AURORA, Colo., April 26, 2017 /PRNewswire-USNewswire/ -- A single-family home HOA has received a final arbitration award of $13,572,000 against a subsidiary of Texas-based homebuilder D.R. Horton related to improper design and construction of the community's underdrain system. The HOA's attorneys, Benson, Kerrane, Storz & Nelson ("BKSN"), of Golden, Colorado, believe this it to be one of the largest residential construction defect arbitration awards in the state's history.
In 2014, a homeowner reported to the HOA that hundreds of gallons of water were coming up through her sump pit and flooding her basement. While investigating the damage, the HOA learned for the first time that the homes in the ten-year-old community were connected to an underground drainage system. This underdrain system was intended to collect groundwater from the foundations of the homes and carry the water under the streets and out of the community, but was failing due to improper design, construction and lack of maintenance.
The underdrain system was supposed to have vertical cleanout access points throughout, so that the HOA could maintain it. During construction, however, D.R. Horton buried the access points under the asphalt streets, without leaving any markings or a map of their exact locations. After spending more than $100,000 digging to find the cleanouts, the HOA abandoned its efforts. D.R. Horton was unwilling to help, so the HOA retained BKSN and filed an arbitration claim against D.R. Horton to recover the funds for the needed underdrain system repairs.
After several years of investigation and over $800,000 in litigation costs, the HOA presented its case to a private arbitrator. After taking two weeks of testimony from numerous engineers and other construction professionals, the Arbitrator ordered D.R. Horton to pay a the HOA in excess of $13.5 million.
"We're pleased that the Association finally achieved a reasonable resolution after years of hard work and anxiety. Fortunately, the HOA can now move forward with making repairs to ensure that its underdrain system will properly serve the 1200 homeowners who rely on the system for drainage," said Duncan Griffiths, one of the attorneys for the HOA.
BKSN's attorneys represent homeowners associations and other property owners in construction defect claims against developers, contractors, and their insurance companies.
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SOURCE Benson, Kerrane, Storz & Nelson