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. […]
The Maryland HOA Implied Common Area Warranty
In Maryland there is an implied warranty on the construction of the common areas within a homeowners association (‘HOA”) community. The warranty is codified at Section 11B-110 of the Maryland Homeowners Association Act (“MD HOA Act”), and provides that “there shall be an implied warranty to the homeowners association” that the improvements to the common […]
Harlem Homeowners Face Increasing Repairs As Lawsuit Drags On (NY)
It has been one-and-a-half years since owners of apartments at the PS 90 Condominium in Harlem filed a lawsuit claiming that building developers cut corners — leaving many first-time homeowners on the hook for costly repairs — but residents likely won’t see financial relief any time soon, lawyers said. Read the article………………..
Insurer Prohibited from Bringing Separate Contribution Action in Subrogation to Rights of Suspended Insured (CA)
In Travelers Property Casualty Co. of Amer. v. Engel Insulation, Inc. (No. C085753, filed 11/30/18), a California appeals court held that an insurer may not file its own action to assert claims solely as a subrogee of a suspended corporation, where the corporation could not otherwise assert the claims on its own behalf. In Engel, […]
Court Decision Extends Time to File Construction Defect Claims Following Proper Pre-Suit Notice (FL)
A new decision out of Florida’s Fourth District Court of Appeal addresses whether providing a mandatory pre-suit notice of construction defect claims satisfies the requirements of Florida’s 10-year Statute of Repose in §95.11(3)(c), Fla. Stat. (2014), even if an actual lawsuit is not filed within that period. In a win for Florida homeowners, the Court […]
Associations Should Repair Life Safety Defects Even During the Pendency of Litigation (FL)
With the construction boom in full swing, more and more construction defect lawsuits are being filed on behalf of condominium associations because of countless construction defects that occurred during original construction. These construction defects are particularly prevalent in Miami where the unique real estate development market, weather, and shortage of skilled trade workers make it […]
Unsafe Balconies, Water Leaks, Other Flaws Claimed at Luxury Sunny Isles Beach Condo (FL)
Sunny Isles Beach’s luxury Regalia condominium, where each unit takes up an entire floor and has floor-to-ceiling glass walls, needs $30 million in repairs due to construction and design defects, an attorney for residents said. Problems include safety hazards like using the wrong or no screws for balcony railings and putting electrical grills meant only […]
Peter Hunt, Amherst condo company pay $104,000 over leaky pipes (NY)
Hunt Real Estate Corp. CEO Peter F. Hunt and an Amherst condominium development he sponsored have agreed to pay $104,300 to the development’s condo association for failing to disclose pipe leaks and corrosion to homebuyers. Read the article…………………..
Regalia’s condo association alleges flawed design, building code violations: lawsuit (FL)
Regalia’s condo association is suing the developer, contractor, architect and a laundry list of subcontractors for alleged design and construction defects and damage to the 47-story luxury condo tower in Sunny Isles Beach. Read the article………………
Rotting From Within: How water intrusion in new homes turns American dreams to rot (PA)
…The Goldsteins are among hundreds of families in Southeastern Pennsylvania who bought new homes since the start of the 2000s housing boom, only to learn, years later, that shoddy construction overseen by at least 27 different builders has turned their asset — for nearly all, the most valuable they have — into a liability, an […]
Millcreek condo owners forced to pay $40,000 fee (UT)
Nearly 100 homeowners at Millcreek Hollow are being forced to pay for roughly $4 million in repairs, due to alleged builder negligence. According to residents, the builders cut corners when they built the 96-unit property about 15 years ago, and now, the owners are paying the cost. The management company, FCS, said they tried to […]
Dozens of homeowners claim houses are falling apart, but major builder refuses to fix them (FL)
Dozens of buyers claim their new homes are falling apart, but a major builder refuses to fix defective stucco despite a multimillion-dollar state settlement. They sued KB Home. The homeowners claim new testing and internal documents show the new homes’ stucco coating failed building codes and the company knew it. Read the article……………
Construction Defects Require a New 558 Notice (FL)
Navigating the world of construction defects and 558 notice requirements can be tricky for both plaintiffs and defendants. Florida Statute 558 governs the rights and obligations claimants must follow prior to filing a construction defect lawsuit against the parties responsible for the original construction. Generally, the statute provides that a claimant must provide the contractors […]
A 58-story luxury condo skyscraper in San Francisco is tilting and sinking — here’s everything that’s gone wrong in the last decade
