I’m only posting this link because for the past few years the developer lobby in numerous states has pushed, often successfully, to significantly reduce the ability of associations to sue condominium developers for construction defects. The bill in Nebraska, if enacted, would make it almost impossible. It would give developers the right to build crap […]
Glass condo owners in South Beach sue Terra, architect and contractors, alleging construction defects (FL)
Residents at the ultra-luxury condo development Glass in South Beach say that the building’s plans were not as translucent as they had hoped. The condo association filed suit, alleging the development group failed to build the 10-unit, 18-story condo development at 120 Ocean Drive in accordance with building codes, manufacturers recommendations and permitted plans. […]
What Insurers Need to Know about Florida’s Statute of Repose for Construction Defects
When can a construction CGL insurer finally breathe easy? The answer can be found in Fla. Stat. § 95.11(3)(c), Florida’s statute of limitations and repose for construction defects. The statute of limitations prohibits construction defect claims 4 years after the claim accrues. For not-readily-observable defects (“latent defects”), the claim does not accrue until the defect […]
Transition committee and construction defect claims (FL)
Q: My new condominium will soon be turning over from the developer. I am a unit owner and have been selected to serve on the transition committee, which has been primarily tasked with determining whether the developer has any obligation to make building repairs, etc. What are some things the transition committee should be thinking […]
Colorado’s Consumer Protection Act Claims in Construction Defect Actions
Over the past twenty (20) years, plaintiff attorneys in Colorado have routinely asserted Colorado Consumer Protection Act (“CCPA”) claims in addition to the “standard” construction defect claims that are the foundation of CD lawsuits. This article sets forth the elements a plaintiff must establish under Colorado law to prevail on a CCPA claim and, in […]
Lawsuit accuses Biscayne Beach developer and construction firms of shoddy work (FL)
Three years after completing the Miami luxury condo tower Biscayne Beach, the developer and firms involved in its construction created a stinky situation for buyers, a recently filed lawsuit alleges. Read the article…………………………….
Does an Insurer Have a Duty to Defend a Claim Immediately Upon Receipt of a Florida Chapter 558 Construction Defect Notice?
Construction projects are fragile and issues often arise when the project in practice doesn’t match the project in planning. Resolving these issues has become more standardized with the enactment of Florida Statutes Chapter 558, but the chapter may create as much litigation for insurance companies as it hopes to alleviate. Insurance companies play a large […]
How can co-owner condo board get developer to fix problems (MI)
Q: We’re feeling rather stuck. Our community association has just transitioned to a co-owner-controlled board of directors from the developer. There are many remaining issues that we need the developer to address, including repairs and significant funds that we believe they are illegally keeping from us, and our requests are falling on deaf ears. The […]
Statute of Limitations for Construction Disputes (UT)
Construction Defects can financially cripple community associations. The cost to repair leaky and sinking buildings is not budgeted for when the community is created, is not planned for in reserve analyses, and is not anticipated by homeowners at the time of purchase. Purchasers legitimately expect the residences are well constructed in a manner that “can […]
Treble Damages and Attorneys Fees in Condominium Construction Defect Claims in Washington DC
This article discusses the circumstances under which a Condominium Unit Owners Association in Washington DC may have the right to recover treble damages, attorney’s fees and other litigation expenses incurred in pursuing a condominium construction defect case against a condominium declarant, developer or builder. Read the article………………………………
City of Aspen claims immunity against Burlingame Ranch HOA $8M claim (CO)
The homeowners association at Burlingame Ranch, a city of Aspen developed affordable housing complex, has hired lawyers as it claims the municipal government is responsible for paying $8 million in construction defects and other associated costs. Read the article………………………..
