ANOTHER REASON NOT TO DELAY THE FILING OF A CONSTRUCTION DEFECT CLAIM – RECOVERING THE PROFITSPosted on by dev
We have seen an influx of condominium construction defect claims in the Pasadena and Downtown Los Angeles area. Many of the condominium projects in these areas were built by inexperienced, underfunded, and underinsured builders. These builders tend to distribute profits to their members and dissolve immediately after the condominium projects are completed. As a result, the property owners should assert any construction defects claims that they have without delay because there are statutes that restrict the time within which the profit distributions can be recovered. For example, the time to set aside the profit distribution to the members of an LLC is limited to four years after its dissolution. Because these builders are often times underinsured, setting aside their profit distributions becomes an important part of obtaining a successful construction defect recovery.