OUTCOME: Over 2 million dollars in settlement funds recovered
Aldrich Eike represented two distinct Condominium Complexes in Florence, Oregon in construction defect litigation against two different developers and numerous contractors and subcontractors. One case ...involves 11 residential units and a commercial space and the other consists of 34 individual condominiums. Both complexes are primarily vacation homes and rentals. These two cases present unique issues involving lost rental income, provincial coastal labor forces and the severe weather exposure of the Oregon coast. Aldrich Eike has unique experience in litigating these types of cases, which will prove to be an asset to these two communities.
Construction and development
Nehalem Hilltop
Oct 13, 2015
OUTCOME: High 6 figure settlement
Aldrich Eike represented a 19-unit self-managed condominium association against the developer and builder of the homes, which were constructed in 2004-2005 and sold, some sold through auction. The cond...ominiums were self-managed by the owners without the benefit of a property manager, which created a unique opportunity for Aldrich Eike to assist the Association with not only their construction defect claim, but also their day-to-day HOA operations. When the homeowners came to our firm, they had already performed investigation of the construction defects and damage to select portions of the homes (the ocean facing elevations), which identified water intrusion and damage near the windows. The owners worked with the builder’s insurance company directly and had negotiated a potential settlement of $56,000 with the insurer. Cautious, the owners retained Aldrich Eike to review the settlement agreement/release proposed by the insurer for the builder. Aldrich Eike immediately identified that the proposed release related to the entire project, all homes, all defects and damage, whether known or UNKNOWN, even though the investigation had been limited to only the ocean facing elevations of the homes. This is a common practice of insurance companies to try to pull the wool over the eyes of unsuspecting and trusting homeowners before they retain qualified legal counsel. Ultimately, Aldrich Eike pursued all claims on behalf of the owners and negotiated a settlement of $550,000, nearly 10 times what was initially offered by the insurer. The owners fully repaired their homes in 2014 with the settlement funds. Those repairs included replacement of all siding and trim, roof work, deck work, and waterproofing windows and doors. This case presents an example of a unique fee structure virtually unheard of in construction defect cases, but offered by Aldrich Eike. Aldrich Eike and the owners’ association began on an hourly fee structure where the owners paid Aldrich Eike for its work each month on an hourly basis. As the case progressed, it was apparent it would be a protracted battle and the owners decided to convert their agreement with Aldrich Eike to a contingency fee basis where fees were taken out of the ultimate settlement, and the owners were credited back every dollar they paid on an hourly basis before the switch to a contingency fee structure.
Real estate
Willamette Estates
May 05, 2011
OUTCOME: Favorable settlement
Aldrich Eike represented the owner/developer/builder of a large luxury Apartment complex named Willamette Estates in Salem, Oregon in pursuing claims against the civil engineer and architect of record ...for the construction of the project. The claims were for expenses and repair costs incurred in defending claims levied against the client for alleged violations of the United States Department of Housing and Urban Development Fair Housing Act. The civil engineer and architect were defended by seasoned attorneys from the two largest law firms in Oregon, Stoel Rives and Schwabe Williamson and Wyatt. After over two years of fierce technical code driven litigation, Aldrich Eike obtained a large six figure settlement from a combination of the civil engineer and architect and their insurance carriers
