Construction Defects

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Condo HOA Gets More Than $8 Million for Building Defects

Residents of the Arts District condominium complex the Barker Block have received more than $8 million to settle lawsuits that allege construction defects. Building occupants had long complained of problems including leaks and plumbing shutdowns.    Read the article………….

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Construction defects bill would tackle this vexing problem by trying to control insurance rates (CO)

Every year, Colorado legislators pledge to tackle construction defects reform, and every year it doesn’t happen.  Democrats and Republicans swear THIS IS THE YEAR, and there’s a bill with bipartisan sponsorship from state House and Senate leadership that focuses not

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2017 Colorado Legislative Session Promises Focus on Construction Defects

The 2017 legislative session opens today in Colorado! For those of you who are political junkies, following the recent elections, here is what you need to know about the makeup of the Colorado House and Senate:  There are 65 seats

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More Millennium Tower residents sue developer, city (CA)

Following November’s lawsuit, 20 tower residents led by Jerry Dodson, a former government litigator who also happens to live in the offending building, launched yet another suit against both the city and building developer Millennium Partners.  The complaint alleges that

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Colorado legislators believe this could be the year for construction defects reform

Legislative leaders from both sides of the aisle believe this is the year to pass robust construction defects reform in an effort to spur affordable housing development.  Lawmakers outlined their legislative agendas Thursday at a forum hosted by the Denver

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Federal Appeals Court Finds Luxury Condo Owner’s Suit Filed too Late Against Insurer (NV)

A luxury high rise condominium located in Las Vegas, Nevada, was found to have been barred from recovery of its $5 million window damage claim, according to a ruling by the Ninth Circuit of the U.S. Court of Appeals.  The

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Leverage Shift: Community Associations Facing Developer Transition Benefit From Court of Appeals’ Decision (NC)

The North Carolina Court of Appeals recently issued an opinion that should make it easier for owners associations to pursue remedies against developers if they discover construction defects in the common elements after control of the association is transferred from

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Macklowe sued over alleged defects at 150 E. 72nd St. (NY)

Residents of Harry Macklowe’s condo conversion at 150 East 72nd Street are very unhappy with their purchases — they’re taking the notoriously litigious developer to court over alleged construction defects and what they’ve said is a woefully inadequate building reserve

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Oregon High Court Clarifies How To Read the Four Corners of a Complaint

On December 8, 2016, the Oregon Supreme Court issued a decision, West Hills Development Co. v. Chartis Claims, Inc., 360 Or. 650 (2016), clarifying what allegations in a construction defect suit will implicate coverage under an “ongoing operations” additional insured

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Complaints About Toxins, Shoddy Construction Trail New England Developer (NH)

The Crims and five other homeowners also complained to the Consumer Protection Bureau of the N.H. Department of Justice. The state hired a civil engineer to inspect 40 brand new homes. The engineer found 450 building code violations, including walls

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Pre-Litigation Requirements For Condo Associations (TX)

When general contractors, subcontractors, and design professionals face claims or lawsuits arising from original construction or remediation of condominium projects, one of the most important—and also sometimes one of the most difficult tasks—has always been to catalog, usually by unit

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Homeowners dealing with costly construction mistakes (OH)

Homeowners across the country say they’re forced to pay thousands of dollars for construction mistakes, flaws and defects that some believe could have been prevented.  ABC 6 On Your Side collaborated with other investigative teams across the country to look

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Mold, Leaks, and Structural Problems Plague Homes in Disney-Built Town of Celebration, Florida

It doesn’t look like there’s much to celebrate, in Celebration, Florida.  The Walt Disney Co.–built town, which opened in 1996 and sits in an 11-square-mile enclave near the Magic Kingdom, was designed to be a modern-day suburban Utopia. But a

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$7.3 Million Awarded to Downtown Los Angeles Arts District’s Barker Block Homeowners Association

This is believed to be the largest single settlement against KOR for construction defects on one of its many high profile residential projects in California.  “These proceeds will immediately go to reconstructing and replacing all of the building systems that

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New Appellate Ruling Increases Residential Builders’ Exposure to Defect Liability in Illinois

Illinois law on the implied warranty of habitability (IWH) is continuously changing, and residential builders should take notice of a new opinion issued by the Appellate Court, First District, on October 26 in a construction defect dispute. Although the procedural

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$1M in foundation repairs start on high-end condo building after lawsuit

More than $1 million in work to stabilize a multi-million dollar condominium project began this week, more than a year after a lawsuit alleging the building had extensive construction defects was dismissed.  In March 2014, 19 residents of the Boathouse

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San Matera condo group settles with Kolter for $22.5 million (FL)

A trial that posed one of the biggest logistical challenges in Palm Beach County legal history was over before it began Thursday when a beleaguered Palm Beach Gardens community agreed to accept $22.5 million to drop its claims against Kolter

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Six years on, Kolter Signature Homes lawsuit goes to trial

After six years of legal maneuvering one of the longest-running cases over faulty construction in Florida is finally going to trial.   Jury selection starts Tuesday in a case pitting the San Matera Condominium Association against Kolter Signature Homes, and other

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The Earth Movement Exclusion: How Does it Affect Construction Defect Cases?

