A North Naples condominium association has sued homebuilder Lennar Homes, alleging construction defects that violate the Florida Building Code and other standards, resulting in roof and window leaks and other problems.

The lawsuit, filed this month in Collier Circuit Court by Coach Homes I at LaMorada Condominium Association, follows two similar lawsuits filed in October by Carriage Homes at LaMorada and Carriage Homes II at LaMorada, as well as another filed last year by LaMorada at Naples Master Association Inc., which also cited unfunded reserves. The lawsuits target Miami-based Lennar, one of the nation’s largest homebuilders, and are among numerous cases filed in Florida and nationwide alleging construction defects, water intrusion, stucco and roof failures and related issues. Twenty lawsuits have been filed against Lennar in Collier County over the past five years involving similar claims, as well as allegations of false marketing, severe water damage and other defects. In March, the Seminole Tribe sued Lennar Homes in Broward Circuit Court over 552 homes owned and rented by tribe members, alleging construction defects caused excess humidity, mold, spores and dust mites that led to health problems. The tribe terminated its contract before homes were built in Immokalee.

The LaMorada community in North Naples is the subject of multiple lawsuits filed against homebuilder Lennar Homes, alleging construction defects and violations of the Florida Building Code.

 

Lee County records show Westhaven at Gateway Homeowners Association settled its 2022 lawsuit in July for an undisclosed amount after being forced into arbitration over similar issues involving 76 two-story coach homes.

 

Lennar also faces lawsuits in Alabama, South Carolina, California and other states alleging water intrusion, mold, structural issues and related defects. The volume of litigation has prompted several Lennar-focused Facebook groups where homeowners share experiences and warnings.

“If you must buy a Lennar home, do yourself a favor and buy from [an] existing owner who has dealt with the 100s of fixes and the 2 years of headache with Lennar on getting it right,” wrote Jim Walczak, who purchased a Lennar home in Ave Maria in 2023.

Like many builders, Lennar requires homeowners to resolve disputes through arbitration, which limits public access to defect claims. Still, some associations pursue litigation, making certain issues public. The master association lawsuit was dismissed by a Collier Circuit judge, who ruled the contract mandates private arbitration through the American Arbitration Association. A status conference is scheduled for January, with mediation set for April.

In the Seminole Tribe lawsuit, amended in August, a Broward Circuit Court judge ruled last month that 343 homes owned by the tribe could proceed in state court because those contracts lacked arbitration agreements with the tribal council. However, 123 homes purchased by individual tribe members must go through private arbitration, as required by their homeowner warranty agreements.

LaMorada’s issues

LaMorada was primarily built by WCI Communities between 2015 and 2021, with later phases constructed by Lennar after it acquired WCI in 2017. The 200-acre, gated, resort-style community east of Collier Boulevard at Immokalee Road and Woodcrest Drive includes 343 homes — single-family residences, villas and coach and carriage homes — along with lakes, preserves and recreational amenities.

The latest lawsuit alleges the coach homes contain latent, or hidden, defects not discoverable through reasonable inspection but confirmed through expert testing. Such defects can include roof or window leaks that emerge after heavy rainfall.

“The work performed by Lennar’s various design professionals and/or subcontractors in the Coach Homes I Community was negligent, defective, and/or did not comply with the approved plans and specifications, good building practices, the Florida Building Code, and/or other applicable law,” alleges the lawsuit filed by Orlando-based Becker & Poliakoff, which also filed the other LaMorada cases. “Lennar breached its duty by selecting design professionals and/or subcontractors that were careless, incompetent, and/or unfit to perform work in the Coach Homes I Community.”

The lawsuit alleges deviations from approved plans, specifications, good building practices and manufacturers’ installation instructions, asserting Lennar should have known of these issues based on prior experience with the same subcontractors. Similar allegations are made against WCI.

Among the deficiencies cited by experts are water intrusion; roof leaks; exposed roof underlayment; cracked and damaged roof tiles; improper roof slopes, flashing and transitions; window leaks; stucco staining, discoloration, mildew growth and cracking; paint and texture failures; gutter issues; plumbing and backflow-valve problems; and fire-alarm system deficiencies.

Because WCI’s and Lennar’s design professionals and subcontractors operated under agreements akin to employment relationships, the lawsuit alleges the defendants are vicariously liable for resulting damages.

Before turnover to the association, WCI-appointed board members governed the community and owed fiduciary duties, including maintaining buildings and common areas. The lawsuit alleges those board members placed WCI’s interests above the association’s, failed to maintain property and breached duties of loyalty and care.

That conduct, the lawsuit alleges, constituted “a betrayal of trust, an abuse of discretion, biased judgment, fraud, self-dealing, unjust enrichment, bad faith, malfeasance, misfeasance, misconduct, and/or unreasonable conduct.”

The lawsuit also alleges WCI and Lennar knew or should have known that some subcontractors were insolvent or inadequately insured, with policies excluding coverage for construction defects.

WCI’s and Lennar’s attorneys did not respond to requests for comment. Attorney Scott P. Kiernan, who represents the association, declined to comment due to the pending litigation.
Master association claims

The master association lawsuit cites alleged defects involving concrete; stormwater management and drainage systems; parking areas, roads and sidewalks; plumbing and electrical systems; security gates; roofs; clubhouse buildings; recreational facilities; HVAC systems; lighting; and lake erosion.

It alleges WCI failed to comply with the Florida Building Code and other regulations and breached declarations by failing to fund reserves, improperly using resale contributions and deferring expenses until after turnover.

Naples-based BUILD LLC filed a motion to dismiss, arguing defects were not sufficiently specified. In September, Circuit Judge Ramiro Mañalich granted dismissal motions by Lennar and WCI, ruling homeowners’ contracts require arbitration. Last month, he ordered the parties to complete arbitration within 120 days.

Arbitration remains the standard path for most Lennar homeowners. However, in Lennar Carolinas LLC v. Damico, the South Carolina Supreme Court ruled in 2022 that Lennar’s arbitration provisions were “unconscionable and unenforceable” under state law due to their one-sided nature and lack of meaningful negotiation.