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Results

Listed below are the results of some representative cases handled by McKenzie Rhody & Hearn. Please keep in mind that no two cases are alike. Also, juries and other decision makers may come to different conclusions, even when presented with the same set of facts. For these reasons, the firm cannot guarantee similar results for any client. These cases are meant only to highlight a small sample of the firm’s past successes. In addition, to protect the privacy of our clients, we have not included specific case information in the descriptions below. Please contact us, however, and we will be happy to provide you with references.

Townhomes – Adams County

This 100-unit project suffered from significant problems including water intrusion through the EIFS exterior-cladding system.  MRH secured a settlement of $5,950,000 on behalf of the Association to allow it to perform necessary repairs. 

Townhomes – Arapahoe County

MRH secured a settlement of $6,300,000 for the Association to allow it to perform necessary repairs to numerous construction defects at this 150-unit project.  Among other issues, the exterior decks, balcony doors and windows were allowing a large volume of water into the units, causing damage to the interiors. 

Condominiums – Arapahoe County

A two-week trial resulted in $8,000,000 jury verdict against developer and general contractor for construction defects in a 74-unit condominium complex. The case involved challenging issues including attempt by builder to secure a release of all claims based on a pre-turnover “walk-through” and release agreement signed by a member of the board of directors.  MRH was successful in defeating this “release defense” at the summary judgment phase and at trial.      

Luxury High Rise – Denver

This structure was 17 stories high and contained more than 80 units. The project was advertised and sold as a high-end residential building, with sales prices up to $5,000,000. The homeowners’ initial complaints largely had to do with water intrusion around the windows and through the EIFS and roof and numerous problems with the heating and air conditioning systems. The case was resolved in just 18 months and resulted in the homeowners association having all construction deficiencies addressed, all costs of temporary repairs reimbursed, all expert fees paid and its attorneys’ fees paid. This repair-based settlement had a value in excess of $7,000,000.

Condominiums – El Paso County

This 200-plus unit condominium community in Colorado Springs suffered from water intrusion at the intersection of the buildings’ stucco exteriors and windows, sliding glass doors, decks and other penetrations. These defects in initial construction allowed water into the units and caused the exterior stucco to crack. The project also suffered from roof leaks, inadequate drainage, deteriorating asphalt and concrete and foundation movement. In addition to resolving the matter for over $2,000,000, the firm successfully defeated a motion to dismiss the entire case based on an alleged release signed by the homeowners association at turnover from Declarant Control.

Condominiums – Larimer County

This project consisted of over 190 units in Fort Collins with significant exterior deck problems. Additional defects were uncovered during the investigation that included water intrusion through the windows and improper installation of the exterior sheathing. The decks were exposed to so much water they actually started to rot off the buildings. This caused the decks to be identified as safety hazards and prevented homeowners from using their decks during the litigation. The case was resolved without the need for trial within two years, and resulted in the recovery of $1,800,000. These funds were not only used to make necessary repairs, but also to improve the decks’ design to ensure their stability for the life of the buildings. In addition, the homeowners association was assigned claims to pursue other responsible parties, bringing the total recovery to $2,400,000.

Townhomes – Adams County

Defects in this 90-unit development in Thornton included improperly mitigated expansive soils that caused foundation and slab damage; and improper drainage that lead to basement flooding. In addition, concrete and asphalt throughout the community was damaged due to soil movement and ponding water, and window and roof leaks caused damage to the interiors of the units. The case resolved for approximately $2,000,000.

Single Family Homes (Class Action) – El Paso County

In this case, the firm successfully certified a class action involving over 30 single family homes experiencing slab and foundation movement. In addition, improper drainage worsened the movement of expansive soils around the homes and construction defects in the building envelopes (siding, windows and roofs) led to water damage. The firm secured court approval of a $1,600,000 settlement in this matter

Townhomes – Jefferson County

This multi-million dollar claim arose as a result of some of the basement slabs heaving, water intrusion through the roofs, and problems with the exterior decks. The project consisted of 72 townhomes. Our team of experts was successful in determining the cause for each of these issues and identifying proper repairs. This case was resolved at the time the plaintiff was resting its case in chief during trial and resulted in a recovery of more than $2,000,000.

Single Family Homes – Denver

This project consisted of over 50 homes located in the Grant Ranch community. As we have seen on many cases, the claim originated from concerns over water intrusion through the roofs and windows. It spread into significant concerns over grading, sump pump issues and expansive clay soils resulting in heaving basement slabs. There were numerous legal challenges raised in this case that resulted in our firm not only winning critical motions at the trial court level, but also in the Court of Appeals. This case enabled our firm to clarify and strengthen homeowners’ rights under Colorado law to present claims to a jury rather than be forced to arbitrate. After several years of legal battles, we were able to recover $2,275,000 on behalf of the homeowners association. In addition, the association received rights to pursue other responsible parties that will result in further recovery.

 

 

 

Client Letter

"In addition to the thoroughness in which you investigated our entire structure, we were very impressed with the speed in which we were able to resolve the claim..."

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