Developer settles suit with Hudson condo residents

The homeowners' association for a downtown Indianapolis condominium complex that claimed the building’s construction was faulty has settled its lawsuit with the developer.

Terms of the settlement, reached Wednesday, are confidential.

The Hudson Condominium Association Inc. filed the suit in Marion Superior Court in March against The Hudson Condominiums LLC, an entity established by Carmel-based Kosene & Kosene Residential Inc. to develop the project. The complaint also named builder Constructa Inc.

“The association is pleased to have resolved all pending litigation,” said attorney Joseph Chapelle, who represented the association, in a written statement. “The association is moving forward with taking care of the building and any necessary repairs are under way now.”

Kosene began construction on the 70-unit Hudson building at 355 E. Ohio St. in 2004 and finished in 2006. Units in the Hudson range from 901 square feet to 2,804 square feet, and originally sold for $176,350 to $721,517.

The complaint alleged that Hudson residents in 2011 began noticing cracks in the first-floor walls and ceiling. They also noticed a slope in the floor.

An engineering firm hired by the homeowners' association to examine the building concluded that improperly installed truss hangers had slipped, causing the floor trusses to move.

Engineers also determined that improperly placed backfill caused the floor of the basement garage to shift, according to the suit.

The homeowners' association sued Kosene for breach of implied warranty and negligence, and wanted the developer to pay to repair the building.

“We’re happy that we worked together with the association and the insurance company to reach a satisfactory settlement,” David Kosene, president of Kosene & Kosene, told IBJ.

The homeowners' association also filed a similar complaint against its insurer, The Travelers Indemnity Company of America.

Travelers had notified the association that it was denying coverage for the damage. But the association claims that an insurance policy it had with the company that ran through June 2011 should cover the damage.

That suit was dismissed from federal court in Indianapolis in late August.

The Hudson is one of three luxury condo projects, including the Maxwell and Packard, that Kosene has developed downtown and named after classic cars.

Repairs also continue at the Packard at 450 E. Ohio St. after its homeowners' association filed a similar lawsuit against Kosene & Kosene in June. The suit is pending in Marion Superior Court.

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