San Francisco’s Millennium Tower has been shrouded in controversy for years — but its fate has never looked bleaker than it does today. Since its opening in 2009, the 58-story skyscraper has sunk 17 inches and tilted another 14 inches to the northwest, causing many residents to speculate about issues with the building’s foundation that […]
Monument homeowners take housing developer who allegedly walked off the job to Bankruptcy court (CO)
Monument homeowners take housing developer who allegedly walked off the job to Bankruptcy court. While Michael Curry, the owner of Freedom Homes may be out of business, that’s not stopping homeowners from trying to seize his assets in Bankruptcy court. Read the article………………
$6K down the drain: Homeowners blame builder for expensive repair for rotten decks (GA)
A Channel 2 Action News consumer investigation uncovered nearly two dozen floating decks that are falling apart due to water damage in one Brookhaven neighborhood. A gutter contractor hired by the homeowners’ association is pointing the blame at gutters installed by the builder, Pulte Homes, that are too small. “As the water gets into it, […]
Dispute near the lake; Lawsuit alleges mishandling of Western Shores subdivision by county, land developer (KY)
A $1.6 million lawsuit has been filed against Calloway County Judge-Executive Larry Elkins, current and former magistrates, a land developer and members of a property owners association claiming those entities were negligent in allegedly abandoning a subdivision project and improperly handling a bond. Read the article………………
Millville By The Sea residents sue developers for management, amenity issues (DE)
The Millville By The Sea Property Owners Association, Inc. has filed a lawsuit with Delaware’s Court of Chancery against the developers for issues involving access to amenities and property management. The five board members of the POA filed the lawsuit on July 23 as a last resort, after about 18 months of attempts to settle […]
Resolving Condominium Construction Claims in Maryland
Newly constructed and newly converted condominiums in Maryland often contain concealed or “latent” construction defects. Left undetected and unrepaired, latent defects stemming from the original construction of a condominium can cause extensive damage over time, requiring associations to assess their members for unanticipated repair costs that could have been avoided by making timely developer warranty […]
Wicker Park condo building under legal siege amid claims of hazardous conditions (IL)
As a legal battle over alleged shoddy work at a Wicker Park condo building winds through court, an insurance company is working to make sure it is not liable for the builder and developer’s legal woes. At issue is the six-unit condo development at 1258 North Milwaukee Avenue, which was found to have severe building […]
New Jersey’s Highest Court Scrutinizes Statutes of Limitation and the Discovery Rule in Construction Defect Cases
The typical construction defect case presents an up-front analytical challenge: the defense attorney is presented with boxes of project materials, perhaps an extensive case history and prior discovery, and likely an unhappy (but these days, resigned) client. So you start with the basics: a review of the complaint to assess the allegations; a review of […]
A Little Good Will Can Avoid a Lot of Grief for Condominium Developers
Condo developments have three phases, equivalent in the minds of many developers to the “stages of grief” that describe the mourning process. There is no question that construction glitches, quarrelsome owners, litigation, or the threat of it, that plague some projects can make many developers mourn their career choice. But the development process doesn’t have […]
Owners at 4-year-old condo complex sue Kolter Group, allege construction defects (FL)
The owners association at a four-year-old condominium complex in St. Petersburg sued the West Palm Beach-based developer Kolter Group over alleged construction defects. The condo owners sued Kolter and affiliated companies in Pinellas County Circuit Court, alleging they committed dozens of building-code violations in the construction of the 95-unit Water Club Snell Isle Condominium. Read […]
New Maryland Law Prevents Shortening Statute of Limitations Applicable to Claims for Condominium Construction Defects
A new Maryland law prevents developers from shortening the time period within which condominium associations and their unit owner members can assert claims for hidden construction defects in newly constructed condominiums. The legislation known as HB 77 and SB 258 passed both houses of the Maryland General Assembly and was signed into law by Governor […]
Appellate Division Ruling in Construction Defect Case Highlights Importance of Timely Expert Testimony and Adherence to Discovery Schedules (NJ)
A recent decision by the Superior Court of New Jersey Appellate Division underscores the fact that in construction defect litigation, where general contractors, project managers, architects and engineers are the primary defendants, it is imperative that qualified experts be retained and properly utilized by the parties in a timely manner. The failure of a party […]
Construction Defect Claims at Common Interest Developments (CA)
