Condominium boards embroiled in construction defect lawsuits against developers (sponsors) often see a further complication arise: the sponsor bringing in the project architects as third-party defendants. Sometimes the condo can sue the project architect directly but many times the focus is on the developer and its members and they point the finger at the architect. […]
Homeowners urge lawmakers to take action on bill addressing defective home construction (CO)
When your home is built poorly, it can be hard to hold builders accountable, or even get repairs done. A bill moving through the Colorado legislature would make it easier for homeowners to get the fixes they need. “It’s only about having the repairs done properly,” said Janine Musser, a Colorado homeowner. Read the […]
Amended construction defects bill passes Colorado Senate but still lacks homeowner group’s support
The Colorado Senate passed a watered down version of a contentious bill on Thursday that sponsors hope will reduce insurance costs for condominium construction in the state and spur the development of that type of housing. SB-106 would have added a right-to-repair path to resolve faulty construction issues outside of the costly litigation process and […]
Holding Condominium Developers and Their Principals Liable (NY)
In Board of Managers of the Brighton Tower II Condominium v. Brighton Builder, LLC, the Second Department which overseas Brooklyn and Long Island lower courts, issued a decision which clarifies what condo boards and owners have to establish in order to succeed against sponsors and their principals in construction defect cases. The court offered important […]
WATCH: Proponents, critics clash over legislation aimed at increasing Colorado condo construction
Proponents and critics clashed over a proposal that sponsors argue would spur more construction of affordable condos during a town hall on Wednesday. Proponents said Senate Bill 106, which won a 4-3 vote from the Senate Local Government and Housing Committee, would help the construction industry with what developers and others believe is the most […]
Bills to reform Colorado’s construction defects law advance in Legislature
Two bills aimed at reforming Colorado’s construction defect law advanced through the Legislature this week, one to spur more condo development by lowering insurance costs and another to give homeowners more protection against shoddy construction. They both have to do with the state’s Construction Defect Action Reform Act, which sets up a process for homeowners […]
Providence condo owners say developer’s shoddy work cost them thousands. They want answers (RI)
A developer who for years has left a trail of complaints resulting in multiple suspensions and fines by the state contractor’s registration board continues to do business in Rhode Island – even though he owes the state more than a quarter of a million dollars in personal income taxes. Read the article…………………………….
The Construction Defect Bills (CO)
The number of laws proposed during the 2024 legislative season that affect the rights and responsibilities of homeowners associations leaves board members spoiled for choice as to which of the mounting problems or crises their associations face in the coming year they will be investing their emotional wherewithal. In an effort to alleviate the pains […]
Brooklyn Condo Owners Face $90,000 HVAC Repair Bill: A Tale of Legal Accountability and Community Livelihoods (NY)
A Brooklyn condo building’s faulty HVAC system leaves owners facing a $90,000 repair bill. Residents question if the building’s sponsor holds responsibility due to potential design flaws or installation errors. Legal experts advise reviewing offering plans and contracts for potential solutions. Read the article…………………………….
The Developer is Offering the Association (a lot of) Money to Sign a Release- Should the Board of Directors Consider Signing it? (NC)
Over the last year our firm has seen an uptick in offers to associations from the developer to pay money in exchange for signing a release. The language of releases can vary but the purpose is almost always the same – The money being offered to the association is in exchange for releasing the developer […]
Persimmon Hill – Huge Impact on South Carolina Construction and Insurance Industries
The Persimmon Hill decision is one of the most impactful South Carolina insurance coverage decisions in years. The 58-page opinion authored by Justice Konduros addresses myriad issues including insuring agreements, obligations owed to insureds and additional insureds, bad faith, and an alternative to the “time on risk” allocation formula. Read the article………………………..
Major Ruling: Illinois Supreme Court Provides Clarity and Changes Precedent on CGL Coverage for Defective Work
The Illinois Supreme Court recently upended decades of Illinois caselaw regarding coverage under commercial general liability (CGL) policies, aligning Illinois with most states on the issue. On November 30, 2023, the Illinois Supreme Court unanimously held in Acuity v. M/I Homes of Chicago, LLC that the “your work” exception under CGL policies did not prevent […]
Illinois court asked: Are defects covered by general liability insurance?
