Fairfield Connecticut Building Expert Directory

The Hidden Dangers of Construction Defect Litigation

March 28, 2012 — David M. McLain, Colorado Construction Litigation

David M. McLain, writing at Colorado Construction Litigation, has an interesting blog post republishing his article in Common Interests magazine, the monthly periodical of the Rocky Mountain Chapter of the Community Associations Institute. In his article, he touches on a number of pitfalls in construction defect litigation, including the potential conflicts of interests facing HOAs. He also considers the problems homeowners can face, including both “strong-arm tactics” taken by attorneys to compel homeowners to join the lawsuit, or situations in which the interests of the HOA do not match those of the homeowners. He writes:

There is also a conflict of interest with individual owners who attempt to opt out of the case. This can lead to shocking strong-arm tactics on the part of plaintiffs’ attorneys. In one instance, a plaintiffs’ attorney sent a letter to an individual homeowner that stated that as a 1/58th owner of the common elements, if he refused to go along with the suit, and there was ultimately a finding in favor of the HOA which was in any way limited by his refusal to participate, he would be personally liable for 1/58th of the HOA’s total damages. In another instance, a different plaintiffs’ attorney sent a letter to a homeowner who wanted the builder to perform warranty repairs, informing the owner that if he let the builder perform any repairs, the attorney would bill the HOA according to the fee agreement entered by the HOA board (without knowledge or consent of non-board members) and that the HOA would assess the homeowner for that expense. These are just two examples of conflicts which may arise between the HOA board and individual homeowners when the HOA pursues CD cases.

Another example of a conflict which will arise as a result of CD litigation occurs post-settlement. When an HOA settles for less than 100% of the amount necessary to fund all repairs outlined by its experts, plus attorneys’ fees and litigation costs, there will obviously be a shortfall in the amount necessary to fix the development. The HOA board must then choose to impose a special assessment to cover the shortfall or to make some, but not all, of the repairs outlined by its experts. In choosing the latter, the conflict arises with respect to which homes get fixed and which do not. In this situation, the HOA board has acted as the attorney-in-fact for the individual owners by bringing claims on their behalf, and has compromised those claims without their knowledge or consent.

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Reprinted courtesy of David M. McLain of Higgins, Hopkins, McClain & Roswell, LLC. Mr. McClain can be contacted at mclain@hhmrlaw.com.

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Why Financial Advisers Still Hate Reverse Mortgages

October 01, 2014 — Ben Steverman – Bloomberg
A reverse mortgage is a little like a car airbag. It's nice to know it's there. But if it ever has to be used, the driver’s already in trouble. New regulations are supposed to improve the unsavory reputation of reverse mortgages, which are loans against a home that don't need to be repaid until the borrower moves. "It used to be the Wild West out there, without much regulation and enormous fees," says financial planner Warren Ward. While stronger oversight is helping to end past abuses, the number of people taking out reverse mortgages is shrinking. The pace is down 24 percent from last year, government data show, and less than half its peak in 2009. One reason: Many advisers say the loans remain a last resort and can handcuff homeowners who have better options. Read the court decision
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Reprinted courtesy of Ben Steverman, Bloomberg
Mr. Steverman may be contacted at bsteverman@bloomberg.net

As Climate Changes, 'Underwater Mortgage' May Take on New Meaning

August 20, 2014 — James Tarmy – Bloomberg
Looking to buy a house? That’s great, unless you’re in your 20s and 30s and regularly read climate reports. They tend to project dramatic changes to the climate over the next 50 years, and given that current life expectancy is hovering around 80, we’ll likely be around to see it. So. If you’re looking to settle down for the long haul, where’s the best place to do it? Great Plains? You're looking at higher temperatures and more demand for water and energy. The Southeast, perhaps? The region may suffer from (at least) 60 days with 95-plus degree weather by 2070, according to the 2014 National Climate Assessment. Read the court decision
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SE 2050 Is In Quixotic Pursuit of Eliminating Embodied Carbon in Building Structures

January 23, 2023 — Nadine M. Post - Engineering News-Record
Walking to work one November morning, structural engineer Chris Jeseritz was buoyed by a Nelson Mandela quotation on a digital sign on the side of a Seattle office tower: “A winner is a dreamer who never gives up.” Reprinted courtesy of Nadine M. Post - Engineering News-Record Ms. Post may be contacted at postn@enr.com Read the full story... Read the court decision
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PFAS: From Happy Mistake to Ubiquity to Toxic Liability (But is there coverage?)

