Construction Defects

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Disney-Built Community Faces Serious Construction Deficiencies (FL)

The November 16, 2016 issue of the Wall Street Journal ran an article about Celebration, Florida, which is the master-planned community built by The Walt Disney Company in 1996. The title of the article summarized the state of affairs in

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Construction Defect Reform in CO; HB 1279: Pluses, Pitfalls & Practical Pointers

Construction defect litigation reform will take a small step forward this week when Gov. John Hickenlooper signs HB 1279 on May 23, 2017. HB 1279 will go into effect immediately after signature by the Governor, and developers and residential builders

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Shoddy condo construction lawsuits in Colorado just got harder to file, but that doesn’t mean development slumber is over (CO)

Declaring that the measure “will help make our housing more affordable,” Gov. John Hickenlooper on Tuesday signed into law one of the most hard-fought compromises of the 2017 session — a bill that will make it more difficult to sue

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Compromise Bill on Construction Defects is Ready for Governor Signature (CO)

On May 4, 2017, House Bill 17-1279 gained final unanimous approval in the Senate after unanimous approval in the House on April 24, 2017. H.B. 17-1279 has been referred to Governor John Hickenlooper to be signed into law.  H.B. 17-1279

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Legislature’s changes to construction-defect laws could help condo developers (MN)

Several much-anticipated changes to Minnesota’s construction-defect laws are closer to the governor’s pen.  The amendments to House File 1538 received bipartisan support and went to a conference committee for House and Senate members to hash out differences.  The current, long-standing

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Homebuilders and Contractors Beware: Construction Defect Claims May Be Filed More Than 10 Years After Construction is Complete (FL)

A statute of repose sets a firm deadline by which a lawsuit may be filed after the occurrence of a particular event. Once the statute expires, a prospective defendant is no longer exposed to legal action. Florida has a ten-year

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Senate committee gives unanimous OK to bipartisan construction litigation reform bill (CO)

Bipartisan legislation to make it more difficult for homeowners’ associations to sue condominium developers for defective construction is one step closer to becoming law after winning unanimous approval from a Senate committee Monday on its first vote in the upper

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Fortis not responsible for $2M in defects caused by prior developer, judge says in ruling against 20 Bayard Street residents (NY)

A court decision in Brooklyn last week will let Fortis Property Group get away with selling allegedly faulty condominiums in Williamsburg, for the simple reason that Fortis wasn’t the one that built them in the first place.  When developer Isaac

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Construction defects homeowner consent bill breezes through Colorado House

A measure requiring that a majority of homeowners in a condo complex first approve a construction defects action against a builder — rather than just the association board — passed the Colorado House Monday and now moves on to the

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Owner Approval for a Construction Defect Lawsuit?

On March 17, 2017, House Bill 17-1279 was introduced and assigned to the State, Veterans, and Military Affairs Committee. The original intent of H.B. 17-1279 was to open the lines of communication between the association board, the association members, and

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Grande Pointe residents file suit against DR Horton (FL)

When Chris Smith bought his home in the Grande Pointe neighborhood in Inlet Beach in 2010, he believed he was buying into a neighborhood where all the homes would be a Coastal Cottage architectural style — at least that was

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Lawmakers announce breakthrough on construction defects reform measure (CO)

Lawmakers at the state Capitol say they have finally reached a compromise over a contentious construction defects reform bill that requires a majority of homeowners in a condominium complex — not just the homeowner association board — give consent to

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Spring Isle Community Association Inc. alleges units have defects (FL)

A community association alleges an Orange County corporation failed to reasonably and adequately plan, develop, design and/or construct a community.  Spring Isle Community Association Inc. filed a complaint on March 2 in the 9th Judicial Circuit Court of Florida –

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Hundreds of Daybreak residents file lawsuits claiming defects in homes (UT)

Kori Emerson lives in a master-planned community, a carefully designed neighborhood she says turned out to be more like a movie set than a permanent place to live.  “It looks great, but it is not meant to last.”  Emerson is

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Aurora HOA wins $13.5 million award in dispute with Texas homebuilder

A homeowners association in Aurora has received an arbitration award of $13.5 million in a dispute with D.R. Horton Inc., according to a statement from the HOA’s attorneys, Benson, Kerrane, Storz & Nelson PC.  The HOA for The Conservatory neighborhood,

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Senate Committee Issues Favorable Report On Bill To Preclude Developers From Limiting Condo Owners Claims (MD)

The Maryland Senate Judicial Proceedings Committee has issued a favorable report on legislation, which has already been passed by the House of Delegates, intended to protect condominium owners’ rights with regard to bringing construction defect claims against the project’s developer.

