Denver Court Rules that Condo Owners Must Follow Arbitration Agreement
November 07, 2012 —
CDJ STAFFPrior to initiating a construction defect lawsuit, the Glass House Residential Association voted to invalidate the arbitration agreement that had been written into its declaration and bylaws by the developer and general contractor. After the association started their construction defect claims, the developer and general contractor argued that the case must go to arbitration, as the arbitration clause contained a provision that it could not be altered without the agreement of the developer and general contractor.
The Denver District Court has ruled against that association, determining that the res triction was not in violation of Colorado condominium law. And, as a post from Polsinelli Shughart PC on JDSupra notes, the Colorado Common Interest Ownership Act encourages the use of arbitration procedures to settle disputes. The CCIOA does prohibit “certain restrictions on the homeowners association’s ability to amend the condominium declarations,” however, preserving an arbitration agreement is not one of them.
Read the court decisionRead the full story...Reprinted courtesy of
The Harmon Hotel Construction Defect Trial to Begin
October 29, 2014 —
Beverley BevenFlorez-CDJ STAFFThe trial involving the Las Vegas Harmon Hotel, which is currently being demolished piece by piece due to construction defects, is ready to begin six years after the defects were first discovered, reported the Las Vegas Review-Journal. It’s an unusual case for multiple reasons. The trial is expected to last a year, and the number of attorneys involved in the case required chairs to be removed from the galley to accommodate lawyer tables, which are wired with monitors and microphones. In addition, “two 80-inch monitors are being installed for the jury.”
The Las Vegas Review-Journal further reported that “each party will have its own technology team to display the more than 3 million digitally stored pieces of evidence.” Michael Doan, the court’s information technology director, told the Las Vegas Review-Journal that the “paper list of that evidence fills more than 100 document-storage boxes.”
The case “involves more than $400 million in damage claims.” Construction on the Harmon Tower was stopped after a “structural engineer hired by MGM Resorts determined the building was unsafe and could topple if an earthquake of a magnitude of 7.7 were to hit Las Vegas.”
Read the court decisionRead the full story...Reprinted courtesy of
South Carolina “occurrence” and allocation
September 01, 2011 —
CDCoverage.comIn Crossman Communities of North Carolina, Inc. v. Harleysville Mutual Insurance Co., No. 26909 (S.C. Aug. 22, 2011), insured Crossman was the developer and general contractor of several condominium projects constructed by Crossman’s subcontractors over multiple years. After completion, Crossman was sued by homeowners alleging negligent construction of exterior components resulting in moisture penetration property damage to non-defective components occurring during multiple years. Crossman settled the underlying lawsuit and then filed suit against its CGL insurers to recover the settlement amount. Crossman settled with all of the insurers except for Harleysville. Crossman and Harleysville stipulated that the only coverage issue was whether there was an “occurrence.” The trial court subsequently entered judgment in favor of Crossman, determining that there was an “occurrence.” The trial court also ruled that Harleysville was liable for the entire settlement amount without offset for the amounts paid by the other insurers.
Read the full story…
Reprinted courtesy of CDCoverage.com
Read the court decisionRead the full story...Reprinted courtesy of
Notice and Claims Provisions In Contracts Matter…A Lot
February 27, 2023 —
David Adelstein - Florida Construction Legal UpdatesTechnical contractual provisions in contracts can carry the day. Whether you like it or not, and whether you appreciate the significance of the provisions, they matter. Notice provisions in a contract mean something. Following the claims procedure in a contract means something. The moment you think they don’t mean anything is the moment they will be thrown in your face and used as a basis to deny your position for additional money or time. You may think these provisions are being used as a “gotcha” tactic. They very well might be. But these are provisions included in the contract you agreed to so you know this risk before any basis for additional money or time even arises.
The recent bench trial opinion in Metalizing Technical Services, LLC v. Berkshire Hathaway Specialty Ins. Co., 2023 WL 385413 (S.D.Fla. 2023) illustrates the reality of not properly complying with such provisions. The keys when dealing with any notice or claims provision, or really any technical provision in your contract, is to (a) negotiate the risk before you sign the contract, (b) chart the provisions so your team know how to ensure compliance, and (c) make sure you comply with them. Period!
