Colorado Supreme Court Rules that Developers Retain Perpetual Control over Construction Defect Covenants
June 21, 2017 —
Jesse Witt - The Witt Law FirmThe Colorado Supreme Court ruled today that developers can retain control over community covenants in perpetuity by recording a covenant that requires declarant consent to any amendments. Although the Colorado Common Interest Ownership Act (CCIOA) states that such controls should be void, the court nevertheless ruled that a declarant may veto amendments that alter the dispute resolution procedures for construction defect actions at any time.
The case of Vallagio at Inverness Residential Condominium Ass’n v. Metropolitan Homes, Inc., __ P.3d __, 15CO508, arose when the community’s members discovered widespread construction defects. When the declarant developed the project, it had recorded a declaration of covenants that purported to waive the homeowners’ right to a jury trial and instead require that any construction defect disputes be resolved by a private arbitration panel. The declaration also prohibited the homeowners from recovering attorney fees and costs, and it limited the declarant’s liability for damages. Consistent with CCIOA, the declaration allowed the homeowners to amend their covenants by a 67% vote, but it recited that the declarant could veto any such amendment prior to the sale of the last unit to a homeowner. The covenants further stated that the declarant must consent to any amendment that altered the construction defect restrictions.
Reprinted courtesy of
Jesse Howard Witt, Acerbic Witt
Mr. Witt may be contacted at www.witt.law
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Insurer's Summary Judgment Motion to Reject Claim for Construction Defects Upheld
August 15, 2018 —
Tred R. Eyerly - Insurance Law HawaiiThe Third Circuit upheld the district court's order granting summary judgment in favor of the insurer on a claim seeking coverage for construction defects. Lenick Constr. v. Selective Way Ins. Co., 2018 U.S. App. LEXIS 15197 (3d Cir. June 6, 2018).
Westrum was the general contractor for a 92 unit development, and it subcontracted with Lenick to perform rough and finish carpentry and to install paneling, windows, and doors provided by the developer. After the project was completed, it was discovered that some units experienced water infiltration, leaks and cracked drywall.
The condominium development sued Westrum, alleging contract and warranty claims. Westrum impleaded Lenick, asserting claims for breach of contract and indemnification. Lenick sought a defense from its insurer, Selective. Selective defended under a reservation of rights.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Congratulations 2019 DE, NJ and PA Super Lawyers and Rising Stars
May 26, 2019 —
White and Williams LLPFifteen White and Williams lawyers have been named by Super Lawyers as a Delaware, New Jersey or Pennsylvania "Super Lawyer" while eight received "Rising Star" designations. Each lawyer who received the distinction competed in a rigorous selection process which took into consideration peer recognition and professional achievement. The lawyers named to this year's Super Lawyer list represent a multitude of practices throughout the firm.
| Super Lawyers 2019 |
|---|
| Attorney | Practice Area |
|---|
| John Balaguer |
PI Defense: Med Mal |
| Kevin Cottone |
PI Defense: Med Mal |
| Thomas Goutman |
Class Action |
| David Haase |
Business Litigation |
| Christopher Leise |
Civil Litigation: Defense |
| Randy Maniloff |
Insurance Coverage |
| David Marion |
Business Litigation |
| Peter Mooney |
Business Litigation |
| Michael Olsan |
Insurance Coverage |
| John Orlando |
General Litigation |
| Wesley Payne |
Insurance Coverage |
| Daryn Rush |
Insurance Coverage |
| Anthony Salvino |
Workers’ Comp |
| Patricia Santelle |
Insurance Coverage |
| Andrew Susko |
Civil Litigation: Defense |
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Giant Floating Solar Flowers Offer Hope for Coal-Addicted Korea
March 21, 2022 —
Heesu Lee - BloombergMore than 92,000 solar panels in the shape of plum blossoms, floating on the surface of a reservoir in South Korea, offer a vision of how land-scarce developed nations can overcome local resistance to giant renewable-energy projects.
