New Florida Bill Shortens Time for Construction-Defect Lawsuits
September 06, 2023 —
Jessica Zelitt - Construction ExecutiveOn April 13, 2023, Florida Gov. Ron DeSantis signed Senate Bill 360 into law. This legislation alters the time period for bringing forward construction-defect lawsuits, as well as modifies the current private right of action against a contractor for violation of the Florida Building Code.
First, SB 360 amends § 95.11(3)(c), Florida Statutes, to reduce the statute of repose from 10 years to seven years for actions founded on latent construction defects. The legislation also changes the manner in which this time period is calculated under both the seven-year statute of repose and the four-year statute of limitations for construction-defect cases.
Under the prior statute, the time to commence an action began with the later of (i) the date of actual possession by the owner, (ii) the date of the issuance of a certificate of occupancy (CO), (iii) the date of abandonment of construction if not completed or (iv) the date of completion or termination of the contract.
Reprinted courtesy of
Jessica Zelitt, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the court decisionRead the full story...Reprinted courtesy of
Ms. Zelitt may be contacted at
jessica.zelitt@arlaw.com
Construction Wall Falls, Hurts Three
November 06, 2013 —
CDJ STAFFA construction wall collapsed on November 1 during heavy rainfall in New York City. Two women were briefly trapped under the rubble, while other bystanders worked to free them. Einstein Construction Group, a contractor based in Texas, was remodeling the first floor for a new tenant, a Japanese restaurant. The company, which disclaims responsibility for the occurrence, were cited for violations and a stop work order was issued.
Just prior to the incident, high winds whipped through the area. The construction wall allegedly had not been securely attached to the building.
Read the court decisionRead the full story...Reprinted courtesy of
Auburn Woods Homeowners Association v. State Farm General Insurance Company
January 11, 2021 —
Michael Velladao - Lewis BrisboisIn Auburn Woods HOA v. State Farm Gen. Ins. Co., 56 Cal.App.5th 717 (October 28,2020) (certified for partial publication), the California Third District Court of Appeal affirmed the trial court’s entry of judgment in favor of State Farm General Insurance Company (“State Farm”) regarding a lawsuit for breach of contract and bad faith brought by Auburn Woods Homeowners Association (“HOA”) and property manager, Frei Real Estate Services (“FRES”) against State Farm and the HOA’s broker, Frank Lewis. The parties’ dispute arose out of the tender of two different lawsuits filed against the HOA and FRES by Marva Beadle (“Beadle”). The first lawsuit was filed by Beadle as the owner of a condominium unit against the HOA and FRES for declaratory relief, injunctive relief, and an accounting related to amounts allegedly owed by Beadle to the HOA as association fees. The second lawsuit filed by Beadle was for the purpose of setting aside a foreclosure sale, cancelling the trustee’s deed and quieting title, and for an accounting and injunctive relief against an unlawful detainer action filed by Sutter Group, LP against Beadle. The complaint filed in the second lawsuit alleged that Allied Trustee Services caused Beadle’s property to be sold at auction and that Sutter Capital Group, LP purchased the unit and obtained a trustee’s deed upon sale. Beadle claimed the assessments against her were improper and the trustee’s deed upon sale was wrongfully executed. Beadle sought an order restoring possession of her unit and damages.
The HOA and FRES tendered both lawsuits to State Farm. As respects the first lawsuit, State Farm denied coverage of the lawsuit based on the absence of alleged “damages” covered by the policy issued to the HOA affording liability and directors and officers (“D&O”) coverages. State Farm agreed to defend the HOA under the D&O coverage in the second lawsuit. However, State Farm denied coverage of FRES in both lawsuits as it did not qualify as an insured under the State Farm policy issued to the HOA. Subsequently, the HOA and FRES filed an action against State Farm arguing that a duty to defend was triggered under its policy for the first lawsuit and a duty to defend FRES was also owed under the D&O policy for the second lawsuit. After a bench trial, the trial court entered summary judgment in favor of State Farm based on the failure of the first lawsuit to allege damages covered by the State Farm policy under the liability and D&O coverages afforded by the policy. As respects the second lawsuit, the trial court held that FRES did not qualify as an insured and State Farm did not act in bad faith by refusing to pay the HOA’s alleged defense costs in the second lawsuit before it agreed to defend the HOA against such lawsuit.
Read the court decisionRead the full story...Reprinted courtesy of
Michael Velladao, Lewis BrisboisMr. Velladao may be contacted at
Michael.Velladao@lewisbrisbois.com
Construction Defects Up Price and Raise Conflict over Water Treatment Expansion
August 27, 2013 —
CDJ STAFFThe owner of a regional water treatment plant in California has filed a lawsuit against the where they operate. Construction defects lead to cost overruns at the Modesto Irrigation District’s water treatment plant. Now the question is whether MID or Modesto will be paying for the expenses. Both parties sued Black & Veatch and others, receiving $14.9 million.
But the problems have lead to the cost of the water treatment plant expansion ballooning to $107.5 million, a big jump over the planned $62.9 million. Also, instead of being completed in 2009, the completion date has been pushed to 2015.
Modesto originally agreed to pay for the expansion, which will increase plant’s ability to provide drinking water to 66 million gallons per day with the agreement that MID would provide the water at the cost of producing it. But now the cost to Modesto of those additional 36 million gallons a day is an additional $44.6 million.
