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North Dakota Supreme Court Establishes Defense to “No Damage for Delay” Clause

In June 2014, the North Dakota Supreme Court issued its decision in C&C Plumbing & Heating, LLP v. Williams County et al, No. 20130297. The Court articulated a new defense to the application of a “no damage for delay” clause....more

The Construction Advantage – Issue 7

Reed Construction Data – Economy Improving Slowly but Surely - Reed Construction Data reports that the economy continues to improve but challenges remain. Based upon recent construction data from Reed Construction, the...more

The Alabama Supreme Court Changes Its Mind on Coverage Under CGL Policy

Last September the Alabama Supreme Court issued an opinion addressing the applicability of the “own work” exclusion to claims against a contractor for defective construction. However, on March 28, 2014, the Alabama Supreme...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

Duped Subcontractor Can’t Recover From Landowner Payments Owed by General Contractor Under CERCLA

On March 18, 2014, the U.S. Court of Appeals for the Second Circuit resolved a dispute of apparent first impression regarding the federal Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). The...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

Amendments to Arizona’s Anti-deficiency Statute Exclude Homebuilders from Anti-Deficiency Protection

Last Tuesday, April 20, 2014, Arizona’s Governor, Jan Brewer, signed HB 2018 into law. This bill closes a long-standing loophole that allowed commercial homebuilders to take advantage of Arizona’s anti-deficiency statute,...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 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

And So it Begins . . .

This past year I wrote about a case that caused an uproar in the homebuilding industry - Liberty Mutual Insurance Company v. Brookfield Crystal Cove LLC, 219 Cal.App.4th 98 (August 28, 2013) – in which the California Court of...more

Minnesota Court of Appeals Defines Substantial Completion Under Statute of Repose

On March 10, 2014, the Minnesota Court of Appeals issued its decision in Rosso v. Hallmark Homes of Minneapolis, Inc., No. A13-1304. The Court’s decision clarifies that Minnesota’s ten-year statute of repose for construction...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

"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

Legal Notebook: Case Study : John Grimes Partnership Limited V Gubbins

SNAPSHOT - The English Court of Appeal’s recent decision in John Grimes Partnership Limited v Gubbins [2013] EWCA Civ 37 has confirmed that, in certain circumstances, a third party involved in a property development...more

Under Construction - September 2013: Arizona Court to Architect: You Have One Less Payment Tool than Your Contractor Counterparts

Architects occasionally get into payment disputes with project owners in much the same way as general contractors do. When that relationship sours, and litigation becomes necessary to secure payment, architects and...more

Under Construction - September 2013: Application of the Economic Loss Rule in Arizona Since Flagstaff Affordable Housing Ltd. v....

In a recent ruling, the Arizona Supreme Court clarified that the economic loss rule does not apply to non-contracting parties. See Sullivan v. Pulte Home Corporation, 667 Ariz. Adv. Rep. 36 (Ariz. 2013). This ruling both...more

Under Construction - September 2013: Utah’s Economic Loss Rule

In Utah, a plaintiff must generally in be in privity with the “original contractor, architect, engineer or real estate developer” to bring an “action for defective design or construction.” Utah Code Ann. §78 B-4-513(4). This...more

There’s More Than One Way to Skin a Cat When it Comes to Actual Damages Under SB 800

In 2002, the California State Legislature enacted S.B. 800 also known as the “Right to Repair Act” (Civil Code sections 895 et seq.). SB 800, which applies to newly constructed single-family residences sold after...more

Construction Defect Litigation: Right to Repair Act (SB 800) Does Not Eliminate Common Law Remedies for Actual Damage to...

California’s Right to Repair Act (also known as SB 800) provides court remedies for a homeowner when construction defects diminish the economic value of a home, even though no personal injuries or actual property damage have...more

California Court of Appeal Opens the Door for Construction Defect Claims Outside of SB800

On August 28, the California Court of Appeal ruled that SB800 (Civil Code sections 895 through 945.5, the "Right to Repair Act") is not the only remedy for construction defect claims even when those claims fall within the...more

Attorney fees only awarded to developers of affordable housing projects

In Honchariw v. County of Stanislaus, the California Court of Appeal for the Fifth Appellate District ruled that the housing developer was not entitled to attorney fees under California Government Code § 65589.5(k) because...more

Why A “Lifetime” Warranty Is Only A Six Year Warranty For Contractors And Manufacturers

Most would assume that a warranty lasts for as long as the warranty’s terms. In North Carolina, a recent Court of Appeals decision has made clear that an extended warranty, absent evidence of fraudulent, willful, or wanton...more

General Conditions Not Lienable In Georgia

A 2012 Georgia Court of Appeals decision has significant implications for Georgia contractors by declaring that jobsite general conditions do not constitute improvements to real property such that they can be included in a...more

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