Advice to Georgia Homeowners with Construction Defects
October 02, 2013 —
CDJ STAFFNOLO Press has some advice for Georgia homeowners who have found construction defects. Their first advice is to make certain matters don’t get any worse. They note that the “the builder is not responsible for any damage that occurs to the home after you’ve discovered the problem.” You should keep records of those repairs, since you can’t get reimbursed unless you can prove what you spent.
Some problems are covered under builder warranties, but usually only in the first year. But if it’s not covered, or the warranty has expired, NOLO notes that “you might not be out of luck.” The three options under Georgia law are to claim breach of contract, negligent construction, or fraud.
NOLO gives the example that if the house was not built according to the plans, the builder might be found guilty of breach of contract. If the builder worked in “a shoddy manner that no other builder would use,” then it might be negligent construction. “If the builder outright lied about the quality or type of materials used,” you might have a claim for fraud.
However, NOLO notes that first you must notify the builder. Under Georgia law, you have to inform the builder of the problems 90 days before you can file a lawsuit, and the builder has 30 days in which to respond to your claims. The hope of Georgia’s Right to Repair Act is to avoid a lawsuit and get the house fixed. And that’s always the best result.
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You Cannot Arbitrate Claims Not Covered By The Arbitration Agreement
March 16, 2020 —
David Adelstein - Florida Construction Legal UpdatesRegardless of the type of contract you are dealing with, “[a]rbitration provisions are contractual in nature, and therefore, construction of such provisions and the contracts in which they appear is a matter of contract interpretation.” Wiener v. Taylor Morrison Services, Inc., 44 Fla. L. Weekly D3012f (Fla. 1st DCA 2019). This means if you want to preserve your right to arbitrate claims you want to make sure your contract unambiguously expresses this right. Taking this one step further, if you want to make sure an arbitrator, and not the court, determines whether the claim is arbitrable if a dispute arises, you want to make sure that right is expressly contained in the arbitration provision.
For example, in Wiener, a homeowner sued a home-builder for violation of the building code – a fairly common claim in a construction defect action. The homeowner’s claim dealt with a violation of building code as to exterior stucco deficiencies. The home-builder moved to compel the lawsuit to arbitration based on a structural warranty it provided to the homeowner that contained an arbitration provision. The structural warranty, however, was limited and did not apply to non-load-bearing elements which, per the warranty, were not deemed to have the potential for a major structural defect (e.g., a structural defect to load-bearing elements that would cause the home to be unsafe or inhabitable). The trial court compelled the dispute to arbitration pursuant to the arbitration provision in the structural warranty.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Remand of Bad Faith Claim Evidences Split Among Florida District Courts
September 04, 2018 —
Michael S. Levine & Daniel Hentschel - Hunton Insurance Recovery BlogWhether an insurance bad faith claim, joined by amendment to an underlying insurance coverage action, may be removed more than a year after the original action was begun has divided federal judges in the state of Florida but has not yet been considered by the Eleventh Circuit. Now, a new opinion out of the Middle District of Florida (Jacksonville Division) has added to the debate.
Reprinted courtesy of
Michael S. Levine, Hunton Andrews Kurth and
Daniel Hentschel, Hunton Andrews Kurth
Mr. Levine may be contacted at mlevine@HuntonAK.com
Mr. Hentschel may be contacted at dhentschel@HuntonAK.com
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Colorado House Bill 20-1290 – Restriction on the Use of Failure to Cooperate Defense in First-Party Claims
May 18, 2020 —
David M. McLain – Colorado Construction LitigationOn February 7th, Representative Garnett, with Senator Fenberg as the Senate sponsor, introduced HB 20-1290, concerning the ability of an insurer to use a failure-to-cooperate defense in an action in which the insured has made a claim for insurance coverage.
If the bill were to pass, in order to plead or prove a failure-to-cooperate defense in any action concerning first-party insurance benefits, the following conditions must be met:
- The carrier has submitted a written request for information the carrier seeks to the insured or the insured’s representative, by certified mail;
- The written request provides the insured 60 days to respond;
- The information sought would be discoverable in litigation;
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David McLain, Higgins, Hopkins, McLain & RoswellMr. McLain may be contacted at
mclain@hhmrlaw.com
Construction Leads World Trade Center Area Vulnerable to Flooding
February 07, 2013 —
CDJ STAFFThe Port Authority of New York and New Jersey and outside experts are looking at ways to make the World Trade Center area less vulnerable to flooding, both as construction continues and after it has concluded. Much of the site is built on landfill and the Hudson River is held back by retaining walls.
Hurricane Sandy caused $2 billion of damage to sites managed by the Port Authority, including $800 million for the PATH train system. Construction and increased vulnerability to flooding is likely to continue for at least eight more years.
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California to Build ‘Total Disaster City’ for Training
July 30, 2014 —
Beverley BevenFlorez-CDJ STAFFCalifornia is building a “world-class $56 million training facility in eastern Sacramento County that would pit fire crews against a variety of realistic, pressure-packed simulated disasters,” according to the Sacramento Bee. Construction has begun on the Emergency Response Training Center in Mather Field in Rancho Cordova.
“The project is a joint effort between Henke’s fire department, the Governor’s Office of Emergency Services and the Sacramento Fire Department,” reported the Sacramento Bee.
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No Duty to Indemnify Where No Duty to Defend
February 08, 2021 —
Tred R. Eyerly - Insurance Law HawaiiThe Montana Supreme Court held that because there was no duty to defend the insureds' intentional acts, the insurer had no duty to defend. Farmers Ins. Exch. v. Wessel, 2020 Mont. LEXIS 2617 (Mont. Dec. 22, 2020).
The insureds' property was accessed by Turk Road. Turk Road was also used by the neighbors to access their land. The insureds asked for permission to snowmobile across the neighbors' property. Permission was denied because the property was in a conservation easement which prohibited motorised used. The insureds' thereafter retaliated by not allowing the neighbors to use Turk Road. The neighbors then purchased an easement from another landowners to construct a new driveway which did not traverse the insureds' property. The insureds built snow berms and gates, felled trees, and created other obstacles to prevent the neighbors from using the new driveway. Physical threats were also made by the insureds.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Zombie Foreclosures Plaguing Various Cities in the U.S.
July 16, 2014 —
Beverley BevenFlorez-CDJ STAFFMany homeowners are simply abandoning their homes before banks have completed the foreclosure process, according to USA Today. Banks are not always in a hurry to take ownership of property, and often will wait until they are ready to dispose of it before doing so:
“There are two primary things that can factor into their decision," Eric Eckardt, vice president and general manager of Hubzu.com, told the Mail Tribune. "One, they may have a surplus of REO properties they're trying to move off the balance sheet. The second is, costs associated with foreclosure may be greater than the value. At the end of the day, it's really a case-by-case matter.”
USA Today reported that “[t]he length of the entire foreclosure process is a major contributor to vacancy rates because homeowners are more likely to give up on their homes the longer they have to wait for a resolution.”
These abandoned homes may have a negative impact on sales of neighboring homes, according to the Mail Tribune. Gary Poulos, a retired Harry & David systems engineer, lives next door to a ‘zombie foreclosure,’ and spent a year trying to get maintenance work completed on the neighboring property so that he could be in a position to sell his own. He created a blog about his experience (myneighborchasebank.blogspot.com).
Big Builder analyzed May 2014 data from CoreLogic, and identified the five states with the highest foreclosure inventory: New Jersey, Florida, New York, Hawaii, and Maine. While the five states with the lowest foreclosure inventory were Alaska, Nebraska, North Dakota, Wyoming, and Minnesota.
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