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West Coast Real Estate Update: October 2016

California Coastal Act Blocks Housing Project in Venice Despite Earlier Approvals - Judge James C. Chalfant of the California Court of Appeal on Sept. 29, 2016, affirmed a lower court ruling denying a developer’s...more

Court of Appeals Changes Calculation of Statute of Repose

Colorado law generally prohibits construction defect lawsuits against a construction professional brought “more than six years after the substantial completion of the improvement to the real property.” § 13-80-104, C.R.S....more

Texas Supreme Court Affirms Property Owners' Rights Within the Extraterritorial Jurisdiction

On May 27, 2016, in Town of Lakewood Village v. Bizios, the Texas Supreme Court held that general law municipalities do not have the authority to enforce building codes within their extraterritorial jurisdictions (ETJs). This...more

Subcontractor Exception Torpedoes Insurers’ Defense To Faulty Workmanship Claim

As this blog has reported, a line of cases deciding coverage disputes over faulty workmanship runs against (or, at least, around) a basic rule for interpreting insurance policies. Under that rule, the scope of coverage is...more

Class Action Arbitration after Dell Webb

Agreeing to arbitrate disputes, in lieu of traditional litigation, is not a new phenomenon. As consumers, we all contractually agree to arbitrate disputes on an almost daily basis. While not everyone may read the entire...more

Equitable Subrogation Part Deux: Mechanic’s Lien vs. Later Bank Deed of Trust

This post follows, almost two years to the day, Rick Erickson’s post of August 29, 2014. As noted by Rick Erickson in his August 29, 2014 post, the Arizona Supreme Court in the Weitz case (2014) had determined that equitable...more

Missouri Western District Court of Appeals Reminds Us to Pay No Attention to the Headings for the Revised Statutes

The Missouri Western District Court of Appeals recently affirmed a trial court’s issuance of summary judgment and, in the process, reminded practitioners that the bold faced headings in the Revised Statutes are not part of...more

Cómo los desarrolladores inmobiliarios del sur de Florida están reduciendo el riesgo de litigios

En los días previos a la Gran Recesión de 2008, las propiedades en todo el sur de Florida se compraban solamente para ser revendidas posteriormente con una ganancia. Este “intercambio” de propiedades culminó en un mercado...more

Workmanship and Earth Movement Exclusions Preclude Coverage for Collapse As a Matter of Law

A U.S. federal district court recently granted Peerless Insurance’s summary judgment motion, concluding that, as a matter of law, under Virginia law, a property policy insuring a building under renovation would not provide...more

Two Decisions out of San Diego Remind Us to Follow the Rules

We don’t often see multiple takings-related cases in one week, but last week we saw three. The California Supreme Court’s decision in Property Reserve was obviously the most important, but the Fourth Appellate District Court...more

South Carolina Supreme Court Decision Impacts Enforceability of Arbitration Provisions in New Residential Construction Sales...

On July 6, 2016, the South Carolina Supreme Court filed its Opinion No. 27645, captioned Smith v. D.R. Horton, Inc., in which it affirmed the Court of Appeals' refusal to compel arbitration between new home purchasers and the...more

Wisconsin Supreme Court Narrowly Interprets the “Permanent Property Insurance” Condition in a Builder’s Risk Policy

In Fontana Builders, Inc. v. Assurance Company of America, Case No. 2014AP821, 2016 WL 3526408 (Wis. Jun. 29, 2016), the Wisconsin Supreme Court addressed whether the purchase of a homeowner’s policy by the occupiers and...more

Colorado Supreme Court to Rule on Yet Another Key Construction Defects Issue

On July 5, 2016, the Colorado Supreme Court announced it will consider the construction defects case of Forest City Stapleton, Inc., et al. v. Rogers. In this case the Colorado Court of Appeals, for the first time, imposed...more

Homeowners Who Purchase Directly from Homebuilders May Seek Recovery of Attorneys’ Fees on Claims for Breach of the Implied...

Three things have long been settled law in Arizona regarding residential construction: (1) a homebuilder owes a homeowner an implied warranty of workmanship and habitability with regard to the construction of the home; (2)...more

Construction Defect Debate to be Heard by Colorado Supreme Court

The construction defects case of Vallagio at Inverness Residential Condominium Association, Inc. v. Metropolitan Homes, Inc., et al. has garnered national attention since the Colorado Court of Appeals' decision in May 2015,...more

Florida Court Enforces Four Year Statute of Limitations For Work Performed by Window Installer

In Brock v. Garner Window & Door Sales, Inc., 187 So. 3d 294 (Fla. Dist. Ct. App., 2016), plaintiffs, Lawrence and Laura Brock (“Plaintiffs”) sued the contractor that installed windows on their home after they sustained water...more

Oregon Court of Appeals Holds that “Common Issue” Exception Applies to Permit Defendant Contractor to Recover Attorney’s Fees From...

In The Village at North Pointe Condominiums Association v. Bloedel Construction Co. et al., 278 Or App 354 (2016), the Oregon Court of Appeals held that defendant contractor could recover attorneys’ fees against a homeowners...more

Montana Supreme Court Revisits General Liability Coverage for Construction Defect Claims

In its recent decision in Emplrs Mut. Cas. Co. v. Fisher Builders, Inc., 2016 MT 91 (Mont. Apr. 16, 2016), the Supreme Court of Montana had occasion to consider what constitutes an “occurrence” in the context of a defective...more

U.S. Supreme Court Denies Review of California Supreme Court Decision Upholding San Jose Inclusionary Housing Ordinance

February 29, 2016 was a notable leap year day for the United States Supreme Court. To the surprise of most in the courtroom that day, Justice Clarence Thomas asked his first question from the bench in more than 10 years. The...more

West Coast Real Estate Update: April 2016 #1

Residential Communities: Calderon Process for HOAs Likely to Be Extended Again - The California Assembly Committee on Judiciary in early April unanimously passed Assembly Bill (AB) 1963 to extend the pre-litigation...more

Kentucky Court of Appeals Denies CGL Coverage For Damage To Property Other Than Insured’s Work

In Acuity v. Martin/Elias Props., LLC, 2016 Ky. App. Unpub. LEXIS 237 (Ky. Ct. App. Mar. 25, 2016), the Court of Appeals of Kentucky held that commercial general liability insurer Acuity did not owe coverage for a claim that...more

Fourth Circuit: Courts, Not Arbitrators, Decide If Arbitration Agreement Authorizes Class-Wide Arbitration

A unanimous panel of the Fourth Circuit has held Del Webb Communities, Inc. v. Carlson that the question whether an arbitration agreement authorizes class-wide arbitration is for the courts, not an arbitrator, to...more

Fourth Circuit Finds Availability Of Class Arbitration Is Question For Courts, Not Arbitrators

Joining the Sixth and Third Circuit Courts of Appeals, the Fourth Circuit this week held that “whether an arbitration clause permits class arbitration is a gateway question of arbitrability for the court.” Dell Web...more

OCIP Liability Insurer Required to Indemnify Florida Contractor for $23M in Property Damage Arising Out of Defective Subcontractor...

Pavarini Construction Co. v. Ace American Insurance Co., 2015 U.S. Dist. LEXIS 151247 (S.D. Fla. Oct. 29, 2015) - This action arose out of a construction project to build a 63-story luxury condominium tower located in...more

What Does the US Supreme Court Ruling Mean for Local Affordable Housing Laws?

On February 29, the US Supreme Court denied certiorari in California Building Industry Association v. City of San Jose, 61 Cal. 4th 435 (2015), and leaves standing a unanimous decision by the California Supreme Court...more

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