The Trend in the Economic Loss Rule in Construction Defect Litigation
January 14, 2015 —
Beverley BevenFlorez-CDJ STAFFHeather Howell Wright of Bradley Arant Boult Cummings LLP, analyzed the Massachusetts Supreme Court decision in Wyman v. Ayer Properties, LLC, which ruled that the “economic loss rule is not applicable to the damage caused to the common areas of a condominium building as a result of the builder’s negligence.” Wright compared Wyman to last year’s Florida Supreme Court case, Tiara Condominium Association v. Marsh & McLennan Companies that decided “that the economic loss rule did not preclude a condominium association from asserting a negligence claim against a contractor for defective work.”
Wright concluded that “[t]he Wyman decision is another ruling in a growing line of cases where courts have limited application of the economic loss rule and have held that a contractor can be liable in tort for defective work.”
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Construction Defect Headaches Can Be Avoided
February 21, 2013 —
CDJ STAFFConstruction defect claims can be an avoidable headache, if builders apply some forethought. Mark J. Peschel of Johnson & Lindberg, a Bloomington, Minnesota law firm, points out that simply says that windows should be weatherproofed by appropriate flashing, without any guidance on accomplishing that. He notes that “builders tend not to know the weatherproofing code provisions as well as they should.” Another lawyer, Eric S. Hayes of Brown and Carlson in St. Louis Park extends this, “it’s not just the building codes that need to be followed, but also the standards in the industry.”
Hayes notes that another way builders can avoid headaches is by being proactive. “I often hear, once things have gone sour and moved toward litigation, that the homeowner contacted the contractor a dozen times about a leaking basement and nothing was done, so they were forced to sue.” His advice for builders: “Don’t let it fester.”
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The Anatomy of a Construction Dispute Stage 3- The Last Straw
January 28, 2015 —
Christopher G. Hill – Construction Law MusingsOver the past two weeks here at Construction Law Musings, I’ve discussed the first two stages of a typical construction dispute (if such a thing exists): the claim, and how to bring heat short of litigation/arbitration. As promised, this week I’ll be discussing the next step or “last straw” in a construction dispute, namely, arbitration or litigation to enforce all of those rights that you preserved in the first two stages.
Construction litigation is expensive, time consuming, and, quite frankly, a pain in the neck. Because of this fact, I almost always recommend that my construction clients exhaust all of the non-litigation methods (including mediation of course) of resolving their disputes prior to “going nuclear” and filing suit. Unfortunately, even the most diligent attempts at less formal resolution means can be unfruitful and more formal means become necessary.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Warren Renews Criticism of Private Equity’s Role in Housing
February 01, 2022 —
Akayla Gardner - BloombergSenator Elizabeth Warren is doubling down on her criticism of private equity’s involvement in the U.S. housing market as the nation grapples with an affordable-housing shortage.
In letters sent Thursday, the Massachusetts Democrat asked housing firms Progress Residential LLC, Invitation Homes Inc. and American Homes 4 Rent about recent rent hikes, plans to acquire more properties and the number of evictions in recent years.
Warren and other Democrats have scrutinized Wall Street’s role in the housing market since the 2008 financial crisis. During the pandemic, lawmakers have been on high alert for violations of eviction moratoriums and unfair treatment as Americans struggled financially to stay on their feet.
Warren also expressed concern about automated homebuying practices, which allow companies to buy up properties using algorithms. Bloomberg reported that last year Zillow offloaded thousands of homes to institutional investors.
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Akayla Gardner, Bloomberg
Contractor Owed a Defense
November 07, 2022 —
Tred R. Eyerly - Insurance Law HawaiiThe Illinois Appellate Court reversed the lower court and found that the insured contractor was entitled to a defense for alleged construction defects. Acuity v. M/I Homes of Chicago, LLC, 2022 Ill. App. LEXIS 393 (Ill. Ct. App. Sept. 9, 2022).
The owners association (AOAO) sued M/I Homes for breach of contract and the implied warranty of habitability due to alleged defects. The AOAO alleged that the defects caused physical injury to the townhomes. There was resulting property damage such as damage to other building materials, windows and patio doors, and water damage to the interior of units. M/I Homes requested a defense from Acuity, but the request was denied.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Committeewoman Requests Refund on Attorney Fees after Failed Legal Efforts
February 10, 2014 —
Beverley BevenFlorez-CDJ STAFFWest Deptford, New Jersey township redevelopment counsel Mark Cimino had spent a year arguing that the city should receive a $4 million reduction in construction costs due to “inadequate documentation provided by the bank, as well as receipts showing disbursement had ‘improperly’ been made toward uses other than construction,” according to a December 30th 2013 article in the South Jersey Times. However, a state appellate court upheld the ruling that “the township had no basis” to request the reduction.
