No One to Go After for Construction Defects at Animal Shelter
January 28, 2013 —
CDJ STAFFThe Riverside County Animal Shelter in Thousand Palms has had problems since it opened in 2006, including floors that weren't able to withstand scratching by dogs and a malfunctioning HVAC system. The county's expenses only started with the $6.9 million cost of building the shelter, as the building has required almost constant repairs. Riverside County Supervisor John Benoit said that "there were shortcomings in the construction that became apparent later."
The County can't sue, because the builder closed operations after a bankruptcy. "There's no one to go after," said Benoit.
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Considering Stormwater Management
March 26, 2014 —
Beverley BevenFlorez-CDJ STAFFAmanda Voss discusses stormwater and erosion control in a recent article published in Big Builder. “Stormwater and erosion control regulations are expanding their reach in the building industry,” Voss stated. “Now, even some remodeling programs have them.”
Voss presented various ideas to assist builders with stormwater management. First, she says, to identify potential pollutants: “You’ve got to pay attention not just to what you bring on to a site, but also to what leaves it—think erosion control and existing sediment.” Factors to consider include “site topography,” “materials brought in and out,” and the “staging area.”
Voss also suggested to “[m]ake sure that your stormwater strategy dovetails with a drainage plan,” and finally, to “[e]nlist the inspector as an ally.”
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Illinois Appellate Court Affirms Duty to Defend Construction Defect Case
August 04, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThe Illinois Appellate Court affirmed the trial court's ruling that the insurer had a duty to defend a construction defect case. West Bend Mut. Ins. Co. v. Pulte Home Corp., 2015 Ill App. Unpub. LEXIS 1039 (Ill. Ct. App. May 15, 2015).
Pulte Home Corporation was a developer who developed and constructed a residential condominium development known as The Reserve of Elgin (The Reserve). G.H. Siding was subcontracted by Pulte to work on the development, including the installation of exterior siding.
The Reserve Homeowners Association (HOA) filed suit against Pulte and James Hardie Building Products Inc., the company that manufactured the exterior siding. The complaint alleged that Pulte developed, designed, constructed and sold the units and common areas. Pulte installed siding manufactured by Hardie on the exterior of the units. The siding was allegedly defective. The HOA alleged breach of implied warranty of habitability and breach of contract by Pulte. Hardie was sued for breach of express warranty and breach of implied warrant of habitability.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Are Untimely Repairs an “Occurrence” Triggering CGL Coverage?
November 16, 2020 —
Christopher G. Hill - Construction Law MusingsAll Class A commercial contractors in Virginia are required to have a minimum level of Commercial General Liability (CGL) coverage. As a general rule, this insurance is there for damage to property or persons arising from an “occurrence” that is covered by the policy. Many cases that are litigated relating to coverage for certain events under a CGL policy turn on the definition of “occurrence” and whether the event leading to a request for coverage constitutes an “occurrence.”
A recent case in Fairfax County, Virginia, Erie Insurance Exchange v. Spalding Enterprises, et al., is just such a case. In the Spalding Enterprises case, the Court considered the following scenario. A homeowner, Mr. Yen contracted with Spalding Enterprises to fix some fire damage at his home. Spalding promised the repairs would be complete in October of 2019. However, after Mr. Yen paid a $300,000.00 deposit, Spalding Enterprises stated that the work would not be completed until November of 2019. Yen then fired Spalding Enterprises and sued for breach of contract, constructive fraud, and violation of the Virginia Consumer Protection Act. Spalding Enterprises sought coverage from Erie Insurance for the claim and Erie denied coverage and sought a declaratory judgment that the events alleged in the Complaint by Mr. Yen did not fall under the definition of “occurrence” in the CGL policy held by Spalding Enterprises.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Third Circuit Court of Appeals Concludes “Soup to Nuts” Policy Does Not Include Faulty Workmanship Coverage
December 11, 2018 —
Timothy Carroll - White and Williams LLPEarlier this month, in Frederick Mutual Insurance Company v. Hall, the U.S. Court of Appeals for the Third Circuit concluded that coverage for faulty workmanship claims is “simply not the kind of coverage insurance agents and insurance companies expect to provide” to construction industry professionals “unless the insured explicitly requests such coverage.” 2018 U.S. App. LEXIS 31666, at *9 (3d Cir. Nov. 8, 2018). In Hall, a stone masonry contractor was sued by its customer for causing over $350,000 in property damage resulting from “substandard and defective work” performed on the customer’s residence. The insurer sought a declaration that it owed neither a defense nor indemnity for those damages because, under Pennsylvania law, the policy did not cover property damage caused by faulty workmanship.
