committees, Community Manager, and Aldrich Eike to achieve a great result.
After three weeks of jury trial, Aldrich Eike achieved a multi-million dollar settlement for the Springville Townhomes Owners Association. Many homeowners testified in the litigation, in addition to experts and adverse witnesses from the developer/contractor side. This case is a proto-type for management of future Association trials in complex construction defect litigation. This was another example of great teamwork with the Association Board, Association Committees, Community Manager and Aldrich Eike.
Vista House Condominiums
Several years after turn-over, the owners of a premiere condominium complex in the west hills of Portland discovered potential problems regarding the weatherproofing of the structures. What the owners initially thought was a maintenance problem turned into a nightmare of construction defects. After nearly two years of contentious litigation, a favorable settlement was obtained for the owners.
16th Place Condominiums
Aldrich Eike represented unit owners in the 16th Place Condominium Association (11 units) with regards to defects and damages. The case had serious insurance coverage questions involving bankrupt and shell corporations (including back up insurers), but was successfully settled. The owners obtained a mid-six figure settlement to reimburse repair costs.
Denney Road Row Homes
Aldrich Eike represented unit owners in the Denney Road Rowhomes Unit Owners Association (14 units) with regards to defects and damages. A seven figure settlement was achieved on the eve of trial and literally in the courthouse, allowing reimbursement of repair costs and attorney fees. Litigation was hard fought, and the unit owners were efficiently and effectively involved in obtaining the result.
Roth Estates Row Homes
Aldrich Eike represented unit owners (5 owners) in Roth Estates with regard to construction defect and damages; and recently obtained a six figure settlement. The case was settled with minimal litigation.
Shiloh Heights Townhomes
Aldrich Eike represented unit owners in the Shiloh Heights Townhome Association (8 units in two buildings) in Southwest Washington with regard to defects and damages. The case had serious insurance coverage questions involving bankrupt and shell corporations, but was successfully settled. The owners obtained a mid-six figure settlement to reimburse repair costs.
Orenco East Village Condominiums
Aldrich Eike negotiated a settlement for the Orenco East Village Condominiums (210 units) in a litigation against the builder and developer of those condominiums. The large multi-million dollar settlement (one of the largest, condominium defect settlements next to Vista House, in the Portland metro area) is one of the most efficient obtained by Aldrich Eike. Fees were less than 10% of the total settlement. A significant factor in this great settlement was the work of the committees set up by the Association Board and Aldrich Eike, as well as the work of the community manager.
McKenzie Lofts Condominiums
Aldrich Eike negotiated a settlement for the owners where the developer/builder/architect designed a repair plan, performed extensive repairs, and provided the owners with additional five year “bulletproof”
Orenco Place Townhomes
Aldrich Eike recently settled a case for the association and owners of the Orenco Place Townhomes Association (64 units) with the developer and builder with respect to defects. After hard fought litigation, the case was settled for a favorable seven figure sum, allowing repairs and reimbursement of attorney fees. The pro active involvement of the Association Board, committees, and community manager was critical to the result.
Quail Hollow Townhomes
Aldrich Eike negotiated a settlement for the owners where the builder/developer funded repairs.
Bridgeton Road Townhomes
Aldrich Eike negotiated a settlement for the owners where the builder/developer and other responsible subcontractors funded a repair contractor to perform repairs to the townhomes.
Sellwood Commons Condominiums
Aldrich Eike prosecuted a construction defect and damage claim for unit owners and the association regarding siding and deck problems at the Sellwood Commons Condominiums. The case was successfully settled.
View Point Rowhomes
In what started to be a siding, window and deck defect problem, the View Point Rowhome owners (during the repair process) discovered serious structural deficiencies with respect to retaining walls and the structure of their building, which forced them to move out. Aldrich Eike successfully negotiated a buy-back of the units with the developer.
Pearl Lofts Condominiums
Owners in the Pearl District’s flagship condominium project discovered extensive window problems and defects in the building envelope. The developer, general contractor, and window manufacturer attempted repairs, (which did not work), and then refused to undertake further repairs. The owners retained Aldrich Eike to prosecute the claim, which was one of the first construction defect cases filed for a condominium in the Pearl District. Combining an aggressive litigation and public relations strategy, a settlement was obtained that allowed the owners to fully repair their units without financing, and reimburse the owners’ attorney fee expense.
Villas on the Lake I Condominiums
Aldrich Eike negotiated a settlement for the owners where the builder/developer funded and performed repairs to the condominiums.
Aldrich Eike represented a general contractor in one of the first trials in the Portland metropolitan area regarding significant and widespread condominium construction defects. The builder had settled out with the homeowners (for a seven figure amount) and the builder then successfully went to trial in an action against the developer/architect and subcontractors in order to obtain contributions for those parties’ share of the damages. This case was initially responsible for establishing Aldrich Eike’s expertise in the field of construction defect litigation, which in turn led to the formation of Aldrich Eike.