ATLANTA — Several residents of the Reserve at LaVista Walk in Atlanta have brought a federal class action lawsuit against the company that owns the property following a massive fire that destroyed one of the apartment buildings.
The fire sparked on Nov. 10 seemingly by fireworks being set off on the roof, according to authorities, and destroyed around 284 units. The lawsuit alleges that Avenium Group was negligent and also names Silverpoint Management as a defendant among other LHNH LLC subsidiaries. Four residents are named as plaintiffs, outlining that they are also representing similarly situated individuals who lost their belongings in the fire.
Victims of the fire are asking for a jury trial, claiming that there is a pattern of the property management company trying to cut costs at the expense of resident safety. Examples include cutting security services, groundskeeping, auto-drafting funds that are not actually owed, and other alleged financial mismanagement.
Attorney Doug Dean represents the residents, who he says frequently complained about broken security gates and false fire alarms.
"[Would] not spend money on pest control, not spend money on building maintenance, not having adequate security. It seems like the focus is just on saving money. We think that just came to fruition on Nov. 10 when all of the cost cutting measures just coalesced into this disaster," Dean said.
His office sent us this video of the owners of the complex. Near minute 14, they speak about the LaVista Walk apartment.
“The fact that these investors remain responsible for the lives of people, including at a bunch of properties across the state, is extremely concerning," he said. "These folks need to be held accountable."
Issues before the fire
In a 35-page lawsuit, the residents make their case while also citing six different suits that range in issues such as pest problems, fraudulent collections, negligent security and even wrongful death. The lawsuits, court records say, establish a "pattern and practice of acquiring and flipping properties (that have) left a trail of havoc and destruction."
As for the LaVista Walk property, which is on the edge of Atlanta's affluent Buckhead neighborhood near Brookhaven, the property managers "created a culture of frugality, ignored residents' complaints, and knowingly put residents at risk," the lawsuit reads. The court documents note that complaints were made to agents about unwanted guests and the ability to access the roof, citing that people had been discharging fireworks and firearms from there.
Residents said this is exemplified after neighbors tried to notify management that one of the suspects in the fire was a safety threat to others, the lawsuit reads.
Patrick Kane with Hawque Protection Group says it is important for property managers to react to residents’ concerns.
"If there’s an issue being brought to them, they should act on it, and if they’re not able to act upon it that way, they can bring in a vendor partner such as a security company to help with fixing gates that are broken or recommending through an assessment hey you might need some cameras to monitor problem areas," Kane said.
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Security and safety compromised
There are also claims that a vehicle crashed into the complex last summer and exposed a water suppression system pipe and valve. This is allegedly why the apartment frequently had false alarms go off. Claims add that the systems were not adequate prior to the massive fire, citing an inspection that warned of issues.
“Some people that worked for the fire sprinkler company said that they knew of a number of issues – one was the wiring system, one was the control valve, one was corroded sprinkler heads, some of the pull-down boxes were not operational," Dean said.
It is believed the fire started before 10:30 p.m., according to a timeline of events in the scathing lawsuit. Attorneys allege that the earliest evidence of the fire alarm sounding is 10:53 p.m.
"Apartment leasing agents, all of whom were on-site although not all of them lived on-site, manually pulled a fire alarm at a pull box - it is unclear if the fire alarm was not functioning from negligence or had been intentionally disabled as a result of complaints regarding the false alarms," the lawsuit reads.
Photos | LaVista Walk Apartments fire
Problems persist after the fire
Beyond the fire itself, which impacted two buildings and destroyed one of them, some residents had to pay rent. When residents removed their payment information, the complex sent an invoice to Building 2 renters, according to the lawsuit, though people could not go into their units or retrieve their belongings.
RELATED: Residents confused over waiver to retrieve belongings after fire ravaged Atlanta apartments
Buildings have been looted as it has been roped off from access by residents. The lawsuit states that residents cannot file police reports until they can assess what has been taken.
In a jury trial, residents are asking for compensation for all financial losses that result from the fire, compensatory damages and other relief the court deems proper.
"We want a refund for all of these people for their security deposits and prorated rent from Nov. 11 forward because they need that money," Dean added.
Atlanta Mayor Andre Dickens has been in touch with residents to see how he can help.
11Alive has reached out but has not received statements from the ownership group in response to the lawsuit.
The full lawsuit can be found below: