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……………………………….
Eastside condo owners worried after costs rack up for structural defect repairs (AZ)
Major repairs are needed at an eastside complex. The project is expected to be costly and while only some units are affected, condo owners say the HOA is discussing having the entire community foot the bill. A leak in one of these units uncovered a construction defect. Now, 30 of 120 units have been flagged […]
New Construction Condos: What is the Implied Warranty of Habitability? (MI)
Purchasing a new construction condominium can be an exciting proposition. Generally speaking, a developer will provide an express written warranty to the purchaser of a new condominium unit that covers defective construction within the unit. However, in addition to the interior of a condominium unit, co-owners also purchase an undivided interest in the common elements […]
Condo defects? Council bill would make developers pay (NY)
The unit was modern and pristine, but three years later the ceiling leaks, the walls are cracked and the floors are warped. Such complaints about construction defects are relatively common among New York City condo owners, even at the city’s most exclusive addresses. Read the entire article……………………………….
Seven Bridges Delray Sues GL Homes For Shoddy Workmanship (FL)
At issue: shoddy workmanship that the HOA claims GL left behind when it finished Seven Bridges a few years ago. GL Homes has, according to the suit, refused to fix the problems, leaving the HOA to pay for fixes itself. The problem with GL is not new. Other GL communities have also been left to […]
Justices: South Bend condo HOA can move forward with faulty construction lawsuit (IN)
A homeowners association made up of condominium owners in a South Bend condo complex can move forward with its claims of faulty construction work against two of the four defendants named in its original lawsuit after a reversal by the Indiana Supreme Court. Read the entire article……………………………….
Paseo Condominium residents upset with continued problems (FL)
People who live in the Paseo Condominiums say they have had problems from the start. When the condominiums were under construction in 2014, there were already issues with water coming through the foundation, windows and even the roof. Read the entire article……………………………….
New Bill Clarifies Statute of Limitations For Community Association Transition Litigation Matters (NJ)
On Tuesday, January 18, 2022, Governor Murphy signed into law Senate Bill 396, which automatically tolls (i.e. pauses) the 6-year Statute of Limitations for construction defect claims by condominium and/or homeowner associations and cooperative corporations until the first election when unit owners take majority control of the association board (“Transition”). Read the entire article……………………………….
Following Surfside tragedy: ‘Why are we punishing homeowners who are completely innocent?’
In the wake of the deadly collapse of a South Florida condominium in Surfside in June, lawmakers in Tallahassee this week are pursuing legislation to protect builders from frivolous lawsuits. (Ed. Note – the use of the word “frivolous” is from the lobbyists – these bills make it harder for ever well-deserved lawsuits) Read the entire […]
Fourth Circuit Upholds Finding That Excess Insurer Did Not Act In Bad Faith Where Insured Would Not Be Liable To Pay
The underlying dispute centered around a construction-defect claim in South Carolina state court brought by a homeowners’ association against a construction company. The construction company asked its excess insurer to provide coverage for the lawsuit but the excess insurer concluded it had no duty to defend. Read the entire article……………………………….
Fourth Circuit Upholds Finding That Excess Insurer Did Not Act In Bad Faith Where Insured Would Not Be Liable To Pay (SC)
The underlying dispute centered around a construction-defect claim in South Carolina state court brought by a homeowners’ association against a construction company. The construction company asked its excess insurer to provide coverage for the lawsuit but the excess insurer concluded it had no duty to defend. Read the entire article……………………………….
Architect Not Liable For Flawed Plans Submitted to Self-Certification Program (IL)
A Chicago ordinance that allows developers to bypass the usual plan review by city building officials by submitting self-certification from an architect did not give homeowners a right to take legal action against that architect after design flaws were discovered, an Illinois appellate court ruled. Read the entire article……………………………….
FAQ: Construction Defects and Florida Statute 558
Florida’s construction industry has been one of the biggest beneficiaries of the COVID-19 pandemic. Whether it is newly constructed homes or renovations to existing homes, the construction industry has weathered the need for residential construction with surprising strength. However, the boom of new construction projects has accompanied an uptick in litigation concerning construction problems, such […]
Homeowners sue after finding out their condo tower wasn’t built to code (BC)
More than two years after finding out their building wasn’t built to code, dozens of condo owners in Surrey, B.C., are suing the developer and contractors behind the project. Homeowners with units in the building filed a lengthy lawsuit this year against the developer, contractor, construction manager, architect and engineers — just about everyone who […]
Residents of Kaka’ako high-rise say they were promised luxury, but got leaky fire sprinklers instead (HI)
The 2-year-old building on Halekauwila Street is outfitted with modern furniture, a movie theater, karaoke room, as well as a sky lanai overlooking downtown Honolulu. But occupants of the mixed-use residential condo argue its looks are deceiving. “Since pretty much the move in, we’ve experienced lots of issues related to safety and security of the […]
Brother Of Surfside Condo Collapse Victims Testifies Against Bill That Would Lower Time To File Lawsuits Over Construction Defect Claims
Hoping to make a difference, the brother of a Surfside condo collapse victim testified in Tallahassee on Tuesday against a bill that would lower the amount of time to file a lawsuit over building defects. Read the entire article……………………………….
A Billionaires’ Row Lawsuit Could Give Manhattan Condo Buyers Pause
It comes across as a multimillion-dollar nightmare. The myriad things allegedly wrong with the high-rise condominium tower at 432 Park Avenue, the fifth-tallest building in New York City, are spelled out in a late September lawsuit in Manhattan Supreme Court, with lawyers for its residents calling it “one of the worst examples of sponsor malfeasance […]
Court says DC isn’t liable for severe structural issues at a Ward 8 town house project it helped fund
In January 2021, Bennett and Callahan joined a group of homeowners in suing the Department of Housing and Community Development (DHCD) — the city agency responsible for financing the project — as well as the developer and the River East at Grandview Condominium Association. The claims against the defendants included breach of contract, emotional distress, […]
Billionaire Row Condo Board Sues Developers Over 1,500 Building Defects (NY)
The condo board at one of New York’s tallest and toniest towers sued the building’s developers, claiming design flaws are to blame for flooding, stuck elevators and “horrible and obtrusive noise and vibration.” Read the entire article……………………………….
Issues with the 558 Process (FL)
Following the tragic collapse of Champlain Towers South, there has been much talk about Florida Statutes Chapter 558, which deals with the process condo/unit owners must follow to file claims for development defects. Read the entire article……………………………….
What HOAs need to know about construction defects in Maryland
It can be hard to tell what maintenance issues are the responsibility of the individual homeowner to fix and what’s the homeowner association’s responsibility. Construction defects are one of the gray areas where responsibility isn’t automatically known. Read the entire article……………………………….
Contractors can still be liable for failures years after project completion
Within a day of the collapse of the Champlain Towers South condominium in Surfside, Florida, the lawsuits began. While most of them to date have been aimed at the building’s condominium association, the city of Surfside and the engineering firms that conducted inspections on the structure, others target “any person or entity that might bear […]
Waterwheel owners claim Ardsley condominium is defective in $1M lawsuit (NY)
Waterwheel Condominium in Ardsley is leaky and moldy, the homeowners association claims, and owners of the low-cost housing blame the developers. The homeowners association is demanding $1 million from developer Ardsley Waterwheel Partners, project architect Conrad J. Roncati and real estate broker Matthew Perasso in a lawsuit filed June 17 in Westchester Supreme Court. […]
Effective Communication During a Construction Defect Claim in the New Normal (CA)
Effective communication within a homeowners association is always important. Once an association brings a construction defect action against the builder, communication and cooperation among the board, community association manager, and the construction defect attorney become essential. However, with the outbreak of COVID-19, communication and cooperation regarding construction defects will most likely remain permanently changed. Read […]
Insurer wins bad faith construction case
A federal appeals court Tuesday upheld a lower court decision that ruled an insurer is not obligated to defend a land developer charged with negligent design and construction under exclusions in its policies. Read the entire article……………………………….
Tuscany, GL Homes settle construction-defect lawsuit (FL)
The Tuscany Property Owners Association has settled a construction-defect lawsuit against GL Homes for $125,000 just a month after it sued the county’s largest homebuilder. The lawsuit, filed April 7, alleged that GL Homes performed its work in “a substandard and defective manner. Read the entire article……………………………….
Regalia association scores $18M settlement in construction defects lawsuit (FL)
The Regalia condo association settled its lawsuit alleging a slew of construction and design defects and building code violations at the luxury oceanfront tower for $17.5 million. In 2018, the Regalia on the Ocean Condominium Association sued the developers, architect, general contractor and subcontractors over alleged flaws such as improperly installed pool joints and cracking […]
Alabama Federal Magistrate Recommends Dismissal of Construction Defect Declaratory Judgment Action Due to Expanded Duty to Defend Standard
While the starting point for assessing an insurer’s duty to defend requires comparing the allegations contained within a complaint to the language contained within the insured’s policy, the majority of states require an insurer to do more. In Alabama, a failure of the underlying complaint to allege damages falling within the policy’s terms is not […]
Colorado Court of Appeals Places Significant Implied Warranty Liability on Residential Developers and Builders
The Denver housing market has been hot for years. An influx of residents, low housing inventory, and rising home prices make Denver a good choice for residential builders and developers. However, this past November, the Colorado Court of Appeals issued an opinion underscoring the liability that developers and builders face when building “common interest communities” […]
GL Homes Sued By HOA, Alleges Violation Of Florida Building Code (FL)
GL Homes, which advertises a lavish, luxurious lifestyle in spectacular homes, is being sued by an area HOA for negligent construction and alleged violations of Florida’s building code. The Tuscany Homeowner’s Association filed suit against GL in Palm Beach County Circuit Court for a laundry list of alleged community infrastructure and construction defects. Read the entire […]
Who Is Responsible for Construction Defects? (FL)
One of the most critical questions to answer after the discovery of a construction defect is who is responsible for the damage? That may not be a quick or easy thing to determine. Read the article………………………………..
FOX 13 Investigates: Newly-constructed home buyers find Utah gives them few options to fix defects (UT)
Utah has been one of the fastest-growing states for years. In 2019, municipalities approved permits for 18,000 new single-family homes. Buyers like David who find problems with the new construction learn “the cards are stacked against the homeowner,” says John Morris, an attorney who has represented Utah homeowners. Read the article………………………………..
Firestop Materials Attack Sprinkler Pipes! (CA)
We sometimes find irony in our construction defect cases. Here’s one: building products intended to increase safety turn out to be incompatible, leading to safety failures! One such issue involves chlorinated polyvinyl chloride (CPVC) fire sprinkler piping and incompatible firestopping sealants installed around the piping. Incompatible sealants in contact with the CPVC can cause systemic […]
Lawsuit Alleges Developer of N.J.’s Tallest Building is Defrauding Condo Purchasers (NJ)
The company behind one of the highest-profile projects in the history of the Garden State is being taken to court over misrepresentations they supposedly made in marketing their building along with a slew of alleged defects and problems that have purportedly gone unaddressed at the property. Read the article………………………………….
Construction defects galore at five-year-old Echo Aventura, lawsuit alleges (FL)
When New York-based Property Markets Group entered South Florida during the boom cycle of the early 2010s, Echo Aventura was one of its first completed condo projects. The developer enticed foreign buyers with amenities that included a bayfront infinity-edge pool, a 4,000-square-foot fitness center, fully furnished units and Apple home technology. But five years after […]
When condo owners get stuck paying for a builder’s mistakes
Q: In 2006, we purchased a condominium in Chicago on the third floor of a three-story building. During those years, we’ve experienced water issues with the roof and windows and have repaired them as they have come up. Read the Q&A……………………………..