Ke Kilohana condo owners sue Kakaako tower’s developer over maintenance fees, alleged construction defects (HI)
Residents in a new condominium tower at Ward Village in Kakaako have sued the project’s developer over alleged maintenance expense low-balling, building code violations and construction defects. Read the article………………………
Are St. Pete’s permitting policies causing a spate of defective condos? (FL)
With another 40-something unit condo on the way in downtown St. Petersburg, there are storm clouds gathering for the industry in St Petersburg. According to informed sources, it was the cloud of an oncoming potential hurricane last summer that first tipped off the potential impact of the city’s system of permitting and inspecting these ever […]
Suit settled, buildings fixed, Tagalong is ‘ better than ever’ (WI)
All the many years I was working too many hours as a newspaper editor in the Twin Cities, I dreamed of a lake home when retirement came. So when the days of no more 10-hour days drew close, Ann and I began to look for a place on water. Quite by accident, while driving around […]
Inadvertent Construction Defects Are an ‘Occurrence’ Under the CGL Insurance Policy
Whether property damage caused by defective construction work constitutes an accidental “occurrence” under the standard form Commercial General Liability (CGL) insurance policy is now highly dependent on which state’s law applies. Determining which state’s law applies to a particular construction defect claim is therefore critical and often outcome determinative. Read the article…………………………
Downtown St. Petersburg’s Bliss condo owners sue developers over shoddy construction (FL)
Residents in a downtown St. Petersburg high-rise are suing its developers over building defects they say are causing expensive damage to their property. The Bliss Condominium Association is the homeowner’s association for the 18-story building completed in downtown St. Pete in 2017. The group is suing developers Taub Entities and Voeller Construction for damages they […]
Daybreak HOA raises monthly payment 100% to cover building defects (UT)
Some residents in Daybreak have been given notice of a 100 percent increase in HOA fees, starting in February. The Eastlake Village Condominium Owners’ Association mailed out notices to residents about the increase and held a meeting Wednesday night. The increase stems from a lawsuit the HOA filed against the homes’ builders in 2015. The […]
Condo owners at 51 Jay sue Slate Property Group, Adam America (NY)
The blame game over construction defects at a luxury Dumbo condo now includes allegations of fraud. The board of managers at 51 Jay Street is suing Adam America Real Estate and Slate Property Group, the project’s sponsors and developers, alleging breach of contract, fiduciary duty and fraud. Read the article………………………
Families claim new homes funded by the city to ‘promote quality living’ are falling apart (FL)
Many families who live at the Payne Avenue Walk are calling the new housing community a “scam.” They say the work is still not complete years later. Read the article……………………….
Sereno condo association sues alleging poor workmanship (FL)
At Sereno at Bay Harbor Islands, residents are alleging that water is intruding in various locations, access gates and doors are improperly installed and stucco is cracking on exterior walls, according to a lawsuit filed this month. Read the article…………………………….
Victory or cautionary tale? After years of legal battles, condo owners finally ‘win’ fight against D.R. Horton (FL)
“America’s Largest Homebuilder” must pay nearly $14 million to repair pervasive construction defects at the Beach Boulevard condo complex. Read the article…………………………
Is a Construction Defect Plaintiff Entitled to Prejudgment Interest for Unrepaired Defects? (FL)
Prejudgment interest is a type of compensation payable to the plaintiff from the time the cause of action accrues until the time of the final judgment. Under Florida law, prejudgment interest is merely another element of pecuniary damages that is intended to make the prevailing party whole from the date of loss, once a finder […]
Town, county agree to $1.3M in loans for failing roofs (WY)
Town and county officials agreed Thursday to pay up to $1.29 million in loans to fix failing roofs at Melody Ranch Townhomes. The county will pay for 55% of the loan, and the town will pay for 45%. The $1,292,800 will primarily come from fees collected from developers. Read the article………………………….
Second Opinion Offers Hope to Brittany Chase Owners (NJ)
A second engineering company presented at Thrusday night’s Brittany Chase Condominium Association (BCCA) meeting providing a detailed power point presentation and a new estimated cost to repair what ails Brittany Chase. Approximately one hundred owners came out to the Wayne Hills High School auditorium to attend the BCCA meeting knowing that the engineers report was […]
New Legislation Impacting Florida Construction Defect Litigation
Section 624.1055, Florida Statutes, is part of the recent Omnibus Insurance Bill, HB 301: Contribution Rights Among Insurance Carriers. This new legislation impacts those involved in Florida construction defection litigation and applies to claims, suits or other actions initiated after January 1, 2020. Read the article……………………..