A homeowners’ association (“HOA”) governing common interest developments is subject to a different set of requirements for construction defect claims as opposed to single-family developments. In 1995, the California legislature enacted the Calderon Act (formerly CA Civil Code §1374) which set forth the requirements for an HOA to bring forth a construction defect action against […]
Hanover unit not obligated to cover builder on roofing project (WA)
A unit of The Hanover Insurance Group Inc. was not obligated to provide coverage to a construction firm being sued over work it had performed on condominium units because of a policy exclusion, says a federal appeals court, in upholding a lower court ruling. Edgewood, Washington-based Chase Construction North West Inc. was sued by Lakewood, […]
SJC Rejects Developer “Poison Pills” that Leave Condo Owners Without Construction Defect Remedies (MA)
The Massachusetts Supreme Judicial Court (SJC) has ruled that condominium developers can’t unreasonably restrict the ability of owners to file suits against them. The court rejected the “poison pill” provisions developers often use to insulate themselves from liability for construction defects, design flaws and other claims condominium owners might pursue against the developers of their […]
Bad Facts Make Bad Law – Condo Version (MA)
Condo bylaws that restrict the ability of a condo board to sue the developer came in a for a beating by the Massachusetts Supreme Judicial Court. While refusing to prohibit all restrictive bylaws, the Massachusetts high court roundly criticized the bylaws in question. Deservedly so. The condo bylaw restricted the ability of the condo board […]
Carlsbad Condos Defect Lawsuits Settled for $15.6M (CA)
Construction defect lawsuits against the builder and architect of a Carlsbad condominium community have been settled for $15.6 million, according to lawyers representing condominium owners. La Costa Resort Homeowners Associations I and La Costa Resort Homeowners Association II reached the agreement in San Diego Superior Court through mediation after 19 months Read the article……………..
Court: Condo owners can’t have their rights to sue developers for shoddy construction waived away in condo docs written by those developers (MA)
The Supreme Judicial Court ruled today that developer-written condo-trust provisions that make it impossible to sue the developer for construction-related problems are illegal. The ruling means that the condo board of the 42-unit Cambridge Point complex at 2440 Massachusetts Ave. in North Cambridge can proceed with a lawsuit against the company that put up the […]
2017 Colorado Construction Defect Recap: Colorado Legislature and Judiciary Make Favorable Advances for Development Community
Last March, the Colorado General Assembly introduced House Bill 17-1279 concerning the requirement that a unit owners’ association obtain approval through a vote of unit owners before filing a construction defect action. The bill, passed in May, requires a home owners’ association to first notify all unit owners and the developer or builder of a […]
Florida’s Economic Loss Rule in Construction Litigation
The importance of the economic loss rule in construction law cannot be understated. If a construction project goes south, the economic loss rule allows construction law attorneys to identify which parties to the project can bring what types claims against which other parties. This blog post discusses Florida’s economic loss rule in the construction litigation […]
Hudson County Court Distinguishes Controversial Palisades Decision
On December 7, 2017, a Hudson County Superior Court Judge, in the matter of Grandview II at Riverwalk Port Imperial Condominium Association, Inc. v. K. Hovnanian at Port Imperial Urban Renewal III, LLC, et al, Docket No. HUD-L-2839-14 (“Grandview II”), denied summary judgment to an architect retained by the developer who argued that the statute […]
Case Law Update: Nottingham Village Condo Ass’n v. Pensom: Litigation Evaluation Meetings (MI)
In some condominium governing documents, there are provisions that require a co-owner vote before the association can file a lawsuit. These provisions range from the rather mundane to extremely onerous. In Nottingham Village Condominium Association v. Pensom, unpublished per curiam opinion of the Michigan Court of Appeals, No. 333311, Dated December 12, 2017, the Michigan […]
Orange County homeowners association accuses developer, contractor of negligence (FL)
An Orange County homeowners association is suing a developer and contractor, alleging breach of implied warranty, negligence and vicarious liability. Lake Burden Townhome Association Inc. filed a complaint Nov. 16 in Orange County Circuit Court against KB Home Orlando LLC, LBK Development LLC, Burden Townhome Partners Inc. et al., alleging they failed to exercise reasonable […]
Michigan court rules #Condo #Association’s insurance policy may cover water damage resulting from construction defects
In Walters Beach Condominium Association v Home-Owners Insurance Company, unpublished opinion of the Court of Appeals, issued November 16, 2017 (Docket No. 335172), the Michigan Court of Appeals held that water damage caused by construction defects may be covered under a condominium association’s insurance policy. At issue was a rain storm caused water damage to […]
Michigan COA rules that Condo Association’s Insurance Policy may cover water damage resulting from construction defects
