When Is A Leak More Than A Leak?

By Billy Brown, Esq., Pursiano Law

When a condominium association has a leak, it may seem like a small hiccup, but to Community Association Managers (CAMs), it’s a call to action. Even a very slow or sporadic leak can be more than meets the eye, often signaling larger construction issues. CAMs possess the prowess to distinguish between a minor drip and a major red flag, armed with the expertise needed to navigate these damp challenges. This generally involves bringing in the right expertise.

In the realm of condominium associations, leaks can stir panic. Understandably so, as they can hint at concealed construction defects that, if left unchecked, can wreak havoc. This is where proactive CAMs step up, using their logic to rescue their associations from such soggy scenarios. By addressing leaks adeptly, CAMs safeguard property from deterioration, shield common areas, and even lay the groundwork for a successful construction defect lawsuit should one become necessary.

Crafting a Winning Strategy: The Power of Templates and Documentation

Tackling leaks, along with other maintenance issues, starts with a systematic approach.  The first step in addressing any maintenance issue is the adoption and follow-through with procedures that ensure each issue is thoroughly documented.  This involves comprehensive documents and record-keeping that details the who, what, when, where, and why, supplemented with photos, reports, correspondence, and invoices.   As even the smallest leak may foreshadow a more extensive construction problem, each matter should be documented accordingly.   

Ignorance is not Bliss

Failure to promptly address leaks in a Florida condominium is a decision fraught with risks, both structural and legal. Left unattended, water infiltration does far more than cause superficial damage; it can compromise the building’s structural components, and electrical systems, and foster mold growth, wood rot and corrosion. Mold often isn’t confined to the unit where it originates—it can spread, posing a health risk to adjacent residents. Furthermore, ignoring leaks can undermine the overall property value, affecting all unit owners in the association.

From a legal standpoint, the consequences are equally troubling. In Florida, leaks are often the first indication of construction defects, particularly for newer properties where poor workmanship or material defects may be the root cause. Failure to properly address leaks may have significant ramifications for such claims while also potentially opening up the Association and CAMs to allegations of negligence and breach of fiduciary duties.

Taking proactive measures to address leaks offers a dual advantage: it not only mitigates immediate structural and health risks but also puts the association in a strong legal position, potentially preserving claims against the developer. Therefore, it is crucial for Boards and CAMs to consult professionals for timely leak detection and repair, preempting costly and damaging complications down the line.

The Art of Inspection

Associations and CAMs must take steps to determine when a leak is not just a leak but a construction defect symptom. In instances where the cause of the leak is not evident, steps must be taken to ascertain its origin – be it a window, roof, or pipe. The CAM should encourage the association to engage contractors, architects or engineers to assess both the leak and adjacent areas for hidden signs of damage and their causation. As skilled as CAMs are, they cannot be expected to recognize and address the causes of leaks or other construction defects, nor should they accept the liability or responsibility of doing so. The best CAMs recognize that outside help is often necessary and prudent.

Bringing in experts for a thorough investigation can prevent future complications. They can differentiate between a minor window seal issue and extensive problem that has or will lead to property damage. What may look like a simple water stain may in fact be the first signs of a massive roofing leak that is compromising structural components. Similarly, a small puddle may not be a cause for concern at first blush, but an expert may find an inter-floor or foundation leak that’s affecting the building’s integrity.

When it comes to leaks, if the source is not readily apparent, then the association should take the necessary steps to ascertain its cause.

DETERMINING RESPONSIBILITY: MAINTENANCE VS. CASUALTY

Florida statutes and the association’s governing documents dictate who is responsible for repairing a leak.  In the context of condominium associations, the classification of water leaks as either a maintenance issue or a casualty event carries significant implications, from financial responsibilities to insurance coverage and legal accountability.  All are water-related problems, but they differ in origin, urgency, and the procedures for addressing them.

When a leak is categorized as a maintenance issue, it usually results from gradual wear and tear—perhaps aging pipes or deteriorating seals.  These leaks are not sudden or unexpected but develop over time, necessitating regular inspections and timely repairs to prevent escalation as the components’ useful life reaches their end. 

The governing documents of a condominium association typically outline who is responsible for addressing leaks.  Common areas, such as laundry rooms or hallways, are generally the responsibility of the association.  On the other hand, leaks originating from within an individual unit, such as a water heater, might fall under the owner’s purview.

Conversely, a leak could be classified as a casualty event if it is the result of a sudden, unforeseeable incident, such as a burst pipe due to a freeze or extensive flooding from a hurricane.  These are abrupt occurrences that require immediate action to mitigate further damage.  Associations usually have insurance policies that cover casualty events, and it is often the role of the Board and CAMs to trigger coverage and coordinate emergency repairs.  In Florida, where hurricanes and other severe weather events can lead to catastrophic leaks, understanding the distinction is particularly crucial.

The way a leak is classified also has legal implications.  If a maintenance-related leak is not appropriately addressed, the association could face lawsuits for negligence or breach of fiduciary duties.  Similarly, an inadequate response to a leak resulting from a casualty event can also lead to legal consequences, including allegations of mismanagement or neglect.

Each leak classification demands a tailored set of actions and responsibilities, both legally and operationally.  Properly identifying the nature of a leak is the first step in managing it effectively, mitigating risks, and fulfilling the association’s obligations to its residents. 

TIP: When addressing property maintenance issues, refer to the governing documents for responsibility.  When dealing with casualty damage, consult Florida Statute 718.111(11)(f).

Conclusion

A leak is seldom just a leak—it’s usually a signature of something important requiring attention.  Sometimes, a leak requires a simple fix; other times, it signals deep-seated construction flaws needing extensive repairs and possible legal action.  Recognizing this distinction, taking measured steps, communicating effectively, and engaging professionals are key aspects of proper responses and community management.

Next time a water damage quandary surfaces in a Florida condominium, bear these guidelines in mind.  Whether you’re dealing with a gradual leak or an abrupt flood, embracing these principles can spare the association considerable hassle and expense. 

Thank you to our guest blogger, Billy Brown, Esq., of Pursiano Law.