Washington Court of Appeals Upholds Standard of Repose in Fruit Warehouse Case
August 04, 2011 —
CDJ STAFFOn July 28, the Washington Court of Appeals ruled in Clasen Fruit & Cold Storage v. Frederick & Michael Construction Co., Inc. that more than six years had passed since a contractor had concluded work and so granted a summary dismissal of the suit.
Frederick & Michael Construction Co., Inc. (F&M) was contracted to construct several buildings for Clasen Fruit and Cold Storage. These were completed in March, 1999. The buildings suffered wind damage to the roofs in 2001, 2003, 2005, and 2006. In the first two incidents, F&M repaired the roofs with Clasen paying for repairs.
In 2005, Clasen hired Continuous Gutter to make repairs. The final incident was the collapse of the roof of one building. This was attributed to “excessive moisture in the roof’s vapor barriers.” At this point, Clasen demanded that F&M pay for repair and replacement costs. In 2008, Clasen sued F&M for damages for breach of contract and negligent design and construction of the roof.
The decision then covered the meanings, in Washington law, of “termination of services” and “substantial completion.” The panel concluded that construction was “substantially completed in 1997” and “relevant services” by 2001. “But Clasen did not sue until 2008, some seven years after termination of any roof related services.”
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Arizona Supreme Court Leaves Limits on Construction Defects Unclear
August 27, 2013 —
CDJ STAFFThe Arizona Supreme Court has determined that “non-contracting parties may bring negligence claims for construction defects because such claims are not barred by the economic loss doctrine,” as Richard Erikson writes in a Snell & Wilmer Legal Alert.
In the case of Sullivan v. Pulte Home, Pulte had built the home in 2000. The original buyer sold it to the Sullivans in 2003. The Sullivans discovered construction defects in a retaining wall in 2009. The lost their original lawsuit, but the appeals court found that if the Sullivans filed within two years of finding the damage, they could sue. The case then progressed to the Arizona Supreme Court.
Erikson points out that in an amicus brief, a number of parties in the Arizona homebuilding industry argued that “the appellate court’s ruling was commercially irreconcilable with expectations of builders, homeowners, homebuyers, engineers and architects in the construction industry.” Nevertheless, the Sullivans prevailed at court.
Erikson asks what the actual limit on construction defects must be, given that the court found for plaintiffs who discovered construction defects nine years after the home was built. “How many years after the builder finishes a home does it have to plan on defending defect claims—10, 20, 30 years?” He proposes that the Arizona legislature needs to clarify the specific limits.
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Preserving Your Construction Claim
February 18, 2015 —
Craig Martin – Construction Contractor AdvisorA recent article in the Construction Executive discussed the importance of preserving your claim, both in terms of timeliness of submitting your claim and making sure that you aren’t waiving portions of your claim when executing releases. These are all excellent points and bear some follow-up.
Timing Your Claim
I often review construction contracts that contain deadlines by which claims must be submitted. It may seem counter intuitive to think that you need to submit a claim when you are discussing the basis for the claim with an upstream contractor or the owner. But, there are more cases than I care to count where a contractor’s claim has been denied because the claim was not timely submitted.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
Virginia Families Hope to Sue over Chinese Drywall
October 10, 2013 —
CDJ STAFFAlthough Virginia isn't in the Fifth Circuit of the U.S. Court of Appeals, some Virginia homeowners ended up with a case there. And now the court has to decide whether Taishan Gypsum Co. Ltd. can be sued in American courts for defects in its products. The case made its way to Louisiana after the courts consolidated cases from across the country. If the court decides that the homeowners can’t sue, they could appeal to the Supreme Court, although that’s likely a longshot. Or, the homeowners could sue in the Chinese courts, also not likely.
More than 300 homes in Virginia are affected by fumes from the Chinese-made drywall, but only seven residents in the town of Hampton Roads are at the heart of the current case. They were chosen as representative of the entire group. Those seven have been collectively awarded $2.6 million, but the drywall manufacturer is appealing the judgement. If Taishan is victorious, then the damages already awarded will be overturned and there won’t be an option for the others.
The drywall emitted gases which corroded metals in the homes. One couple, Steve and Liz Heischober went through seven air conditioning coils in three years, along with problems with corrosion of appliances and electrical systems. If the current suit succeeds, the Heischobers, and the other, will be compensated for their damages, including the costs of repair and relocation. If Taishan loses, they could be responsible for about $1 billion.
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Boston-area Asbestos-Abatement Firms Face Wage and Safety Complaints
January 26, 2017 —
Justin Rice - Engineering News-RecordSeveral federal and state complaints against asbestos-abatement and demolition firms operating in Massachusetts have sprouted in the wake of the region’s construction boom. Involving mostly small companies and immigrant workers, the cases allege wage and benefit violations as well as improper exposure to asbestos fibers, which contain cancer-causing carcinogens.
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Justin Rice, ENRMr. Rice may be contacted at
ricej@enr.com
Useful Life: A Valuable Theory for Reducing Damages
March 29, 2017 —
Brooke E. Beebe, Esq. - Florida Construction Law NewsThe situation is one all too familiar to construction defect litigants. A homeowner contracts with a roofing contractor to install a new roof with a life expectancy of ten years.[1] After only five years, the homeowner brings a claim for construction defects in the roof alleging that the roof requires complete replacement due to water intrusion. The homeowner seeks damages for the full replacement cost of the roof. However, under a “useful life” theory, the homeowner would not be entitled to damages for the full amount of the replacement cost. Instead, the homeowner would be entitled to one-half of the cost of the replacement roof, taking into account the fact that he or she had been deprived of only five, rather than ten, years of use. “Useful life” is best understood as the expected length of time that a newly built construction element can be reasonably anticipated to last, subject to routine maintenance and ordinary wear and tear. The “useful life” theory holds that granting the homeowner damages for the full replacement cost of the roof would result in unjust enrichment to the homeowner, who had contracted for a roof with a ten-year, rather than a fifteen-year, useful life.
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Brooke E. Beebe, Cole, Scott & Kissane, P.A.Ms. Beebe may be contacted at
brooke.beebe@csklegal.com
2017 California Employment Law Update
January 13, 2017 —
Evelin Y. Bailey - California Construction Law BlogBelow are some of the new laws going into effect this year that affect the construction industry. Unless otherwise noted, the laws go into effect on January 1, 2017.
Public Works and Prevailing Wages
You can read more about the new laws—AB 326, AB 1926 and SB 954—relating to public works and prevailing wages in an earlier blog post.
Employment Contracts
Choice of Forum and Choice of Law. Under SB 1241, an employer cannot require an employee who primarily works and resides in California to agree to file a lawsuit or bring a claim in another state when the claim arises in California. This is usually referred to as the choice of forum clause.
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Evelin Y. Bailey, Wendel Rosen Black & Dean LLP Ms. Bailey may be contacted at
ebailey@wendel.com
Details Matter: The Importance of Strictly Following Public Bid Statutes
September 22, 2016 —
Wally Zimolong – Supplemental ConditionsContractors bidding on public contracts know that failing to strictly following all of the technical aspects contained in the instructions to bidders can mean the difference between a winning and losing bid. In the span of two weeks, I was involved with two cases that underscored the importance of this axiom. Both cases involved New Jersey’s public bid laws. While these cases show the importance of following a specific section of New Jersey’s public bid statute, the take away – that details matter – is universal.
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Wally Zimolong, Zimolong LLCMr. Zimolong may be contacted at
wally@zimolonglaw.com