Construction Defects

News & Analysis as of

Think Twice About Heading to Court with a Construction Claim

Always take a two step approach to every construction claim. The first step is do you have some likelihood of winning. The second is do you have a likelihood of collecting. Regardless do your homework and grab the...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

News for Contractors and Construction Lenders in Arizona and Nevada – The Contractors' Lien May Trump the Bank's

In addition to an arid climate and plenty of sunshine, Arizona and Nevada have something more to offer contractors: a potentially advantageous position over lenders when a project goes bad. When a project derails and...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

When Is a Construction Defect a Mere Business Risk and Not Insurable?

In an unpublished appellate decision from the state of Washington, on May 5, 2014, the Washington Court of Appeals affirmed a summary judgment in favor of a CGL insurer, Western National Assurance, relieving it of any...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

Policyholders Must Be Vigilant for Construction Defect Exclusions, Including For Impaired Property to Combat Insurance Companies’...

Continuing the most recent trend in coverage litigation, insurance companies are increasingly engaging “Big Law” firms to develop legal arguments for narrower interpretation of their policies when troublesome claims threaten...more

Summary of California Appellate Decisions - June 2014

Insurance Coverage; Professional Services Exclusion; Completed Operations; Duty To Defend: North Counties Engineering, Inc. v. State Farm General Insurance Company (2014) 224 Cal.App.4th 902, 169 Cal.Rptr.3d 726...more

A perspective on the continuing saga of construction defects law

Ever since 2003, when comprehensive legislation was passed to address abuses in the pursuit by the plaintiff’s bar of windfalls from massively overstated litigation claims regarding alleged construction defects in the...more

More Legal Developments for the Construction Industry in the Southeast

Alabama - The Alabama Supreme Court reversed itself and concluded that faulty workmanship can constitute an “occurrence” under a commercial general liability insurance policy which triggers coverage for the insured. In a...more

New York and New Jersey Hold Fast to No “Occurrence” for Faulty Workmanship Claims

During the past year, five state supreme courts (Alabama, Connecticut, Georgia, North Dakota and West Virginia) have found that faulty workmanship by a construction contractor or subcontractor can be a covered “occurrence.”...more

Construction Defect Disputes and the Abandoned Policyholder: Getting the Carrier to the Table

There is much that can go wrong in any large construction project: improper installations, defective products, errors and omissions made by designers, unexpected site conditions—the list is long. Insurance coverage or a...more

Is Defective Construction an “Occurrence”? More States Are Answering Yes

Last year, we examined the different approaches states have adopted to resolve whether defective construction by itself is an “occurrence” within the meaning of liability insurance policies. See Is Defective Construction...more

Feds Report On Chinese Drywall Brings Both Vindication And Deep Frustration To Florida Homeowners

Feds Report On Chinese Drywall Brings Both Vindication And Deep Frustration To Florida Homeowners. A report from the CDC confirms what thousands of Floridans suffering financial distress and medical problems have known for...more

General Contractor May Be Liable for Subcontractor’s Failure to Assign Work as Required by Project Labor Agreement

In Sheet Metal Workers Int’l Ass’n Local Union No. 27 v. E.P. Donnelly, Inc., the United States Court of Appeals for the Third Circuit (the court supervising federal trial courts in Pennsylvania, Delaware, and New Jersey)...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

Alabama Supreme Court Clarifies Position on Construction Coverage Question: Damage to Contractor’s Work Resulting from Faulty...

In an important decision for policyholders in the construction business, the Supreme Court of Alabama recently clarified that Alabama law is in accord with the growing majority of jurisdictions finding coverage for property...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

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

General Contractors Beware: Coverage Under Additional-Insured Endorsement to Subcontractor’s CGL Policy May End When...

Within the past four months, two courts interpreting Mississippi law have held that an additional-insured endorsement to a subcontractor’s commercial general liability (CGL) insurance policy did not obligate the insurer to...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

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

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