June 2016
A water leak turned into a $30 million lawsuit for a prestigious condo building in Washington.
The luxury condo building, where suites are valued at up to $9 million, is located at 3303 Water St. The building opened in 2004 and quickly sold out. Its residents, which include White House staff, demand quality. They don’t want to deal with nuisances such as politics or special assessments.
The problem started with a little water on a hallway floor in 2008. This led to the discovery of improperly installed bathtubs. After walls behind the bathtubs were opened up, the condo board claims that fireproofing was found to be inadequate.
In 2012 a sprinkler malfunction damaged a number of suites and more walls were opened.
Repair negotiations failed and the board sued for $30 million plus punitive damages. Litigation cost millions of dollars. Owners paid at least three special assessments of tens of thousands of dollars.
The developer claimed construction flaws were minor and that there was no safety risk. Problems could have been easily repaired if not for a difficult condo board.
The condo board claims the building is defective and dangerous. They estimated that repairs would cost $21 million including relocation of residents to $400 per night hotel rooms.
Parties spent three years in litigation. Condo owners vacated their homes so that holes could be drilled into their elaborately finished walls.
The lawsuit was settled in November 2015. Neither side have disclosed the amount or terms of settlement.