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Timothy Carroll, White and Williams LLPMr. Carroll may be contacted at
carrollt@whiteandwilliams.com
Rise in Home Building Helps Other Job Sectors
December 11, 2013 —
CDJ STAFFWith home building on the rebound, the latest jobs report shows that the construction industry has added 17,000 jobs in the last year. But that’s not the only increase in employment that can be credited to the homebuilding industry.
Most homes are built out of wood. That’s why the timber industry was able to create 2,200 new jobs. According to the Wall Street Journal’s Marketwatch, that’s the biggest jump in 16 years. Moving closer to homes, the makers of wood products have added 600 jobs, with five months of increasing employment.
Finally, someone has to sell those homes. There are 2,100 more people working in real estate. Neal Dutta, head of economics at Renaissance Macro Research notes that “from the production of building materials to the construction of homes to the sales of homes, there was a confirmation of an ongoing housing recovery and all despite a sharp back-up in rates.”
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Recording “Un-Neighborly” Documents
April 03, 2019 —
Bob Henry - Snell & Wilmer Real Estate Litigation BlogIn September 2018, in Baumgartner v. Timmins, 245 Ariz. 334, 429 P.3d 567, the Arizona Court of Appeals provided further clarification on what constitutes an “encumbrance” on a property for purposes of Arizona’s statutory scheme prohibiting the recording of “false documents.” The statute, A.R.S. § 33-420, prohibits the recording of documents that a person knows to be forged, are groundless, or that contain material misstatements (or false claims). A person who claims an “interest in, or a lien or encumbrance against” real property who records such documents can be held liable for $5,000 or treble the actual damages caused by the recording (whichever is greater), A.R.S. § 33-420(A), and perhaps even be found guilty of a class 1 misdemeanor, A.R.S. § 33-420(E).
At issue in Baumgartner were neighbors fighting about CC&Rs—a typical neighborhood fight. In 2015, some of the neighbors filed suit against the Timminses for violating the CC&Rs. The Timminses did not contest the lawsuit, resulting in a default judgment. In what the Court of Appeals characterized as a lawsuit filed by the Timminses “in apparent response to the [first] lawsuit and resulting default judgment,” the Timminses created, signed, and recorded affidavits contending that the Plaintiffs in the original lawsuit were themselves “in violation of several provisions of the CC&Rs.” The Plaintiffs then filed suit again against the Timminses, this time contending that the Timminses had violated A.R.S. § 33-420 by recording the affidavits because the affidavits, the Plaintiffs contended, created encumbrances on their properties. The Apache County Superior Court agreed, and issued a final judgment nullifying the recorded documents and awarding the Timminses damages, along with their attorneys’ fees and costs.
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Bob Henry, Snell & WilmerMr. Henry may be contacted at
bhenry@swlaw.com
Subsequent Purchaser Can Assert Claims for Construction Defects
October 17, 2022 —
David Adelstein - Florida Construction Legal UpdatesCan a subsequent purchaser pursue construction defect claims relating to the original construction of the property? This was the threshold issue on a motion for summary judgment by a drywall manufacturer against a subsequent purchaser of a home in Karpel v. Knauf Gips KG, 2022 WL 4366946 (S.D. Fla. 2022). This matter deals with the defective Chinese drywall that was installed in homes years ago. The plaintiffs, which were subsequent purchasers of a home, sued the manufacturer of the defective drywall for various theories including negligence, negligence per se, strict liability, breach of express and/or implied warranty, private nuisance, unjust enrichment, and Florida’s Deceptive and Unfair Trade Practices Act.
The trial court noted, from the onset, that Florida does NOT have a subsequent purchaser rule that prohibits subsequent purchasers from asserting construction defect claims. With this consideration in mind, the trial court went through the claims the plaintiff, as a subsequent purchaser, asserted against the manufacturer to determine whether they were viable claims as a matter of law.
Negligence Claim
The trial court found that a subsequent purchaser could sue in negligence. “Florida courts have long allowed subsequent purchasers to sue for negligence including in construction defect litigation.” Karpel, supra, at *2.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com