Condo Owners Sue Developer Over Workmanship

August 26, 2005

by The Business Journal, Serving Greater Milwaukee

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A group representing owners of the $15 million Highbridge

condominiums on Milwaukee's east side have sued the building's

developer, contending that poor construction and materials have

caused their windows and walls to leak.

The Highbridge Condominium Owners Association, representing owners

of the $300,000 condominiums at 1888 N. Water St., filed suit Monday

in Milwaukee County Circuit Court against New Land Enterprises

L.L.P. The association is seeking $8 million from New Land, which is

owned by Boris Gokhman and Walter Shukh.

New Land built the condominiums in 2000 and 2001, selling 26 of the

27 units.

According to the lawsuit, the condominium owners are frustrated over

the developer's apparent refusal to address their leakage problems --

first reported in 2002. The owners hired a Chicago-based

engineering company -- Wiss, Janney, Elstner Associates Inc. -- to

investigate the problems.

The firm allegedly found that inferior building materials and

construction techniques allowed water to run into the building

around window frames and between the brick veneer and underlying

wood framing, according to the lawsuit. As a result, mold has grown

in various areas -- and water stains are present in other parts of

the building, according to the lawsuit.

The $8 million being sought would cover repairs and compensate

owners for the damage.

Jeff Aiken, an attorney at Whyte Hirschboeck Dudek S.C. in Milwaukee

representing New Land, said he had not seen the lawsuit and could

not comment on it.

New Land Enterprises was founded about 12 years ago. In 2002,

financing troubles forced the company to step down as lead

developers of the 33-story, $52 million Kilbourn Towers condo

project on city-owned property at the corner of North Prospect and

East Kilbourn avenues.

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