Coquitlam’s tallest skyscraper hit with lawsuit alleging widespread construction defects

[UPDATE: This article has been updated with a response from Marcon Development.]

The owners of Coquitlam’s tallest skyscraper have launched a sprawling lawsuit alleging the landmark 49-storey tower suffers from an extensive list of construction defects.

The civil claim was filed in BC Supreme Court on Aug. 18 by the strata corporation, alleging the 364-unit 567 Clarke + Como building at Clarke Road and Como Lake Avenue in Burquitlam suffers issues with water ingress, heating and ventilation systems, and elevators.

Built in 2021 by Marcon Developments, the lawsuit also targets home warranty providers and a lengthy list of architects, engineers, consultants, contractors and suppliers, alleging defects across virtually every major part of the building.

The allegations have not been proven in court. Responses to the lawsuit were not included in the court filing.

The suit names St. Paul Fire and Marine Insurance Company, doing business as Travelers Insurance Company of Canada, and Definity Insurance Company of Canada, along with several companies associated with developer Marcon, including Marcon Clarke Properties Ltd., Marcon Clarke Limited Partnership and Marcon Developments Ltd. Architects, engineering consultants, contractors and suppliers are also named as defendants.

The strata alleges the condominium has defects in its “materials, workmanship and/or design,” with the court filing devoting several pages to particulars.

Among the most extensive allegations involve the building’s mechanical systems, including missing, inadequate or improperly installed HVAC systems, variable refrigerant flow systems, condensing units, compressors, temperature regulation systems, hot-water heating, fan-coil units, bathroom exhaust fans, air ducts, boilers and other equipment.

The strata also alleges problems with exterior and interior doors and windows, such as improperly installed or applied sealant and caulking, misaligned windows and inadequate weatherstripping.

In the parkade and below-grade portions of the development, the claim alleges problems involving waterproofing membranes, traffic waterproofing, drainage, concrete, foundation-wall waterproofing and membrane termination bars. Other alleged defects include cracks in concrete soffits, problems with exterior walls and cladding, and cracks in balcony soffits.

The lawsuit goes on to allege problems inside the building involving drywall, paint and wall coatings, wall grilles and light fixtures.

The building’s elevators are claimed to have inadequate or improperly installed doors, cables, mechanics, operating systems and floor-access buttons, as well as “rattling, shaking, and free-falling elevators.”

These alleged defects have caused or could cause water ingress, premature deterioration, condensation, corrosion, mould growth and damage to building components, according to the strata.

It further alleges some of the defects create potential safety hazards for residents and visitors, including risks associated with HVAC failure, fire, electrocution, flooding, structural deterioration, toxic mould growth, slipping hazards and elevator malfunctions.

The development was covered by a 2-5-10 new-home warranty under the Homeowner Protection Act – which is meant to protect buyers from costly building mistakes when buying brand new homes. Issued in November 2021, that warranty provided 15-month coverage for defects in materials and labour, two-year coverage for certain systems and building-envelope components, five-year building-envelope coverage and 10-year structural coverage.

Owners allege it reported the defects to the warranty provider but claims the provider breached the warranty by failing to repair covered defects in a timely manner, failing to make reasonable attempts to contact owners to arrange an evaluation and failing to properly investigate and determine claims.

The developer and other defendants are separately accused of negligence and breaches of warranties and duties related to the construction of the building.

The lawsuit alleges the developer and director had a duty to ensure construction complied with the BC Building Code, City of Coquitlam bylaws and other applicable regulations, as well as to ensure defects were repaired before and after occupancy. It also alleges they were responsible for obtaining letters of assurance from consultants and design professionals and submitting them to the city as part of the building permit process.

Similar allegations are made against the project’s architects and engineering consultants, including claims that they failed to properly design, inspect or review aspects of the project and ensure compliance with applicable codes and standards.

The strata claims the alleged failures have left owners facing the cost of investigating and repairing defects, increased maintenance and insurance expenses, higher property-management costs and potential reductions in the value and enjoyment of their homes.

It is seeking damages, repair of defects covered by warranties, court-ordered interest and costs. The claim does not specify a dollar amount. The lawsuit describes the case as a “construction liability and warranty claim” involving alleged building defects, deficiencies and damage.

None of the allegations have been tested in court.

In a statement to the Dispatch, Nic Paolella, executive vice president of Marcon said they are aware of the claim, and believe it is without merit.

“Marcon has worked in good faith with the warranty provider, the strata, and our consultants to meet our warranty obligations and resolve known issues, in many cases going beyond them, and the warranty provider has determined that all filed warranty claims are resolved. Some items in the claim were never brought to our attention; we are reviewing them now and will address them directly with the strata and owners. We stand behind the quality of this building and will defend the claim vigorously.”