Cases & Deals

National owner of multifamily residential and commercial apartment complexes resolves multiple claims against general contractor and design professionals for severe construction and design defects

Clients National owner of multi-family residential and commercial projects

Jones Day represented a national owner of multifamily residential and commercial apartment complexes in Charlotte, North Carolina, Columbus, Ohio, and Pittsburgh, Pennsylvania, in connection with multiple claims against the general contractor and design professionals for severe construction and design defects. The claims involved ten multifamily apartment projects with well over 3,100 individual apartments and claims for damages in excess of $41 million. Jones Day attorneys in Columbus and Pittsburgh represented Owner in multiple federal and state court actions, voluntary and court-ordered mediations, and the subsequent sale of a portion of the apartment portfolio.

Claims against the design professional were resolved in confidential mediations. Claims against the general contractor were made in five separate state-court actions in Columbus and Pittsburgh and consolidated before a single judge in each state for the purposes of discovery. The litigation involved approximately 95 parties with multiple depositions, document productions, expert evaluations, and dispositive motions. Upon resolving the Owner's claims against the general contractor, the Owner was assigned the general contractor's claims against the subcontractors who performed the defective work at the apartment complexes. The Owner was able to resolve some of the remaining claims through mediation and others were not resolved until after jury selection was completed.

Jones Day also represented the Owner with respect to insurance matters that arose as a result of the damages to the apartment complexes. Jones Day defended multiple actions brought by the general contractor's and subcontractors’ insurers in Ohio and Pennsylvania federal and state courts to attempt to deny coverage for the significant damages, including successfully intervening in an Ohio federal court action to protect the sole source of recovery for the general contractors' liability at one of the properties. Jones Day also pursued first-party insurance claims, obtaining settlements including, in one instance, after obtaining summary judgment in the Owner's favor with respect to the meaning of an "ensuing loss" under the property policy.

In addition, Jones Day represented the Owner in the sale of its interest in more than 3,000 residential apartments and significant commercial space across North Carolina, Pennsylvania, and Ohio.

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