Read the court decisionRead the full story...Reprinted courtesy of
When it Comes to COVID Emergency Regulations, Have a Plan
December 07, 2020 —
Christopher G. Hill - Construction Law MusingsAs I hope readers of this construction corner of the “blogosphere” know, Virginia adopted emergency COVID workplace regulations effective July 27, 2020, and with enforcement beginning at the end of September. Among the various items found in these regulations are general requirements for all employers, including among others, the requirement to self determine the employer’s risk level and disinfecting requirements. The regulations also have some requirements that seem specially directed toward construction industry employers. These include among them engineering controls and various requirements relating to communications with subcontractors. For a good overview of these requirements, see this great post at the Virginia Bar Association’s construction law blog.
One item that is not included in the emergency regulations is a statement that following the regulations immunizes an employer from COVID infection-related lawsuits. For this reason, among others, all construction (and other industry) employers should have a COVID plan that meets the requirements of these regulations at whatever “hazard level” that employer meets. These plans should be written and distributed to all employees and include protocols for workplace/job site screening and what to do if there is a need for contact tracing. I also highly recommend that any plan be created with the help of a good Virginia workplace safety consultant well versed in the COVID regulations.
Read the court decisionRead the full story...Reprinted courtesy of
The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Alleging Property Damage in Construction Defect Lawsuit
September 14, 2020 —
David Adelstein - Florida Construction Legal UpdatesWhen there is a construction defect lawsuit, there is an insurance coverage issue or consideration. As I have said repeatedly in other articles, it is all about maximizing insurance coverage regardless of whether you are the plaintiff prosecuting the construction defect claim or the contractor(s) alleged to have committed the construction defect and property damage. It is about triggering first, the insurer’s duty to defend, and second, the insurer’s duty to indemnify its insured for the property damage.
The construction defect claim and lawsuit begins with how the claim and, then, lawsuit is couched knowing that the duty to defend is triggered by allegations in the lawsuit (complaint). Thus, preparing the lawsuit (complaint) is vital to maximize the insurer’s duty to defend its insured.
In a recent opinion out of the Eleventh Circuit, Southern-Owners Ins. Co. v. MAC Contractors of Florida, LLC, 2020 WL 4345199 (11th Cir. 2020), a general contractor was sued for construction defects in the construction of a custom home. A dispute arose pre-completion and the owner hired another contractor to complete the house and remediate construction defects. The contractor’s CGL insurer originally provided a defense to the general contractor but then withdrew the defense and filed an action for declaratory relief asking for the declaration that it had no duty to defend the contractor because the underlying lawsuit did NOT allege property damage. The trial court agreed with the contractor and granted summary judgment in its favor finding that the underlying complaint did not allege property damage beyond defective work. But, on appeal, the Eleventh Circuit reversed.
Read the court decisionRead the full story...Reprinted courtesy of
David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Delaware District Court Finds CGL Insurer Owes Condo Builder a Duty to Defend Faulty Workmanship Claims — Based on the Subcontractor Exception to the Your Work Exclusion
October 04, 2021 —
Anthony L. Miscioscia & Laura Rossi - White and WilliamsOn September 7, 2021, in one of the few decisions addressing the scope of coverage for faulty workmanship under Delaware law, the Delaware District Court denied an insurer’s motion seeking a declaration that it neither needed to defend nor indemnify an insured-builder under a commercial general liability policy.
In this declaratory judgment action, Pennsylvania National Mutual Casualty Insurance Company v. Zonko Builders, the insurer argued that the ongoing underlying action failed to properly plead an “occurrence” in a case alleging damages to a condominium caused by faulty workmanship involving subcontractors.* Zonko Builders (Zonko) served as the general contractor, supervising subcontractors. The Condominium Association sued Zonko for damages allegedly resulting from design and construction deficiencies. The motion was opposed by the Condominium Association, which cross-moved for partial judgment on the pleadings.
In AE-Newark Associates, L.P. v. CNA Insurance Companies, 2001 Del. Super. LEXIS 370 (Del. Super. Ct. Oct. 2, 2001), the Delaware Superior Court found that an insured was entitled to coverage for damages arising from a faulty roof system installed by a subcontractor on behalf of the insured general contractor.
Reprinted courtesy of
Anthony L. Miscioscia, White and Williams and
Laura Rossi, White and Williams
Mr. Miscioscia may be contacted at misciosciaa@whiteandwilliams.com
Ms. Rossi may be contacted at rossil@whiteandwilliams.com
Read the court decisionRead the full story...Reprinted courtesy of
Traub Lieberman Attorneys Recognized as 2020 Super Lawyers and Rising Stars
November 16, 2020 —
Traub LiebermanTraub Lieberman is pleased to announce that Super Lawyers has named nineteen of our attorneys as 2020 Super Lawyers and Rising Stars.
Super Lawyers selects attorneys using a multiphase selection process in which nominations and evaluations are combined with independent research. Each candidate is evaluated on 12 indicators of peer recognition and professional achievement. Selections are made on an annual, state-by-state basis. The objective is to create a credible, comprehensive and diverse listing of outstanding attorneys that can be used as a resource for attorneys and consumers searching for legal counsel.
The Super Lawyers designation recognizes the top 5% of attorneys in the U.S. and the Rising Stars designation recognizes the top 2.5% of attorneys in the U.S. under the age of forty, as chosen by their peers and through independent research within their practice area.
Read the court decisionRead the full story...Reprinted courtesy of
Traub Lieberman