The ruling, passed down from the state’s supreme court, could affect which issues contractors choose to litigate with insurers across the country. Read the article…………………..
Saco retirement development plagued by problems, some residents say (ME)
More than half the homeowners at The Cottages at Pine Meadow have complained to the attorney general’s office but have not gotten any recourse. The developer and builder, meanwhile, deny the claims and have criticized the owners. Read the article………………………..
Illinois Supreme Court Overturns Decades of Confusing Law on Insurance Coverage for Inadvertent Construction Defects
Over the years, owners and contractors were frequently shocked to learn that there was no insurance that could cover damage caused by inadvertent defective construction. However, that all changed on November 30, when the Illinois Supreme Court, in Acuity v. M/I Homes of Chicago, LLC, aligned Illinois law with the modern trend followed by most […]
How to Handle New Construction Defects (NY)
When buying a condo apartment in a new construction, it’s very likely the building will have some defects, whether it’s issues with the roof, the elevator or amenities. Defect claims occur in about 90% of new construction condos in New York City, and approximately 30% to 40% of these end up in litigation. Read the […]
Colorado’s justices weigh immunity for municipalities acting as housing developers
…..However, the condominium association for Burlingame Ranch II, an affordable housing community that the city of Aspen developed itself, believed it could hold the city responsible for construction defects in a different way. Instead of claiming negligent construction, which the CGIA would block, the association argued the city breached its contract with homebuyers by not […]
New condos are hard to find in Colorado. Getting developers to build more will roil the Capitol next year
Construction defects liability has been politically fraught, but the failure last year of Gov. Jared Polis’ signature land-use measure has reignited the push for lawmakers to take on the issue Read the article………………………………
SEVEN BRIDGES SECRET: Homeowners Outgraged After Board Secretly Settles Suit Against GL Homes (FL)
For the second time in two weeks, homeowners in the gated West Delray Beach community of Seven Bridges are outraged after its elected board of directors made a major decision behind closed doors — and failed to announce that decision to anyone. In the latest example of questionable conduct, the board settled its 558 lawsuit […]
Washington’s New Requirements for Construction Defect Notices – Does the New Statutory Language Contain an Error?
On July 23, 2023, changes to Washington’s construction defect notice statute, RCW 64.50.020, took effect. The new requirements apply to construction defect notices sent on behalf of condominium associations. But does the statute, as written, contain an error? Read the article………………………..
New Washington law could make condos less expensive, but are buyers less protected?
Everybody wants housing they can afford. Lawmakers have tried many strategies to give that to people. One is to bring the cost of homes down by reducing the price developers pay for things like insurance. A new bill that went into effect this week aims to do that. But not everyone’s happy about it. Read the […]
Watch out for the builder’s lobby!
Every now and then, I run across an article like this: Why Are So Few Condos Built in the Twin Cities? It will talk about the problem of very few condominiums being built in a city or state. It will raise some issues that they believe may be the cause, but you will always find among […]
Florida Shortens Time to File Construction Claims and Imposes Materiality Requirement for Building Code Violations
On March 24, 2023, and April 13, 2023, Governor Ron DeSantis signed House Bill 837 and Senate Bill 360 into law, respectively. These new legislative amendments change Florida’s litigation landscape by shortening the statute of limitations for general negligence claims and the statute of repose for construction claims and altering the potential triggering events for […]
Florida Further Restricts Community Association’s Ability to Bring Design and Construction Defect Lawsuits
Several laws have been passed during Florida’s recent legislative session, and one in particular will have a significant impact for community associations. On April 13, 2023, Florida Governor Ron DeSantis signed Senate Bill 360 (“SB 360”) into law. This new law shortens the time period for bringing lawsuits based on design and construction defect claims […]
“Passive house” condo cracking, leaking: lawsuit (NY)
Residents of Nava Partners’ energy-efficient Brooklyn condo claim the forward-thinking construction got some things backwards. The condo board sued Stewart Osborne and David Ruff’s development company for $5 million last week, alleging the Boerum Hill project suffered from faulty construction and lousy materials. Read the article………………………..
