Colorado Homebuyers Must be in Privity of Contract with Developer to Assert Breach of Implied Warranty of Suitability
May 03, 2017 —
Maggie Stewart - Colorado Construction Litigation On April 17, 2017, the Colorado Supreme Court announced its decision in Forest City v. Rogers, No. 15SC1089, 2017 CO 23 (Colo. Apr. 17, 2017). The Court held that privity of contract is necessary for a homebuyer to assert a claim for breach of implied warranty of suitability against a developer. In other words, one must be a party to a contract to pursue a claim for breach of any implied warranty of suitability therein.
Defendant Forest City was the developer of a mixed use property in Stapleton. Forest City subdivided the land and sold the vacant lot at issue to a professional builder, Infinity. Infinity then built a residence and sold it to the plaintiff, Tad Rogers. After moving into the home, Rogers came to believe that the water table beneath the house along with calcite leaching from the road material led to a buildup of calcite in the foundation drain, making the basement uninhabitable and causing the sump pump to work overtime. Rogers sued Forest City on various theories, including breach of the warranty of suitability. In particular, Rogers alleged that Forest City impliedly warranted to him that his lot was suitable for a home with a finished basement, when in fact it was not. He prevailed on this claim at the trial court level.
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Maggie Stewart, Higgins, Hopkins, McLain & Roswell, LLCMs. Stewart may be contacted at
stewart@hhmrlaw.com
“Made in America Week” Highlights Requirements, Opportunities for Contractors and Suppliers
August 14, 2023 —
Sarah Barney & Amy Hoang - The Construction SeytOn July 21, 2023, President Biden designated July 23-29, 2023, as “Made in America Week.” This proclamation builds on the Biden Administration’s efforts to bolster domestic manufacturing through evolving policies attached to government funds that require contractors and suppliers to feature varying amounts of U.S.-made content in their products and services. To commemorate this week, here is a refresher on “Made in America” and what it means for government contractors and suppliers.
What does “Made in America” mean?
Under Executive Order 14005, the Administration defined “Made in America” laws as “all statutes, regulations, rules, and Executive Orders relating to Federal financial assistance awards or Federal procurement, including those that refer to “Buy America” or “Buy American,” that require, or provide a preference for, the purchase or acquisition of goods, products, or materials produced in the United States, including iron, steel, and manufactured goods offered in the United States.” Generally speaking, “Made in America” or “Buy American” requirements refer to:
- The Buy American Act (BAA) of 1933, establishing domestic sourcing preferences for unmanufactured and manufactured articles, materials, and supplies procured by the federal government for public use, including those used on federal construction contracts;
Reprinted courtesy of
Sarah Barney, Seyfarth and
Amy Hoang, Seyfarth
Ms. Barney may be contacted at sbarney@seyfarth.com
Ms. Hoang may be contacted at ahoang@seyfarth.com
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Connecticut Supreme Court Further Refines Meaning of "Collapse"
January 13, 2020 —
Tred R. Eyerly - Insurance Law HawaiiConnecticut courts have been inundated with collapse cases the past couple of years due to insureds' living in homes that were constructed with defective concrete manufactured by J.J. Mottes Concrete Company. In a duo of cases, the Connecticut Supreme Court responded to a certified question from the U.S. District Court, holding that collapse required that the building be in imminent danger of falling down. Vera v. Liberty Mut. Fire Ins. Co., 2019 Conn. LEXIS 339 (Conn. Nov. 12, 2019).
Plaintiffs had resided in their home since 2009. The home was built in 1993. In August 2015, after learning about the problem of crumbling basement walls affecting homes in their community due to cement manufactured by Mottes, they retained a structural engineer to evaluate their basement walls. The engineer found spider web cracking approximately 1/16 of an inch wide in the basement walls and three small vertical cracks. There were no visible signs of bowing. The engineer did not find that the walls were in imminent danger of falling down, but recommended that the basement walls be replaced.
Plaintiffs submitted a claim under their homeowners policy to Liberty Mutual. The claim was denied. The policy did not define collapse, but stated that collapse did not include "settling, cracking, shrinking, bulging or expansion."
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
There’s the 5 Second Rule, But Have You Heard of the 5 Year Rule?
April 23, 2024 —
Garret Murai - California Construction Law BlogThey’re called deadlines for a reason. Usually, because something really bad could happen if you fail to meet the deadline.
For those in the construction industry, you probably aware of the “deadline” to bring a claim for latent defects (10 years from substantial completion); the deadline to file suit to foreclose on a mechanics lien (90 days from the date of recording the mechanics lien), and the deadline for serving a preliminary notice (generally, 20 days from the date labor and/or materials are first furnished).
Well, here’s another deadline: Under Code of Civil Procedure section 585.310, you have 5 years after a complaint is filed to bring a case to trial, absent the court granting relief. I could leave it at that, but in the next case, Oswald v. Landmark Builders, Inc., 97 Cal.App.5th 240 (2023), was too interesting to pass up.
