FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Colorado Supreme Court Rules that Developers Retain Perpetual Control over Construction Defect Covenants

June 21, 2017 — Jesse Witt - The Witt Law Firm
The Colorado Supreme Court ruled today that developers can retain control over community covenants in perpetuity by recording a covenant that requires declarant consent to any amendments. Although the Colorado Common Interest Ownership Act (CCIOA) states that such controls should be void, the court nevertheless ruled that a declarant may veto amendments that alter the dispute resolution procedures for construction defect actions at any time. The case of Vallagio at Inverness Residential Condominium Ass’n v. Metropolitan Homes, Inc., __ P.3d __, 15CO508, arose when the community’s members discovered widespread construction defects. When the declarant developed the project, it had recorded a declaration of covenants that purported to waive the homeowners’ right to a jury trial and instead require that any construction defect disputes be resolved by a private arbitration panel. The declaration also prohibited the homeowners from recovering attorney fees and costs, and it limited the declarant’s liability for damages. Consistent with CCIOA, the declaration allowed the homeowners to amend their covenants by a 67% vote, but it recited that the declarant could veto any such amendment prior to the sale of the last unit to a homeowner. The covenants further stated that the declarant must consent to any amendment that altered the construction defect restrictions. Reprinted courtesy of Jesse Howard Witt, Acerbic Witt Mr. Witt may be contacted at www.witt.law Read the full story... Read the court decision
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Does the New Jersey Right-To-Repair Law Omit Too Many Construction Defects?

January 06, 2012 — CDJ STAFF

A post on the blog of Liberty Building Forensics Group find fault with the New Jersey Home Warranty and Builders’ Registration Act for not being stringent enough. The poster notes the coverage given under the bill. In the first year, builders are responsible to remedy faulty workmanship and materials and major structural defects. While other protections expire in the first or second year, there is a ten year coverage of major construction defects.

The blogger finds fault with the exclusion New Jersey law places on these claims, arguing that “due to the stringent definition of ‘major construction defects,” the warranty affords no coverage unless the house is practically collapsing.” The bill excludes leaks, cracks, and mold, and further limits claims if the homeowner has failed to inform the builder or insurer of defects, failure to maintain the home, and alterations made by the homeowner.

The intent of the New Jersey law is given as “requiring that newly constructed homes conform to certain construction and quality standards as well as to provide buyers of new homes with insurance-backed warranty protection in the event such standards are not met.” It’s argued in the piece that it instead serves to “strip homeowners of any meaningful means of recovery for discovered construction defects.”

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Insurer Must Pay Portions of Arbitration Award Related to Faulty Workmanship

October 21, 2019 — Tred R. Eyerly - Insurance Law Hawaii
The court determined that portions of an arbitration award against the insured contractor based upon faulty workmanship were covered by the policy. Wallace v. Nautilus Ins. Co., 2019 U.S. Dist. LEXIS 122219 (D. N. H. July 23, 2010). Plaintiffs, owners of adjoining homes, hired McPhail Roofing, LLC to replace the roofs of their houses. After installation, the plaintiffs found several problems with their roofs and withheld roughly a third of the agreed-upon contract price from final payments due to McPhail. A roofing consultant found evidence of water leaking through both roofs during rainstorms. Improper installation of the shakes on the roofs allowed rain to seep through to the roof decks (the plywood underneath the roofs) and eventually into the houses. The only way to cure the installation defects was to remove and replace the roofs entirely. Plaintiffs and McPhail went to arbitration. Plaintiffs sought compensation for the damage caused by the leaking and for the replacement costs of the roofs. McPhail sought the remaining payment under the contracts. Nautilus defended McPhail under this CGL policy. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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Tips for Contractors Who Want to Help Rebuild After the California Wildfires