Defendant Pipe Supplier In Condo Construction Defect Suit Properly Denied HOA Section 998 Offer Of $325,000 As Too Token Given $22.7 Million Costs Of Repair For Defendant’s Scope Of Work (CA)
In Acqua Vista Homeowners Assn. v. MWI, Inc., Case No. D073666 (4th Dist., Div. 1 Aug. 9, 2019) (unpublished), plaintiff homeowners association sued developer defendants as well as pipe supplier defendant MWI in a construction defect suit under the Right to Repair Act (Civ. Code, § 895 et seq.). MWI made a pre-trial CCP § […]
CFSIC recieved over $12 million in claims from condo owners with failing foundations (CT)
Just a week after Gov. Ned Lamont signed a law allowing condo owners to participate in the Connecticut Foundation Solutions Indemnity Company Inc’s foundation repair and replacement funding, over $12 million worth of claims have been submitted. Read the article………………………….
Court of Appeal Upholds Pre-Litigation Arbitration Clause (CA)
We recently blogged about the importance of the the plain language of an association’s Declaration when following pre-litigation requirements to a construction defect claim. On March 18, 2019, the California Court of Appeal ruled that trial courts should not deny a homeowner of his right to submit a case to arbitration pursuant to the CC&Rs […]
How Florida’s Adoption of the Daubert Standard Can Impact Construction Defect Lawsuits
On June 26, 2019, the Sun Sentinel published an editorial: “The Florida Supreme Court’s new evidence rule makes it harder to sue,” which is one of the many recent articles providing commentary on the Florida Supreme Court’s May 23, 2019 ruling, which changed the standard in Florida cases for evaluating and admitting expert testimony. Read […]
Condo column: Does your condominium have a construction defect? (FL)
Q: Can you please explain the process for making a construction defect claim for a condominium in Florida? Read the Q&A…………………………
7 Challenges to Construction Defect Claims
Whether a project is big or small, it seems inevitable that construction defect claims will surface. While the nature of these claims may vary, common patterns are generally present, and construction professionals would do well to understand the distinctions. Construction defect claims often fall into one of four categories: design defects, material defects, workmanship defects […]
Condominium Defects in the Carolinas
Condominium owners associations (COAs) are usually responsible for maintaining and repairing roofs, exterior walls, and other building envelope components. If the building envelope has not been designed or constructed properly, water will find its way into the building and attack studs, sheathing, and other structural components that hold the building up. The resulting decay, hidden […]
Recent New Jersey case addresses various issues of importance to the insurance industry
New Jersey Insurance law attorney Jared Stolz explains the Four Seasons at North Caldwell Condominium Ass’n case, a decision from the Superior Court of New Jersey, arising from allegedly defective construction. Read the article…………………………
Nevada’s real estate industry blamed wrong enemy when bubble burst
Las Vegas’ economy is on strong footing today, but in early 2015 it was still climbing out from the dark days of the recession. The valley was still flooded with underwater houses, Nevada had one of the highest foreclosure rates in the country, homebuilders’ sales in Las Vegas remained a fraction of their bloated, bubble-era […]
Owners in one of Hawaii’s most exclusive condos sue over construction defects
There are at least 120 different construction defects at one of Hawaii’s most exclusive condominium towers, according to a lawsuit filed by property owners at the tower ? and a shortage in skilled building laborers may be at least partially to blame. The suit alleges a wide range of construction projects at the Waiea condominium […]
One Ocean’s condo association sues Related alleging shoddy construction (FL)
Jorge Pérez’s effort to unload a four-bedroom penthouse he owns at One Ocean in Miami Beach may have just gotten more complicated. Miami’s condo king just chopped nearly 50 percent off his original three-year-old asking price of $20 million on the unit, in response to the oversupply of luxury condos. Now, One Ocean’s condominium association […]
40 Charleston area condo and apartment buildings involved in lawsuits over defects (SC)
Scaffolding is rising once again around a Charleston building where water intrusion required some tenants to move as construction crews tear down and replace sections of the relatively new exterior. The scene at East Central Lofts on Huger Street is not unique. Similar work is in progress on multi-family buildings in Mount Pleasant at East […]
Construction Defect Pre-Suit Notices: Here’s What You Should Know (FL)
When hiring a construction company to complete work, most people have expectations regarding the quality of work they’d like to receive. However, when the completed work is below expectations, and if a deal cannot be worked out with the company, a construction defect lawsuit may come into play. Read the article…………………….