In Walters Beach Condominium Association v Home-Owners Insurance Company, unpublished opinion of the Court of Appeals, issued November 16, 2017 (Docket No. 335172), the Michigan Court of Appeals held that water damage caused by construction defects may be covered under a condominium association’s insurance policy. At issue was a rain storm caused water damage to […]
Nevada’s Clarification Regarding a HOA’s Representational Standing
On September 27, 2017, the Nevada Supreme Court issued a decision clarifying the prior version of NRS 116.3102(1)(d)1, under which numerous construction defect cases are pending in Nevada. NRS 116.3102(1)(d), at the time the Complaint was filed, allowed homeowners associations to pursue construction defect claims on behalf of their members. In High Noon2, the Nevada […]
New Jersey Court: Continuous Trigger Ends When Nature of Damage Is Known
Last week, the New Jersey Appellate Division issued a decision that may have a significant impact on insurance coverage for progressive property damage claims in the state. In Air Master & Cooling, Inc. v. Selective Ins. Co. of Am., No. A-5415-15T3, 2017 WL 4507547 (N.J. Super. Ct. App. Div. Oct. 10, 2017), the court first […]
Resolving Condominium Construction Defect Claims in Wash. DC
Newly constructed and newly converted condominiums in Washington DC (District of Columbia) often contain concealed or “latent” construction defects. Left undetected and unrepaired, defects in the construction of a condominium can cause extensive damage over time, requiring associations to assess their members substantial repair costs that could have been avoided by making timely developer warranty […]
Did the New Jersey Supreme Court Reduce the Time for a Common Interest Community to Assert Construction Defect Claims?
On September 14, 2017 the New Jersey Supreme Court issued a long anticipated decision in the matter of The Palisades at Fort Lee Condominium Association, Inc., v. 100 Old Palisade, LLC (“Palisades”). The decision may have an immediate impact on recently constructed condominiums, or those to be constructed in the future, that have construction deficiencies. […]
Two Harlem condo boards are suing L&M Development (NY)
Two Harlem condominium boards are suing L&M Development Partners over defects and damage in their buildings, court records show. The suits are part of a larger pattern of litigation that typically crests around six years after co-ops or condos are built. In 2012 L&M completed the conversion of a turn-of-the-century school at 220 W. 148th […]
Wisconsin appellate court denies insurance coverage to a contractor because work was performed on a building that had synthetic stucco
A slew of lawsuits has plagued the construction industry regarding the use of exterior insulation and finish systems, also known as EIFS or synthetic stucco. Insurance companies were historically required to pay money towards those claims under standard commercial general liability policies. As they did in response to lawsuits involving asbestos and environmental contamination, insurance […]
New Jersey Supreme Court Clarifies Statute of Limitations in Construction Defect Cases
In The Palisades at Fort Lee Condominium Association, Inc. v. 100 Old Palisade, LLC, ___ N.J. ___ (2017), the plaintiff was the Condominium Association that brought suit based upon defects in the condominium building after the Association took over control from the Sponsor and after the Association obtained its own engineering report. Summary judgment on […]
The Condominium Warranty Against Structural Defects in D.C.
The District of Columbia Condominium Act contains a statutory warranty that protects condominium associations and their unit owner members from structural defects in newly constructed and newly converted condominiums. The warranty is backed by a condominium developer’s bond, letter of credit, or other form of security from which monies can be drawn upon if the […]
Revisiting Claims for Breach of Implied Warranty of Habitability: Illinois Appellate Court
On February 17, 2017 the Illinois Appellate Court for the First District considered three consolidated appeals brought by a condominium association seeking damages for defects in the design and construction of a condominium building. Sienna Court Condominium Ass’n v. Champion Aluminum Corp., 2017 IL App (1st) 143364. Two of the Sienna Court appeals addressed the […]
Ryland Homes accused of breach of warranty, negligence (FL)
A homeowners association is suing the Ryland Group Inc. d/b/a Ryland Homes for alleged breach of warranty and negligence. Summerport Commercial Property Owners’ Association Inc. filed a complaint on June 28 in the Orange County Circuit Court, alleging that the defendant failed to follow applicable safety guidelines and regulations. Read the article……………..
Elgin condo board sues developer, claiming shoddy work, hidden defects (IL)
The association of a prominent redevelopment project in downtown Elgin has sued the original developer, construction firm and bank, arguing that they purposefully hid defects in construction work until the Fountain Square Condominium Association took possession of the property. The association’s lawsuit argues RSC-Elgin LLC, Novak Construction and agents of First American Bank breached their […]