The “Catch-22” of HOA Construction Defect Litigation

The dictionary defines “catch-22” as “a dilemma or difficult circumstance from which there is no escape because of mutually conflicting or dependent conditions.” In many respects, a “catch-22” situation is inherent in HOA construction defects litigation. This often becomes apparent after a construction defect case has been successfully resolved and the homeowners association has received proceeds from the case. Appreciating the dilemma necessitates a basic understanding of how construction defect litigation is handled by the lawyers who represent the homeowners association.

Nearly all construction defect cases brought by homeowners associations are based on “contingent fee” relationships with the attorneys who represent the homeowners association. Typically, under the terms of such a relationship, the attorney receives[…]