Arizona Court Affirms Homeowners’ Association’s Right to Sue Over Construction Defects
October 15, 2024 —
Melissa Kenney - White and Williams LLPIn Gallery Community Association v. K. Hovnanian at Gallery LLC, No. 1 CA-CV 23-0375, 2024 Ariz. App. Unpub. LEXIS 696 (Ct. App.), the Court of Appeals of Arizona (Court of Appeals) discussed whether a homeowners’ association can file an action for breach of the implied warranty of workmanship and habitability arising from construction defects. At issue was whether the implied warranty extended to the areas within the community that the association maintained, including the common areas. The Court of Appeals held that homeowners’ associations can sue builder-vendors for breach of the implied warranty arising from construction defects.
In this case, a homeowners’ association, responsible for managing and maintaining a community of townhomes, sued the developer/builder for alleged construction defects in the common area and exteriors of homes that the association maintained for the homeowners in the community. The alleged defects included the pool cabana and staircase walls in the common areas and the exterior walls, roofs, and staircases on the separately owned townhomes in the community. The builder filed a motion for summary judgment, arguing that the implied warranty extended to dwelling actions initiated by homeowners – not homeowners’ associations – and that the alleged construction defects at issue were not related to a dwelling. The trial court granted the motion. The Court of Appeals vacated the trial court’s grant of summary judgment and remanded for further proceedings. In reaching its decision, the Court of Appeals determined that both common law and statutory law authorized the homeowners’ association’s breach of implied warranty claim.
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Melissa Kenney, White and WilliamsMs. Kenney may be contacted at
kenneyme@whiteandwilliams.com
New Jersey Construction Company Owner and Employees Arrested for Fraud
December 04, 2013 —
CDJ STAFFFrank Chimento, Jr., the owner of Chimento Construction of Parsippany, New Jersey, and three of his employees, Joseph Carsillo, Frank Chimento III, and Carl J. Corso, were arrested by federal agents. The elder Chimento is accused of falsifying his own income taxes, as well as failing to collect and turn over federal and state payroll taxes. He is additionally charged with falsifying union benefit fund contributions.
The three employees are also accused of filing false income tax statements and also of attempting to defraud the state of New Jersey of unemployment compensation benefits. An additional unnamed conspirator made transactions at multiple financial institutions in order to pay employees directly in cash.
One of the three employees, Mr. Carsillo, worked for the company and received cash payments while maintaining to the New Jersey Department of Labor and Workforce Development that he was unemployed. Mr. Carsillo was receiving $526 per week from the NJDOL-WD in unemployment benefits, starting in 2009. From 2009 through 2011, Mr. Carsillo received $19,988 in unemployment benefits and an additional $351,788 in wages from Chimento.
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Consider Arbitration Provision in Homebuilder’s Warranty and Purchase-and-Sale Agreement
November 18, 2024 —
David Adelstein - Florida Construction Legal UpdatesWhen you enter into a contract with a homebuilder, particularly a tract homebuilder, please consider two things when it comes to dispute resolution: (1) your purchase-and-sale agreement likely contains an arbitration provision, and (2) your limited warranty agreement you get in connection with closing likely also reinforces the arbitration provision, especially with warranty claims governed by the limited warranty agreement. This dispute resolution is important because it means the homebuilder wants disputes resolved through the arbitration process and NOT through the litigation process (where the nature of disputes and allegations are public).
Look, there are pros and cons with arbitration, no different than litigation. Arbitrating a dispute is not necessarily a bad thing, and with certain disputes, ideal. There is no right to appeal in arbitration, but the dispute should resolve itself quicker than litigation, and you’ll have more control over the decision maker, i.e., the arbitrator.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Hennigh Law Corporation Wins Award Against Viracon, Inc In Defective Gray PIB Case
July 11, 2022 —
Scott Hennigh - Hennigh Law CorporationLOS ANGELES, July 08, 2022 (GLOBE NEWSWIRE) -- Hennigh Law Corporation has announced that, after an over four-year battle in and out of court, a three arbitrator panel issued a 93-page interim award in finding Viracon, Inc., liable for $13,682,840 in direct damages for defrauding the owner of the premier office building in Burbank, California, The Pointe. The matter now enters the second phase, where the arbitration panel will rule on the amount of punitive damages to assess, as well as attorney fees and interest.
Scott Hennigh, trial attorney, states, "The California construction industry is very robust with high standards. The arbitration panel appears to have recognized that California law does not tolerate large out-of-state companies misleading customers. They appear poised to send a message to Viracon about its lack of corporate responsibility."