March 14, 2022 — Michael S. Levine & Rachel E. Hudgins - Hunton Andrews Kurth
In 1938, a DuPont chemist’s experiment yielded not—as he first thought—a lumpen, waxy mistake, but a new chemical with remarkable properties: heat-resistance, chemical stability, and low surface friction. Decades of continuing experimentation yielded a class of chemicals with the capacity to make non-stick, water-resistant coatings. In time, these chemicals, per- and polyfluoroalkyl substances (PFASs), would become a major component in thousands of consumer goods: food packaging, non-stick cookware, waterproof clothing, paint, stain-resistant carpets and furniture, and firefighting foams. The discovery of the toxicity of these remarkable chemicals lagged behind the widespread adoption, but eventually yielded a moniker that reflected PFAS’s stability and longevity: “Forever Chemicals.” In October 2021, the Biden administration announced a plan to address, among other concerns, PFAS’s migration to drinking water sources. EPA Administrator Michael S. Regan debuted the plan in Raleigh, North Carolina alongside Governor Roy Cooper. Reprinted courtesy of Michael S. Levine, Hunton Andrews Kurth and Rachel E. Hudgins, Hunton Andrews Kurth Mr. Levine may be contacted at mlevine@HuntonAK.com Ms. Hudgins may be contacted at rhudgins@HuntonAK.com Read the court decision
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U.S. Steel Invoking Carnegie’s Legacy in Revival Strategy

July 23, 2014 — Sonja Elmquist – Bloomberg
In March 2013, Mario Longhi lobbed an unexpected question into a roomful of 150 U.S. Steel Corp. managers: Who here would buy the company’s stock, tomorrow? He gave them three seconds, and “only a few reacted in that time frame positively,” Longhi said. Since that meeting, Longhi has been promoted to chief executive officer, and nine months into his tenure he’s closed one plant permanently, two more are temporarily idled and he’s planning to overhaul another. It’s all part of his plan to transform the 144-year-old company into a lean, modern steel producer. Investors are taking note, with the shares up 53 percent since he took over. Read the court decision
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Reprinted courtesy of Sonja Elmquist, Bloomberg
Ms. Elmquist may be contacted at selmquist1@bloomberg.net

Suffolk Pauses $1.5B Boston Tower Project for Safety Audit After Fire

April 22, 2024 — James Leggate - Engineering News-Record
The team building the $1.5-billion, 51-story South Station Tower in Boston voluntarily shut down the jobsite April 9 for a safety stand down and audit after a small fire broke out, according to contractor Suffolk Construction. No one was injured. Reprinted courtesy of James Leggate, Engineering News-Record Mr. Leggate may be contacted at leggatej@enr.com Read the full story... Read the court decision
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When Do You Call Your Lawyer?

October 08, 2014 — Craig Martin – Construction Contractor Advisor
The National Association of Home Builders recently conducted a survey asking its members about the legal issues they faced in the last 12 months and whether they consulted their attorney to deal with the problem. Below are some highlights of the survey. Legal Issue % of Homebuilders % Contacted Counsel Warranty/call back claims 34% 51% Contract disputes 22% 84% Defective Install/Workmanship 20% 83% OSHA Issues 13% 33% CGL Coverage Questions 11% 73% Construction Liens 10% 57% Read the court decision
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Reprinted courtesy of Craig Martin, Lamson Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com

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