Citing long-standing problems stemming from rotted infrastructure, mold and other water-related damage, Centennial condominium owners are suing the Pitkin County commissioners, the city of Aspen and the governments’ affordable housing program. Read the article…………
SB 800: Down but Not Out! (CA)
Until recently SB 800 was down for the count. Many in the building industry thought the law was going to be killed by the Liberty Mutual decision two years ago. It was there that the California Court of Appeal (in Liberty Mutual Insurance Co. v. Brookfield Crystal Cove, LLC) determined that California’s Right to Repair […]
Do You Need Expert Testimony Regarding Interpretation of the Florida Building Code?
Is trial looming close and are you thinking to yourself who is going to make the best expert for interpretation of the Florida Building Code on that construction defect case? Guess what? You don’t need an expert. In fact, it would be improper for the court to allow this type of testimony other than in […]
Builder’s Pact Doesn’t Nix Insurer Liability, Ore. Justices Say
An Oregon condominium association’s agreement to not execute part of a judgment against a builder in construction defect litigation doesn’t automatically erase the builder’s liability or that of its insurer, the Oregon Supreme Court ruled Thursday, upending a 42-year-old precedent. http://communityassociations.net/wp-content/uploads/2015/11/2015-s061273-0.pdf
Divided state Supreme Court (IL) says condo owners can sue developers over leaky buildings 15 years after moving in
A group of Chicago condominium owners has been cleared to continue their lawsuit against a group of builders 15 years after the developers allegedly sold them a shoddy building under false pretenses, after the Illinois Supreme Court ruled 4-3 on Nov. 4 to revive their case and send it back to circuit court for more […]
Statute of repose does not bar fraudulent concealment claim
A condo association will be allowed to proceed with a lawsuit against the original developers filed 15 years after completion of the project, and despite a 10-year statute of repose. A divided Illinois Supreme Court has applied a “fraud-based” exception to the statute of repose, to allow the condo association to move forward with those […]
Is Construction Defect Litigation All It’s Cracked Up To Be?
Last year I was contacted by an HOA member in Draper Utah who discovered large mushrooms growing from his wall after rearranging some furniture. The mushrooms resulted from moisture intrusion caused by faulty and defective construction on a home that was only 4 years old. In this case we were able to recover the necessary […]
Mayor Murphy’s Boondoggle Backfires
It was just over a year ago that Mayor Murphy led the charge for Metro Mayors by pushing through an ordinance that destroys the right of homeowners living in Lakewood to adequately pursue remedies for construction defects to their homes. Read the article……………
Construction Defect Defendants Using ABCs to Minimize Payments
Community associations that pursue construction defect lawsuits against developers, contractors and design professionals have had to contend with bankruptcy filings by the defendants in these cases for decades. However, in recent years, we have begun to see some of the defendants in these actions avoid liability by choosing to file an assignment for the benefit […]
Ninth Circuit Finds Defects in the Construction of a “Known-Loss” Exclusion
A mason who performed work on a residential project was notified in 2006 that cracks had developed in his work. Several months later, the mason purchased a commercial general liability policy that expressly excluded coverage for property damage, if an insured “knew that the … damage had occurred, in whole or in part.” In 2007, […]
Time’s Up for Condo Owners Attacking Developer’s Amendment (FL)
An opinion filed June 24 by the First District Court of Appeal sends an important message to new communities with a prolonged build-out of multiple buildings, each with their own condominium association that is overseen by a master association. Read the article………..
The “Continuous Trigger” Theory and Construction Defect Actions: Cypress Point Condominium Association v. Selective Way Insurance Co.
