DALTX Real EstateDALTX Real EstateDALTX Real Estate
  • Home
  • Guest Post
  • Agents
  • Contact Us
  • About
  • Advertise With Us
Reading: Catastrophic Damage: Can HOAs Absolve Themselves of Responsibility? Preston Tower Court Case May Provide Guidance
Share
Font ResizerAa
DALTX Real EstateDALTX Real Estate
Font ResizerAa
  • Home
  • Guest Post
  • Agents
  • Contact Us
  • About
  • Advertise With Us
  • Home
  • Guest Post
  • Agents
  • Contact Us
  • About
  • Advertise With Us
Follow US
© DALTX. All Rights Reserved.
DALTX Real Estate > Uncategorized > Catastrophic Damage: Can HOAs Absolve Themselves of Responsibility? Preston Tower Court Case May Provide Guidance
Uncategorized

Catastrophic Damage: Can HOAs Absolve Themselves of Responsibility? Preston Tower Court Case May Provide Guidance

4 Min Read
SHARE

Preston-Tower-Small

Do homeowners’ associations (HOAs) have the ability or right to hold their buildings blameless when an accident occurs that the building is admittedly responsible for?  At first blush, I’d have thought that they were on the hook.  After all, part of what homeowners pay in HOA dues goes towards funding large insurance policies for just such occurrences.  I’d have also thought they couldn’t scamper away because if the same damage were caused by a neighbor, it would be the neighbor who paid to repair any damages. Why would an HOA be any different?

We may well get a good indication of this legal construct soon.  A case has been winding its way through the Dallas courts for over a year involving Preston Tower and one of their owners.

You may recall in February 2015 there was a pretty catastrophic flood at Preston Tower when a water booster pump failed and sent water cascading from the penthouse level pretty much to the ground.  The gush of water poured unabated for 80 minutes through the building.

It was decided by the HOA Board, management company Intercity Investments (ICI) and likely others that instead of the building’s insurance company forking out for the repairs to so many units, they’d fob off the cost of unit repairs to homeowners and their individual policies.

Why this decision was made, I do not know. Certainly it was cheaper for the HOA.  Would the resulting rate increase to the building’s insurance been too much to bear? Would the claim have made it difficult-to-impossible to get insurance in future? (Because you know insurance companies, they love to collect premiums and punish for claims.)

One owner said “no” and sued the HOA and ICI.  I won’t bore you with the details (there’s over 300 pages of court paperwork filled with claims and counterclaims) but suffice it to say the booster pump was located inside the wall and clearly the purview of the building to service and maintain and therefore also their responsibility in the event of a failure.

(For those who want to read more, click here and enter case number DC-15-08890.)

If the HOA wins, the result should cause all homeowners within any HOA to review and force their HOA Boards to spell out specifically what their responsibilities are when catastrophic damage occurs.  After all, if the building is afraid of rising premiums, so should the homeowner if they’re now responsible for building infrastructure failures that damage their homes.

Condo insurance policies generally cover from the drywall in while the building policy covers what’s behind the drywall.  Regardless of the age of a building, failures occur. Of course because of gravity, water is the enemy of all high-rises as was the case at Preston Tower.

This case has been going on for over a year and on December 14, there will be a hearing where the homeowner is asking for summary judgement and a motion for costs.

Stay tuned.

P.S. It goes without saying that I’m not a lawyer nor have I ever played one on TV.

Remember:  High-rises, HOAs and renovation are my beat. But I also appreciate modern and historical architecture balanced against the YIMBY movement.  If you’re interested in hosting a Candysdirt.com Staff Meeting event, I’m your guy. In 2016, my writing was recognized with Bronze and Silver awards from the National Association of Real Estate Editors.  Have a story to tell or a marriage proposal to make?  Shoot me an email [email protected].

Hollywood Street Artist Has a Little Real Estate Fun With Presidential Election
Grand Vie is Out, and Lake Tahoe is Very Much IN
Why Care About Fair Park: Because Dallas North of the Trinity Foots Most of the Bills
Museum Tower Gets New Neighbor — Office Building With Ground-Floor Retail
Lakewood Home Festival Has its Name in Lights
TAGGED:Condo Living
Share This Article
Facebook Email Copy Link Print
Previous Article Beckley Club Estates Home Brims Over With Original Architectural, Style Details
Next Article Live East Dallas Cool in this Lake Highland Estates Midcentury Modern Home
Popular News
East Texas Ranch

Find Home on the Range With This 100+ Acre Classic East Texas Ranch

Three Things to Know: Inflation Drops, Oil Prices Rise, And There’s No Quick Fix In Sight
Hurry To Catch This Charmer On Mockingbird Lane
Sometimes You Need a Vacation Home to Find Your "Inner Peas"
Ebby App Taps Into Market Trend Toward Digital Homebuying Research
about us

DaltxRealEstate.com is the largest real estate blog and the only one in North Texas.

Links

  • Privacy Policy
  • Terms of Service
  • Contact Us
  • Paid Guest Post Submission

Categories

  • Wednesday WTF
  • East Dallas
  • Monday Morning Millionaire
  • Upon Closer Inspection

Get Involved

  • Advertise With Us
  • Write for Us: Submit Guest Post

Find Us on Socials

© DALTX. All Rights Reserved.
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?