Construction Defects

News & Analysis as of

No Escape from Duty to Defend By Escape Clause

Underwriters of Interest Subscribing to Policy Number A15274001 v. ProBuilders Specialty Insurance Company - Court of Appeal, Fourth Appellate District (October 23, 2015) - The California Fourth Appellate District...more

Denver City Council Advances Construction Defect Ordinance

The Denver City Council on November 16, 2015 unanimously approved the first reading of a construction defect action reform ordinance designed to spur condominium development in Denver. Like Lakewood and other metro-area...more

Court Compels Arbitration But Refuses To Stay Parallel State Action

The district court of South Carolina granted National Home Insurance Company’s (“National”) motion to compel arbitration in a dispute over new home defects. Home Buyers Warranty Corporation (“HBW”) manages a program for home...more

Vermont Supreme Court Collapse Case Underscores Danger of Insuring Against the “Risk” of a Peril

Three months ago in Equinox on the Battenkill Mgmt. Ass’n. v. Philadelphia Indem. Ins. Co., 2015 VT 98 (Vt., Aug. 7, 2015), Vermont’s highest court held that a policy insuring against the “risks of . . . collapse” affords...more

Insurance Recovery Law - November 2015

Despite Prior Suits, Policyholder Entitled to Coverage for DOJ Investigation - Why it matters: A policyholder was entitled to coverage for a Department of Justice (DOJ) investigation despite already facing possibly...more

Provide Notice (and 10 Other Tasks) When Pursuing a Construction Claim

When dealing with construction claims—whether one for construction defects, outstanding payment, or delay damages—an initial hurdle is making sure that proper notice has been given. Generally, you have to make sure that you...more

Property Subrogation Alert: Potential Property Subrogation Opportunities in South Carolina Related to the Recent Historic Rainfall...

In light of the recent historic rainfall and flooding in South Carolina, Nexsen Pruet’s property subrogation and recovery team would like to advise you of potential subrogation opportunities that may otherwise go overlooked....more

Restrictions on Condominium Conversions

Now that the recession is beginning to become a memory of the past, the demand for housing is on the rise, and with it is the explosive interest in the multifamily market. As more Americans are choosing to marry later and...more

Risk or Reward? Using Drones on Your Construction Project

In this week’s issue of ENR, technology writer Luke Abaffy details the use of drones by Minnesota Department of Transportation (MnDOT) to conduct bridge inspections....more

Insurers Beware: Respond Promptly or Lose the Right to Control the Defense

The tables may be turning. Insurers often seek to avoid their coverage obligations by invoking time limitations in their policies for providing claim notifications. On the other hand, these same insurers routinely take their...more

Project In(Site): Legal Developments Impacting Construction & Government Contract Industries

Welcome to the inaugural issue of Project In(Site), Seyfarth’s Construction and Government Contracts practice groups’ publication focusing on decisions or other items of interest for construction and government contract...more

Construction Defect – Pre-Litigation Procedures of the “Right to Repair Act”

McMillin Albany LLC, et al. v. The Superior Court of Kern County - California Court of Appeal, Fifth Appellate District (August 26, 2015) - Civil Code section 896 (§ 896) is part of a statutory scheme commonly...more

Florida to Decide What Test Applies When Concurrent Multiple Perils Cause a Loss

For years, Florida courts have been seesawing between two different doctrines to determine whether there is coverage under a property policy when two perils – one excluded and one included — combine to cause a loss. Two...more

The Right to Repair Act Isn’t Out for the Count, Yet. Homebuilders Fight Back

The Little Case That Roared - Two years ago we 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 (2013) – in...more

Construction Case Law Update - September 15, 2015

Home Sales, Disclosing Defects - Home purchasers appealed summary judgment granted in favor of sellers regarding claims of defects that had a material adverse effect on the property’s value pursuant to Johnson v. Davis, 480...more

Newly Paved Path for Asserting Construction Defect Claims in Florida

Florida Governor Rick Scott signed HB 87 into law, codified at ch. 2015-165, which amends the notice and opportunity to cure provisions of Chapter 558, Florida’s Construction Defect Statute. These amendments will go into...more

California Court of Appeal affirms vitality of California’s Right to Repair Act (SB 800) against construction defect claims

The California Court of Appeal, Fifth District, issued a published opinion last week holding that California’s Right to Repair Act (Act, commonly known in the homebuilding industry as SB 800, applies to all claims by...more

The Importance Of 'The' In Crafting Insurance Exclusions

A mason who performed work on a residential project was notified in 2006 that cracks had developed in his work. Several months later, the mason purchased a commercial general liability policy that expressly excluded coverage...more

Allocation Of Covered And Uncovered Claims: Recent Decisions On Burden Shifting And Pre-Approval Requirements

Ongoing efforts by insurers to recover amounts paid for uninsured losses after settlement or judgment have resulted in extensive litigation over allocation issues. Conflicting opinions have arisen over which party bears the...more

Insurance News, Summer 2015

The U.S. Senate Commerce Committee asked Michael Menapace to testify as an expert witness at a hearing called by the Subcommittee on Consumer Protection, Product Safety, Insurance and Data Security entitled, "Examining the...more

New Texas Law Lists Requirements for Condominium Defect Litigation

The Texas Legislature recently passed House Bill 1455 which addresses defect and design claims relative to condominiums and condominium associations. Among the key issues are a series of new steps that must be accomplished...more

Homebuilders Welcome Recent Court Decisions

Arizona homebuilders will welcome with open arms two recent legal rulings of substantial impact to their industry. In the first decision, on July 28, 2015, in Sullivan v. Pulte Home Corp., No. 1 CA-CV 14-0199, the Arizona...more

McMillin Albany, LLC v. Superior Court Rejects Reasoning and Outcome of Liberty Mutual on SB800

In McMillin Albany, LLC v. Superior Court (available here), the Fifth Appellate District of the California Court of Appeal held that SB800 (Civil Code sections 895 through 945.5, the “Right to Repair Act”) is the only remedy...more

Reports of the Death of SB800 are Greatly Exaggerated – The Court of Appeal Revives Mandatory SB800 Procedures

In a 20 page opinion, the Court of Appeal for the Fifth District repudiated the holding of Liberty Mutual Insurance Co. v. Brookfield Crystal Cove, LLC (2013) 219 Cal.App.4th 98 (“Liberty Mutual”), and held that plaintiffs in...more

California Court of Appeal allows construction defect class action to proceed against homebuilders

In an unpublished decision on August 19, the California Court of Appeal, Fourth District, reinstated a class action asserting construction defect claims against a nationwide homebuilder. The case is located at 2015 WL...more

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