Cambridge Massachusetts Building Expert Directory

Coverage for Construction Defect Barred by Contractual-Liability Exclusion

July 30, 2014 — Tred R. Eyerly – Insurance Law Hawaii
Relying upon precedent from the Texas Supreme Court, the Fifth Circuit upheld the District Court's denial of coverage based upon the policy's contractual-liability exclusion. Crownover v. Mid-Continent Cas. Co., 2014 U.S. App. LEXIS 12158 (5th Cir. June. 27, 2014). The Crownovers entered a construction contract with Arrow Development, Inc. to construct a home. Paragraph 23.1 of the contract contained a warranty-to-repair clause, which provided Arrow "would correct work . . . failing to conform to the requirements of the Contract Documents." After the work was completed, cracks began to appear in the walls and foundation of the Crownovers' home. Additional problems with the heating, ventilation, and air conditioning system caused leaking in exterior lines and air ducts inside the home. When Arrow refused to correct the problems, the Crownovers initiated arbitration. The arbitrator found that the Crownovers had a meritorious claim for breach of the express warranty to repair contained in paragraph 23.1 of the construction contract. Damages were awarded. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Ten Years After Colorado’s Adverse Possession Amendment: a brief look backwards and forwards

September 25, 2018 — Luke Mecklenburg - Snell & Wilmer Real Estate Litigation Blog
In response to national outrage over an infamous adverse possession case in Boulder, Colorado, in which a lawyer and a judge intentionally took their neighbors’ undeveloped land through adverse possession, the Colorado legislature amended the state’s adverse possession statute (C.R.S. § 38-41-101) to make the claim significantly harder to prove. It did this because it believed “there were insufficient ‘obstacles’ to establishing a claim for adverse possession under the existing law.”[1] Effective July 1, 2008, the amendment created a heightened burden of proof, additional element requirements, and the possibility of a losing defendant recovering money from successful plaintiffs for the value of the land they took and the taxes the defendant had paid on that land. The Boulder case eventually settled, but the resulting statutory amendments have drastically changed the landscape of Colorado’s adverse possession law. Ten years later, this blog post takes a brief look at the amended statute, the impact it has had, and questions that have yet to be resolved. Read the court decision
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Reprinted courtesy of Luke Mecklenburg, Snell & Wilmer
Mr. Mecklenburg may be contacted at lmecklenburg@swlaw.com

More thoughts on Virginia Mechanic’s Liens

January 28, 2019 — Christopher G. Hill - Construction Law Musings
As we settled yet another construction case on the courthouse steps today, I began to think about what I should post to begin 2009. Of course, given the construction industry slowdown that is predicted, and the trend at construction projects around the Commonwealth of Virginia that looks to me as if payments will be harder to come by from Owners less willing, for financial reasons, to work with contractors, mechanic’s liens will be more useful, and necessary, now than ever. Virginia mechanic’s liens are unusually strong because your memorandum of lien takes priority over all prior liens on the property that you have improved (including from the bank that is financing the project) except in very limited circumstances. What this means is that, should you properly file and sue to enforce your lien, you get to foreclose and have first crack at any money. By contrast, a judgment lien takes priority only over liens filed after the lien is recorded. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

More Charges Anticipated in Las Vegas HOA Scam

February 28, 2013 — CDJ STAFF
With almost forty people already charged in the conspiracy to take over Las Vegas homeowners associations in order to profit from construction defect claims, more charges are likely to come, according to an article in the Las Vegas Review Journal. The article also notes that the trial against Leon Benzer will involve millions of pages of documents. It is alleged that Benzer found straw purchasers for condominiums in order to control homeowner boards. Benzer’s firm, Silver Lining Construction, would then receive contracts to repair construction defects. The Justice Department will be seeking restitution for the victims, which may total $25 million. Four individuals with connections to the conspiracy have died since investigations began. At least three of these deaths were suicides, and included Nancy Quon, who with Benzer are thought to be the main figures in the scam. Read the court decision
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Specific Performance: Equitable Remedy to Enforce Affirmative Obligation

January 18, 2021 — David Adelstein - Florida Construction Legal Updates
When a party breaches an agreement, particularly when dealing with real estate, there is an equitable remedy known as specific performance that requests the trial judge issue an order to affirmatively force the breaching party to perform, i.e., close on the real estate contract. You are asking the court to require the other party to specifically perform an affirmative obligation. See Melbourne Ocean Club Condominium Ass’n, Inc. v. Elledge, 71 So.3d 144, 146 (Fla. 2011).

