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Delaware County Condo Association Settles Six-Year Dispute with Pulte Homes

Client Alert - October 28, 2013

Cohen Seglias has assisted a Newtown Square, Delaware County Condominium Association in reaching a $5.6 Million settlement agreement, ending a six year dispute with Pulte and its subsidiary Pulte Home Corporation of the Delaware Valley Homes. The Legal Intelligencer wrote about the successful conclusion to the case on Friday, October 25th, 2013.

The settlement resolved litigation that began in 2007, when Springton Point Condominium Association, filed a lawsuit against Pulte claiming that the condominium homes and common areas constructed by Pulte had widespread design and construction defects. The Condominium Association brought the lawsuit on behalf of the owners of the 152 condominium townhomes. The homes were built by Pulte between 2001-2005, and generally sold in the $400,000 to $600,000 price range. As set forth in Springton’s Complaint, shortly after construction, the Association discovered multiple design and construction defects, many of which resulted in damaging water infiltration through windows, flashing, roofs, stucco and brick exteriors, as well as grading and drainage problems, improperly constructed driveways, sidewalks and curbing, and defects in the interiors of the homes, including excessively long dryer vents, defective fire sprinkler systems, and missing insulation.

In 2009, Pulte filed a separate lawsuit against many of its subcontractors that it had hired to build the Condominium. Thereafter, Pulte’s lawsuit against its subcontractors was consolidated with Springton’s 2007 lawsuit. After six years of litigation, the Condominium Association, led by attorneys Edward Seglias, Robert G. Ruggieri, and Anthony M. Bottenfield, proceeded to trial against Pulte. Only Pulte’s roofing subcontractor remained in the litigation when trial started, as all others had settled out. The parties had selected a jury before the Honorable G. Michael Green, but reached a resolution just prior to opening statements.

For any questions about this case, please contact Edward Seglias, Partner in the Firm’s Construction Group at 215.564.1700 or eseglias@cohenseglias.com.