Lawyers Get Rich, Homeowners Get Screwed

Edgewater Isle North and South each filed a construction defects lawsuit: South in 1991, North in 1994. Each unit at Edgewater Isle North was required to pay an additional $125 a month to fund litigation (i.e., to pay lawyers) . This expense was to last 24 months when the very nice board gave the owners a break on the last $125 each unit was to fork over. Merry Christmas. But let's do the math anyway.

 $125  per unit
x   224   units
$28,000 per month 

 $28,000  per month
x   23  months
$644,000 total

Edgewater Isle North homeowners shelled out well over one-half of one million dollars, and never received an accounting of it. Where did it go? (Are the lawyers driving new cars?)

After Edgewater Isle (North)'s construction defects lawsuit was settled in May 1998, remedial construction work took place from 2000 - 2001 on all buildings except for Building 18. That building was saved for the end, a big mistake as that's where the expensive problems were. The board of directors blew through the settlement funds, and homeowners were assessed A SECOND TIME to make up for a shortfall to complete the biggest problem.

The reconstruction was done by G B Group out of Gilroy, California.