Reaching a Favorable Settlement in a Multi-Party Construction Defects Case

Turner Padget represented a national manufacturer of an Exterior Insulation and Finish System (EIFS) in a multi-party case that involved alleged construction defects in a luxury oceanfront condominium complex on Hilton Head Island, South Carolina.

The Plaintiffs alleged that their building suffered damage as a result of various construction defects, such as water intrusion at several locations, including the roof, windows and doors, and the EIFS. They sought over $17 million in damages.

This multi-party case was notable for the complexity of the factual issues, which ultimately resulted in the taking of more than ten depositions of experts prior to trial. One critical issue involved a construction product manufacturer’s warranty liability for an alleged defect that touched on design, application, and coordination of trades issues. Notable legal issues were also briefed and argued, including the application of the statute of limitations in construction defect cases, the application of the economic loss rule where the damages alleged by Plaintiffs were limited to the condominium building itself, and application of the South Carolina Unfair Trade Practices Act in construction defect cases.

Turner Padget was able to achieve summary judgment on cross-claims filed against our client by various co-Defendants, thus successfully positioning itself to achieve a favorable settlement with the Plaintiffs as the first of the many defendants to successfully negotiate a deal with Plaintiffs. Thereafter, following numerous mediations, the selection of the trial jury, and four days of pre-trial motions, this case reached a global settlement resolution.