November 02, 2017 — Garret Murai - California Construction Law Blog
I received a call from one of my contractor clients this past week to see what he could do to help those affected by California’s North Bay fires. The North Bay fires are the deadliest and most destructive wildfires in California’s history. To date, the fires have claimed 42 lives, burned more than 200,000 acres of land, destroyed an estimated 8,400 structures and likely damaged tens of thousands more. By comparison, the state’s second most deadly wildfire, the Oakland Hills fire of 1991, claimed the lives of 25 people, burned 1,600 acres of land, and destroyed 2,900 structures. Rebuilding costs for the North Bay fires, according to the California Insurance Commissioner, are expected to top $1 billion. For those with insurance, insurance experts say that the rebuilding process can take two years or more for those whose homes and businesses were destroyed. For those whose homes and businesses were fortunate enough only to be damaged, rebuilding efforts are already underway. 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

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Home Prices Expected to Increase All Over the U.S.

July 09, 2014 — Beverley BevenFlorez-CDJ STAFF
According to a survey of the National Association of Realtors (as quoted by the Housing Wire), home prices are expected “to increase in all states and the District of Columbia over the next 12 months, with most of the heavy growth in Florida, Texas, and California, among other states.” The highest expected price growth was “in states with low inventory levels, strong cash sales, and strong growth sectors (e.g., technology, oil).” Read the court decision
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Defense Owed to Directors and Officers Despite Insured vs. Insured Exclusion

May 13, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The court found there the duty to defend a suit filed by the FDIC against officers and directors was not excluded by the insured versus insured provision in the policy. W Holding Co., Inc. v. AIG Ins. Co. - Puerto Rico, 2014 U.S. App. LEXIS 5943 (1st Cir. March 31, 2014). Regulators ordered the closure of the insured bank and the Federal Deposit Insurance Corporation (FDIC) was appointed as receiver. FDIC concluded certain bank directors and officers had breached their fiduciary duty by jeopardizing the bank's financial soundness. The FDIC concluded these breaches had caused more than $367 million in losses and demanded reimbursement by the directors and officers. 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

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Design, Legal and Accounting all Fight a War on Billable Hours After the Advent of AI

June 10, 2024 — Jeff Yoders - Engineering News-Record
Billable hours have long been the professional services standard by which architects, engineers, lawyers and accountants all get paid. But What if that effort wasn’t from human toil at all? Artificial Intelligence is already chipping away at the venerable billable hours business model, completing in just minutes or seconds tasks that would take humans hours. As these tools grow more efficient and accurate, many firms are having to reevaluate how they allocate their resources, and project delivery practices may have to evolve as well. Reprinted courtesy of Jeff Yoders, Engineering News-Record Mr. Yoders may be contacted at yodersj@enr.com Read the full story... Read the court decision
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Building and Landscape Standards Enacted in Response to the Governor's Mandatory Water Restrictions Dealing with the Drought and Possible Effects of El Niño

January 06, 2016 — Clayton T. Tanaka – Newmeyer & Dillion, LLP
Earlier this year, with California facing one of the most severe droughts on record, Governor Edmund G. Brown, Jr. issued Executive Order B-29-15 (the “Executive Order”) aimed at conserving water supplies and reducing water waste throughout the State of California. For the first time in California’s history, this Executive Order directed state agencies to implement immediate measures to save water, increase enforcement against water waste, invest in new technologies, and streamline government response to ongoing drought conditions. In response, various state agencies proposed emergency changes to existing building and landscape standards in the California Green Building Standards Code (California Code of Regulations, title 24, part 11) (“CALGreen”) and the Model Water Efficient Landscape Ordinance (California Code of Regulations, title 23, part 11) (“Model Ordinance”) pertaining to the use of potable water. In July, the California Building Standards Commission and the California Water Commission adopted the proposed changes after public review and comment. Read the court decision
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Reprinted courtesy of Clayton T. Tanaka, Newmeyer & Dillion, LLP
Mr. Tanaka may be contacted at clay.tanaka@ndlf.com

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