Looking for some advice - building failure; partial collapse

[Calvin Thomas]

Very weird situation we have got ourselves into. We purchased a major rehab building in New York about a year ago.  The real estate agent was also in property management, ran his own PM firm and his family has run a construction company for several decades.  We've used him before in the past to purchase properties, but never to manage and head construction on a six story rebuild. It was completed recently and tenants signed the leases and were to move in on Sept.15th; opening day. Well, about a week prior we had a bad storm, flooding and high winds.  The main pipe couldn't handle all of the water and just sat on the new roof; which failed. All floors below were flooded and needed to be rebuilt.  I sent the info to my attorney, and he sent a demand letter; which no on responded to. We then went after the contractor who did the work that the realtor hired; but they declined as they do not cover poor workmanship.  The attorney estimates that it will cost between 50k - 75k to file suit, and I've already given him around 6k for legal fees. He suggests writing a complaint against his license with the New York Department of State and see if they will force his E & O to pickup the claim. The 1st building rehabilitation cost around $650k.  Tp repair the building a second time cost around an additional 110k.

Certainly in a pickle here.  Open to some possible solutions.

[John Mocker]

Calvin,

Did you check with your carrier on this loss.  If it is a covered loss, the company may pursue the contractor/PM if they feel they can recoup all or part of the loss.