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Condo Management Company Liable to Owner For Loss of Use Of Condo Unit

Picture this: you’ve just bought a new condo, envisioning a future filled with joyful moments shared with loved ones. But what happens when those dreams are shattered because the condo management company neglects essential repairs for years on end? Robert Jordan, a condo owner, experienced this very nightmare when he encountered a persistent water leak issue in his recently purchased unit. As the battle for justice unfolded, Jordan fought for his rights and the compensation he deserved.

Jordan was the member and manager of FIE and Iberia Tigers, through which he acquired commercial investment properties. He purchased a condo unit at a building managed by New Jax. Soon after he purchased the condo, Jordan saw water leaking below the roof of the building. He reported it to Earl Weber, the president of New Jax’s board, and requested repairs. When New Jax did not repair it, Jordan started withholding the monthly fees he owed New Jax. 

Thereafter, New Jax attempted to fix the issue by cutting through the condo’s ceiling and walls. It placed tarps and plastic sheets around the condo. Jordan claimed the condo was uninhabitable and could not be used for its intended purchase. Jordan communicated with New Jax for years about the ongoing issues and damage and requested updates on the status of repairs. Repairs were not completed until 75 months after Jordan had first reported his condo was unusable. 

Jordan filed a lawsuit against New Jax, claiming the water leak had damaged his condo and he could not use it. New Jax countered seeking payment of the monthly condo assessments Jordan had withheld. At trial, the jury awarded Jordan $1,185,700 for loss of use. The loss of use damages were calculated based on a similar property’s rental value. The court also awarded Jordan $49,862.92 for costs and fees. 

On appeal, New Jax argued the trial court erred in awarding Jordan damages for loss of use. The appellate court explained property ownership entitles the owner to use and possess the property. If those rights are disturbed, the property owner can recover from the person responsible for the damage. See La. C.C. art. 2315. Here, Jordan was entitled to recover from New Jax. The damages for loss of use are compensatory, which means they compensate the owner for the loss from being unable to use the property. Therefore, the trial court did not err in permitting Jordan to recover damages calculated from the rental value of a comparable property.

With respect to the trial court’s award of $49,862.92 to Jordan for costs and fees, Jordan argued he should have received $121,930.40. The appellate court explained the trial court has great discretion in awarding costs and fees. Here, the trial court seemed to follow the procedure for awarding costs under La. C.C.P. art. 1920 in awarding applicable costs and fees. Therefore, the appellate court agreed with the trial court’s award of $49,862.92 to Jordan.

If you find yourself trapped in a situation where your property remains unusable due to prolonged delays in necessary repairs by the management company, there is hope for recourse. The case of Robert Jordan serves as a reminder that loss of use damages can be recovered, granting you the compensation you need to move forward. By seeking the guidance of a skilled attorney who can gather compelling evidence and calculate the loss of use damages, you can take a stand against the management company’s negligence. Don’t let unaddressed repairs derail your dreams – fight for your rights and reclaim the enjoyment of your property.

Additional Sources: FIE, LLC v. New Jax Condo Assoc. Inc. and Earl Weber

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