On Jan. 21, residents of Avalon at Edgewater, a luxury apartment complex in Edgewater, N.J., watched in horror as their apartments and all their belongings were destroyed by a massive fire. Luckily only two residents and two firefighters sustained minor injuries, although several pets may have died in the fire.
Maintenance workers doing plumbing repairs with a blow torch in the wall of an apartment reportedly started the fire. They called their supervisor when the fire started before calling 911, and the fire quickly raged out of control.
In the immediate aftermath, people were focused on what happened and why, and whether the fire could have been prevented. Edgewater Fire Chief Tom Jacobson said that the lightweight, wooden construction of the Avalon Bay complex allowed the flames to spread so rapidly. "If it was made out of concrete and cinder block, we wouldn't have this sort of problem," he added.
In a statement released Jan. 22, AvalonBay Communities, owners of the complex, said the building met fire and safety codes. "The purpose of those codes is not to prevent the building from burning down, but rather to ensure that there is sufficient time and opportunity for all occupants to exit safely in the event of a fire," the company said in its statement. "We are grateful that everyone at Avalon at Edgewater was able to leave the building and get to safety without serious injury."
On Feb. 18, AvalonBay announced that it will add fire protection systems that comply with national standards to its housing projects in Princeton and Maplewood, New Jersey. The national standards are stricter than those of current state and local building codes. According to published reports, the new projects will incorporate more sprinklers throughout the complex, including in the attics and closets and between ceilings and floors. It will also install masonry firewalls.
Three lawsuits filed so far
Barely a week after the fire, two tenants of the apartment complex filed a class action lawsuit on behalf of all the residents in Bergen County (N.J.) Superior Court. The suit seeks to recover for all property damages caused by Avalon and its employees, including the loss of use or deprivation of property, the reimbursement of any rent payments made for the time during which the apartments were inhabitable, the recovery for any improvements made by the tenants, and any other expenses incurred by the tenants as a direct result of the fire, such as food, clothing, housing, relocation, transportation, medicine, medical treatment, and "such other items as are necessary to continue one's activities of daily living." This suit isn't claiming damages for personal injuries.
The complaint claims, among other allegations, that AvalonBay was negligent "particularly in light of its past track record with fire incidents." The complaint further alleges that the company knew or should have known of the risk of fire during construction and for maintenance, and that the risk was increased when using lightweight wood construction and when allowing a blowtorch to be used in close proximity to the flammable materials.
In the second case, also filed in Bergen County Superior Court, a mother and daughter are suing AvalonBay claiming mental anguish and emotional distress as well as economic loss. This case was not filed as a class action, because, according to Michael Epstein, who represents the plaintiffs, every victim of the fire has independent and different losses, and a class action was not appropriate.
The third is another class action case, this one filed in federal court, claiming $5 million in damages on behalf of all the residents of Avalon at Edgewater. But these plaintiffs lived in a building next to the one that burned down, according to the suit. Like the other two cases, this one also alleges that AvalonBay was negligent in the way the buildings were built and their maintenance.
Renter's insurance was required
Like many large landlords, AvalonBay required its tenants to have at least $10,000 of insurance coverage for their belongings and $100,000 in liability insurance. The coverage will allow residents to replace some of their belongings but not all, explains Laura Adams, senior industry analyst for insuranceQuotes.com.
Adams notes that the majority of renters are between the ages of 18 and 29, and they are far less educated about renters insurance. According to AvalonBay's 2013 annual report, its prime renters are age 25 to 34, fitting into the group that Adams describes.
This group is generally covered by their parents' homeowners policies when they're away at college, and when they move into their own apartments they don't think they have enough "stuff" to insure. "With a total loss, it's often difficult for residents to remember everything they had," she says "It's the $20 to $50 items that tenants are likely to forget, for example, sheets, towels, pots, pans, books, DVDs, or clothes."
Proposals for new building codes
Existing building codes are getting a second look as a result of the fire and extensive damage. One N.J. Assemblyman has proposed halting all multi-family developments in the state until the state's building code can be revised. The state Department of Community Affairs (DCA) is conducting a review of current building codes, partly to determine whether the Edgewater complex met the appropriate requirements. DCA is also asking municipalities to provide input on existing building codes and possible improvements.
New building codes won't help the residents of Avalon at Edgewater, but they might prevent a similar catastrophe at other apartment complexes. Even if the tenants do have insurance, they're expected to join or initiate a lawsuit against AvalonBay for damages not covered by insurance or subject to coverage limits. The negligence claims against the landlord are likely to continue for some time. Stay tuned.
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