Boisbriand condo owners might be forced to abandon homes due to defects (QC)
Some 162 condominium owners in the Montreal-area suburb of Boisbriand will most likely have to abandon their homes because of major building defects. Built less than 15 years ago, the 27 sixplexes were built with severe defects and flawed design, according to the various condo associations connected to the complex. Read the article………………………..
Homeowners Association sues Tralon Homes for not maintaining neighborhood infrastructure (CO)
New court documents accuse the builder of not maintaining the infrastructure in the Star Ranch neighborhood, located in the Broadmoor Bluffs. Star Ranch, LLC was the original developer of the neighborhood in 2014 and therefore held the declarant rights, meaning it was in charge of the homeowners association and maintaining the neighborhood. However, those rights […]
Newly passed bill to lower statute of limitations on fraudulent contracting gets mixed reactions (FL)
Howell said as the law stands right now, developers have seven years to hand over the association for a condominium or a home in an HOA to the homeowner, meaning the homeowner can’t make a claim on a construction defect until then. Read the article………………………..
Associations May Now Have Broader Standing to Pursue Construction Defects Claims (FL)
When your community needs to pursue a claim for construction defects, your community must have a stake in the outcome of the litigation – known as standing – to pursue that claim. Because both Section 718.111 and 720.303 empower an association to pursue claims for matters of common interest, an association usually has standing to […]
HOA Has Standing To Bring A Claim On Behalf Of Homeowners For Construction Defect Claims (CA)
In the case of River’s Side at Washington Sq. Homeowners Assn. v. Superior Court, 3d. Cir. No.C095860 (2023), a homeowners association successfully argued that it had standing to sue for construction defects on behalf of individual unit owners. Read the article………………………..
Hunterdon Creekside Residents Baffled by Release of Performance Guarantees Without Repairs Being Made (NJ)
Baffled. Boggled. Disturbed. Offended. Sad. These words and similar were used by residents of Hunterdon Creekside to express their sentiments at the Raritan Township Committee meeting Feb. 21 over the recommendation by the township’s engineer to release cash and surety performance guarantees for developer Pulte Homes. Read the article………………………..
Need to Know: What Board Members Should Know About Construction Defect (CO)
Buying a new home is a milestone experience full of choices for your colors, flooring, and finishes. For months, you stop by and check on the progress. The anticipation builds until, finally, you close on the home and move in. As the months go by, you notice little flaws here and there but nothing that […]
Participating in a Construction Defect Claim – 30,000 Foot View (CO)
What is a “construction defect”? A construction defect is any condition or improvement that was designed, installed or constructed in a manner that falls below the applicable standard of care. Generally speaking, this encompasses any construction that does not comply with the building code requirements and/or the applicable plans, specifications, soil reports, geotechnical reports and/or […]
Florida Legislature Makes Another Run at Revising the Statute of Repose for Construction Defects
In late December 2022, the Florida Legislature proposed changes to the Florida Statute of Repose for Construction Defects to clarify a statute with ambiguous language. The statute is used to determine how long a party has to file a claim for construction defects after a structure or improvement has been completed. Read the article………………………..
Condo board sues Glenwood, calling luxury Manhattan project “hazardous” (NY)
Unit owners at Glenwood Management’s first condo project might wish the developer had stuck to rentals. Five years after the developer entered the condo market with a project at 60 East 86th Street, the board claims the 19-story offering on Upper East Side with 14 units is coming undone — and it wants Glenwood to […]
Defective Home Lawsuits Continue To Flood Florida Courts
As large tract home builders continue to spring up new neighborhoods, lawsuits keep streaming into the courts. A Riverview couple’s lawsuit against D.R. Horton, filed December 6, is a typical case of discovered construction defects. Read the article………………………..
Construction Defect: Why You Can’t Sue Your Builder’s Insurance Company (PA)
As a litigation attorney, I meet with many clients seeking advice because their new home construction or renovation project was done poorly. Whether these homeowners are dealing with big or small construction companies, the same problems arise when it comes to construction defects. Read the article………………………..