A decree of specific performance is an equitable remedy ‘not granted as a matter of right or grace but as a matter of sound judicial discretion’ governed by legal and equitable principles. Specific performance shall only be granted when 1) the plaintiff is clearly entitled to it, 2) there is no adequate remedy at law, and 3) the judge believes that justice requires it. Castigliano v. O’Connor, 911 So.2d 145, 148 (Fla. 3d DCA 2005) (internal citations omitted).

An example of specific performance may play out, as mentioned, in a real estate contract where a seller refuses to close on the transaction. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

LA Metro To Pay Kiewit $297.8M Settlement on Freeway Job

December 08, 2016 — Greg Aragon – Engineering News-Record
The Los Angeles County Metropolitan Transportation Authority (LA Metro) has reached an agreement with Kiewit Corp. and will pay the contractor $297.8 million for project change orders on the Interstate 405-Sepulveda Pass Widening Project, in Los Angeles. Read the court decision
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Reprinted courtesy of Greg Aragon, Engineering News-Record
ENR may be contacted at ENR.com@bnpmedia.com

Case Alert Update: SDV Case Tabbed as One of New York’s Top Three Cases to Watch

January 10, 2018 — Richard W. Brown - SDV Blog
Argument before the Court of Appeals has now been scheduled for February 7, 2018, in Gilbane Building Co. v. St. Paul Insurance, with a long anticipated decision by New York’s highest court to be issued shortly thereafter. In its September 18, 2017 edition, Law360.com highlighted three major cases with significant implications on insurance coverage that will soon be decided by the New York Court of Appeals. Gilbane presents an opportunity for the Court to address the growing number of divergent decisions regarding the prerequisites for qualifying as an additional insured, as it considers an Appellate Division’s holding that a construction manager is not entitled to coverage as an additional insured under a contractor’s policy because the two companies did not enter into a direct contract. Read the court decision
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Reprinted courtesy of Richard W. Brown, Saxe Doernberger & Vita, P.C.
Mr. Brown may be contacted at rwb@sdvlaw.com

Construction Law Client Advisory: What The Recent Beacon Decision Means For Developers And General Contractors

August 20, 2014 — Steven M. Cvitanovic and Whitney L. Stefko - Haight Brown & Bonesteel LLP
On July 3, 2014, the California Supreme Court (the “Court”) came out with its decision in Beacon Residential Community Association v. Skidmore, Owings & Merrill, et al. The Beacon decision settled a long-standing dispute in California about whether design professionals such as architects and engineers owe a duty to non-client third parties. In finding that the plaintiffs in Beacon could state a claim against the architects of the Beacon project, the Court also sowed the seeds of change in the way contracts are structured between developers, architects, engineers, and even general contractors. So, how will Beacon change the landscape for developers and general contractors? It is important to understand the factual background in Beacon to predict how the decision may alter the playing field. For a detailed analysis of the Amicus briefs in the Beacon matter from the AIA, the CBIA, and the Consumer Attorneys of California, please click here. The Beacon case arose from a common development model in California: a developer conceives a multi-unit project, maps the project as a condo development but rents as apartments. Shortly after completion of the Beacon project, the developer sold the entire project and the new owner finalized the existing condominium map and placed the units on the market as condominiums. Although the architects always knew they had designed a residential structure, the project ultimately became a condominium development. The newly formed homeowners’ association filed a construction defect suit against the developers, general contractor, the subcontractors and the architects for design and construction defects. Reprinted courtesy of Steven M. Cvitanovic, Haight Brown & Bonesteel LLP and Whitney L. Stefko, Haight Brown & Bonesteel LLP Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com; Ms. Stefko may be contacted at wstefko@hbblaw.com Read the court decision
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