Construction Defects

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Construction Defect – Application of the Right to Repair Statute to Material Suppliers (CA)

Civil Code § 8951 et seq. (the “Act”) establishes a set of building standards pertaining to new residential construction and provides homeowners with a cause of action against, among others, material suppliers, for a violation of the standards(§§ 896, 936).

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Condo board sues VE Equities, Elliman over alleged defects at 250 Bowery (NY)

The condominium board at 250 Bowery filed a lawsuit against developer VE Equities, Morris Adjmi Architects and Douglas Elliman for allegedly selling them shoddy apartments.  In a complaint filed with New York State Supreme Court Thursday, the board alleges that

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Will a Statutory Right to Repair Construction Defects Increase First-Time Homebuyers? (CO)

On February 6, 2017, House Bill 17-1169 was introduced and assigned to the State, Veterans, and Military Affairs Committee. H.B. 17-1169 proposes a mechanism for a construction professional to offer to repair or offer to fund repairs for a construction

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Bills Proposed In MD Gen. Assem. To Limit Restrictions Imposed By Condo Developers re:Construction Defect claims

Proposed legislation now pending in the Maryland General Assembly would prevent condominium developers from limiting the ability of the council of unit owners and individual unit owners to bring construction defect claims for issues affecting the condominium. Senate Bill 670

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1010 Central condo owners claim ‘defective’ construction, sue builder (FL)

Condominium owners in downtown St. Petersburg are hopping mad over alleged “defective” construction of their complex, as well as a variety of building code violations.  The 1010 Central Condominium Association, a nonprofit corporation representing owners in the complex at 1010

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Shifting balconies, water damage: Condo owners near UK sue to recover millions spent on repairs (KY)

A lawsuit pits condominium owners in the downtown Lexington CenterCourt complex against a company in which Lexington attorney Bill Lear is an investor and a Versailles construction firm owned by Mayor Jim Gray’s family.  The condo owners allege that poor

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Colorado construction defects bill opposed by groups it is designed to help

A bipartisan bill described as getting to the “heart” of the construction defect litigation issue saw widespread opposition Wednesday from the very groups it is intended to help.  The bill still passed the Senate Business, Labor and Technology Committee by

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Legislators still struggling over construction defects reform (CO)

The old adage goes, “If all you have is a hammer, everything looks like a nail.”  As the state’s construction defect reform battle wages on, the question is can stakeholders stop looking for problems and accept an assortment of tools

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(CO) Capitol Conversation: Construction Defects

Lawmakers in both parties are trying to make it more difficult for homeowners to sue condo developers over construction defects. They hope it will lead to more condo development and lower rents. But despite widespread support for the concept, legislation

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Mount Pleasant townhomes win $7.2M verdict over ‘faulty construction’

A Charleston County jury announced the award this week for the 105-unit Waverly at Hamlin Plantation Townhome Association after a six-day trial over “faulty construction.”  The homeowners group sued John Wieland Homes and Neighborhoods of the Carolinas Inc. in 2013

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New Jersey Supreme Court Affirms Coverage For Construction Defects

The New Jersey Supreme Court has affirmed the Appellate Division’s pro-policyholder decision in Cypress Point, confirming broad coverage for construction defects. Cypress Point Condominium Association v. Adria Towers, LLC (A-13/14-15) (076348) (August 4, 2016). The Appellate Division had reversed the

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Mandatory Arbitration for Construction Defects? (CO)

On February 1, 2017, Senate Bill 17-156 was introduced and assigned to the Business, Labor, and Technology Committee. S.B. 17-156 seeks to require mandatory mediation and/or arbitration for any construction defect action if the association’s governing documents previously required the

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Republicans introduce construction-defects reform bill – and it’s got a familiar ring (CO)

Colorado Republicans introduced the centerpiece bill of their construction-defects reform effort Wednesday — and it looks very similar to failed efforts from the 2014 and 2015 sessions.  Senate Bill 156, sponsored by Sen. Owen Hill, R-Colorado Springs, would require that

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(CO) Lawmakers try a new strategy to help bring condos back to Colorado

A precision-strike approach at the state Capitol to reform Colorado’s construction defects laws — rather than a comprehensive, catch-all bill — may be the best way to jump-start a condo market that has fallen way behind the recent population boom

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Construction-defects reform: Colorado House Speaker lays out changes she will back

Colorado House Speaker Crisanta Duran would support legislation requiring more homeowners to approve a construction-defects lawsuit and providing more information to those condominium owners about the effect of legal actions, she said Thursday.  It’s the legislative leader’s first indication that

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Legal Matters: Potential defense to construction defect claims

Anyone in the construction industry would likely acknowledge that litigation – and particularly construction defect litigation – is a part of doing business. But it is an expensive and time-consuming part of the business.  The costs and likelihood of litigation

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Trio of Edgemere on the Parkway Owners Sue Sellers, HOA, and Managing Agent ICI (TX)

Just last month we reported on a lawsuit involving Preston Tower and now it’s been uncovered that another Pink Wall condominium is reeling from at least three lawsuits filed by recent buyers against their HOA, the prior owners, and managing

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Housing coalition skeptical of Legislature’s plan to resolve construction-defect issues (CO)

Interests with the power to drive housing development in Colorado say the lone construction defects bill in the Legislature would do little to spur building.  House Speaker Crisanta Duran, D-Denver has pinned much of her hopes for bipartisan success this

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The Do’s and Don’ts of Community Association Warranties

When your homeowners association took control of your community from the developer, a lot of paperwork came with that. Some of the paperwork undoubtedly included a number of warranties. Since then, you have probably collected warranties for a range of

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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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