Tick Tock: Don’t Let the Statute of Repose or Limitations Time Periods Run on Your Construction Claims
February 28, 2022 —
Gus Sara - The Subrogation StrategistIn Wascher v. ABC Ins. Co., No. 2020AP1961, 2022 Wisc. App. LEXIS 110 (Feb. 9, 2022), the Court of Appeals of Wisconsin considered whether the plaintiffs were barred — by Wisconsin’s 10-year statute of repose for improvements to real property claims and the six-year statute of limitations for breach of contract claims — from bringing a lawsuit against the original builders of their home. The plaintiffs alleged negligence and breach of contract against the masonry subcontractors, asserting that they improperly installed the exterior stone cladding. The court found that the plaintiffs’ claims against the original builders were time-barred.
In 2005, the plaintiffs, Thomas and Pamela Wascher (the Waschers) retained Mathwig Builders (Mathwig) as the general contractor for the construction of their home in Greenville, Wisconsin. Mathwig subcontracted defendants Natural Surfaces, LLC (Natural Surfaces) and Carved Stone Creations (CSC) to install the stone cladding on the exterior walls and patio for the home. On November 3, 2008, the Township of Greenville inspected the home and granted the Waschers permission to occupy the residence. The Waschers moved into the home within the next few weeks. In early 2009, the Waschers discovered efflorescence on the stone cladding for the patio. In 2010, the Waschers hired CSC to repair the stone cladding. CSC removed some stone, which revealed that flashing had not been installed behind the stone, which caused water to infiltrate the stone and patio.
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Gus Sara, White and WilliamsMr. Sara may be contacted at
sarag@whiteandwilliams.com
OSHA Issues COVID-19 Guidance for Construction Industry
July 13, 2020 —
Garret Murai - California Construction Law BlogThis past month, after remaining relatively quiet following the coronavirus outbreak, OSHA began issuing industry-specific guidance on how to deal with the coronavirus in the workplace.
Until this month, the only construction industry specific guidance issued by OSHA was an OSHA Alert entitled COVID-19 Guidance for the Construction Workforce, a one page document providing little more guidance than that workers should stay home if sick, wear masks and frequently wash hands to prevent spreading and catching the coronavirus, and to sanitize tools and work areas.
Early this month, OSHA issued more comprehensive guidance for the construction industry. The guidance, as noted in the preface by OSHA is simply guidance, “is not a standard or regulation” and “creates no legal obligations. The guidance supplements general guidance applicable to all workplaces issued earlier by OSHA.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Taylor Morrison v. Terracon and the Homeowner Protection Act of 2007
June 11, 2014 —
Buck Mann – Colorado Construction LitigationOn January 30, 2014, the Colorado Court of Appeals decided the case of Taylor Morrison of Colorado, Inc. v. Bemas Construction, Inc. and Terracon Consultants, Inc. 2014WL323490. The case addressed a substantial issue of Colorado constitutional law, as well as a variety of procedural issues of potential importance to construction litigation attorneys. Of particular interest is the question of whether the provisions of the 2007 Homeowner Protection Act (“HPA”) are limited in application to contracts between residential homeowners and construction professionals, or whether they have broader application between commercial construction professional parties as well. As discussed below, the Court of Appeals stated that it would not answer the question, and then, separately, implied that the statute might only apply to homeowner transactions – with the resulting exclusion of commercial transactions. However, after its analysis, it left the actual decision of that issue to a future court in a later case.
The factual background for the case involved claims of breach of a contract for soils engineering by Terracon Consultants, Inc. (“Terracon”) and negligent excavation work by Bemas Construction, Inc. (“Bemas”). Plaintiff was Taylor Morrison of Colorado (“Taylor Morrison”), the developer and general contractor for a residential subdivision called Homestead Hills. After it constructed many homes, Taylor Morrison began to receive complaints of cracking drywall resulting from foundation movement and it made repairs at significant expense. Taylor Morrison then filed suit against Terracon and Bemas in connection with their respective roles in the original construction.
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Buck Mann, Higgins, Hopkins, McLain & Roswell, LLCMr. Mann may be contacted at
mann@hhmrlaw.com
Real Estate & Construction News Roundup (1/30/24) – Life Science Construction to Increase, Overall Homeownership Is Majority Female, and Senators Urge Fed Chair to Lower Interest Rates
February 26, 2024 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, hospitality and real estate companies create living options, SEC questions some financial institutions on exposure to risks from CRE, renting shows signs of overtaking buying in the housing market, and more!
