Pursiano Secures $26.5 Million Settlement in Construction Defect Case Involving Luxury Winter Park Townhomes
Pursiano, a Florida law firm specializing in construction defect litigation, has secured a $26.5 million settlement on behalf of the Park Hill Owners Association, an exclusive 10-unit luxury townhome community located on Park Avenue in Winter Park, Florida.
The settlement resolves claims against Hill/Gray Seven, L.L.C., along with the developers’ designers and general contractors, concerning extensive design and construction defects throughout the multi-million-dollar residential development.
The $26.5 million recovery is particularly significant because it exceeds the community’s original development cost of approximately $15 million when the project was completed in 2019. The substantial settlement highlights the potential financial impact of serious construction defects, particularly when widespread reconstruction is required years after a project’s initial completion.
With only 10 residences in the Park Hill community, the settlement also represents an unusually high recovery on a per-home basis, underscoring the scope and severity of the alleged construction deficiencies identified during the litigation.
Early Warning Signs Led to Comprehensive Investigation
The Park Hill community was completed in November 2019 and marketed as a high-end residential development designed to provide an exclusive living experience in one of Winter Park’s most desirable locations.
Within approximately two years, however, homeowners began identifying signs that raised concerns about the performance of the buildings. These issues included elevated interior humidity, localized condensation, and early indications of water intrusion within certain units.
Although these symptoms appeared relatively subtle at first, they can be indicators of more significant problems involving a building’s exterior envelope, waterproofing systems, and mechanical infrastructure. According to Pursiano, initial assessments by members of the development and construction team characterized the issues as relatively minor and potentially easy to correct.
The Park Hill Owners Association retained Pursiano in 2022 to conduct a more comprehensive evaluation of the community. The firm’s investigation was led by partners Rob Simon, Jason Bruce, and Andrew Celauro, working alongside a team of forensic architects, engineers, building scientists, and other construction professionals with experience in complex defect investigations.
Following the technical investigation, Pursiano filed a lawsuit in 2023.
Forensic Testing Identified Multiple Building-System Failures
The investigation uncovered what the firm characterized as pervasive failures involving several critical components of the buildings’ design and construction. Rather than being isolated maintenance concerns, the issues were found across major exterior and mechanical systems.
One significant area of concern involved the community’s stone and masonry veneer. Forensic testing identified widespread problems with the attachment of heavy manufactured stone veneer panels. The condition presented potential safety concerns because improperly secured exterior panels can create risks to residents, visitors, and surrounding property.
Instead of replacing the affected stone during the original construction process, localized repairs were reportedly undertaken. These repairs included drilling mechanical anchors through the center of stone panels in an effort to stabilize the facade.
According to the investigation, the repair method compromised the underlying water-resistive barrier by penetrating the exterior envelope. As a result, the attempted repairs did not fully address the attachment deficiencies and contributed to additional water-intrusion concerns.
Waterproofing Deficiencies Across the Community
The investigation also identified significant deficiencies involving building and window waterproofing systems. According to Pursiano, waterproofing components were improperly installed or incomplete, allowing water to penetrate the buildings’ exterior envelopes.
Water intrusion can cause extensive damage when it reaches concealed areas of a building. Moisture that enters wall cavities, ceilings, or other enclosed assemblies can remain undetected for extended periods, potentially leading to deterioration, mold growth, and costly reconstruction.
At Park Hill, the forensic evidence indicated that water intrusion was not limited to one isolated residence but affected all 10 units in the community.
HVAC Problems Added to Interior Climate Issues
The forensic investigation also identified problems involving the heating, ventilation, and air-conditioning systems. Incorrectly sized HVAC equipment and anomalies in the ductwork reportedly contributed to severe interior climate imbalances and elevated humidity levels.
Persistent humidity can create an environment conducive to mold development, particularly when moisture becomes trapped within concealed building assemblies. In the Park Hill community, the resulting conditions required mold remediation within ceiling cavities, adding another layer of complexity to the reconstruction effort.
Jason Bruce, a partner at Pursiano, emphasized the scale of the deficiencies uncovered during the investigation.
“Witnessing design failures of this magnitude across multiple building systems was deeply concerning,” Bruce said. “This was a pervasive breakdown where a basic patch or superficial repair was never a viable or responsible option. Every major component required a deep, data-driven investigation to ensure we secured a recovery that fully reflects the true financial scope of a total exterior rebuild.”
Technical Evidence Supports Major Settlement
The case demonstrates the importance of detailed forensic investigation in complex construction defect disputes. Rather than treating individual symptoms as isolated maintenance issues, Pursiano’s team evaluated the relationships between the buildings’ structural, waterproofing, exterior-envelope, and HVAC systems.
The investigation generated technical evidence documenting the extent of the alleged failures and the work required to address them. The firm then used this evidence throughout the litigation to establish the financial implications associated with comprehensive reconstruction.
Ultimately, the technical findings and litigation strategy helped the Park Hill Owners Association secure a $26.5 million settlement.
The outcome highlights the significant costs that can arise when construction and design deficiencies affect multiple building systems. For luxury developments in particular, complex architectural designs and specialized exterior materials can make defect investigations and reconstruction considerably more challenging.
The Park Hill settlement also illustrates how early signs such as condensation, elevated humidity, and isolated water intrusion can potentially point to broader building-envelope or mechanical-system problems. Comprehensive forensic testing can help property owners determine the underlying causes and understand the full scope of necessary repairs.
For the Park Hill Owners Association, the settlement provides a substantial financial recovery following years of investigation and litigation, while underscoring the importance of technical expertise in resolving complex construction defect claims.
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