The 17 giant flowers on the 12-mile-long reservoir in the southern county of Hapcheon are able to generate 41 megawatts, enough to power 20,000 homes, according to Hanwha Solutions Corp., which built the plant.
It’s one of the biggest floating solar plants in the world, and it’s in a nation that has been a laggard in adopting renewable energy, even though South Korea’s industrialized economy relies heavily on imported fossil fuels.
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Heesu Lee, Bloomberg
Know your Obligations: Colorado’s Statutory Expansions of the Implied Warranty of Habitability Are Now in Effect
November 04, 2019 —
Luke Mecklenburg - Snell & Wilmer Real Estate Litigation BlogThe Colorado legislature had a busy session this year. Among the several significant bills it enacted, HB1170 strengthens tenant protections under the implied warranty of habitability. It became effective on August 2, 2019, so landlords and tenants alike are now subject to its requirements.
The bill makes numerous changes to Colorado’s implied warranty of habitability, and interested parties should review the bill in detail. Landlords in particular may want to consider retaining legal counsel to make sure they have proper procedures in place to promptly deal with any habitability complaints within the new required timelines. This posting is not intended to provide a comprehensive guide to the changed law, but simply to highlight some of the most significant changes.
With that caveat, landlords and tenants should be aware that as of August 2, 2019:
- The following conditions are now deemed to make a residential residence uninhabitable for the purposes of the implied warranty of habitability:
- The presence of mold, which is defined as “microscopic organisms or fungi that can grow in damp conditions in the interior of a building.”
- A refrigerator, range stove, or oven (“Appliance”) included within a residential premises by a landlord for the use of the tenant that did not conform “to applicable law at the time of installation” or that is not “maintained in good working order.” Nothing in this statute requires a landlord to provide any appliances, but these requirements apply if the landlord either agreed to provide appliances in a written agreement or provided them at the inception of the tenant’s occupancy.
- Other conditions that “materially interfere with the tenant’s life, health or safety.”
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Reprinted courtesy of Luke Mcklenburg, Snell & Wilmer
Mr. Mecklenburg may be contacted at lmecklenburg@swlaw.com
Banks Loosening U.S. Mortgage Standards: Chart of the Day
August 13, 2014 — Jody Shenn – Bloomberg
Perhaps more U.S. banks than at any time in two decades are making it easier to qualify for a mortgage.
The CHART OF THE DAY shows the net share of banks telling the Federal Reserve that they’re tightening standards in the home-loan market. In the central bank’s July survey of senior loan officers released last week, the net percentage for prime mortgages was negative 18.3 percent, by far the most loosening since it started asking the question by loan-quality category in 2007. It was also greater than the highest net share of banks easing in “all” mortgages in the 1990s or 2000s.
Still, lenders have a long way to go before they unwind the restrictions they imposed in the wake of the global financial crisis that risky home loans helped to create. The current trend is mainly about “small tweaks around the edges,” according to JPMorgan Chase & Co. mortgage-bond analysts. Read the court decision
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Ms. Shenn may be contacted at jshenn@bloomberg.net
$24 Million Verdict Against Material Supplier Overturned Where Plaintiff Failed to Prove Supplier’s Negligence or Breach of Contract Caused an SB800 Violation
March 16, 2017 — Jon A. Turigliatto, Esq. & Chelsea L. Zwart, Esq. – Chapman Glucksman Dean Roeb & Barger Bulletin
Acqua Vista Homeowners Assoc. v. MWL Inc. (2017) 2017 WL 371379
COURT OF APPEAL EXTENDS GREYSTONE HOMES, INC. v. MIDTEC, INC., HOLDING THAT CIVIL CODE §936 CREATES A NEGLIGENCE STANDARD FOR CLAIMS AGAINST MATERIAL SUPPLIERS BROUGHT UNDER SB800.