Now, Committeewoman Denice DiCarlo is “seeking a $10,000 refund on the attorney fees paid” to Cimino, the South Jersey Times reported on February 6th. “This entire matter has been a monumental waste of tax dollars, and I am angry that the entire township committee was misled by Mr. Cimino and induced to believe we had any reasonable chance of recovering loan proceeds from this lawsuit,” DiCarlo stated in a letter to Mayor Raymond Chintall.
Not all committee members agree with DiCarlo. Committeeman Sam Cianfarini told South Jersey Times that “he still believed Fulton Bank owed it to West Deptford to answer for any funds put toward anything other than construction.”
Cimino declared “that both the lawsuit and appeal were valid,” according to the February 6th article. He “accused DiCarlo of ‘playing politics.’”
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An Insurance Policy Isn’t Ambiguous Just Because You Want It to Be
December 20, 2021 —
David Adelstein - Florida Construction Legal UpdatesWhen it comes to insurance contracts, there is a rule of law that states, “where interpretation is required by ambiguity in insurance contracts[,] the insured will be favored.” Pride Clean Restoration, Inc. v. Certain Underwriters at Lloyd’s of London, 46 Fla. L. Weekly D2584a (Fla. 3d DCA 2021) (citation and quotation omitted). Stated another way: ambiguities in insurance contracts will be interpreted in favor of the insured and against the insurer.
With this rule of law in mind, insureds oftentimes try to argue ambiguity even when there is not one. This was the situation in Pride Clean Construction. In this case, the property insurance policy contained a mold exclusion that stated the policy did NOT insure for “a. loss caused by mold, mildew, fungus, spores or other microorganism of any type, nature, or description including but not limited to any substance whose presence poses an actual or potential threat to human health; or b. the cost or expense of monitoring, testing, removal, encapsulation, abatement, treatment or handling of mold, mildew, fungus, spores or other microorganism as referred to in a) above.” Not only did the policy not insure for loss caused by mold, it went further to state it was NOT insuring for any mold testing or abatement.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Newmeyer & Dillion Announces New Partner Bahaar Cadambi
May 06, 2019 —
Newmeyer & DillionProminent business and real estate law firm Newmeyer & Dillion LLP is pleased to announce that Newport Beach attorney Bahaar Cadambi has been elected to partnership.
"Bahaar has worked hard to become an integral part of the firm's litigation practice, delivering exceptional value to her colleagues and clients at every opportunity," said the firm's Managing Partner, Paul Tetzloff, "We are proud to count her among our partners and look forward to her continued success and contributions."
Cadambi concentrates her practice in business, insurance, and real estate litigation. She represents businesses, homebuilders, developers, and general contractors in complex, multi-party real estate, construction defect, and insurance disputes. She also represents individuals and businesses across a variety of business litigation matters. Her approach to litigation ensures that clients are informed of all potential strategies, the consequences of those strategies, and how the implementation of those strategies will affect their business.
Passionate about the legal community, Cadambi is an adjunct professor at the University of Southern California Gould School of Law and an active member of CREW (Commercial Real Estate Women Orange County). She is also a Barry's Bootcamp and yoga enthusiast, lover of all things interior design, avid traveler, devoted wife, and favorite aunt to two energetic nieces and one cheerful nephew.
Bahaar earned her B.A. from the University of California, Los Angeles and her J.D. from the University of California, Hastings College of Law. Prior to joining Newmeyer & Dillion, she served as a Judicial Extern for the Honorable William Alsup in the U.S. District Court for the Northern District of California.
Bahaar Cadambi: bahaar.cadambi@ndlf.com
Practice Areas
- Business Litigation
- Construction Litigation
- Insurance Law
About Newmeyer & Dillion
For almost 35 years, Newmeyer & Dillion has delivered creative and outstanding legal solutions and trial results for a wide array of clients. With over 70 attorneys practicing in all aspects of business, employment, real estate, privacy & data security and insurance law, Newmeyer & Dillion delivers legal services tailored to meet each client's needs. Headquartered in Newport Beach, California, with offices in Walnut Creek, California and Las Vegas, Nevada, Newmeyer & Dillion attorneys are recognized by The Best Lawyers in America©, and Super Lawyers as top tier and some of the best lawyers in California, and have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949.854.7000 or visit www.ndlf.com.
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