Residential Real Estate Civil Procedure Construction

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High Court Finds No Duty of Care From Builder to Owners Corporation

The High Court has held that a builder of a serviced apartment complex does not owe a duty of care in negligence for financial loss arising from defects in common property to an owner's corporation (Brookfield...more

When Your General Contractor Files Bankruptcy

The case is Branch Banking & Trust Co. v. Construction Supervision Services Inc. (In re Construction Supervision Services Inc.), 753 F.3d 124 (4th Cir. 2014). After a general contractor filed bankruptcy, several of its...more

Mechanic’s Lien Reigns Supreme in the Battle of a Project Default? Not for a Waiving General

In what can only be described as a devastating result for a general contractor, the Fourth Appellate District held that a general contractor may prospectively waive the priority of a mechanic’s lien to the owner’s...more

Construction Defect Claims Tackled By Lakewood

The impact of construction defect lawsuits on condominium development in Colorado has been a hot topic recently. Colorado law treats residential construction differently than non-residential construction. This increases the...more

Massachusetts Supreme Court Holds Economic Loss Rule No Bar to Condo Trustees’ Claim for Damages to Common Areas Caused By...

Wyman v. Ayer Properties, LLC, 469 Mass. 64, 2014 Mass. LEXIS 524 (July 10, 2014) - The Massachusetts Supreme Court ruled that the economic loss rule, which bars recovery of tort damages from the negligent supplier of...more

Nebraska Appellate Court Gets Down to Earth to Hold That Faulty Workmanship Standing Alone Is Not An “Occurrence”

The insurance and construction industries have disagreed about coverage claims involving faulty workmanship for many years. Contractors believe their CGL insurance policies should always cover property damage caused by...more

Nevada Court Holds NRS Chapter 40 Does Not Require a Subcontractor to Provide Pre-Litigation Notice to a Supplier

Under Nevada Revised Statutes Annotated (NRS) Chapter 40, a general contractor is required to provide pre-litigation notice (followed by an opportunity to repair) to a subcontractor or supplier the general contractor believes...more

Public Offering Statement Disclosure Limits Developer's Liability

A New Jersey judge earlier this year dismissed a construction defect complaint by a condominium association against the developer and contractor, finding that the lawsuit was filed outside the state’s six-year statute of...more

Arizona Supreme Court to Contractor: Sorry But Equitable Subrogation of a Bank’s Later Deed of Trust Trumps Earlier Mechanics’...

The smoke has finally cleared in a hard and long-fought battle between a bank and contractor both claiming priority to foreclose millions of dollars on a Phoenix condominium project. The project, well-known as Summit at...more

Pennsylvania Supreme Court Rules Only Original Purchasers May Recover Damages for Breach of the Builder’s Implied Warranty of...

The Pennsylvania Supreme Court ruled that a builder’s implied warranty of habitability extends only to the initial buyer of a home, and not to subsequent purchasers. In Conway v. The Cutler Group, Inc., the Court reversed an...more

Pennsylvania Supreme Court Holds Contractor May Recover in Quantum Meruit Where Home Improvement Contract Does Not Satisfy...

Homeowners Raymond and Donna Mantia contracted Shafer Electric & Construction (“Shafer”) to build a two-car garage addition onto their house. Shafer’s proposal was extremely detailed as to the work to be completed. Despite...more

"Construction Alert" Texas Supreme Court Confirms Owners May Bring Negligence Claim Directly Against Subcontractors

Several cases have held that a homeowner cannot sue a subcontractor for defective work because the homeowner’s contract is with the general contractor and not the subcontractor. Those cases left it to the general contractor...more

Are You Done Yet? Compensation for Impacts of Public Works in Alberta

During the recent resurfacing of Bow Trail there was a message posted on a pylon sign by an adjacent business owner that read “Bow Trail is not Rome. Please Complete” (see “Road Construction Delays Cause Headaches for...more

The Construction Advantage – Issue 8

In our eighth issue of The Construction Advantage, we provide you with three new cases, with two of them coming from the Maine courts. We hope that this newsletter has been helpful and informative to you so far in 2014....more

Nevada Supreme Court Clarifies Mechanic and Materialman Lien Issues

On August 7, 2014, the Nevada Supreme Court issued two opinions dealing with the priority of mechanics’ liens and the proof required for a materialman to establish a lien. These cases provide valuable guidance to lenders,...more

Caveat Venditor (Let the Seller Beware):Consumer Protection Laws Can Have Significant Implications

A decision by the District of Columbia Court of Appeals emphasizes the need for real estate developers to proceed with caution when making representations to potential home buyers in jurisdictions with consumer protection...more

Architects and Design Professionals Can Be Held Liable for Defects Based On Third Party Claims

A homeowners association, on behalf of its members, sued a condominium developer and various other parties for construction design defects that allegedly made their homes unsafe and uninhabitable for a significant portion of...more

California Supreme Court Expands Architect’s Duty of Care to Future Homeowners

A new decision issued by the California Supreme Court holds that, even in the absence of contractual privity, an architect on a residential building project owes a duty of care to future homeowners to provide design services...more

Changes Made to the Pennsylvania Mechanics’ Lien Law to Protect Holders of Open-End Mortgages and Residential Property Owners

Mechanics’ liens grant contractors and subcontractors an interest in improvements made to real property to secure the payment obligations of owners to contractors, and of contractors to subcontractors. While these liens...more

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

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