Shoddy construction in Mirsol development built by KB Home

(TX; Update) Untreated wood for exterior walls, improperly anchored sole plates, missing felt and vapor barriers, bad shingle work, improperly anchored brick and poorly installed roof decks. San Antonio Housing Authority (SAHA) first defended the project. But as complaints mounted, demanded repairs from KB Home until, in April 2007, SAHA sued KB Home and Magi Realty.

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Mirasol suit: Complex debate over ‘complex designation'

By Carlos Guerra

When I saw all the suits in Judge Antonia Arteaga's State District Court on Monday — with most in spectator seats — I knew the second Mirasol lawsuit would be a doozie, pitting working-class San Antonians against some of real estate's heaviest hitters.

But the main players were three plaintiff's lawyers and four for the defense — led by Roger Kirstien, who faced an uphill battle against Frank Herrera's motion to have one judge consider all the cases.

Mirasol is a 250-home project that the San Antonio Housing Authority contracted KB Home and Magi Realty to develop as affordable housing, some for sale and some for rent.

The 72 homes sold went for $60,000 to $80,000, but complaints arose almost immediately about poor design and shoddy construction, like the use of untreated wood for exterior walls, improperly anchored sole plates and missing felt and vapor barriers. There was also bad shingle work, improperly anchored brick and poorly installed roof decks.

SAHA officials first defended the project. But as complaints mounted, they demanded repairs from KB Home until, in April 2007, SAHA sued both KB Home and Magi Realty.

Since SAHA had already sold many of the homes, however, it could not represent the owners. So the agency volunteered to share its information with homeowners who might seek relief in court.

Herrera filed suit last May on behalf of 23 homeowners. And last week, a flurry of motions erupted as the list of plaintiffs grew to 45 and Herrera asked to have their cases considered under a “complex designation.” Defendants countered with motions to dismiss, consolidate and sever the claims.

The Mirasol claims cannot be lumped into a single class-action case, so the key fight was over the motion for complex designation that would empower the monitoring judge to send all related cases and pretrial issues to one judge.

Herrera argued that the designation was necessary because he already had 45 plaintiffs and the three main defendants had brought in 23 third-party defendants on their side. There will be “thousands of documents from SAHA and the defendants,” numerous experts and lots of depositions, Herrera said. He shouldn't have to “educate” multiple judges and present expensive experts individually for each case, he argued.

Kirstein argued that the designation is unnecessary because these claims are no different from other construction claims and each should be considered individually. Besides, he added, the homeowners should join SAHA's suit instead of filing another one.

In the end, Arteaga — who usually handles family law cases — said it was difficult not to grant the complex designation with so many parties already involved, and — judging from the number of lawyers in her courtroom watching out for their clients' interests because they might also become involved — she would rule for the homeowners.

She then let defense attorney Kirstein blindly pick the judge from a container with jurists' names written on slips of paper.

And she made no secret of the fact that she hoped she would not win that lottery.

http://www.mysanantonio.com/news/columnists/carlos_guerra/49470577.html