The Fourth District California Court of Appeal recently published its decision Acqua Vista Homeowners Assoc. v. MWI, Inc. (2017) 2017 WL 371379, holding that claims against a material supplier under SB800 (Civil Code §895 and §936) require proof that the SB800 violation was caused by the supplier's negligence or breach of contract.
Civil Code §936 states in relevant part, that it applies "to general contractors, subcontractors, material suppliers, individual product manufacturers, and design professionals to the extent that the general contractors, subcontractors, material suppliers, individual product manufacturers, and design professionals caused, in whole or in part, a violation of a particular standard as the result of a negligent act or omission or a breach of contract .... [T]he negligence standard in this section does not apply to any general contractor, subcontractor, material supplier, individual product manufacturer, or design professional with respect to claims for which strict liability would apply."
Acqua Vista Homeowners Association (the "HOA") sued MWI, a supplier of Chinese pipe used in the construction of the Acqua Vista condominium development. The HOA's complaint asserted a single cause of action for violation of SB800 standards, and alleged that defective cast iron pipe was used throughout the building. After trial, the trial court entered a judgment against MWI in the amount of $23,955,796.28, reflecting the jury's finding that MWI was 92% responsible for the HOA's damages.
MWI filed a motion for a directed verdict and motion for judgment notwithstanding the verdict on the grounds that the HOA had failed to present any evidence that MWI had caused an SB800 violation as a result of its negligence or breach of contract, and had therefore failed to prove negligence and causation as required by SB800, citing to Greystone Homes, Inc. v. Midtec, Inc.(2008) 168 Cal.App.4th 1194. The trial court denied both motions, relying on the last sentence of Civil Code §936, which states in part, "[T]he negligence standard in this section does not apply to any ... material supplier ... with respect to claims for which strict liability would apply."
The Court of Appeal reversed and ordered the trial court to enter judgment in favor of MWI. The Court of Appeal relied on the legislative history of S8800 and Greystone, which held that the first sentence of Civil Code §936 contains an "explicit adoption of a negligence standard" for S8800 claims against product manufacturers. The Court of Appeal reasoned that since §936 treats product manufacturers and material suppliers identically, the holding of Greystone must equally apply to material suppliers.
Because the complaint did not state a common law cause of action for strict liability, the HOA was required to prove that the damages were caused by MWI' s negligence or breach of contract. Although, the Court of Appeal found that while the HOA's evidence may have supported a finding that the manufacturer of the leaking pipes was negligent, the HOA had not provided any evidence that MWI, the supplier, had failed to supply the type of pipe ordered, acted unreasonably in failing to detect any manufacturing defects present in the pipe, or damaged it during transportation. Accordingly, the HOA could not prove that the alleged S8800 violation was caused, in whole or in part, by MWI' s negligence, omission, or breach of contract.
In light of the decision, homeowner and associations that allege only violations of SB800 standards without asserting a common law cause of action for strict liability cannot prevail by simply producing evidence of a violation, and are required to prove that violation was caused by the negligent act or omission, or breach of contract, of the defendant contractor, material supplier, and/or product manufacturer.
Reprinted courtesy of Jon A. Turigliatto, Esq, Chapman Glucksman Dean Roeb & Barger and Chelsea L. Zwart, Esq., Chapman Glucksman Dean Roeb & Barger
Mr. Turigliatto may be contacted at jturigliatto@cgdrblaw.com
Ms. Zwart may be contacted at czwart@cgdrblaw.com
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FHFA’s Watt Says Debt Cuts Possible for Underwater Homeowners
February 05, 2015 — Clea Benson – Bloomberg
(Bloomberg) -- Fannie Mae and Freddie Mac’s overseer wants to allow debt cuts for a narrow group of borrowers who owe more than their homes are worth. The trick is figuring out a way to do it without incurring costs for taxpayers.
Federal Housing Finance Agency Director Melvin L. Watt told reporters Wednesday that he is still studying the idea of reducing principal on properties with depressed values, a step backed by housing advocates and Democratic lawmakers.
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