Construction Defects

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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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Litigating Construction Defects in Community Association Property: Part IV

Once all of the necessary parties have been added to the proceeding and some basic discovery has been conducted, the Board will need to prepare for significant settlement discussions.  Up to this point, the Board likely knows there are significant

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Litigating Construction Defects in Community Association Property: Part II

This article is Part II of a four part series. Part I was meant to inform the Board of a Condominium or Homeowners Association of some basic steps that should be taken when significant latent construction defects are discovered. This

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Fort Collins Mulls Condo Defects Regulation

Fort Collins is the latest Colorado city to consider creating its own rules covering construction defects and lawsuits against builders.  The City Council could pass a building ordinance at its meeting Tuesday. It’s aimed at getting more condominiums built in

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Stratton stormwater system decision upheld by Supreme Court (VT)

The Supreme Court backed the Environmental Division of the Superior Court in saying a condo association’s failure to appeal a decision on time kept a permit “final and binding.”    Read the article…………

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With Willowbrook repairs complete, a few owners remain wary (FL)

Most of 272 townhomes in the Willowbrook subdivision near Lakewood Ranch needed repairs for such problems as water intrusion, mold, collapsing balconies and sagging floors. KB Home fixed the problems and signed a settlement with the state two weeks ago

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Tampa (FL) condo complex riddled with moldy walls; association blames builder

This time, problems have emerged at the Schooner Cove condominiums in South Tampa, built by Texas-based D.R. Horton. From the outside, it was a gorgeous community – until the engineers popped the stucco off 10 buildings last week, revealing a moldy

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The Transition Engineering Report: Triggering The Statute of Limitations in Condominium Construction Defect Cases

Earlier this year, the New Jersey Appellate Division reversed a Bergen County trial court decision, which had dismissed a construction defect case filed by a condominium association more than six years after the condominium complex was substantially completed, but less

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Litigating Construction Defects in Community Association Property: Part 1

The Board of a Condominium Association or Homeowners Association has many decisions to make when it discovers telltale signs of construction defects in common property. These latent construction defects can manifest themselves in a number of different ways, including but

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Intervention by Individual Homeowners Deemed Timely

The Court of Appeal considered the issue of timeliness of a motion to intervene by individual homeowners in a suit filed by the Homeowners Association (“HOA”) to recover damages for construction defects. The Court of Appeal addressed the issue of

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Maryland General Assembly Again Considers Legislation To Protect Condo Owners’ Rights of Action Against Developers

Legislation has again been introduced in the Maryland General Assembly to prevent developers from including provisions in condominium governing documents that limit the developer’s liability for construction defects. Read the article………….

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Longmont (CO) council on construction-defect law reform: More info, please

The Longmont City Council met to discuss whether the city should have an ordinance like Denver and Lakewood that gives builders more protection from suits over defective units from groups of condominium owners. Municipal efforts are prompting state legislators to

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Stonebridge Towers lawsuit proffers condos in lieu of cash for legal bills (OH)

The long-running fight over construction problems at Stonebridge Towers condominiums in the Flats just took another twist, into a side-spat between the building’s residents and the attorneys who won them a hefty settlement last year.     Read the article………..

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(CA) Court of Appeals Clarifies Timeliness Requirement for Intervention

The timeliness of a motion to intervene in civil litigation depends on when the movants learned their interests were being inadequately represented, regardless of when they learned there was litigation, the Fourth District Court of Appeal has ruled.   Read the

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Condominium owners sue city and county over building defects (CO)

Citing long-standing problems stemming from rotted infrastructure, mold and other water-related damage, Centennial condominium owners are suing the Pitkin County commissioners, the city of Aspen and the governments’ affordable housing program.   Read the article…………

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Zombie Bills: Is Fourth Time A Charm For Construction Defects? (CO)

After three straight unsuccessful campaigns, lawmakers from both parties will try again next year to make it harder for condominium owners to sue builders over defects. Condo starts lag behind other housing development in the state and the lawmakers believe

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Condo owners angry town-home problems aren’t being fixed

Nicely landscaped town homes at Berkshire Park near Windermere are less than a decade old but show signs of spider-web cracking and water damage — and owners see no fixes in sight.  Problems came to a head in the summer

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SB 800: Down but Not Out! (CA)

Until recently SB 800 was down for the count. Many in the building industry thought the law was going to be killed by the Liberty Mutual decision two years ago.  It was there that the California Court of Appeal (in

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Do You Need Expert Testimony Regarding Interpretation of the Florida Building Code?

Is trial looming close and are you thinking to yourself who is going to make the best expert for interpretation of the Florida Building Code on that construction defect case? Guess what? You don’t need an expert. In fact, it

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Builder’s Pact Doesn’t Nix Insurer Liability, Ore. Justices Say

An Oregon condominium association’s agreement to not execute part of a judgment against a builder in construction defect litigation doesn’t automatically erase the builder’s liability or that of its insurer, the Oregon Supreme Court ruled Thursday, upending a 42-year-old precedent.

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