One of the biggest considerations for parties on both sides of any lawsuit is whether insurance coverage will apply to the plaintiff’s claims. This is especially true in construction defect cases, where the cost of repairing the alleged damage can

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Owners of affordable Rockaway condos sue developer, architect for $210M (NY)

Owners of condominium units at a Rockaway apartment building are suing developer Briarwood Organization and AIA Architects for a combined $210 million over alleged construction defects.  Water’s Edge in Arverne, completed in 2009, is a city-financed condo development for low-

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Marquis Miami condo owners accuse developers of poor construction

The New York-based developers of downtown Miami’s Marquis Miami residences are being accused of building a poorly constructed tower in a new lawsuit.  And now, the Marquis Miami Condominium Association wants a partnership between Shaya Boymelgreen and Lev Leviev, as

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New Jersey Supreme Court Issues Important Ruling for Developers and General Contractors Regarding Coverage Under CGL Insurance Policies

The New Jersey Supreme Court’s August 4, 2016 holding in Cypress Point Condominium Association, Inc. v. Adria Towers, LLC is the latest decision to fall in line with the “strong recent trend” by state and federal courts to recognize that

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NJ Supreme Court Decision Paves the Way for Condominium Associations in Transition to Recover Damages against the Developer and Subcontractors

On August 4, 2016, the New Jersey Supreme Court issued its decision in Cypress Point Condominium Association, Inc. v. Adria Towers, LLC, et al., which held that faulty workmanship by a subcontractor that causes property damage is a covered loss

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Threat of Lawsuits Crimps Condo Developments

The slow comeback stems partly from developers’ increasing confidence in rental-apartment buildings as young adults and middle-aged families stung by the housing crash have turned to renting. But developers also point to increased exposure to construction-defects lawsuits, which they say

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New Jersey Supreme Court Finds Coverage Under a Developer’s Commercial General Liability Policy for a Subcontractor’s Faulty Workmanship

On August 4, 2016, the New Jersey Supreme Court issued a unanimous decision in a case regarding insurance coverage that could have lasting impact on developers, contractors, and subcontractors. In Cyprus Point Condo. Ass’n, Inc. v. Towers, 2016 N.J. LEXIS

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Arbitration of §553.84 Claims Under Home Warranties (FL)

One of the most common statutory claims in construction defect litigation arises under section 553.84, Florida Statutes, for failure to comply with the Florida Building Code. Many homeowner warranties require arbitration, but how do such provisions affect 553.84 claims, subsequent

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Reductions in Property Value Due to the Presence of Construction Defects

Last month the Oregon Supreme Court recognized and seemingly affirmed a strategy to reduce taxable property value due to the existence of construction defects. In Oakmont, LLC v. Oregon Dept. of Revenue (2016), the owner of an apartment complex valued

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Colorado Supreme Court to Rule on Yet Another Key Construction Defects Issue

On July 5, 2016, the Colorado Supreme Court announced it will consider the construction defects case of Forest City Stapleton, Inc., et al. v. Rogers. In this case the Colorado Court of Appeals, for the first time, imposed an implied

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City’s construction defects law tweaked (CO)

Apartments and townhomes are being built around Durango, but condominiums are rare. The Durango City Council hopes to encourage such construction by adopting a local ordinance that would protect developers from construction defects lawsuits.     Read the article………….

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Construction Defect Debate to be Heard by Colorado Supreme Court

The construction defects case of Vallagio at Inverness Residential Condominium Association, Inc. v. Metropolitan Homes, Inc., et al. has garnered national attention since the Colorado Court of Appeals’ decision in May 2015, and the subsequent petition for certiorari review to

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Revisiting Condominium Design and Construction Risks: Applying Lessons Learned to a Rekindled Market

Condominium work for developers, contractors and architects is reappearing after being scarce for several years, as leasing becomes less attractive to a maturing class of residential market participants. Condo projects can be attractive work, but are also high-risk. To a

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Major Legal Win for Condo Boards (NY)

In a ruling that could have major consequences for condo boards across the city, the Appellate Division has upheld an earlier State Supreme Court ruling that a sponsor/developer can be held liable for breach of contract and its principals can

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Lauderdale-by-the-Sea condo sues Related, contractors over alleged shoddy construction (FL)

