A settlement is near in the class-action lawsuit over the design, construction and maintenance of the CenterCourt condominium complex on South Upper Street.
The condo owners alleged that poor construction, negligence and building code violations in the complex near the University of Kentucky cost them millions in repairs, rental income from tenants who had to move, and a loss in the value of their units.
Fayette Circuit Judge Pamela Goodwine gave preliminary approval Friday to a proposed settlement agreement. The terms of the deal, contained in a sealed document given to the judge, will not be publicly disclosed.
But informational meetings have been held with condo owners, said Darren Duzyk, the attorney for the plaintiffs.
If the judge gives final approval, the defendants will pay the condo association “agreed upon amounts,” and the money would be used for further remediation of the building and parking garage, court documents say.
In exchange, the condo owners “will release the defendants from all claims of any kind that were or could have been raised in the litigation concerning the remediation on the project,” the documents say.
The final resolution won’t come until after the judge determines the “fairness, reasonableness and adequacy” of the proposed settlement at a Jan. 18 hearing.
The proposal is the result of negotiations and several months of court-ordered mediation.
In the suit filed in July 2016, members of the CenterCourt Condominium Owners Association sought unspecified damages for money they’ve spent repairing balconies and other remediation that has been done and remains to be done on the complex that opened 10 years ago.
Among the defendants sued was Woodford Steel, doing business as WS Construction of Versailles, which was the contractor that built CenterCourt. The company is owned by Gray Construction, but Lexington Mayor Jim Gray was not named as a defendant.
The property was developed by a company in which Lexington lawyer Bill Lear is the registered agent.
Condo owners reported problems such as shifting balconies and water coming from electrical outlets and smoke detectors. The parking garage also requires “remediation,” but what that entails isn’t specified in the preliminary documents.
In addition to their monthly dues, condo owners were billed special “assessments” to pay for repairs. Depending on the square footage, the condos have a fair cash value ranging from $160,000 to more than $300,000, according to property records.
The complex with 156 units is bordered by South Upper, Bolivar, South Mill and Cedar streets. Most of the damage and repair has been on the west side and two courtyards that border South Mill Street.