Buccini/Pollin settles class-action lawsuit from homeowners claiming shoddy construction

A yearslong legal fight over who is at fault for rotting structural beams within Wilmington's taxpayer-supported Christina Landing townhomes came to a close just before it was set to go to trial on Monday. 

In 2015, homeowners Jason and Amanda Jones filed the suit against two home warranty companies and the Buccini/Pollin Group, the politically influential builder of the prominent development.

Constructed in 2004 and 2005, the homes were designed to spark a back-to-the-city movement in Wilmington by bringing well-heeled professionals to the economically struggling southern banks of the Christina River.

Yet, much of the hope dissolved years later when the residents learned that the beams holding up their enclosed terraces were rotting away.

A resulting lawsuit claimed breach of contract, negligent construction, negligent repair, breach of warranty, bad faith and consumer fraud.

Last year, a Delaware judge certified the case as a class action over BPG's objections.

On Thursday, lawyers announced that the claims had been settled. 

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Terms of the settlement went undisclosed and neither BPG nor the attorney for the homeowners, Kevin Guerke, would comment for this story. Last year, Guerke had called the suit a "multimillion-dollar class action." 

Now, residents who live among the rows of the stately, 3-story townhomes must decide whether to accept the terms.

When contacted by The News Journal on Monday, Helene Lotierzo, wasn't aware that the years of litigation could be coming to an end. 

She expects that her neighbors will vote to approve the settlement as long as "it's fair." For her, that would mean recouping most of the $35,000 spent, to date, on legal fees and on replacing rotting beams that hold up second and third-floor enclosed terraces. 

"If (the amount) is a slap in the face, then we won't accept it," she said. 

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On Friday, counter-claims that BPG had brought against its construction subcontractors also were settled.

Michael Silverman, an attorney for Sun Builders Inc., said BPG's allegations lacked any "credible evidence" to show that his client had done "anything to play any part in the damage."  

While Silverman settled the claims, he said it was for a "nuisance" amount – small enough to demonstrate that his client was not liable, he said. 

"It was an amount low enough that it made no sense to go to trial," Silverman said. 

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'Widespread leaks'

Until their support beams were found to be rotting away, the enclosed terraces at the prominent townhomes gave residents an unobstructed view of Wilmington's downtown and historic waterway. 

Their construction, just across the river from the Wilmington train station, had been a "public-private project of great importance to the economic vitality of Wilmington and the state," elected officials said in 2005.

As such, the state and the city directed about $25 million to accommodate the construction of the larger Christina Landing development, which included the townhomes and their adjacent high-rise residential buildings.

Less than a decade later, many of the residents were fuming when they learned that a vapor barrier, ice and water guard and metal flashing installed around the skeleton of the structures had failed. 

Last year, Guerke said new “repair costs will be substantial." 

“A contractor has to deconstruct the wall cavity to remove both structural beams, which hold up the terraces, replace them and then rebuild the wall without taking the entire front of the house apart,” he said. “It’s a tricky and complex process."

While BPG may foot the bill for those repairs, now that it has settled the case, it likely will pursue reimbursement of those costs from the two home warranty companies with which it had contracted when it sold the homes.

Buccini/Pollin spokesman Michael Hare last year said the larger dispute "is over whether the warranty company is liable for the damage."

A case in Delaware's federal court, postponed until the completion of the class action between BPG and Home Buyers Warranty Corp. and National Home Insurance Company now looms. 

In previous court filings, the warranty companies claimed the insurance plans didn't cover the defects that caused the rot in the townhomes.

Contact Karl Baker at kbaker@delawareonline.com or (302) 324-2329. Follow him on Twitter @kbaker6.