A New Jersey trial court granted summary judgment in favor of Selective Insurance Company holding that the “continuous trigger” theory does not provide insurance coverage subsequent to the manifestation of damages that arose from a subcontractor’s negligence in the construction of a condominium development. The issue arose in the matter of Cypress Point Condominium Association […]
The Berkeley Balcony Tragedy: More Inspections Aren’t Enough
In the early morning of June 16, 2015, in Berkeley, California, the lives of 6 young people were snuffed out because the balcony they were standing on collapsed. Building failures happen all the time, but the press and government largely ignore them because nobody died. With these six tragic deaths (and serious injury to seven […]
$15 Million Construction Claim Revived on Appeal (FL)
A state appellate court revived a $15 million construction-defect claim that was presumed dead when the trial judge ruled it was filed three days after a no-excuses cutoff. A panel of the Fifth District Court of Appeal reversed the lower court May 8, deciding the lawsuit made it to the courthouse in time Read […]
$3.35M Construction Defect Award for Pompano Condo (FL)
The condominium association at Pompano Beach’s luxury Sonata Beach Club won a $3.35 million construction defect verdict against the property’s developer and general contractor. Sonata Beach Club Condominium Association Inc. operates the 16-story condo tower with 64 units, private elevators, Italian cabinets, granite countertops, spa, saunas, steam rooms, 24-hour concierge, security and valet parking. But […]
New Home Nightmares: First Coast News Investigates
Each year, tens of thousands of people buy new homes in Florida. Most do so with the belief that a new home will have fewer problems and headaches than an older one. But a First Coast News investigation has found that some new homes — including those in very prestigious communities, with half-million dollar price […]
Appeals court yields pro-builder ruling in construction-defects case
The Colorado Court of Appeals ruled this week that the stipulation in a homeowner association’s bylaws that arbitration be used as the resolution method in construction-defects disputes can’t be removed by the association without the consent of the builder. Read the article………..
New Jersey Court Applies Continuous Trigger Theory and Finds That No Coverage Is Available Because Damage Manifested Prior to Inception of Policy
In Cypress Point Condo. Ass’n. v. Selective Way Ins. Co., 2015 N.J. Super. Unpub. LEXIS 721 (March 30, 2015), the New Jersey Law Division dismissed a declaratory judgment action filed against an insurer for a framing contractor, holding that coverage was not afforded under the continuous trigger theory because the injury manifested prior to the […]
Construction Defects: What Insurance Policy Applies
In construction defect claims, various insurance policies are often implicated. These policies can span many years, so it is critical to determine what policy or policies may provide insurance coverage for the damages that ensue. The insurance policies at play, for general contractors, subcontractors and suppliers, are typically comprehensive general liability policies. Assuming these parties […]
A Beacon for Homeowners and HOAs. Not So Much for Design Professionals (CA)
Earlier we wrote about a case that made architects none too happy – Beacon Residential Community Association v. Skidmore, Owings & Merrill LLP, Case No. A134542 (December 13, 2012) – in which the California Court of Appeals for the First District held that architects could be sued by a homeowner’s associations (“HOA”) and, by implication, […]
New, but Far From Perfect
It took just three years for balconies to crack and concrete to flake from the facade of one Brooklyn condominium. Another building was prone to flooding, because the storm drainage system was never connected to the sewage system. With buildings rising at a pace not seen in years, some fear that shoddy construction could be […]
Parker (CO) Chamber of Commerce CEO calls for condo-defect change to draw millennials
Dennis Houston, president and CEO of the Parker Chamber of Commerce, called for legislators need to make it harder for attorneys to file class-action lawsuits against condominium builders so that areas like his can attract a workforce of millennials, who now can’t afford condos in Colorado. Read more………..
Oregon Court of Appeals Clarifies Application of Statute of Limitations and Statute of Repose in Connection with Construction Defect Suit
In Riverview Condo, Ass’n v. Cypress Ventures, Inc., 266 Ore. App. 574 (Or. Ct. App. 2014), the Oregon Court of Appeals clarified application of the statute of repose and statute of limitations in the context of a suit alleging construction defect, negligent and intentional misrepresentation, violation of the Oregon Condominium Act and nuisance and when […]
The Demise of the Economic Loss Rule in Construction Defect Litigation
The Massachusetts Supreme Court recently held in Wyman v. Ayer Properties, LLC, that the “economic loss rule is not applicable to the damage caused to the common areas of a condominium building as a result of the builder’s negligence.” Read more……….
Colorado lawmakers gear up for construction-defects reform in 2015
Supporters of a change to a Colorado law blamed for slowing condominium construction to a trickle are hopeful 2015 will be the year they succeed. Lawmakers have tried for the past two years to reform Colorado’s construction-defects law, which developers complain makes building condos too fraught with legal liability. Read more……….
Could limiting defect lawsuits bring more condos to Denver?
