Legal implications of apartment projects

[SacreBleu]

At the office where I work (structural consultants), we do a large volume of wood-framed multifamily projects (usually 2 to 3-story apartment buildings). Are these a potential for future construction defect lawsuits, especially if they are converted to condos? I am talking about the large cities in the state of Arizona.

 

[JAE]

SacreBlue - not sure of an exact answer to your question, but of all the continuing education I've taken over the years for Liability, Engineering Consulting, etc., - always there has been comments that multi-residential projects like apartments have the highest lawsuit rate of all types of projects.

 

[whyun]

Renters complain and apartment owner grants them their wishes in an apartment situation. It takes quite a lot for the renter to "sue" the apartment owner. It is quite rare that renters sue the designers or the contractors.

Once an apartment is converted to condos, you not only have individual owners but also homeowners associations that may sue the contractor, architect and any other design professional who touched that building when they discover deficiencies or problems with the building.

Lawsuit usually is not against whomever was at fault but who has the deepest pockets. Structural consultant in your case will get pulled in the mess many times (for structural AND non-structural issues). Even if the firm can "prove" its innocence, depending on the size of the firm, it is cost effective to pay a settlement.

I am not a lawyer... just a lowly structural engineer making a living.

 

[jjeng2]

As far as I know, multifamily condo projects are the highest liability project we do. Every professional liabliity insurance application Ive filled out has a whole section on it. Id check with your insurance company before doing anything. You might need extra coverage if you proceed.