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
Nevada Supreme Court to Decide Fate of Harmon Towers
June 28, 2013 —
CDJ STAFFThe Nevada Supreme Court started hearings on Tuesday, June 4 over the fate of Harmon towers. MGM Resorts is hoping to obtain permission from the court to tear down the tower, which they claim could collapse should an earthquake strike Las Vegas. Perini Corp, the builder, wants the building to remain standing in order to support their claim that the building’s flaws are through design and not construction errors.
KLAS quoted one of Perini’s lawyers claiming that MGM had pursued a media strategy to prejudice potential jurors against the contractor. “CityCenter hired Cedric and Bunting to place advertisements with the media to win the hearts and minds of the community and to convince the public pretrial that Perini was, quote, ‘scum of the earth.’”
If the Supreme Court gives the go-ahead, demolition would begin soon. Still pending, is the $500 lawsuit over the allegations of construction defects.
Read the court decisionRead the full story...Reprinted courtesy of
Nevada Bill Aims to Reduce Legal Fees For Construction Defect Practitioners
March 21, 2011 —
CDJ STAFFAssemblyman Ira Hansen and twelve additional members of Nevada’s Assembly are sponsoring Assembly Bill 285. AB 285 Revises provisions governing an award of attorney’s fees in causes of action for constructional defects. Existing law generally provides that a claimant may recover reasonable attorney’s fees as part of the claimant’s damages in a cause of action for constructional defects. (NRS 40.655)
This bill removes this provision and instead authorizes a court to award reasonable attorney’s fees to a prevailing party involved in such a cause of action if an independent basis for the award exists pursuant to existing law which authorizes a court to award attorney’s fees in certain circumstances, or Rule 68 of the Nevada Rules of Civil Procedure, which provides for the payment of reasonable attorney’s fees by an offeree who rejects an offer and subsequently fails to obtain a more favorable judgment.
In an AP report published in Business Week it is suggested that the target objective of legislators centers on what it refers to as Nevada’s "Rampant construction defect lawsuits".
According to Business Week "The suits bring in hundreds of millions of dollars for lawyers and have put construction companies out of business. Hansen says fewer construction firms mean higher prices for Nevada consumers."
Click Here To Read Full Text and Revisions of Assembly Bill 285
Read the court decisionRead the full story...Reprinted courtesy of
Before Collapse, Communications Failed to Save Bridge Project
December 30, 2019 —
Scott Judy - Engineering News-RecordThe National Transportation Safety Board’s Oct. 8 release of documents related to its FIU bridge collapse investigation raises questions but provides no definitive conclusions about why the partially built structure suddenly crashed to the ground on March 15, 2018, killing six. The last official word on the cause of the fatal collapse will have to await the agency’s final report, scheduled to be released on Oct. 22.
Scott Judy, Engineering News-Record
Mr. Judy may be contacted at judys@enr.com
Read the full story... Read the court decisionRead the full story...Reprinted courtesy of
So, You Have a Judgment Against a California Contractor or Subcontractor. What Next? How Can I Enforce Payment?
May 04, 2020 —
William L. Porter - Porter Law GroupThe Contractors’ State License Board (“CSLB”) represents the interests of the public in California construction matters. In the field of California construction, the CSLB is all powerful. The agency has the right to suspend the license of any contractor or subcontractor who does not pay on a construction related judgment against it. If you are successful in obtaining a court judgment against a contractor or a subcontractor in a construction-related case, you can utilize the services of the CSLB to suspend the contractors’ license of that contractor or subcontractor until the judgment has been paid. Once the license is suspended, the contractor or subcontractor has no legal right to work as a contractor or subcontractor and can even be arrested for doing so. Details on using the CSLB to suspend the license of a contractor or subcontractor who has a construction-related judgment against it can be accessed at this particular CSLB link:
CSLB – Judgment.
On receipt of notice of the construction-related judgment, the CSLB will either suspend the contractors’ license of any contractor or subcontractor who does not pay on the judgment or who does not appeal the judgment to the Court of Appeals or file bankruptcy within 90 days. There also exists an opportunity for the licensed debtor to file a bond with the CSLB. The bond will either have to be renewed annually or the judgment paid, whichever comes first.
Read the court decisionRead the full story...Reprinted courtesy of
William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com