If you’re looking to buy a condo in Denver, you’ve probably noticed there aren’t many options. Only 2,205 building permits for condos and townhomes are expected to be issued in the Denver metro area during 2014, Read more………
Oregon Court Denies HOA’s Effort to Proceed Against Subcontractors for Construction Defect
In Liberty Oaks Homeowner’s Ass’n v. Liberty Oaks, LLC, 2014 Ore. App. LEXIS 1696, the Liberty Oaks Homeowners’ Association (“HOA”) sued the developers of townhomes, alleging that they were responsible for construction defects in the townhouse community. The Developers filed a third-party action against certain subcontractors for “contribution” and “indemnification.” Read more………
New Illinois Ruling Enforces Cause of Action Accrual Provisions and Holds that Express Indemnity Claims In A Construction Contract Are Subject to a 10 Year Statute of Limitations
The Appellate Court for First District of Illinois recently issued a decision with two important holdings for construction lawyers. First, the court held that a third-party express indemnity claim seeking to impose downstream liability for alleged construction defects was subject to the 10-year statute of limitations for breach of written contract claims, and not the […]
Developing Issues in Utah Construction Defect Litigation
Following the Utah Supreme Court’s decision in Davencourt at Pilgrim’s Landing Homeowners’ Association v. Davencourt at Pilgrim’s Landing, which clarified the law regarding the claims for which homeowner’s associations (HOAs) could sue developers and builders for construction defects, a number of lawsuits have been filed on behalf of HOAs throughout the state. These suits, which […]
Building lawsuits could be reformed (CO)
Homeowners in Colorado are bracing for another attempt by the Legislature to curb construction-defects lawsuits in an effort to spur the development of affordable housing. Read more………..
Architectural firm to pay $5.3M over leaky Stonington Commons condos (CT)
The internationally acclaimed architectural firm that designed the luxury Stonington Commons project in the borough has been ordered to pay the project’s developers more than $5 million for designing windows and doors that leak. Read more…….
Sides in Burlingame (CO) lawsuit still millions of dollars apart in dispute
The sides involved in a construction-defect lawsuit related to building materials used in the first phase of the Burlingame Ranch affordable housing project remain $3 million apart from a settlement, a court filing made Friday says. Read more………
Nevada Supreme Court Clarifies Right to Construction Defect Remedies Involving Residential Units with Previously Occupied Spaces
In Oxbow Constr., LLC v. Eight Judicial Dist. Ct., 2014 Nev. LEXIS 109, 130 Nev. Adv. Rep. 86 (Nev. Oct. 16, 2014), the Nevada Supreme Court considered issues regarding class-action certification and the availability of remedies under Nevada construction defect statutes. Read more……….
Is the condo boom back? Legal liabilities, housing crisis won’t scare these developers (WA)
Lowe Enterprises plans to start building a condo tower next month on Seattle’s First Hill, and the company’s ease in finding a builder blows a hole in one key argument. The belief that contractors have been scared off by the legal liabilities that come with such projects doesn’t seem to hold water. Read more………
Lakewood (CO) passes construction-defects changes targeting condo lawsuits
The city of Lakewood on Monday became the first Colorado municipality to pass an ordinance that changes the way the state’s construction-defects law works within the city, by a vote of 7-4. After lengthy discussion that included nearly two hours of public comment from those both in support of and opposed to the changes, the […]
Claims for breach of express indemnity clause in construction contracts subject to 10-year statute of limitations in Illinois
In 15th Place Condominium Association v. South Campus Development Team LLC, the Appellate Court for the First District of Illinois held that a claim for breach of an express indemnity clause within a construction agreement was subject to the 10-year statute of limitations for written contracts instead of the four-year statute of limitations for construction […]
Vizcayne Condo Associations Not Happy With Private Equity Firm That Finished Construction
Two condo associations at two Miami high-rises that fell victim to the housing crash are refusing to cover the tab for construction costs at the luxury project after it was sold in bankruptcy. Associations for the north and south towers at Miami’s Vizcayne condos are suing for control of the towers, claiming the developer misused […]
Construction Defect Claims Tackled By Lakewood (CO)
The impact of construction defect lawsuits on condominium development in Colorado has been a hot topic recently. Colorado law treats residential construction differently than non-residential construction. This increases the risk of construction defect claims on residential projects, particularly when there is a homeowners’ association. Read more………