Homeowners in gated Pasco community claim shoddy work, upkeep in lawsuit (FL)
Private gated neighborhoods. Exclusive club lifestyle: That’s the website pitch for the Champions’ Club in Trinity, a community of estate homes offering residents privacy, the prestigious Fox Hollow Golf Club, its course designed by Robert Trent Jones Sr., and an elegant clubhouse. Read the article………………………..
Largo Townhome Association Sue D. R. Horton Home Builders As Lawsuits Abound (FL)
D. R. Horton, Inc. has been sued by a homeowner’s association in Largo for myriad construction defects. The top-volume homebuilder in the U.S. is headquartered in Arlington, Texas. It is also the subject of a class action lawsuit filed in March by homeowners based in Youngsville, Louisiana. Both states experience high levels of humidity. Read […]
“Direct Action Statute” Can Permit Judgment Claimants to Collect from Debtors’ Insurance Policies (NJ)
In Crystal Point, the Condominium Association obtained two default judgments for construction defect claims against a structural engineer and its companion construction inspection entity. The default judgment defendants could not be located and efforts to execute upon the default judgments were returned uncollectible. Read the article………………………..
Australia: Building defects: In the aftermath of Mascot Towers, how has the industry changed
It’s been three years since residents in Mascot Towers were forced to evict their homes, leaving many in limbo and causing a huge emotional and financial toll on unit owners. Read the article………………………..
Covenants to Arbitrate Construction Defect Disputes Within a Deed Run With the Land Obligating Subsequent Parcel Owners (FL)
In the case of Hayslip v. U.S. Home Corporation, — So. 3d —, Case No. SC19-1371 (Fla. Jan. 22, 2022), the Florida Supreme Court held that an arbitration covenant contained in a developer’s original deed also bound subsequent owners. Read the article………………………..
So What Are The Common Defects in California Related To Construction?
As a homeowner or business owner, you work very hard to reach that milestone of owning your property especially when your property is built from scratch. When you notice a structural defect, or something that was done after the project was completed, you want to hold the responsible party accountable. Read the article………………………….
Australia: Building Defects: Who in Construction is Liable?
Is “a person who carries out construction work” limited to the entity that was contracted to do the work such as, the builder and developer or does it also include all persons involved in completing the project work such as a supervisor, director or project manager? Read the entire article……………………………….
SJC Decision Narrows the Window for Filing Construction Defect Suits (MA)
“Don’t ask for whom the bell tolls,” an essay by John Donne cautions. “It tolls for thee.” For condominium associations, the statutory bells signaling deadlines for filing construction defect suits are going to start tolling a lot sooner now, thanks to a recent decision by the Massachusetts Supreme Judicial Court (SJC). Read the entire article……………………………….
New Jersey Legislature Amends Statute of Limitations for Defect Claims Brought by Condominium and Homeowners’ Associations
Common interest communities in New Jersey likely have more time to assert construction and design defect claims under the New Jersey Legislature’s 2022 amendment to N.J.S.A. 2A:14-1. Condominium associations, cooperative corporations, and other real estate development associations now have six years from transfer of control of the association from the developer to the unit owners […]
Rising Costs of Materials Could Lead to More Construction Defects
We wanted to share news greatly affecting new construction: rising costs of materials. The housing market across the country is crazy right now. It is a strong sellers’ market and buyers are having an extremely difficult time getting offers accepted. Read the entire article……………………………….
Creekside in Erie alleges shoddy work from developer (CO)
The homeowners association that represents residents at Creekside in Erie Townhomes is suing the community’s developer, Meritage Homes of Colorado Inc., claiming that the builder failed to meet certain construction quality standards. Read the entire article……………………………….
Barnegat residents want housing developer to fix crumbling sidewalks, soggy yards (NJ)
Cracked and crumbling sidewalks. Muddy, useless backyards. Residents of Venue at Lighthouse Station, a new age-restricted neighborhood in Barnegat off Lighthouse Drive, say these are some of the widespread signs of poor community planning and shoddy workmanship that have plagued their neighborhood. Read the entire article……………………………….