S.C. Court Articulates Damages POA was Entitled to Recover in Construction Defect Litigation

South Carolina Appellate Court decision (August 2, 2017)

This case involved claims by a property owners association (“POA”) for defective construction of a 36 unit condominium project. Claims alleged by the POA included damages for: (i) failure to soundproof as represented in marketing materials; (ii) leaks caused by air-conditioning units, plumbing, and improperly installed windows and doors; and (iii) resulting warping floors and mold in individual units.  The POA alleged that the cost of repairs was estimated at $11,807,884 and prior to going to trial, the POA settlement with some of the parties that were sued for $7,702,552.

The trial court found the remaining defendants liable to the POA and awarded damages against them damages for such items as: (i) $7,934,704 for the costs of necessary repairs; (ii) $793,470 for engineering fees; (iii) $641,520 for owner moving, storage, and replacement lodging. The trial court also awarded various individual unit owners damages in differing amounts for items such as: (i) loss of market access; (ii) loss of  rent; (iii) inconvenience; (iv) out of pocket costs; and (v) costs due to defective floors. The appealing defendants contended that the trial court had to allocate damages among the various causes of action and setoff the total amount the POA received from the settlements before the trial against the amount of the trial court’s judgment.