Massachusetts Supreme Court Holds Economic Loss Rule No Bar to Condo Trustees’ Claim for Damages to Common Areas Caused By Building Defects
The Massachusetts Supreme Court ruled that the economic loss rule, which bars recovery of tort damages from the negligent supplier of a defective product when there is no claim of personal injury or damage to other property, does not apply to claims asserted by a condominium association or similar condominium organization seeking compensation for damage […]
An Overview of Condominium Defect Litigation in Florida
Due to poor mid-2000’s construction, the area of construction defect litigation is booming. Across the country, numerous owners are grappling with issues of shoddy construction and defective building materials. One of the most common reasons for defect litigation, aside from shoddy construction and poor workforce supervision, results from defective building materials that allow water intrusion. […]
SJC (MA) Removes Uncertainty and Contortions from Condominium Construction Defect Claims
The state’s highest court upheld an Appeals Court ruling (Wyman v. Ayer Properties) holding that the economic loss rule limiting recovery in tort actions should not be applied to community association claims for defects in the original construction and design of a condominium’s common areas. The SJC also rejected a formula for calculating damages the […]
California Supreme Court provides a Beacon of hope for condominium association claims against design professionals
In an opinion filed July 3, 2014, the California Supreme Court provided some clarification to California law concerning an architect’s liability to foreseeable third-party purchasers of residential units for design errors and omissions. In Beacon Residential Community Association v. Skidmore, Owings & Merrill LLP (July 3, 2014) ____Cal.4th ____; 2014 WL 2988058, Cal. July 03, […]
A Primer: Economic Loss Doctrine Not Necessarily Bar to Tort Recovery (MA)
Although the “economic loss doctrine” has historically barred recovery of certain classes of tort damages, the Massachusetts Supreme Judicial Court recently affirmed an Appeals Court decision holding that the doctrine did not bar a condominium association’s negligent construction claim against a developer for alleged faulty construction. The Court’s ruling in Wyman v. Ayer Properties. LLC, […]
Architects Beware: It is Now Settled That the Principal Architect Owes a Duty of Care to Third Party Purchasers for Negligent Design (CA)
In Beacon Residential Community Association v. Skidmore, Owings & Merrill LLP, the California Supreme Court held that architects and engineers can be held liable to condominium owners for negligently prepared plans, specifications or design modifications. In doing so, the Court enlarged the scope of duty owed by design professionals to third party purchasers, holding that […]
Architects May Be Sued Directly by Homeowners Association for Design Defects
In a unanimous decision, California’s Supreme Court has ruled that the principal architects for a condominium project may be sued directly by a condominium homeowners association for design defects. The case, decided July 3, 2014, is Beacon Residential Community Association v. Skidmore, Owings & Merrill, LLP, S208173. Read more………
Beacon Residential Community Association v. Skidmore, Owing & Merrill LLP
A homeowners association on behalf of its members sued a condominium developer and various other parties over construction design defects that allegedly make the homes unsafe and uninhabitable for significant portions of the year. Two defendants were architectural firms, which allegedly designed the homes in a negligent manner but did not make the final decisions […]
Privilege Issues Are Important in Homeowner Association Construction Defect Litigation (CA)
Attorneys in Homeowners Association (“HOA”) construction defect cases must meet with the homeowners to provide litigation updates and it can sometimes be difficult to preserve the attorney-client privilege for the communications made to a diverse group of owners. Read more…….
The Law Governing The Running of Implied Warranties On Common Elements Depends On Whether a Maryland Condominium Was Created Prior To Or After October 1, 2010
During 2010 legislative session, then Maryland General Assembly enacted an amendment to Section 10-131 of the Maryland Condominium Act governing the warranty period for the implied warranties on the common elements of a condominium. Originally, the warranty on common elements commenced “with the first transfer of title to a unit owner” and ran for three […]
Construction Defect Laws in HOAs
Wear and tear and lack of routine maintenance causes damage to homes, buildings and structures. However, in some cases, the homeowner does everything right, and there is still something wrong with their home due to a construction defect. Construction defects can significantly reduce the value of a structure or even cause serious injury, making it […]