Lawsuits Abound: Florida Condo Collapse
On June 24, 2021, a portion of the Champlain Towers South in Sunrise, Florida collapsed, trapping and killing scores of residents. While it will take many months to determine the causes of the collapse or who was responsible for it, several of likely many more lawsuits have already been filed. Those lawsuits provide an early glimpse of liability theories and potentially responsible parties.
What happened?
In October 2018, the Condominium Board for the Champlain Towers South received a structural engineering report from Morabito Consultants. The report was prepared to fulfill the 40-year inspection requirement of Miami-Dade County and examined life-safety issues with the building, including structural and electrical systems.
In the October 2018 report, Morabito Consultants included clear language stating that the there was major structural damage due to failed waterproofing and a flat slab. Morabito Consultants opined that if the waterproofing was not replaced “in the near future”, the deterioration will expand exponentially. Another part of the report addressed cracking in parking garage columns, beams, and walls, including exposed and deteriorating rebar. Morabito Consultants identified failed and ineffective repair attempts and stated that majority of the deterioration needed to be repaired “in a timely fashion”. The repairs would be costly.
Although this report may have been a step in the right direction, the aftermath was not. Following the issuance of the October 2018 report to the Condominium Board, the report was filed with the town of Surfside. A town building official attended a Condominium Association meeting to inform residents that the condominium was in very good condition.
Fast forward to April 2021 when the residents of the Champlain Towers received a letter from the Condominium Board regarding a special assessment for $15 million for structural repairs to the building. According to this letter, the conditions of the building had worsened since the 2018 report and the cost of repairs had also increased. In the letter, the Board states that it had been working on a repair plan since receiving the 2018 report, but also concedes that, “a lot of this work could have been done or planned for in years gone by but this is where we are now.”
Then, in the early morning hours of June 24, 2021, as the repair project was about to begin, part of the Champlain Towers South collapsed and about 55 units were destroyed. The first lawsuits were filed shortly thereafter.
Who will and could be held responsible?
In the first least three lawsuits filed after and relating to the collapse, the plaintiffs have sued the Condominium Association, Morabito Consultants, and SD architects for failure to maintain the building and failure to warn the residents of the condition of the building. Given the limited insurance proceed and assets available from these parties and the large number of casualties due to the collapse, the hunt for responsible parties is growing wider. Attorneys are investigating whether other design professionals or contractors who worked on or in the building or were involved in preparing the repair plans have some liability. The work of the developer, designer, contractor and subcontractors for the recently completed building next to Champlain Towers South are also being scrutinized.
The existing and likely later joined parties will have many defenses the lawsuits. For instance, Morabito Consultants will argue that it discharged its professional and contractual duties by producing its October 2018 report to the Board. However, the plaintiffs have already alleged that informing the Board was not enough and that Morabito Consultants owed a duty to inform the Board that their plans were not in compliance with the need for timely repairs and separate duty to inform the residents of its findings. These allegations, if not dismissed, have the potential of greatly redefining engineers’ and architects’ standards of care by expanding the duties and consequent exposure associated with building inspections.
Through the tragic loss and life and property, one thing is certain. More lawsuits will be filed and more parties will be drawn into lawsuits as the available funds from the Board and Morabito Consultants dry up. The attorneys in our Austin and Dallas offices are available to answer any questions you may have about mitigating your risk when designing and construction buildings and infrastructure. Contact us at info@gstexlaw.com if you have any questions.
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