Icon condominium owners fight developer for reimbursement following pool structure issues (TN)
Condominium owners at the Icon in the Gulch were forced to pay nearly $1.1-million to rebuild their pool after an inspector deemed it was at risk of collapsing. Now, residents are demanding that the developer reimburse them for the project. There were cracks in the pool, and 1,000 gallons of water leaking every day into […]
Court rules Wausau Underwriters Insurance owes duty to defend in construction defect lawsuit (CA)
A federal court has granted an insurance company’s motion for partial summary judgment in a case involving one of its insureds which is facing allegations of manufacturing defective plumbing products for a condominium construction project. According to the March 29 order of the U.S. District Southern District of California written by Judge M. James Lorenz, […]
Illinois Appellate Court Rejects Federal Insurance Coverage Analysis, Finds Duty to Defend Against Construction Defect Allegations
On March 29, 2019, the Illinois Appellate Court issued an opinion clarifying when a duty to defend against construction defect allegations exists under a subcontractor’s commercial general liability (CGL) policy. The decision reflects a broader shift in how courts have interpreted claims of faulty workmanship under CGL policies. Read the article………………….
How To Calculate Real Estate Valuation Damages In A Construction Defect Action
When determining whether to pursue a construction defect action, few property owners consider the question: “how will my damages be calculated?”. While understandable, failure to properly address this question can prevent owners from recovering the full extent of their damages. This blog post discusses issues that should be considered when calculating the impact of a […]
Condo associations now eligible to apply for crumbling foundations funds (CT)
The Connecticut Foundation Solutions Indemnity Company announced Monday that it will start working with condo associations to secure funds for the replacement or reimbursement of work done on their crumbling foundations. Read the article…………………….
Condominium Conversions Defect Actions Under California Law: Not Your Run-of-the-Mill Defect Case
Condominium conversions may present developers and contractors with both additional defenses and potential liability pitfalls when a defect action is subsequently alleged by an HOA. On the plus side for the converter, unlike new residential construction projects, California Civil Code Section 896, which is commonly referred to as “SB 800,” or the “Right to Repair […]
Naples-based Stock Development dealing with construction defects at Paseo in Fort Myers (FL)
Tony Conte is tired of dealing with construction defects at his part-time home in Paseo. While fixes have been made at his condominium, some projects have dragged out, leaving him frustrated. Planks of wood reinforce his second-story balcony — and the manager of the Fort Myers community told him that it’s unsafe to use and […]
Condo owners lose key remedy for construction problems
A recent Illinois Supreme Court ruling blocks a route condo owners have used for decades to seek financial recovery for defects in construction, attorneys say. In its Dec. 28 opinion on a case between an Evanston condo association and a manufacturer of aluminum windows and doors, the court ruled there is no implied warranty on […]
Florida Federal Court Finds Insurer Must Defend Contractor in Defective Condo Construction Suit
The United States District Court for the Middle District of Florida recently granted summary judgment in favor of developer, KB Homes, ruling that Southern Owners Insurance Co. must defend KB Homes under various Commercial General Liability policies. Read the article……………..
Homebuyers’ Implied Warranty of Habitability Suit Against Subcontractors Is Frozen out by Illinois Supreme Court
Overruling 35 years of precedent, the Illinois Supreme Court has held that buyers of newly constructed homes cannot sue subcontractors for breach of the implied warranty of habitability. Sienna Court Condominium Association v. Champion Aluminum Corporation, 2018 IL 122022 (December 28, 2018). Read the article…………………..
New Condo Boards Need to Address Building Flaws Quickly
One of the most common challenges for fledgling condo boards in newly constructed buildings is dealing with the structure’s physical flaws, from cracks in the foundation to leaky windows and roofs, and worse. When seeking relief from the sponsor, time is of the essence because courts have held that the statute of limitations for a […]
Homeowners in Brighton development on Erie Canal sue beleaguered Costello (NY)
The homeowners association at the Reserve filed suit against the developer this month, another step in the decline of the would-be exclusive development on the Erie Canal in Brighton. As the Democrat and Chronicle reported in October, the ambitious $180 million, 327-unit development has floundered after the death of developer Anthony Costello in March 2016. […]