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CBC INVESTIGATES Structural weakness, coercion, and duress: a condo project goes off the rails

Imagine paying hundreds of thousands of dollars for a bungalow condominium close to a river and a golf course, only to learn city building inspectors think your new condo could face structural failure.  Then imagine learning the developer faced 56

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Insurance Policy Did Not Prevent Association Recovery from Subcontractors for Defective Work

On February 17, the First District Appellate Court issued an opinion regarding the Implied Warranty of Habitability in the case of Sienna Court Condominium Association v. Champion Aluminum Court et al. The opinion involved three separate appeals: the first relating

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Sponsors again delay hearing on bipartisan construction defects bill, say negotiations ongoing (CO)

Lawmakers late Tuesday pushed back a scheduled Wednesday committee hearing on a bipartisan construction defects reform bill, saying negotiations involving critical issues are still unresolved.  Groups representing builders and homeowners have been facing off for years over attempts to rewrite

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Construction Defects and Insurance Coverage: When Is the Duty to Defend Triggered?

In Florida, an insurance company may have a duty to defend and/or indemnify its insured. The insurance company’s duty to defend its insured (as in defending the insured in a lawsuit) is broader than its duty to indemnify (as in

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Democratic lawmakers, business leaders reach impasse on construction defects legislation (CO)

Construction-defects reform legislation hit a snag as frustrated Democrats accused a group of business leaders and affordable housing advocates of throwing up roadblocks to a bipartisan bill that had been set for its first hearing Wednesday, but a spokesman for

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San Francisco Millennium Tower HOA Files New Lawsuit Over Sinking Skyscraper (CA)

Lawyers representing the sinking San Francisco Millennium Tower homeowners’ association announced a lawsuit against the developer and builders Wednesday.  The lawsuit names the developer, Millennium Partners, along with the Transbay Joint Powers Authority (TJPA), the regional agency overseeing the building

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House of Delegates Passes Bill To Preclude Condo Developers From Limiting Owners Construction Defect Claims (MD)

By a vote of 136-0, the Maryland House of Delegates approved a bill to protect condominium owners’ rights with regard to bringing construction defect claims against the project’s developer. House Bill 676 would prevent condominium developers from limiting the ability

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Colorado finally corrects thirty-year old flaw in construction defect statute of repose

The Colorado Supreme Court has finally settled a decades-old conundrum surrounding the state’s construction defect statute of repose.  A statute of repose is similar to a statute of limitations insofar as both restrict the time a party can bring a

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Why Colorado lawmakers hope this is the year to solve the affordable condo crisis

This much perhaps everyone can agree on: Colorado is in an affordable housing crisis, whether you live on the Front Range, Western Slope or the Eastern Plains. Affordable housing is almost a myth, with rents in Denver for a one-bedroom

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HOA in Daybreak files lawsuit against homebuilders (UT)

Leaky roofs, leaky windows and damage to insulation: just some of the problems homeowners in a Daybreak neighborhood are dealing with. Now the HOA has decided to sue the builders of the nearly 10-year-old homes.  Kori and Mason Emerson were

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Homeowner consent bill introduced in House as latest salvo in construction defects battle (CO)

Yet another attempt to reform Colorado’s construction defects statute has been introduced in the legislature, this time a bipartisan bill that would require majority approval by homeowners to initiate a legal action against a builder rather than leaving that decision

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Lawmakers introduce bipartisan compromise bill to tackle construction defects issues (CO)

A bipartisan group of legislators introduced a compromise bill late Friday aimed at encouraging developers to build condominium projects while preserving the right of homeowners to have their day in court.  The legislation arrives at the end of a week