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Pillsbury's Construction & Real Estate Law Team
Fifth Circuit Holds Insurer Owes Duty to Defend Latent Condition Claim That Caused Fire Damage to Property Years After Construction Work
September 21, 2020 —
Jeremy S. Macklin - Traub LiebermanMost general liability policies only provide coverage for “property damage” that occurs during the policy period. Thus, when analyzing coverage for a construction defect claim, it is important to ascertain the date on which damage occurred. Of course, the plaintiffs’ bar crafts pleadings to be purposefully vague as to the date (or period) of damage to property. A recent Fifth Circuit decision applying Texas law addresses this coverage issue in the context of allegations of a condition created by an insured during the policy period that caused damage after the policy expired.
In Gonzalez v. Mid-Continent Cas. Co., 969 F.3d 554 (5th Cir. 2020), Gilbert Gonzales (the insured) was a siding contractor. In 2013, the underlying plaintiff hired Gonzales to install new siding on his house. In 2016, the underlying plaintiff’s house was damaged in a fire. The underlying plaintiff sued Gilbert in Texas state court alleging that when Gonzalez installed the siding in 2013, he hammered nails through electrical wiring and created a dangerous condition that caused a fire three years later in 2016.
At the time Gilbert performed construction work, he was insured by Mid-Continent Casualty Company. Mid-Continent disclaimed coverage to Gonzales on the basis that the complaint unequivocally alleged that property was damaged in 2016 and there were no allegations that property damage occurred prior to 2016 or was continuing in nature.
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Jeremy S. Macklin, Traub LiebermanMr. Macklin may be contacted at
jmacklin@tlsslaw.com
2024 Update to CEB’s Mechanics Liens Now Available
October 15, 2024 —
Garret Murai - California Construction Law BlogFor a number of years we have had the honor to serve as update authors for several publications of California’s Continuing Education of the Bar (CEB).
I didn’t realize it until now but the CEB, a program of the University of California, was started
more than 75 years ago following WWII to provide veterans who were attorneys with practical guidance on changes to the law as they returned to their practices following the war. Pretty cool!
Reprinted courtesy of
Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com
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Uniformity in Florida’s Construction Bond Laws Brings About Fairness for the Industry
August 17, 2020 —
Gary L. Brown - Construction ExecutiveBefore Florida updated its laws for construction bonds, there were some significant differences between how liens and bond claims were litigated. Forms and procedures lacked uniformity that created unnecessary challenges for the construction industry and legal practitioners serving the industry.
Now, more consistency among the laws should benefit contractors, as well as lower-tiered subcontractors and suppliers. Since the updates were instated in October 2019, some of the procedures and rules used for lien enforcement have been extended to bond claims, which may make it easier to resolve differences over payment and performance.
That should come as a relief to local contractors and law firms, as well as to the numerous developers and construction companies based outside of Florida that operate in the state or are considering doing so. Florida is now the number one destination for new residents, especially from high-tax states, according to IRS data. With them come new homes, retail centers, offices, industrial space, roads and other infrastructure in what is now the third-most-populous state in the nation.
Reprinted courtesy of
Gary L. Brown, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Brown may be contacted at
gbrown@kklaw.com
A Landlord’s Guide to the Center for Disease Control’s Eviction Moratorium
October 05, 2020 —
Colton Addy - Snell & Wilmer Real Estate Litigation BlogThe Center for Disease Control and Prevention (the “CDC”) and the Department of Health and Human Services (the “HHS”) has issued an order to temporarily halt a landlord’s right to evict certain residential tenants to prevent the further spread of COVID-19 (the “CDC Order”).
The CDC Order is effective through December 31, 2020.
Applicability of the CDC Order. The CDC Order does not apply in jurisdictions that have a moratorium on residential evictions in effect that provides the same or greater level of protection than the CDC Order, and the CDC Order permits local jurisdictions to continue to pass more restrictive eviction moratoriums. To invoke the protection provided by the CDC Order, a landlord’s tenants must deliver an executed declaration (a “CDC Declaration”) form to the landlord that includes the following statements: (i) the tenant has used best efforts to obtain all available government assistance for rent or housing; (ii) expects to earn no more than $99,000 in annual income in 2020 (or $198,000 if filing joint tax returns), was not required to report income in 2019, or received an Economic Impact Payment under the CARES Act; (iii) the tenant is unable to pay the full rent due to substantial loss of household income, loss of work or wages, or extraordinary out-of-pocket medical expenses; (iv) the tenant is using best efforts to make partial payments that are as close to the full rental payments as the tenant’s circumstances permit; and (v) the eviction would likely render the individual homeless or force the individual to move into and live in close quarters or shared living space.
Effect of the CDC Order The CDC Order prevents landlords from evicting tenants for the non-payment of rent or similar housing-related payments that have sent their landlord a CDC Declaration. The CDC Order does not relieve tenants of the obligation to pay rent or other charges owed under their leases and does not preclude a landlord from charging late fees, penalties, or interest for missed payments.
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Colton Addy, Snell & WilmerMr. Addy may be contacted at
caddy@swlaw.com