Fairfield Connecticut Building Expert Directory

Homeowners Not Compelled to Arbitration in Construction Defect Lawsuit

January 06, 2012 — CDJ STAFF

A California appeals court has ruled that developers cannot enforce CC&Rs in a case where a developer cited an arbitration clause it had inserted into the CC&R. The homeowners are alleging construction defect and wished to sue the developer who claimed a right to this under the CC&Rs.

The Marina del Rey Argonaut reports that particular appeal dealt only with whether the developer could compel arbitration. The underlying construction defect issues will subsequently have to be determined at trial.

The attorney for the homeowners’ association, Dan Clifford, noted that “arbitration has to be agreed to by both parties.” The covenant was drafted by the developer and in addition to requiring arbitration, it had a clause that it could not be amended without the consent of the developers. The court ruled that CC&Rs “can be enforced only by the homeowners association, the owner of a condominium or both.”

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The Right to Repair Act Means What it Says and Says What it Means

December 18, 2022 — Garret Murai - California Construction Law Blog
A rather short case for a short week. In Gerlach v. K. Hovnanian’s Four Seasons at Beaumont, LLC, 82 Cal.App.5th 303 (2022), the 4th District Court of appeals examined provisions of the Right to Repair Act (Civ. Code §§895 et. seq), also known as “SB 800” after its original bill number, as it applies to roofs. The Gerlach Case Lynn Gerlach and Lola Seals are homeowners who purchased their homes in the Four Seasons at Beaumont adult community, for those 55 year old and older, located in Beaumont, California. Gerlach purchased her home when it was built in 2006. Seals purchased her home from the original owners in 2015. In 2015 and 2016, Gerlach and Seals served the developer, K. Hovnanian’s Four Seasons at Beaumont, LLC, with claim notices under the Right to Repair Act. The Right to Repair Act, as its name implies, provides notice requirements and repair rights by developers of new single-family homes. The Right to Repair Act also includes construction standards, the violation of which, provides homeowners with a statutory basis for bringing construction defect claims. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

William Lyon to Acquire RSI Communities

February 22, 2018 — Dave Suggs - CDJ STAFF
According to the article “William Lyon Agrees to Buy RSI Communities $460 million deal plants Lyon in Texas and adds to Inland Empire land holdings” published on the website Builder, the Newport Beach home builder is purchasing the Southern California and Texas home builder. This will be Lyon Homes’ first venture in the state of Texas. RSI Communities works within both San Antonio and Austin, Texas as well as Southern California and the Inland Empire. It was founded by Todd Palmaer, a home building expert and Ron Simon, a building products expert and Newport Beach businessman. First time home buyers have been RSI’s main target. President and CEO of RSI, Tod Palmaer is optimistic about the acquisition “We are delighted to have our company join the William Lyon Homes organization. We have a great deal of confidence in the William Lyon Homes platform and its executive management team, and believe that its acquisition of RSI Communities will add to Lyon’s continued success in its current and new markets.” Pat Donahue who has almost 30 years of experience in home building, will serve as President to the Inland Empire Division. John Bohnen, RSI’s present Chief Operating Officer, will be the regional president in Texas. Mr. Bohnen has previously held executive positions with numerous home builders. William Lyon’s president and CEO Mark R. Zaist is excited about adding RSI’s key players to their team, and had this to say about the purchase. “The acquisition of RSI represents our most significant acquisition since our entry into Portland and Seattle with the Polygon Northwest Homes acquisition in 2014 and furthers our strategy of building in the strongest markets in the Western U.S., while also strengthening our pipeline in Southern California, as we continue our mission of being the premier Western Regional home builder.” Read the court decision
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Discovery Requests in Bad Faith Litigation Considered by Court

