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Developers Beware – Court of Appeal Clarifies the Effect of a Breach of the Sale of Land Act

In Barker v Midstyle Nominees Pty Ltd [2014] WASCA 75, the West Australian Court of Appeal has considered the legal consequences of a developer entering into off the plan contracts in breach of Section 13 of the Sale of Land...more

Sometimes the Real Fight is Before the Fight

One of the things I learned while lobbying in Washington, D.C. is the importance of the House Rules Committee. The Rules Committee, as its name suggests, sets the rules. Specifically, the scheduling of bills, the allotted...more

Indiana: New Home Warranties Must Be Insured

When faced with a subrogation loss involving a new or fairly new house, and a potential construction defect that caused the loss, one of the first things to look for is how warranties can help or hurt your case. Did the...more

Construction E-Note - April 9, 2014

In This Issue: - Ongoing Or Completed Operations? Fifth Circuit Finds No Duty To Defend Contractor Under Additional Insured Endorsement - Your Venue, My Bond Claim: A Florida Law Primer - The Condominium Form Of...more

The Condominium Form Of Ownership

In Alabama, contractors and subcontractors performing work involving common elements of the condominium at the request and direction of a condominium association should be aware of unique laws applicable to their lien rights...more

Construction Law Alert: Long Term Express Warranties

A recent holding by the North Carolina Court of Appeals is threatening to render many long-term express warranties ineffective. In a divided opinion in Christie v. Hartley Construction, Inc., the court held that the...more

Builders Beware! You Cannot Hide Behind SB 800!

In Burch v Superior Court (Premier Homes et al.) 2014 DJDAR 1991 (decided February 19, 2014) plaintiff Burch, a Pacific Palisades homeowner, sued defendants Premier Homes, the developer, and Custom Home Builders, the general...more

Rumble in the Construction Defect Jungle

Lately, reading the advance sheets of construction defect cases has been like watching one of the Rocky movies. There’s the punches (owww!). Then there’s the counter-punches (ohhh!). And on and on it goes with blow meeting...more

Condominium Warranties Do Not Apply to Some Florida Projects Built as Rental Housing

Florida’s Condominium Statutes provide unit owners with express statutory warranties from a Project Developer and Contractors that perform construction services. See F.S. 718.203. Such warranties have been the source of much...more

Homebuilders And Their Affiliates: Unexpected Tie-In Issues May Be Lurking

From my work defending mortgage loan originators, including many homebuilder captives, against mortgage repurchase and indemnification claims, as well in my role as an editor of Bilzin Sumberg’s Mortgage Crisis Watch, I have...more

Arizona Court of Appeals Holds That Certain Residential Developers Are Not Protected By The Anti-Deficiency Statute After...

Nearly three years ago, in M&I Marshall & Isley Bank v. Mueller, the Arizona Court of Appeals held that the Arizona anti-deficiency statute protects a borrower who started, but never completed, construction of a single-family...more

Utah Court of Appeals Limits Third-Party Beneficiary Contract Claims Against Appraisers, but Recognizes Tort Based Third-Party...

In Lilley v. JPMorgan Chase, et al, 748 UT Adv. Rpt. 48, 213 Utah App. 285, Nov. 20, 2013, the Utah Court of Appeals affirmed an order of the District Court dismissing the Plaintiffs’ breach of contract action against an...more

Pennsylvania Court Holds Defectively Designed Windows and Doors May Give Rise to an “Occurrence”

On December 3, 2013, the intermediate Pennsylvania Court of Appeals decided Indalex, Inc. v. National Union Fire Ins. Co. of Pittsburgh, PA, and concluded that an “occurrence” under a commercial umbrella liability policy may...more

Alabama Court Of Appeals Reiterates The Strict Requirements For Filing A Proper Materialman Lien

In a recent Alabama Civil Circuit Court of Appeals (“Court of Appeals”) decision, Gunther v. Carpet Systems of Huntsville, Inc., 2013 WL 5496178 (Ala. Civ. App. Oct. 4, 2013), the Court of Appeals highlighted the notice...more

Homeowners Cannot Assert Claims Against Subcontractors For Breach Of Implied Warranty

Since 1979, Arizona courts have recognized an implied warranty of workmanship and habitability (“Implied Warranty”) regarding new home construction. Although a contractual relationship (“privity”) is generally required to...more

Common Elements Deficiency Claims – A Recent Case Decision

In a recent court decision, the court determined that it was legal for a developer to limit its liability with respect to common elements deficiency claims so that the developer would not be responsible for any claims in...more

Arizona Court of Appeals Gives Contractor the Edge over Certain Lenders in Mechanic’s Lien Foreclosure Lawsuit

In lien foreclosure lawsuits involving lenders and contractors, priority is everything. Where you stand in terms of priority will not necessarily determine when you get paid, but rather will determine whether you get paid....more

Developers and Homebuilders: The Ramifications of Yanni v. Tucker Plumbing, Inc.

On November 20, 2013, Division Two of the Arizona Court of Appeals issued its opinion in Yanni v. Tucker Plumbing, Inc., 2013 Ariz. App. LEXIS 235. While the opinion was a victory of sorts for the real estate and...more

Under Construction - December 2013

Welcome to our final issue of Under Construction in 2013. We hope your year has been filled with health, happiness, peace and prosperity. We thank you for your readership, and we continue to appreciate the opportunities we...more

New Jersey Bill Would Compel Insurers to Cover Faulty Construction Work

The New Jersey Legislature has entered the ongoing national debate about whether faulty construction work is considered an “occurrence” under general liability insurance policies. Introduced on November 25, 2013, A. 4510...more

Door Opening to Allow Common Negligence Claims Against Construction Professionals

For several years, design and construction professionals have been awaiting word from the Washington Supreme Court regarding whether aggrieved parties are limited to remedies set forth in their written contracts or whether...more

Bill Would Exempt Condominiums from Certain ILSFDA Requirements

On September 26, 2013, the U.S. House of Representatives passed H.R. 2600, which would exempt the sale and lease of condominium units from certain requirements of the Interstate Land Sales Full Disclosure Act (ILSFDA). The...more

Guarantors Beware! A.R.S. § 33-814 May Not Save You from a Deficiency Judgment

In First Credit Union v. Courtney, 309 P.3d 929, 669 Ariz. Adv. Rep. 18 (Ct. App. 2013), the Arizona Court of Appeals rejected three creative arguments that A.R.S. § 33-814 protected the guarantors from paying on their...more

Roofing Contractors, Don’t Mess With Texas Insureds!

Hailstorms are inevitable in Texas, and so is the experience of the typical homeowner in their aftermath. Countless flyers are taped to the front door, yard sign ads spring up in the neighborhood, and the phone and doorbell...more

"Twenty Years" is Actually "Six Years" for Contractors and Manufacturers in North Carolina

This year the North Carolina Court of Appeals issued an opinion that significantly limits many construction warranties. In Christie v. Hartley Construction, Inc., et al., No. COA12-1385, the Court limited any action for...more

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