For the third time in five months, another condo project developed by the Related Group is facing accusations of shoddy construction work likely to cost millions to repair. Last week, the condo association for Aquazul, a 96-unit condo tower in

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DR Horton found negligent in Jax condo case, jury awards $9.6 million

After a day and a half of deliberations, a jury has found the developer of the Heron’s Landing negligent and awarded the Beach Boulevard condo’s homeowners association $9.6 million Thursday.  Condo residents and experts testified that the Beach Boulevard structures

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After 36 days, Heron’s Landing case going to jury

Five weeks and one day after they reported to the Duval County Courthouse for jury service, a six member jury will begin likely deliberations in the case against DR Horton Tuesday.  The lengthy and complicated trial pits the Jacksonville community

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Maryland General Assembly Rejects Legislation That Would Have Aided Condominium Councils and Unit Owners In Pursuing Building Defect Claims

Legislation introduced in the Maryland General Assembly that would have prevented developers from including provisions in condominium governing documents that limit the developer’s liability for construction defects failed to reach a floor vote during the 2016 session.       Read

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Law meant to protect Wash. homeowners instead pushing up condo prices

A law meant to protect Washington homeowners is instead pushing up condo prices.  KIRO 7 investigates why the law is keeping condos from being built and making it nearly impossible to buy a place of your own.  When asked why

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Colorado Legislature advancing construction-defects study group rather than reform

Colorado business leaders’ consolation prize for their failed negotiations to put together a package of construction-defects reform bills this year may be a legislatively sanctioned study group that will recommend by March a way that future General Assemblies could move

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Illinois Appellate Court Limits — for Now — Subsequent Purchaser’s Ability to Seek Damages from Design Professional Under Implied Warranty of Habitability

As a quick reminder, the aptly named Implied Warranty of Habitability is a warranty that is implied into every contract involving the sale of a dwelling from a builder to a buyer, that a house will be reasonably suited for

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Construction-defects reform talks collapse in Colorado Legislature

Months-long negotiations on a legislative construction-defects reform package fell apart Thursday, leaving advocates unwilling even to introduce a bill for the fourth-straight year they believe is crucial to increasing the meager supply of affordable condominiums in Colorado.   Read the article……………

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Drug Court judge testifies in condo defect lawsuit (FL)

The plaintiffs rested Wednesday in a landmark construction defect trial against America’s largest builder. The Heron’s Landing community on Beach Boulevard is suing builder DR Horton, claiming the condos are riddled with construction defects and violate Florida building code.  DR

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4 Tips for Handling Construction Defects

Locating and fixing construction defects is one part of an association’s job, and there are a lot of different types of construction defects, such as peeling paint, curing shingles, wood rot, etc. If your HOA has located any construction defects

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State Attorney found construction defects at DR Horton condo (FL)

A high profile witness took the stand Friday in case that accuses America’s largest homebuilder of violating state building codes.  Fifth District State Attorney Brad King, who has represented west-central Florida since 1989, owns a condo at Heron’s Landing on

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Judge rules Chelsea (NY) condo developers liable for board’s claims

The condominium board for the Modern 23 residential building in Chelsea received a boost in its legal battle against the property’s developers. A judge ruled last week that the board may hold the developer LLC’s individual principals liable for breach

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Condo association sues Related Group and Dezer Development (FL)

The master condo association for Trump Towers I, II and III in Sunny Isles has filed a lawsuit against developers Related Group and Dezer Development, alleging that construction work at the 271-unit development was subpar.     Read the article……….

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Condo owners testify to widespread defects (FL)

DR Horton is accused of building structurally deficient condominiums at the Heron’s Landing development on Beach Boulevard. The company has denied the allegations.   Read the article………….

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Lawsuit blames D.R. Horton for condo defects (FL)

The lawsuit alleges that D.R. Horton violated Florida Building Code when it built the 240-unit Heron’s Landing complex on Beach Boulevard. The lawsuit, filed in 2013, specifically cites widespread construction defects, including cracked stucco, leaking roofs and improperly installed balconies.

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Revisiting construction-defect law, a year later (NV)

Primarily, AB 125 narrows the definition of “constructional defect” to any defect that causes physical damage to the property or presents an “unreasonable risk of injury to a person or property,” eliminates the mandatory award of attorneys’ fees as a

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Durango City Council (CO) discuses affordable homes vs. legal rights

The Durango City Council voted to support a process homeowners associations would have to follow to sue a developer over defective construction.   Read the article…………

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BK Heights (NY) condo board sues Magic Johnson’s firm over alleged building defects

The condominium board at 20 Henry Street is suing Magic Johnson’s development firm Canyon Johnson Urban Funds and its joint-venture partners for alleged defects at the building.   Read the article…………

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