Kerrane Storz Receives $6.4 Million Arbitration Award Against Dream Finders Homes

LONGMONT, Colo., Oct. 31, 2024 /PRNewswire/ -- The construction defect law firm Kerrane Storz, P.C. achieved a major win this month for the Parkes at Stonebridge Townhome Owners Association against Dream Finders Homes.

Dream Finders built the 92-unit townhome community known as Parkes at Stonebridge in Longmont, Colorado from 2018 to 2021. Dream Finders promised homeowners "peace of mind" when they sold the homes to Coloradans but failed to deliver on that promise. Soon after moving in, the new homeowners noticed serious construction issues throughout the community including crumbling driveways, heaving sidewalks, and sagging garage awnings.

Depending on the season, sidewalks became dangerous due to ice buildup, ponding water, and slippery algae growth. These conditions caused injury to multiple homeowners who slipped and fell. When homeowners reported their safety concerns, Dream Finders responded with haphazard, negligent repairs that failed to fix the construction problems and caused new hazards.

After multiple failed attempts to negotiate a settlement, the Association proceeded to arbitration against Dream Finders. The Association prevailed on its claims of negligence, breach of contract, breach of express warranty, and breach of implied warranty against Dream Finders. The Arbiter awarded the Association $5,733,471 for its cost of repairs and $679,732 for its litigation costs for a total award of $6,413,204. In addition, the Arbiter awarded the Association post-judgment interest on unpaid amounts until the award plus interest is paid in full.

Dream Finders objected to the award for litigation costs, arguing that the purchase agreements for the townhomes - which their lawyers drafted - prevented the recovery of these costs. The Arbiter disagreed, holding:

"Colorado law clearly provides for an award of costs to the prevailing party in a construction defect arbitration. Any express waiver or limitations on these rights are void as against public policy. Of course, actual damages include costs."

"We are thrilled with this award for our client and look forward to seeing the community make much-needed repairs," said Heidi Storz, lead attorney for the community. "This decision will serve other Colorado homeowners by putting developer/builders on notice that they will be held accountable for poor construction despite boilerplate, take-it-or-leave-it waivers they may include in purchase agreements."

Dream Finders has paid part of the arbitration award. As of today's date, however, Dream Finders has not satisfied its obligation to pay the post-judgment interest awarded to the Association by the Arbiter. On October 30, 2024, the Association filed a motion in Boulder County District Court seeking entry of judgment on the arbitration award. The Association plans to enforce the judgment as necessary to hold Dream Finders accountable for all they owe.

As of June 2024, Dream Finders Homes had built and sold almost 2,000 homes across the Front Range. Dream Finders Homes is now selling homes in newly built communities in Arvada, Aurora, Brighton, Broomfield, Littleton, Parker, Strasburg, Berthoud, Fort Collins, and Longmont.

The law firm of Kerrane Storz, P.C. represents Colorado and Texas homeowners and community associations in construction defect matters.

Contact: 
Heidi Storz
hstorz@kerranestorz.com
www.kerranestorz.com