Wisconsin condo owners to appeal judge's decision to side with insurance company

Last December, residents of Horizon West Condominiums were given 15 minutes to evacuate their homes. The building, fire officials said, was at risk of an imminent collapse. Nearly a year later, former residents continue to pay for the unlivable, vacant condos, and their insurance claims have been denied.

In April, condo owners, under the name Horizon West Homeowners Association, filed a $17 million lawsuit against Travelers Indemnity Company for failing to pay out their claims. On Nov. 18, U.S. District Judge Lynn Adelman sided with the insurance company and dismissed the case; however, the association's attorney, Michael Ganzer, said they are in the process of appealing the decision.

"This case calls out for justice for the Horizon West Homeowners, and I will make every effort on their behalf," Ganzer said. The "losing side" would have appealed regardless of Adelman's decision, he added.

In the meantime, people who lived in the 48-unit Horizon West Condominium Building, 315 N. West Ave., must continue to pay their mortgages, and have lost all of their equity. Many have considered bankruptcy, Ganzer said. Travelers argued that their insurance policy did not apply to the residents' forced displacement, and Adelman agreed.

"Underlying damage to the property was caused by rusting that had been occurring for many years prior to the commencement of the policy period," Adelman said in his final remarks.

Former residents RJ and Patricia Esposito did not plan on ever leaving their Horizon West condo. The married couple invested in what was supposed to be where they'd live out their retirement – now, faced with costs of the condo and new rent payments, RJ's been forced to go back to work.

The lawsuit's dismissal was "crushing," RJ said. "Filing bankruptcy is not even in my DNA," he said. "My parents would turn over in their grave. But, on the other hand, I'm not sure (what else to do) unless we win this lawsuit."

In addition to paying for debts of their abandoned condos and new living expenses, former residents are also faced with the cost of the city's order to demolish the building, which could amount to tens of thousands of dollars.

"The city is holding us hostage," said Todd Dreger, a former Horizon West resident who spoke to a reporter outside the boarded up complex.

Dreger and his husband, Ricardo Dreger, are faced with paying their mortgage on the condo they can no longer live in, while simultaneously paying for rent on their current apartment. They questioned the point of paying for insurance when they've received zero compensation.

"I lost my home," Ricardo Dreger said, gesturing to the vacant building. "I can't ever get this back."

Public documents revealed that, in 2019, serious structural concerns became apparent, prompting the removal of the building's balconies. In the following years, inspections revealed deficiencies in the structure of the building, which led to last December's evacuation.

Horizon West Homeowners' lawsuit said that, because the building had not yet collapsed on its own, Travelers avoided payment. "Basically, Travelers believes reasonable safety precautions are insufficient to trigger coverage," the lawsuit said. "If that is Travelers position, it is unlawful and contrary to public policy thereby entitling these plaintiffs to coverage."

Although the building sits empty, former residents want people to remember that it was once beautiful and full of life.

"This is not what it looked like," said Sue Bohrer, looking up at the abandoned building. Bohrer helped her aunt, Virginia Clasan, and mother, Dorothy Thiele, both residents of Horizon West for over 20 years, evacuate their homes.

"It was like living in a small village," Clasan said of her time living in her condo.

Former 30-year resident Kipp Kennedy said losing the community only added to the blow of having to evacuate her home.

"I don't know any other place that you could live – condo, apartment, houses, neighborhoods, or whatever – that people were as friendly as here and wanted to watch out for each other," Kennedy said.

While Adelman's ruling comes as a disappointment, the association doesn't intend on giving up.

"I invested so much in our building and our property," said Linda Koconis, a resident for 15 years. "Some of us can't move forward because we have mortgages to pay and everything else."

A GoFundMe to help cover former residents' common expenses and legal fees can be found at: bit.ly/3EWxSbL.

Travelers has not yet responded to requests for an interview.