CAMBRIDGE MASSACHUSETTS BUILDING EXPERT
DIRECTORY AND CAPABILITIES

What Types of “Damages Claims” Survive a Trustee’s Sale?

February 28, 2018 — Ben Reeves – Real Estate Litigation blog / Snell & Wilmer
Introduction Arizona’s trustee’s sale statutory scheme provides for the waiver of all defenses and objections to a trustee’s sale that: (i) are not raised prior to the sale, and (ii) do not result in an injunction against the sale going forward. See A.R.S. § 33-811(C). In other words, if you have an objection to a trustee’s sale, you must seek and obtain an injunction prior to the sale or your objection will be waived. Arizona’s Court of Appeals previously held that notwithstanding this statutory waiver, “common law” defenses to repayment of the debt survive a non-judicial foreclosure even in the absence of an injunction prior to the sale. See Morgan AZ Financial, L.L.C. v. Gotses, 235 Ariz. 21, 326 P.3d 288 (Ct. App. 2014). Our analysis of the Morgan decision can be found here. In Zubia v. Shapiro, 243 Ariz. 412, 408 P.3d 1248 (2018), the Arizona Supreme Court revisited the issue of what claims survive a trustee’s sale, and clarified that if a person fails to enjoin a trustee’s sale prior to its occurrence, then that person waives any and all damages claims dependent upon a trustee’s sale. That person does not, however, waive damages claims that are independent of the sale. Thus, determining what types of claims are “dependent” versus “independent” of a trustee’s sale is of critical importance to lenders and borrowers alike. Read the court decision
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Reprinted courtesy of Ben Reeves, Snell & Wilmer
Mr. Reeves may be contacted at breeves@swlaw.com

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Floors Collapse at Russian University in St. Petersburg

February 27, 2019 — The Associated Press - Bloomberg
St. Petersburg, Russia (AP) -- Part of the roof and several floors of university building in Russia's second-largest city collapsed Saturday, but officials say there were no casualties. The Emergencies Ministry said the collapse at the Saint Petersburg National Research University of Information Technologies, Mechanics and Optics took place as construction work was underway. An investigation into criminal violation of construction safety has been opened. Read the court decision
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Reprinted courtesy of The Associated Press, Bloomberg

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The CA Supreme Court Grants Petition for Review of McMillin Albany LLC v. Super Ct. 2015 F069370 (Cal.App.5 Dist.) As to Whether the Right to Repair Act (SB800) is the Exclusive Remedy for All Defect Claims Arising Out of New Residential Construction

December 02, 2015 — Richard H. Glucksman, Esq., Glenn T. Barger, Esq., Jon A. Turigliatto, Esq., & David A. Napper, Esq. – Chapman Glucksman Dean Roeb & Barger Bulletin
As anticipated in a prior CGDRB 2015 Bulletin that discussed the Fifth Appellate District Court’s noteworthy opinion in McMillin Albany LLC v. Super Ct. 2015 F069370 (Cal.App.5 Dist), the California Supreme Court has granted the petition for review of the McMillin Albany decision. The Supreme Court will attempt to resolve the conflict of authority presented by the Fourth Appellate District Court’s opinion in Liberty Mut. Ins. Co. v. Brookfield Crystal Cove LLC (2013) 219 Cal.App.4th 98 and the Fifth Appellate District Court’s rejection of the Liberty Mutual holding in McMillin Albany. In Liberty Mutual, the Fourth District Court of Appeal held that compliance with SB800’s pre-litigation procedures prior to initiating litigation is only required for defect claims [violations of SB 800’s building standards] that have not yet resulted in actual property damage. Where damage has occurred, a homeowner may initiate litigation under common law causes of action without first complying with the pre-litigation procedures set forth in SB 800. Two years later, the Fifth District Court of Appeal, in McMillin Albany, held that the California Legislature intended that all construction defect claims arising out new residential construction are subject to the standards and requirements of the Right to Repair Act [SB800], including specifically, the requirement that the claimant provide the builder with notice and an opportunity to repair prior to filing a lawsuit. According to the Court, SB 800 is the exclusive remedy for all defect claims arising out of new residential construction sold on or after January 1, 2003. The holdings in Liberty Mutual and McMillin Albany present a conflict of authority that the California Supreme Court has appropriately deemed worthy of review. The parties will now be permitted to file briefs on the merits and amicus briefs will certainly be submitted by the defense and plaintiff bars. Our firm will be closely monitoring this case, the outcome of which will significantly impact pre-litigation construction defect claims going forward. We will provide updates as to further activities and the Supreme Court’s decision. Reprinted courtesy of Chapman Glucksman Dean Roeb & Barger attorneys Richard H. Glucksman, Glenn T. Barger, Jon A. Turigliatto and David A. Napper Mr. Glucksman may be contacted at rglucksman@cgdrblaw.com Mr. Barger may be contacted at gbarger@cgdrblaw.com Mr. Turigliatto may be contacted at jturigliatto@cgdrblaw.com Mr. Napper may be contacted at dnapper@cgdrblaw.com Read the court decision
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Insurance Litigation Roundup: “Post No Bills!”