The Oswald Case
On June 28, 2016, homeowners Jack Oswald and Anne Seley sued their general contractor and its subcontractors alleging construction defects at their home. Answers and cross-complaints were filed and on February 2017 the trial court determined the case to be complex and appointed a discovery master. A discovery master, for those who may be unfamiliar, is usually a retired judge or third-party lawyer appointed by a court to oversee discovery in a case such as written discovery, depositions, site inspections, etc.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Supreme Court of Kentucky Holds Plaintiff Can Recover for Stigma Damages in Addition to Repair Costs Resulting From Property Damage
August 15, 2018 —
Gus Sara - The Subrogation StrategistIn Muncie v. Wiesemann, 2018 K.Y. LEXIS 257, the Supreme Court of Kentucky considered whether stigma damages[1] in a property casualty case are recoverable in addition to the costs incurred to remediate the actual damage. The court held that stigma damages are recoverable in addition to repair costs, but the total of the stigma damages and repair costs cannot exceed the diminution in the fair market value of the property. The court’s decision establishes that if the repair costs are insufficient to make the plaintiff whole, a recovery for stigma damages up to the amount of the diminution in the market value of the home is appropriate.
Appellants Cindy and Jim Muncie incurred significant property damage to their home as a result of an oil leak originating from a neighboring property owned by the Estate of Martha Magel. In 2011, Auto Owners Insurance Company (Auto Owners), the liability carrier for the Estate’s testatrix, Patricia Weisman, filed an impleader complaint in federal court to discharge its obligation to settle the third-party liability claims on behalf of Ms. Weisman. Auto Owners reached a settlement with the Muncies for $60,000 which represented the remediation costs for the actual damage to the property. The settlement release reserved the Muncies’ right to pursue a claim for stigma damages associated with the oil leak.
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Gus Sara, White and Williams LLPMr. Sara may be contacted at
sarag@whiteandwilliams.com
NY Court Holds Excess Liability Coverage Could Never be Triggered Where Employers’ Liability Policy Provided Unlimited Insurance Coverage
February 28, 2018 —
Theresa A. Guertin and Samantha M. Martino - SDV Blog In a potentially significant development in New York insurance law, a recent appellate level decision held that an excess liability policy was not obligated to provide coverage where the underlying employer’s liability policy provided unlimited coverage pursuant to New York regulations.
The
Arthur Vincent & Sons Construction, Inc. v. Century Surety Insurance Co.1 case arose out of an underlying wrongful death claim. Fordham University hired Arthur Vincent and Sons Construction, Inc. (“AVSC”) to install a new roof on its Lewis Calder Center. As is typical of most construction contracts, AVSC agreed to indemnify the University against any claims arising out of its negligence, and to name the University as an additional insured on its commercial general liability policy. AVSC was insured by three policies: (1) a worker’s compensation and employer’s liability policy issued by Commerce and Industry Insur¬ance Company (“CIIC”); (2) a primary CGL policy issued by Century Surety Insurance Company (“Century”); and (3) an excess liability policy issued by Admiral Insurance Company (“Admiral”).
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Theresa A. Guertin, Saxe Doernberger & Vita, P.C. and
Samantha M. Martino, Saxe Doernberger & Vita, P.C.
Ms. Guertin may be contacted at tag@sdvlaw.com
Ms. Martino may be contacted at smm@sdvlaw.com
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Where Do We Go From Here?
March 21, 2022 —
Christopher G. Hill - Construction Law MusingsGreen Builder CoalitionFor this week’s Guest Post Friday, I welcome an old friend and past Guest Post Friday contributor, Mike Collignon. Mike is the Co-Founder and Executive Director of the Green Builder® Coalition. He engages in national and state-level advocacy and publishes regular content for Green Builder® Media. Mike is also the Chair of the WERS Development Group and has served as the moderator or host for Green Builder® Media’s Impact Series webinars from 2012– present.
This post originally appeared on Green Builder® Media’s Code Watcher.
Do you ever have a line from a song just pop into your head? I get that… a lot. It’s probably due to my lifelong love of music. Anyway, while I was researching this column, the line that cites the title of “Where Do We Go From Here?” by Filter started playing between my ears. You’ll see why in a couple of minutes.
In case you didn’t
read about it here or elsewhere, the IECC development process has undergone an overhaul. It is now following a standards process, yet it retains the word “code” in the name. The residential committee (which is the scope of this column) is now a consensus committee and has been greatly expanded. Proposals are still submitted, reviewed and voted on by the committee. On the surface, it doesn’t sound like much has changed. As they say, the devil is always in the details.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
EEOC Sues Schuff Steel, J.A. Croson in New Racial Harassment Cases
October 24, 2022 —
Richard Korman - Engineering News-RecordThe U.S. Equal Employment Opportunity Commission has renewed its effort to combat discrimination and harassment in the construction industry, filing in September four federal lawsuits against construction employers, including major specialty contractors such as erector Schuff Steel and mechanical contractor J.A. Croson. Each has been charged with violating federal laws against racial harassment in the workplace.
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Richard Korman, Engineering News-Record
Mr. Korman may be contacted at kormanr@enr.com
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