Downtown condo association again files suit for building damage

The homeowners’ association for a downtown Indianapolis condominium complex again is suing the owner and builder after a new round of problems caused about $6 million in damage to the structure.

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

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 condo association first filed suit in March 2012, alleging that residents in 2011 began noticing cracks in the first-floor walls and ceiling. They also noticed a slope in the floor and wanted the developer to pay to repair the building.

Kosene and the association reached a settlement in January 2013.

In January of this year, a sprinkler pipe in the ceiling of a third-floor Hudson condo unit burst, the latest suit says, causing water to cascade down through units on the second and first floors and into the garage.

The following month another pipe burst on the third floor, causing damage to a unit, as well as to the manager’s office and clubroom, the suit claims.

The association retained engineering firm American Structurepoint to examine the building. An engineer at the firm identified substantial construction and design defects that led to the property damage, according to the complaint.

The association is suing for breach of implied warranty and negligence.

The insurance carrier for the association declined to pay for repairs, prompting the suit, said Joseph Chapelle, lawyer for the association.

“We’re very disappointed that we’ve had to sue the Kosene entities again,” he said. “We’re cautiously optimistic we’ll be able to work out a settlement with the insurers of the subcontractors.”

Kosene & Kosene President David Kosene said the firm is reviewing the allegations and conducting an investigation.

“We take the allegations seriously,” he said, “and we’re committed to finding out the validity of the issues to reach an amicable solution.”

Constructa officials didn't immediately return a call Wednesday morning seeking comment.

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

The homeowners association at the Packard at 450 E. Ohio St. filed a similar lawsuit against Kosene & Kosene in June 2012. That suit was settled in August 2014.