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Insurance Coverage – Duty to Defend – Construction Defects

Regional Steel Corporation v. Liberty Surplus Insurance Corporation - Court of Appeal, Second Appellate District (June 13, 2014) - There has been a split of decisions in California as to whether incorporation of...more

Massachusetts Superior Court Holds Construction Manager At-Risk Responsible for Design Errors / Holds that Spearin Doctrine Does...

The Worcester Superior Court recently issued a potentially landmark decision clarifying the risk that construction managers assume when entering into CM-At Risk contracts. ...more

Pennsylvania Mechanics' Lien Law Amended, Clarifying Open-End Construction Loan Mortgage Priority

On July 9, 2014, Pennsylvania Governor Tom Corbett signed into law Act 117 of 2014, which amends the Pennsylvania Mechanics' Lien Law (MLL), 49 P.S. 1101, et seq., to provide that a construction loan secured by an open-end...more

Principal Architects on Residential Projects Liable for Construction Defects Outside Their Control; Developers and Owners May Pay...

On July 3, 2014, the California Supreme Court decided the much watched case Beacon Residential Community Assoc. v. Skidmore, Owings & Merrill, LLP. The court held that the “principal architect” “owes a duty of care to future...more

When Can a CGL Policy Do a Disappearing Act?

In Evanston Insurance Company v North American Capacity Company, 2014 U.S. LEXIS 92682, Evanston Insurance Company sued in U.S. District Court to seek contribution from North American Capacity Insurance Company where both...more

California Supreme Court Holds Design Professionals Owe a Duty of Care to Future Homeowners

The California Supreme Court in Beacon Residential Community Association v. Skidmore, Owings and Merrill LLP (July 3, 2014), held – based on common law principles – that an architect owes a “duty of care” to future homeowners...more

The California Supreme Court Decides In Favor Of Homeowners In Disputes With California’s Architects

In the case of Beacon Residential Community Association v. Skidmore Owings and Merrill et. al. (July 3, 2014, S208173) Cal.4th, a condominium homeowners association, sued the developer of the project and the project architect...more

Disclosure By Developer Binds Condo Purchasers

Condominium purchasers often do not read the Disclosure documentation which accompanies their Agreement of Purchase and Sale. The Disclosure documentation is important because it contains information which may have an impact...more

California Supreme Court Upholds Design Professionals' Duty to Future Residential Purchasers

Design professionals, such as architects and engineers, often seek to avoid liability to third party property purchasers for their negligence by arguing that their role in preparing plans was too remote for a duty to be...more

Architects May Be Sued Directly by Homeowners Association for Design Defects

In a unanimous decision, California’s Supreme Court has ruled that the principal architects for a condominium project may be sued directly by a condominium homeowners association for design defects. The case, decided July 3,...more

Privilege Issues Are Important in Homeowner Association Construction Defect Litigation

Attorneys in Homeowners Association (“HOA”) construction defect cases must meet with the homeowners to provide litigation updates and it can sometimes be difficult to preserve the attorney-client privilege for the...more

Iowa Court of Appeals Rejects Argument to Impose Implied Warranty upon Land Developers

On April 16, 2014, land developers and sellers breathed a sigh of relief after the Iowa Court of Appeals ruled that a purchaser of a residential building lot cannot sue the land developer for perceived deficiencies with the...more

Fourth Circuit Clarifies that Bankruptcy Proceedings Need Not Defeat Your Unperfected Mechanics Lien

The statutory mechanics lien is a powerful tool for contractors and suppliers aggrieved by an owner or prime contractor who fails or refuses to pay. Before a mechanics lien may be enforced, the Code of Virginia mandates that...more

Mainebiz Real Estate Insider – Reading Between the Liens

Maine has one of the most powerful mechanics lien laws in the country protecting contractors’ rights to get paid for their work, sometimes to the detriment of owners and mortgage holders. A mechanics lien creates a security...more

N.C. Supreme Court Poised to Decide Value of Long-Term Express Warranties on Construction Projects

Is a twenty-year product or construction warranty really good for twenty years? The North Carolina Supreme Court is poised to hear arguments in the case of Christie v. Hartley Construction, Inc. and the outcome will be...more

Why Your Condominium Corporation May Be Liable For Builder-Developer’s Actions

Most condominium boards assume that their condominium would be constructed properly and meet the minimum standards set out in Ontario’s Building Code. Unfortunately, this is not always the case....more

Condominium Construction Defects Legislation Introduced

Proposed legislation to reduce the cost of construction defect claims and encourage condominium construction has been introduced in the Colorado legislature. The long-awaited bill, Senate Bill 14-220, sponsored by Sen. Jessie...more

Certain Residential Developers are Unprotected by the Anti-Deficiency Statute after Foreclosure of a Deed of Trust on Vacant...

Nearly three years ago, in M&I Marshall & Isley Bank v. Mueller, the Arizona Court of Appeals held that the Arizona anti-deficiency statute (A.R.S. § 33-814) protects a borrower who started, but never completed, construction...more

Lender Cleared From Being Classified As a "Developer" Under the Interstate Land Sales Act

Poyner Spruill has been keeping an eye out for lawsuits where the plaintiffs attempted to lump lenders in with developers for liability purposes and we are glad to report the North Carolina Court of Appeals has refuted such...more

Did You Unknowingly Sign Away Your Ability To Sue? Double Check Your Construction Agreement!

By statute, the time to bring a lawsuit against a contractor for hidden construction deficiencies can be as long as 10 years. That means that, say, a property owner could sue his or her architect or general contractor for...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

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 Registrar is Changing the Game for Complaints Against Arizona Contractors

Sweeping changes at the Registrar of Contractors have the construction and real estate industries concerned and curious. The Registrar recently received some poor performance reports by the Auditor General and State...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

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