Houston Area Townhome Association Receives $1.22 Million Arbitration Award Against Coventry Homes for Construction Defects

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May 25, 2021, 12:21 ET

IRVING, Texas, May 24, 2021 /PRNewswire/ -- The law firm of Kerrane Storz, P.C. received a major win last month in a Texas arbitration against Coventry Homes for a Houston Area Townhome Association.

The Association is a 36-unit townhome community in the Woodlands, an unincorporated community in Montgomery County, Texas. Coventry Homes constructed the townhomes between 2007 and 2008. By 2012, homeowners reported several roof leaks. Over subsequent years, the community's problems worsened with leaks occurring at balconies and soffits below windows. In addition, the exterior patio fireplaces began collapsing because Coventry Homes failed to install the necessary waterproofing.

Ultimately, a three-arbiter panel from the American Arbitration Association determined that, contrary to Coventry Homes' brochure describing the quality of the construction of the townhomes in glowing terms, Coventry Homes negligently supervised the work of its subcontractors and breached its written warranty by refusing warranty service to homeowners and the Association. These breaches resulted in significant physical damage to the community. The arbiters awarded the Association $1,222,525 for its reasonable cost of repairs, litigation expenses, attorney fees, and prejudgment interest. The Award, which has been completely paid by Coventry, will be used by the Association to pay approximately $363,000 in engineering fees, $252,000 in contractor fees, $160,000 in court costs and other litigation expenses, $100,000 in attorney fees, and approximately $345,000 in future repairs to balconies and other assemblies contributing to water intrusion issues.

The claims against Coventry Homes were made more complicated by the failure of the Woodlands to have adopted any specific building codes at the time of construction that would have established a standard of care for the construction.

"I am glad to see this Association prevail over a large production homebuilder like Coventry Homes," said Danita Glenn, Kerrane Storz, P.C.'s lead attorney for the Association. "Texas homeowners have such an uphill battle to hold developers and builders responsible when they breach their own warranty obligations. It is fortunate this Association will soon be able to start making much needed repairs."

This arbitration is almost certainly one of the first major construction defect awards in Texas conducted entirely over the Zoom teleconferencing platform because of the COVID-19 pandemic. The arbiters virtually presided over the final evidentiary hearings on the merits from January 5-15, 2021.

Coventry Homes is a tradename used by McGuyer Homebuilders, Inc. and MHI Partnership, Ltd. Coventry Homes has built over 55,000 residential units in Texas, including Houston, Dallas-Fort Worth, Austin, and San Antonio.

The law firm of Kerrane Storz, P.C. represents Texas and Colorado homeowners and community associations in construction defect matters.

Contact: Danita Glenn [email protected] www.kerranestorz.com

SOURCE Kerrane Storz, P.C.