Arizona Supreme Court Confirms a Prevailing Homeowner Can Recover Fees on Implied Warranty Claims
August 30, 2017 —
Rick Erickson - Snell & Wilmer Real Estate Litigation BlogOn August 9th, in Sirrah Enterprises, L.L.C. v. Wunderlich, the Arizona Supreme Court settled the question about recovery of attorneys’ fees after prevailing on implied warranty claims against a residential contractor. The simple answer is, yes, a homeowner who prevails on the merits can recover the fees they spent to prove that shoddy construction breached the implied warranty of workmanship and habitability. Why? Because, as Justice Timmer articulated, “[t]he implied warranty is a contract term.” Although implied, the warranty is legally part of the written agreement in which “a residential builder warrants that its work is performed in a workmanlike manner and that the structure is habitable.”
In other words, a claim based on the implied warranty not only arises out of the contract, the claim is actually based on a contract term. Since, in A.R.S. § 12-341.01, Arizona law provides for prevailing parties to recover their fees on claims “arising out of contract” and because the implied warranty is now viewed by the courts as a contract term, homeowners can recover their fees after successfully proving breach of the implied warranty.
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Rick Erickson, Snell & WilmerMr Erickson may be contacted at
rerickson@swlaw.com
1st District Joins 2nd District Court of Appeals and Holds that One-Year SOL Applies to Disgorgement Claims
June 14, 2021 —
Garret Murai - California Construction Law BlogWe’re beginning to see a trend.
This past year, the 2nd District Court of Appeals, in Eisenberg Village of the Los Angeles Jewish Home for the Aging v. Suffolk Construction Company, 53 Cal.App.5th 1201 (2020), held for the first time that a one (1) year statute of limitations period beginning upon substantial completion of a project applies to disgorgement claims under Business and Professions Code section 7031. In San Francisco CDC LLC v. Webcor Construction L.P., the 1st District Court of Appeals became the second Court of Appeals in the state to hold that a one (1) year statute of limitations beginning upon completion or cessation of work on a project applies to disgorgement claims under Business and Professions Code section 7031.
The San Francisco CDC LLC Case
The Defect Action
In September 2005, San Francisco CDC LLC entered into a $144 million construction contract with Webcor Construction, Inc. doing business as Webcor Builders to build the InterContinental Hotel in San Francisco, California.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
How To Lock Disputes Out Of Your Project In Construction
July 22, 2019 —
Anastasios Koutsogiannis – LetsBuildDisputes are seen as one of the main threats for the successful completion of a project in construction. There is a plethora of factors which could lead to a construction dispute (e.g. contracts, behavior, environment) but, strangely enough, the industry seems to invest more attention on the resolution of a conflict instead of its prevention.
Thanks to the progress that digital technologies have witnessed during the last few years, there is a good chance that things in construction will change for the better soon. The ability to exchange crucial updates in real time, while keeping a detailed record of everything that happens on the field adds an extra level of protection to your project and ensures that all agents are on the same page.
In an effort to shed some light on the issue of construction disputes, we present below four tips that could help your team to lock conflicts out of your project:
1. Standardize your processes
Before you kickstart your project, it is of paramount importance that you standardize all your systems and processes. In that way, you will be able to add extra clarity to your workflow and eliminate misunderstandings.
Once you have achieved that, you can replicate the same process to your future projects. The more you manage to repeat the same project structure the better your team will become in completing their tasks without ending up in any kind of conflict.
In that sense, standardization could be a long-term investment for your organization.
2. Go digital
As soon as your processes are defined, it is time for the digital journey to begin. Finding the right tool for your project will result in a streamlined construction process where all the members of the team are on the same page without any room for costly mistakes or disagreements.
Furthermore, with the help of digital solutions it becomes easier for project managers to measure the performance on site and monitor the completion of the set benchmarks. Like that, all payments will be on time and the program of the project will reflect reality.
3. Be extra careful with the contracts
A poorly-written contract can have a big impact on the effort to lock disputes out of your construction project. While putting together a new contract, you should always make sure that you have taken into account all the different scenarios for your project.
Either that is a delay due to weather conditions or an accident on site everything should be described in detail in the contracts and be well understood by those in charge.
In any other case, things can get a bit risky and a costly dispute might wait to happen.
4. Hold regular meetings with all stakeholders
Last but certainly not least, meet regularly with all project stakeholders. The frequent contact with the different members of your team will allow you to discuss and resolve any problematic situations before they grow out of proportion.
What is more, regular meetings will help both your field teams and the people in the office to remain aligned and will eliminate the possibility of having people working on outdated versions of the program.
Of course, these meetings don’t need to be time-consuming or even in person. With the help of technology, you can keep these meetings short and to the point. In that manner, everybody involved will be able to get the most out of them.
Final word
All in all, it becomes clear that locking disputes out of your project in construction requires continuous work and a carefully-elaborated plan. Thankfully, the emergence and progress of digital solutions have made this process much easier contributing significantly to the development of the industry far from disputes and project misunderstandings.
About the author: Anastasios Koutsogiannis is Content Marketing Manager at LetsBuild.
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Anastasios Koutsogiannis, LetsBuild
French President Vows to Rebuild Fire-Collapsed Notre Dame Roof and Iconic Spire
June 03, 2019 —
Scott Blair & Peter Reina - Engineering News-RecordTwo British masonry experts familiar with centuries-old stone structures voiced concern that the catastrophic fire that collapsed the roof and spire of Notre Dame on April 15 could also have damaged stonework of the iconic Paris cathedral that may affect its stability.