April 02, 2024 — Daniel Lund III - Lexology
A company which is in the business of posting “advertising signs on temporary construction sites on behalf of clients” was “sued for trespass, conversion, and other torts” when it entered a site to remove posters. The company sought to have its insurance carrier cover the cost of its defense but was refused. A federal court lawsuit in California against the insurer ensued. The insurer prevailed on a Rule 12 motion to dismiss, and the insured appealed. At issue: had an “occurrence” under the CGL policy taken place – that is, an “accident,” an “unexpected, unforeseen, or undesigned happening or consequence from either a known or unknown cause?” The appellate court noted that the company’s contractor “intended” to enter the work site and remove posters, which gave rise to the trespass claim. For its part, the company urged that the contractor’s actions “were based on erroneous information… [a] mistaken belief that it had the right or duty to enter the site and remove the posters….” Read the court decision
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Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

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Domingo Tan Receives Prestigious Ollie Award: Excellence in Construction Defect Community

May 28, 2024 — Wood Smith Henning & Berman
(Anaheim, CA.) - Wood Smith Henning & Berman is thrilled to announce that Domingo Tan, a partner in the Los Angeles office, has been awarded the prestigious Jerrold S. Oliver Award of Excellence. Fondly known as the "Ollie", this esteemed accolade is presented annually to a standout professional in the construction defect community who has demonstrated exceptional contributions and unwavering dedication to the field. The exciting announcement of Tan's victory took place during the 30th Anniversary of the West Coast Casualty Construction Defect Seminar in Anaheim. Widely recognized as the nation's largest conference for professionals handling construction defect matters, the event drew a remarkable gathering of general counsel, risk managers, claim professionals, and attorneys who actively participated in the nomination and voting process. The Ollie award pays tribute to the late Judge Jerrold S. Oliver, a highly respected legal professional renowned for his groundbreaking work in alternate dispute resolution methods for construction defect disputes. It celebrates individuals who embody the values of loyalty, commitment, and trust within the industry. Read the court decision
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Reprinted courtesy of Wood Smith Henning & Berman

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Texas Supreme Court: Breach of Contract Not Required to Prevail on Statutory Bad Faith Claim

June 06, 2018 — Bethany L. Barrese - Saxe Doernberger & Vita, P.C.
In USAA Texas Lloyds Company v. Menchaca, the Supreme Court of Texas clarified long-standing confusion regarding whether damages for bad faith are recoverable in the absence of a breach of contract under Texas law. The Menchaca case takes an in-depth dive into decades’ worth of Texas precedent and concludes that, under certain circumstances, an insured can recover policy benefits as damages for bad faith without finding that the insurer was in breach of contract. The story of this case begins with Hurricane Ike in September 2008. Homeowner Gail Menchaca contacted her homeowner’s insurance company, USAA Texas Llloyds Company (“USAA”) to report that the storm had damaged her home. USAA sent an adjuster to investigate the claim, and USAA determined that although the policy covered some of the damage, no benefits would be paid under the policy because the repair estimate did not exceed the policy deductible. Five months later, at Ms. Menchaca’s request, another USAA adjuster inspected the property and reached the same conclusion. Read the court decision
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Reprinted courtesy of Bethany L. Barrese, Saxe Doernberger & Vita, P.C.
Ms. Barrese may be contacted at blb@sdvlaw.com

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Nevada’s Construction Defect Law

March 05, 2015 — Beverley BevenFlorez-CDJ STAFF
Constructive Dive reported on the effects of Nevada’s new construction defect law, which is a revision of the original 1995 Homeowners Protection Act: “The new rules more tightly define ‘defect,’ strike the requirement for the losing party to pay the other’s legal fees, and require homeowners to be much more specific about the defects they claim.” Furthermore, it reduces “the length of time a homeowner has to make a construction-defects claim at six years, down from the 10-year statute of limitations in the original law.” Arizona, Colorado, Florida, and Washington legislators are debating revising their current construction defect laws, according to Construction Dive. “If the Colorado measure passes, homeowners will have to go through arbitration before they’ll be allowed to sue their builders. The proposal in Washington would require the owner making the claim to have a third-party professional inspect the defect before filing a suit,” Construction Dive reported. Read the court decision
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Remodels Replace Construction in Redding

September 09, 2011 — CDJ STAFF

The Record Searchlight reports that while new construction is down in Redding, California, residential and commercial remodel permits are up 17 percent. By August 2010, there had been 63 housing and commercial business starts in Redding, while this year has seen only 15.

One such remodel, that of Parkview Market, will cost about $201,000. Safeway is planning on two $80,000 remodels of its grocery stores in Redding. In all, the 150 building permits for remodels are worth a total of $2.8 million.

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