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Explosion leads to lawsuit against developer and contractor

There is a significant amount of ongoing construction in Miami to create developments to attract renters, purchasers and visitors. An unfortunate corollary with the amount of construction that is always taking place throughout the city is the inevitable disputes over a construction project. The industry is no stranger to construction litigation. With that, there could be a disagreement between the developer, the contractor and the purchaser.

According to recent reports, a luxury condominium tower is becoming a frequent target of lawsuits, with two more unit owners joining others who had previously filed claims. The project is located in Sunny Isles Beach. The new lawsuits are pursuing millions of dollars for damages that were incurred after a gas explosion on the building’s top floor in 2015. The lawsuit was filed in Miami-Dade County against the construction company and a subcontractor. It is alleged that the explosion led to six people being injured and reduced the value of the property. The project was completed one month before this incident. Subsequently, the certificate of occupancy was revoked by the city. As repairs were being made, it was still deemed unsafe through June of 2016.

One unit was purchased for $5.7 million. A trading company paid $2.6 million for the other unit. They say that they could not get access to the property and that the units are a complete loss, costing them a combined $10 million. They are also asserting that trying to sell the property will be difficult due to the negativity surrounding it after the explosion. There has yet to be a final certificate of occupancy issued.

While real estate might seem to be a lucrative endeavor and construction is a notable and productive business, there are constant issues that might arise, such as mistakes by the contractor, allegations against a developer, complaints from a purchaser and other factors that make legal entanglements almost unavoidable.

Source: therealdeal.com, “More owners sue Chateau Beach developers, contractors over explosion,” Katherine Kallergis, Dec. 8, 2016

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