Reprinted courtesy of
Scott Blair, ENR and
Peter Reina, ENR
Mr. Blair may be contacted at blairs@enr.com
Mr. Reina may be contacted at reina@btinternet.com
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Lennar Profit Tops Estimates as Home Prices Increase
March 26, 2014 —
John Gittelsohn – BloombergLennar Corp. (LEN), the biggest U.S. homebuilder by market value, reported a fiscal first-quarter profit that beat analysts’ estimates as the company sold more homes at increased prices.
Net income climbed to $78.1 million, or 35 cents a share, in the three months through February, from $57.5 million, or 26 cents, a year earlier, the Miami-based company said in a statement today. Analysts expected earnings of 28 cents a share, the average of 17 estimates compiled by Bloomberg.
Publicly traded builders have been increasing prices to take advantage of a tight supply of new and existing homes while using their economies of scale to reduce costs and widen profit margins. Lennar’s profit, deliveries and orders grew even as inclement weather threatened home sales in much of the U.S. during the quarter, according to Drew Reading, a Bloomberg Industries analyst.
“Lennar followed KB Home (KBH) in reporting order trends indicating a strong start to the spring selling season,” Reading said in a note after the earnings were released.
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John Gittelsohn, BloombergMr. Gittelson may be contacted at
johngitt@bloomberg.net
Georgia Court Clarifies Landlord Liability for Construction Defects
June 02, 2016 —
Chadd Reynolds - AHHC Construction Law BlogIn Cowart v. Schevitz, the Georgia Court of Appeals clarified the instances in which an out-of-possession landlord can be liable in a premises liability claim. No. A15A2036, 2016 WL 563114, at *4 (Ga. Ct. App. Feb. 15, 2016).
In this case, the plaintiff was leaving a restaurant and injured herself stepping down off of a sidewalk near the bottom of a ramp. The plaintiff filed a premises liability claim against the owner of commercial property (the “landlord”) and the operator of the restaurant (who later settled), seeking medical expenses and costs of litigation. An expert testifying on behalf of the plaintiff stated that the ramp was required to have railings pursuant to building codes and, had the railings been installed on the ramp, the plaintiff’s fall more than likely would not have occurred. The landlord moved for summary judgment, arguing that as an out-of-possession landlord, his liability to third persons for the use of the property by his tenant was precluded under O.C.G.A. § 44-7-14. The trial court denied the motion without comment, and the owner subsequently appealed.
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Chadd Reynolds, Autry, Hanrahan, Hall & Cook, LLPMr. Reynolds may be contacted at
reynolds@ahclaw.com
Caution to GCs! An Exception to Privette Can Leave You Open to Liability
February 01, 2023 —
Nicole Whyte - Bremer Whyte Brown & O'Meara LLPIn a recent important decision, Brown v. Beach House Design & Development the Court of Appeal addressed an issue that frequently arises under the Privette doctrine—the extent to which a general contractor can be held liable for injuries to a subcontractor’s employee.
The injuries in Brown arose when a window casing subcontractor’s employee fell from a scaffold erected by a plastering subcontractor at a construction site. According to evidence offered by the plaintiff in opposition to a motion for summary judgment filed by the general contractor, the scaffold was not properly secured to the building where the work was being performed. As a result the scaffold was defective and failed, causing the injuries.
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Nicole Whyte, Bremer Whyte Brown & O'Meara LLPMs. Whyte may be contacted at
nwhyte@bremerwhyte.com
Duty To Defend PFAS MDL Lawsuits: Texas Federal Court Weighs In
August 10, 2021 —
Gregory S. Capps & Lynndon K. Groff - White and Williams LLPFew courts have yet decided insurance coverage issues in litigation involving per- and poly-fluoroalkyl substances (PFAS). But yesterday, in Crum & Forster Specialty Insurance Company v. Chemicals, Inc., No. H-20-3493, 2021 U.S. Dist. LEXIS 146702 (S.D. Tex. Aug. 5, 2021), the United States District Court for the Southern District of Texas found Crum & Forster Specialty Insurance Company (Crum & Forster) had a duty to defend Chemicals, Inc. against firefighters’ allegations that they were injured by PFAS contained in aqueous film-forming foam (AFFF). The AFFF claims are consolidated in the multi-district litigation (MDL) in South Carolina, and you can read more about that
here.
Turning to the decision from August 5, 2021, Crum & Forster issued commercial general liability insurance policies to Chemicals, Inc. for liability arising from bodily injury, to the extent that injury “first occur[ed] during the ‘policy period[.]’” Further, a “Continuous or Progressive Damage or Injury” condition in the policies stated, “If the date cannot be determined upon which such ‘bodily injury’ … first occurred[,] then, … such ‘bodily injury’ … will be deemed to have occurred or existed, … before the ‘policy period’.” The Crum & Forster policies were issued between 2011 and 2019. The complaints in the MDL do not specify when the firefighters were allegedly exposed to PFAS-containing AFFF or when the firefighters first allegedly manifested symptoms of such exposure.
Reprinted courtesy of
Gregory S. Capps, White and Williams LLP and
Lynndon K. Groff, White and Williams LLP
Mr. Capps may be contacted at cappsg@whiteandwilliams.com
Mr. Groff may be contacted at groffl@whiteandwilliams.com
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