A $21 million lawsuit over alleged construction defects at a high-end condominium developed by Terra in Miami’s Coconut Grove has settled for a confidential amount after two years of litigation.

The 22-story, 99-unit twin tower Grove at Grand Bay condominium was completed in 2016 to much fanfare, in part over its twisting design and floor-to-ceiling glass offering expansive views of Biscayne Bay. It’s at 2669 and 2675 S. Bayshore Drive.

Grove at Grand Bay Condominium Association Inc. alleged construction defects, including violations of the Florida Building Code, in its suit. The defendants included Terra Grove Communities LLC, an affiliate of developer Terra, the now defunct general contractor Facchina Construction of Florida LLC, the two architecture groups and a slew of subcontractors that worked on everything from the pool to the fire protection system.

Miami-Dade Circuit Judge William Thomas on Dec. 13 issued an order of dismissal with prejudice, adding the court only retains jurisdiction to enforce terms of the settlement.

The dispute was set for trial but then settled through court-ordered mediation, said Stevan Pardo, who chairs the construction, hotel and litigation groups at Pardo Jackson Gainsburg in Miami.

“The terms of the settlement are confidential, but I can tell you it was settled favorably and amicably,” Pardo said. “It was a settlement in which multiple parties participated and I can’t disclose which parties paid what amounts, but there were multiple parties that paid an amount into the aggregate for a settlement favorable for the association given the amount of damages alleged.”

One of the Grove at Grand Bay towers in Miami’s Coconut Grove, 2675 S Bayshore Dr, Miami.


An association-hired expert estimated the damages at more than $21 million, according to a court filing.

Terra and its attorney, Luks, Santaniello, Petrillo & Cohen junior partner David Rosinsky in Fort Lauderdale, and Facchina Construction’s attorney, Watt, Tieder, Hoffar, & Fitzgerald partner Mariela Malfeld, didn’t return a request for comment by deadline.

Terra Grove, in its court response to the association’s amended complaint, denied liability and argued in part the alleged defects occurred because the association didn’t maintain and routinely upkeep the condo, adding the association took control of the building years ago.

“During that time, the building has weathered several severe storms and other environmental conditions that would have necessitated both preventative and remedial maintenance,” Rosinsky wrote in Terra’s answer and affirmative defenses.

The association took over control of the Grove at Grand Bay in August 2017 from Terra. In its complaint, the association said the alleged defects aren’t easily recognizable but take an expert to identify.

Facchina Construction, in its court response, denied the allegations and argued the association has no standing to assert its claims, as it was a party neither to the Terra-Facchina contract for Grove at Grand Bay nor to the payment and performance bond issued insuring Facchina’s work on the project.

Some of the alleged construction defects in the second amended complaint filed in December 2018, or a year after the association first sued, included cracked concrete slabs, walls, columns, beams and canopies that allegedly allowed for water intrusion and corrosion; broken concrete post tension cables; cracking of limestone exterior plaster top finishes; water intrusion; ponding water because of deficient railing pockets; stained and cracking kitchen cabinets and countertops; and water intrusion elsewhere, including under the rooftop pool deck, detaching the waterproof membrane.

The 91-count complaint listed breach of statutory warranty under state statutes, breach of common law implied warranty and negligence counts separately for most of the defendants.