June 10, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The federal district court considered a variety of discovery requests by the insured in a bad faith case against State Farm. Stephens v. State Farm Fire and Cas. Co., 2015 WL 1638516 (M.D. Pa. April 13, 2015). The insured plaintiff was a quadriplegic. His complaint alleged that he notified State Farm, through its agent, that he would have to leave his residence for medical treatment and intended to rent the home while he received care for his disabling condition. The complaint further alleged that the insured was told by State Farm's agent that his insurance would remain unaffected by his departure while he sought medical care. Nevertheless, when the insured reported loss due to vandalism and water damage at his home, State Farm relied upon his departure from the residence to cancel his insurance. In discovery, the insured requested three categories of documents from State Farm. First, he requested State Farm's claims manuals, guidelines and instructions materials relating to insurance claims like those made by this insured. Second, the plaintiff requested performance reviews and performance incentive programs for all of State Farm's employees who played a role in decisions in this case from 2009 to the present. Finally, the plaintiff demanded that State Farm compile information relating to other insurance lawsuits brought against State Farm involving theft, vandalism and water damage claims, as well as all lawsuits or complaints regarding the conduct of this particular claims adjuster. When the materials were not produced, plaintiff filed a motion to compel. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Governor Signs Permit Extension Bill Extending Permit Deadlines to One Year

October 23, 2018 — Garret Murai - California Construction Law Blog
It’s like that feeling you got when your teacher said you have another week to complete your group project. On September 21, 2018, Governor Brown signed AB 2913, which, for the first time, provides a uniform 12-month period across the state for work to commence before a building permit expires. Previously, the period was six months. In addition to doubling the expiration period, the statute includes a “justifiable cause” provision permitting local building departments to extend the time for one or more additional periods of not more than 180 days per extension upon written demonstration of “justifiable cause for the extension.” Read the court decision
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Reprinted courtesy of Garret Murai, Wendel, Rosen, Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

How Drones are Speeding Up Construction

July 26, 2017 — Aarni Heiskanen - AEC Business
Drones, or unmanned aerial vehicles (UAVs), are being used in many industries, e.g. agriculture, construction, mining, oil & gas, mapping, and surveying. In construction, drones have proven to be quite disruptive, offering huge productivity increases. Gartner’s famous Hype Cycle for Emerging Technologies, 2016, positioned drones as just entering the Peak of Inflated Expectations. Gartner claims that, “Smart machine technologies will be the most disruptive class of technologies over the next 10 years due to radical computational power, near-endless amounts of data, and unprecedented advances in deep neural networks.” Commercial UAVs are one of the smart machine technologies in question, together with smart robots, autonomous vehicles, cognitive expert advisors, and others. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at info@aepartners.fi

Construction Litigation Roundup: “A Close Call?”

August 05, 2024 — Daniel Lund III - Lexology
Not really, said a Florida state appellate court when a public construction project owner sued a defaulted general contractor after recovering from the general contractor’s surety. The general contractor, Close Construction, entered into a contract for a lift station rehabilitation construction project with the City of Riviera Beach in Florida. During the course of the work the public owner terminated the contract, whereupon the GC and the owner brought claims against each other in court. A jury ultimately held against the general contractor and in favor of the public owner in the amount of approximately $1.9 million. The general contractor appealed. On appeal, the general contractor noted that the public works surety which it was required by the contract to obtain for the project had hired another company to complete the work when the general contractor was terminated and had otherwise “settled with the District under its bond for $1,000,000.” Based on that settlement, the general contractor had moved, unsuccessfully, in the trial court for a post-trial setoff because the “settlement covered the same damages that the jury assessed” against the GC, and because the surety was “jointly and severally liable” with the GC – pursuant to the terms of the bond – for those damages. In essence, the general contractor sought to avoid having the public owner “obtain a double recovery.” 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

More Construction Defects for San Francisco’s Eastern Bay Bridge Expansion

October 01, 2014 — Beverley BevenFlorez-CDJ STAFF
According to SF Gate, almost “every one of the 423 steel rods that anchor the tower of the new Bay Bridge eastern span to its base has been sitting in potentially corrosive water, Caltrans officials said Tuesday — one of the most serious construction defects found yet on the $6.4 billion project.” About a year ago, “steel rods crucial to seismic-stabilizing structures on the bridge snapped when they were tensioned.” Fixing those rods cost $25 million, while an additional $20 million had been spent determing if “additional rods and bolts are at risk of failing.” In regards to the latest construction defects discovered, Caltrans’ chief engineer on the project, Brian Maroney, stated, “It’s not acceptable, and we’re going to fix it.” Read the court decision
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