The Massachusetts Statute of Repose Comes Marching One Building at a Time
Have you ever wondered when Massachusetts’ 6-year statute of repose for defective design, planning and construction is triggered when dealing with the construction of a multi-building, multi-year condominium construction project? Read the article………………………………
Condo Owners Win Lawsuit Over Construction Defects (NY)
Buyers of recently built condominiums with construction defects – by no means an exclusive club in New York City – have reason to rejoice. In a new ruling, the Appellate Division of the State Supreme Court has clarified a 2013 ruling, paving the way for condo boards to seek compensation from sponsors and investors for […]
Court puts condo investors on the hook for shoddy construction (NY)
New York City condo investors may increasingly find themselves having to dig into their wallets to pay for any construction defects, according to a new court ruling. The Appellate Division of state court upheld a ruling last week that a condominium board does not have to prove a fiduciary or confidential relationship between itself and […]
Court lets Fortis off hook for Williamsburg condo defects (NY)
Since purchasing 37 condo units from bankruptcy nearly a decade ago, a Brooklyn developer has denied that it also acquired responsibility for fixing defects in the building. Now, a court has let the developer off the hook. A panel of Appellate Division judges found that Fortis Property Group isn’t liable for damages or defects that […]
Miami River condo association alleges $10M in defects: lawsuit (FL)
The condo association for a Miami River project is suing a group of developers and subcontractors, alleging $10 million in design and construction defects. Terrazas Riverpark Village Condominium Association filed suit last month in Miami-Dade Circuit Court against more than 80 parties. The association alleges that unit owners only discovered the defects in the 328-unit […]
Judge says lawsuit claiming Fairway Oaks homes built on dump debris was filed too late (FL)
When Shirley Dempsey and her neighbors rallied to press their claims that Habitat for Humanity of Jacksonville sold them defective houses on an unstable trash dump, she would tell newcomers about her dream. Dempsey said the dream, where an angel touched the ground and the land opened up, led to her discovering that her home […]
Melo’s Aria on the Bay allegedly plagued with construction defects: lawsuit (FL)
Aria on the Bay may be the Melo Group’s signature project near Edgewater and the Arts & Entertainment District, where the developer has built most of its residential buildings in Miami. Designed by Arquitectonica, the 53-story luxury tower features units with floor-to-ceiling glass walls that offer expansive views of Biscayne Bay and downtown Miami’s skyline. […]
Insurer May Not Intervene In Insured’s Construction Defect Trial To Seek Allocation of Damages
Bolt Factory Lofts Owners Ass’n v. Auto-Owners Ins. Co., 2019 COA 121 (Colo. App. 2019), cert. granted en banc, Auto-Owners Ins. Co. v. Bolt Factory Lofts Owners Ass’n, 2020 Colo. LEXIS 250 (March 16, 2020)[1], involved a construction defects case in which the Association sued six contractors for alleged construction defects at one of its […]
National Resources principals accused of building defective Sleepy Hollow condominium (NY)
For the third time in four years, a homeowners’ association has sued officials of Greenwich-based National Resources for allegedly building a defective condominium. The board of managers of The River House at Sleepy Hollow Condominium is demanding $7 million from Joseph Cotter and Lynne Ward, in a lawsuit filed Aug. 12 in Westchester Supreme Court. Read […]
Barefoot Resort HOA files lawsuit over ‘design and construction defects’ (SC)
The construction of a new beach cabana for Barefoot Resort and Golf has encountered a hurdle after it was discovered the wrong building materials were used for the oceanfront amenity center located in North Myrtle Beach. In a lawsuit filed by the Barefoot Resort Residential Owners Association on Aug. 11 in the Court of Common […]
GL Homes, Valencia Reserve settle lawsuit over construction defects (FL)
The Valencia Reserve HOA filed a lawsuit in June 2016 alleging GL Homes built a faulty irrigation system that left homeowners with either ‘parched or oversaturated lawns’ among other concerns. GL Homes has agreed to pay $850,000 to the Valencia Reserve Homeowners Association to settle a four-year old lawsuit alleging that the homebuilder left the […]
Construction Defects: What They Are, How to Avoid Them, and What to Do When They Occur
A construction defect is a term nobody wants to hear mentioned about their project. But what is it, exactly? Simply put, a construction defect is a deficiency in the design or construction of a building or structure. It can cause big headaches for everyone involved. Read the article……………………………………….
Siena gets long-awaited fixes after suit settlement (NJ)
Developed on the former Hahne’s Department Store property, the building’s owners quickly sold all but eight of its 101 units as buyers sought what the builders termed an “enclave of luxury in an urban village setting” at Church and South Park streets. But soon owners of these luxury condos were plagued with leaks through walls, […]
What is a Construction Defect and How Can it Be Avoided?
Most homeowners, contractors, and association management companies don’t like to hear the term construction defect—and why should they? A construction defect is a deficiency in the design or construction of a building or structure. It can result from failure to construct or design in accordance with an expectation. In turn, it can cause loss of […]