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Colorado construction-defects reform centerpiece assigned to ‘kill committee’ (CO)

House Speaker Crisanta Duran assigned the business community’s centerpiece construction-defects reform bill late Tuesday to the so-called “kill committee,” disappointing backers and sponsors of Senate Bill 156 and refocusing efforts on a yet-to-be-introduced successor bill that deals with fewer of

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Death of Democratic construction-defects bill refocuses effort on comprehensive reform (CO)

A Colorado Senate committee on Monday killed a construction-defects reform bill described by its author as a compromise measure to untangle the state’s year’s long battle over laws that many argue thwarting new development of affordable multi-family housing in Colorado.

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Construction Defects and Insurance: Proactive Steps to Protect Your Community

All the media and legislative talk of construction defect litigation and its impact on condominium construction in Colorado may seem like discussion that does not impact existing communities. But the changes to state and local laws concerning construction defect litigation

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Economic Damages and the Right to Repair Act: You Can’t Have it Both Ways (CA)

In 2002, the California State Legislature passed Senate Bill 800 also known as the Right to Repair Act (Civil Code Sections 895 et seq.) in an effort to stem a then rising tide in residential construction defect litigation.  SB 800,

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Mayors campaign for construction defects bill (CO)

While mayors around the metro area are backing a state legislative effort restricting construction defects lawsuits that they say discourage the building of attainable housing — such as condominiums and townhomes — critics say it would take away a homeowner’s

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Poor Workmanship Tops List of Construction Defects in New Report From Community Associations Institute (CAI)

The majority of construction deficiencies occur in new condominium developments compared to townhomes and single family homes, according to a new study released today by Community Associations Institute (CAI), the leading authority in community association education, governance, and management.  The

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Plaintiffs in $4.7 million construction defect case mum after ruling

Plaintiffs in a major construction lawsuit that ended with a San Diego law firm recovering nearly $5 million have decided to stay silent after the ruling was in their favor.  The law firm, which represented Laurel Bay Community Association, won

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Construction defects bill OK’d by state Senate committee (CO)

The second piece of legislation aimed at resolving concerns with construction defects in Colorado passed 5-2 Monday by the Senate Business, Labor and Technology committee.  Senate Bill 156 would require homeowners seeking restitution for faulty work by contractors to go

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Apartments v. Condos: Colorado’s construction defect debate, explained

Once again, state lawmakers are arguing about changing construction defect laws.  At the heart of this issue is condo buildings– specifically, the lack of them.  Those who want to change the law argue it’s too easy to sue the builder

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Duran says she’ll monitor GOP bill to steer construction complaints to arbitration (CO)

House Speaker Crisanta Duran said this week she intends to monitor a Republican-sponsored Senate bill aimed at encouraging construction of condominiums by changing how disputes over construction problems are resolved and “see what shape it takes” as it makes its

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Coalition of Colorado Mayors Calls on Legislatures to Pass Senate Bill 156

A bipartisan coalition of metro area mayors in Colorado called on legislatures to pass the Republican-sponsored Senate Bill 156, described as “Homeowners’ Association Construction Defect Lawsuit Approval Timelines.” The Colorado Statesman staffer Ernest Luning explains that the bill is likely

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The Latest Construction Defect Bill Requires Notice, Disclosure, and Approval Prior to Commencing an Action (CO)

Prior to the beginning of the 2017 Legislative Session, the legislature promised to address construction defect reform. True to their words, five different and, in some cases, competing bills have been introduced, aimed at addressing construction defects. The latest bill,

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Litigation heats up at downtown Miami’s Vizcayne condo complex(FL)

Tally up another construction defect lawsuit for downtown Miami’s two 49-story Vizcayne condo buildings.  The south tower’s condo association just filed suit against more than two dozen construction firms that worked on the Vizcayne project, alleging counts that range from

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Can a piecemeal approach get Colorado to construction defects reform?

For years now, construction defects reform has been a top priority for city officials, for affordable housing advocates, for builders and developers, and for years, it hasn’t happened.  The way to make progress on construction defects reform is through narrowly

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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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