Northwest Portland Pearl Lofts Owners Cite Shoddy Work, Press Suit

February 27, 2001
The Oregonian
By David Austin

Summary: The plaintiffs say their expensive 6-year-old condos have leaky windows, mildew and other faults

When William Weinstein moved into the Pearl Lofts about half a dozen years ago, he thought of himself as a pioneer.

The lofts, a set of condominiums at 1009 N.W. Hoyt St. in the Pearl District, were one of the first large housing developments to rise out of the new neighborhood, which was just starting to evolve from a collection of warehouses and rail sidings into an upscale residential area.

"There was a lot of love, pride and ownership that went into being one of the first to move in here," said Weinstein, who runs his own environmental technology company. "We felt proud that we were the first people to make a statement about living in a revitalized area. We were true pioneers."

Since then, the Pearl has become home to high-priced condos, night clubs, trendy apartments and restaurants.

But the residents of the Pearl Lofts haven't been able to completely enjoy the experience. Instead, Weinstein and 24 other homeowners see themselves as the victims of shoddy workmanship, leaky windows and other problems that have reduced the value of their condos.

"You have a symphony of defects at the Pearl Lofts," said Dean Aldrich, a Portland lawyer who represents the homeowners. "The window company has the most extensive solo. (It's) trying to give some solo time to the developer and the builder.

"It's a shame from the homeowners' perspective because they all have to wait on a building that's a complete mess. This isn't something any reasonable person should be expected to deal with in a building that's just six years old."

The Pearl Lofts homeowners association and its residents filed a lawsuit two years ago, but the case has moved too slowly for their liking. A May 7 trial date has been set to resolve the matter in Multnomah County Circuit Court.

Three companies named

The suit names three companies operated by developer Patrick Prendergast, Walsh Construction and Weather Shield Windows as defendants. Several other defendants have been attached to the suit by the original defendants, according to court records.

The plaintiffs say moisture leaked through the windows and other parts of the building shortly after it was completed in 1994. When the matter was brought to the attention of the defendants, they made some repairs in 1996.

But the problems continued, the plaintiffs say, resulting in bulging walls and cracks in the building's facade. They say many of the condos have dry rot, mold and mildew from wood inside the walls that continues to get water damage.

Mark Gorman, who lives in one of the condos with his wife, Leta, said he first noticed the problem when he looked at the French doors that lead out to a deck.

"I just thought we had bad door frames," he recalled. "You could see the damage around the edges, and I was just thinking we needed to get new framing done."

Massive mold and mildew

But when the couple decided to do some remodeling, he said they found massive amounts of mold and mildew coating the wood behind the drywall. The wood was so damaged that it was completely discolored.

For his part, Prendergast admitted that the condos have problems. But he placed the blame on the windows, not on his role in the project.

"The culprit in the whole thing is Weather Shield Windows," Prendergast said. "The homeowners do have a problem, and I understand that they're anxious to have it resolved.

"But you can't just say to the developer: 'The windows are faulty, so write me a check.' There's a process you have to go through that doesn't allow that kind of latitude. I want to help these people as bad as the next person, but it will get fixed. It just takes time to sort out the legal stuff."

Weather Shield officials, based in Wisconsin, did not return repeated phone message requests for interviews. But Elizabeth Schleuning, a Portland attorney who represents the window company, said in an e-mail that her client isn't to blame.

"Weather Shield has sold hundreds of thousands of these windows, and when they have been installed properly and flashed properly, these windows experience no water intrusion problems," Schleuning wrote. "We are aware of a number of construction errors and defects, as well as building design defects at Pearl Lofts, which have caused the water intrusion issues the homeowners have experienced."

Bob Walsh, who runs Walsh Construction, also admitted that there are problems. But he placed the blame on the windows as well. He added that once the plaintiffs filed a lawsuit, the matter was out of his hands.

The reason is that most developers and builders carry liability insurance to cover problems that might arise during a project. In the Pearl Lofts case, Walsh said, attorneys for his insurance carrier are handling the suit. "It's out of everybody's hands now," he said.

Repairs set at $1.5 million

The plaintiffs say it will take $1.5 million to repair the damage to the condos and possibly an additional $200,000 in legal fees. As it stands now, both sides are supposed to meet next month with a mediator to see whether an agreement can be reached.

Weinstein has his doubts, pointing out that an attempt at mediation last year "failed miserably."

"There is no way words can point out how much time and effort we've put into rectifying this situation," Weinstein said. "We're hard-working people, and we're committed to helping improve this area. All we want is to be made whole again. "

Walsh and Prendergast said they tried to work with the homeowners to take care of the problem, but now it's up to the courts to decide the solution.