The premier Class-A office building in Burbank, California, The Pointe, serves high-end tenants in entertainment industries such as Warner Brothers. Constructed in 2009, the 13 exterior curtain wall of the 13-story building is encased in seamless glass panels.
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Scott Hennigh, Hennigh Law CorporationMr. Hennigh may be contacted at
Scott.hennigh@hennighlaw.com
A Court-Side Seat: An End-of-Year Environmental Update
January 09, 2023 —
Anthony B. Cavender - Gravel2GavelAs 2022 draws to a close, here is a brief description of recent environmental and regulatory law rulings, as well as new federal rulemaking proceedings.
United States Tax Court
Green Valley Investors, LLC et al, v. Commissioner of Internal Revenue
On November 9, 2022, the Tax Court agreed with the taxpayers that the IRS’s use of administrative Notice 2017-10 to impose substantial tax liabilities violated the Administrative Procedure Act (APA). The notice was the agency’s response to a provision in the American Jobs Creation Act of 2004 which increased the penalties for engaging in a reportable transaction understatement. Here, at issue was the value of charitable deductions generated by the creation of environmental easements made in connection with land transactions. These claimed deductions amounted to more than $60 million. The petitioners argued that IRS Notice 2017-10, which authorized such large penalties, was in fact a “legislative rule” whose promulgation should have complied with the notice and comment requirements of the APA. The agency contended that the Congress, by implication, absolved the IRS from the notice and comment requirements. The court agreed with the petitioners and set aside Notice 2017-10 and the imposition of penalties under Section 6662A of the Jobs Creation Act. On December 8, 2022, the IRS published a notice of proposed rulemaking that would correct the APA deficiencies noted by the courts. (See 87 FR 75185.)
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Skyline Cockpit’s Game-Changing Tower Crane Teleoperation
August 21, 2023 —
Aarni Heiskanen - AEC BusinessIn
this episode of the AEC Business podcast, host Aarni Heiskanen interviews Zachi Flatto, CEO and co-founder of Skyline Cockpit. The startup offers a tower crane teleoperation, AI monitoring, and autonomous driving system. Zachi discusses the background of Skyline Cockpit, how they make construction safer and more efficient, and what technologies they use.
A ground-breaking change in crane operation
Zachi Flatto, the CEO and co-founder of
Skyline Cockpit, is leading a startup that specializes in providing advanced technology solutions for tower crane operations. The company’s main objective is to eliminate the need for crane operators to climb 100 meters every morning and spend long hours operating the crane from such heights. Zachi firmly believes that in 2023, this traditional practice is no longer necessary.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Congress Addresses Homebuilding Credit Crunch
May 20, 2011 —
CDJ STAFFThe National Association of Home Builders (NAHB) reports that Representatives Gary Miller (CA), Brad Miller (NC) and twenty-nine cosponsors have put forth a bill with bipartisan support to “address the severe credit crunch for acquisition, development, and construction (AD&C) financing.” They report in addition to more than 1.4 million construction workers who have been “idled since 2006,” the housing slump has cost 3 million jobs and $145 million in wages.
NAHB reports that they worked closely with lawmakers on the bill. The association had members meet with legislators both in D.C. and in their home districts. They state that HR 1755 would help homebuilders “find the credit they need to move forward with new or existing projects.”
The bill would allow lenders to use the value upon completion when assessing loan collateral and ban the use of foreclosed or distressed sale properties in assessing values of projects. The would bill would also lessen restrictions by banking regulators, which the lead sponsors said “have hindered federal and state chartered banks and thrifts’ ability to make and maintain loans to qualified small home builders that have viable projects.”
The NAHB is urging members of Congress to cosponsor the bill and is urging the Senate to introduce a companion bill.
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Read HR 1755
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Construction Materials Company CEO Sees Upturn in Building, Leading to Jobs
November 05, 2014 —
Beverley BevenFlorez-CDJ STAFFThe Washington Post reported that Mesa Industries Inc. (a construction equipment and materials company), are "prepping for significant growth," which suggests that the construction industry is poised for growth. Terry Segerberg, CEO of Mesa Industries Inc., "is seeing enough nonresidential orders to suggest a sustained jobs recovery is underway in the industry — and in firms like hers that supply it."
A Bureau of Labor Statistics report predicted that 1.6 million construction jobs will be added through 2022, according to the Washington Post.
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