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University ApartmentsStorrs, CT: (Feb-18-08) The University of Connecticut (UConn), the owners of Hilltop Apartments, brought a lawsuit against Capstone Development Corporation based in Birmingham, AL, over a botched construction job on the apartment that resulted in numerous safety code violations, including faulty electrical cables. The lawsuit claimed that the construction defects cost UConn roughly $25 million to fix, after Capstone Development refused to return and finish repairs. Construction problems were first revealed in 2004 when inspectors discovered elevated levels of carbon monoxide in some of the apartments. The legal battle has been ongoing since 2004 when the flaws in the apartments' design were first noticed.
Sources close to the case stated that the parties had reached a settlement in which Capstone Development agreed to pay about 76% of the costs spent repairing the apartment complex, though UConn also incurred over $800,000 in legal fees. Sources estimated that the university stands to recoup just under $15 million from the settlement. Though the administration is not able to comment on what occurred during the settlement process, the university did agree that roughly $5 million of the $25 million were meritorious defenses, comprising things like minor material costs. [
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Last updated on Feb-19-08
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