A. A developer or seller is liable to a purchaser under that Act if they fail to disclose a material fact to a purchaser before selling a unit to that purchaser, at least where they knew or should have known of that fact. The existence of a significant defect is likely to be considered a material fact. Therefore, that fact must be disclosed to the purchaser, at least where that defect should have become apparent to the developer during construction, or at any later date prior to sale.

1. Because some condo projects are developed by companies established solely for a particular development, it can be hard to identify assets to satisfy a warranty claim. The DC Condo Act requires a developer of new condo units, including the new construction portion of a conversion project, to post a bond for 10% of the construction costs with the D.C. government.  Unit owners or associations can make a claim against the bond by sending the required materials to the DC Department of Housing and Community Development (DHCD).  The DHCD determines liability and its ruling may be appealed to the Office of Administrative Hearings.

1. It depends on the basis for the developer’s liability and on the nature of the construction defect. The statutory condominium warranty covers defects occurring within two (2) years from sale of the first unit (for common areas) and from sale of each unit (for defects in the unit). It can be asserted within five (5) years after the warranty starts. A Consumer Protection Act claim must be brought within three (3) years of the time the defect (failure to disclose) is discovered.  A contractual or implied warranty may have a different limitations rule.

A. There is no provision in the Condo Act for an attorney fee award in favor of the prevailing plaintiff. However, under the D.C. Consumer Protection Practices Act, a successful claimant under that Act has a right to receive an attorney fee award.

A. The fact that a developer entity no longer has tangible assets doesn’t necessarily mean a claimant cannot obtain a recovery. Most developers have liability insurance, and the insurance may cover some or all of a developer’s construction defect liability. Also, the developer’s contractors may have assets, and those contractors’ own insurance policies may cover some or all of their liability for the defects.

1. Depending on the strength of the case, yes. We also offer hybrid arrangements involving combinations of hourly and contingent fees.

A. It depends on the terms of our attorney-client agreement. However, we normally seek to recover on the client’s behalf some or all of those expert fees and costs from the developer. If we include a claim that the developer’s conduct violated the Consumer Protection Act, we would also include a claim for an award of attorney fees to our client, as under that Act the court has the power to make an attorney fee award to a prevailing plaintiff.

A. A claimant will have a right to a jury trial unless there is an enforceable arbitration clause in sales agreements or other applicable documents requiring the arbitration of all claims. However, most claims are resolved before trial because most claims settle before the scheduled trial date.

A. No