News & Analysis as of

Construction Defects

Ninth Circuit Holds That Despite ‘Known Damage’ Exclusion Insurer Had Duty Under Oregon Law to Indemnify and Defend Contractor...

by Pepper Hamilton LLP on

Alkemade v. Quanta Indem. Co., 2017 U.S. App. LEXIS 6896 (9th Cir. Apr. 20, 2017) - In 1994, Adrianus and Rachelle Alkemade (the “Alkemades”) bought a house from Meltebeke Built Paradise Homes (“Meltebeke”). The home was...more

Amendment Adds Clarity to Florida's Construction Statutes of Limitations and Repose

by Rumberger Kirk & Caldwell on

On June 14, 2017, Florida’s Governor signed into law House Bill 377, which seeks to provide clarity to when Florida’s construction statutes of limitations and repose begin to run. The existing version of the statute, §...more

Projects Disputes in Australia: Recent Cases

by Jones Day on

Since late last year, there have been several major decisions from Australia's highest courts on important issues for stakeholders in the construction, mining and infrastructure industries. Below, we provide a summary. Some...more

Developer bonds and defect inspection regime postponed again

by Dentons on

The NSW Government has again postponed the commencement of the new developer bond and defect inspection regime under Part 11 of the Strata Schemes Management Act 2015 (Act). The regime was proclaimed to commence on 1 July...more

Minnesota Legislature Modifies its Condominium Construction Defect Law

by Faegre Baker Daniels on

Condominium construction in Minnesota has dramatically slowed since its peak from 2003 through 2006. Most developers have elected to build apartments instead of condominiums. This imbalance has been partly driven by the...more

Construction Advisory: Colorado Supreme Court Affirms Developer’s Right to Consent to Removal of Mandatory Arbitration Provision...

by Sherman & Howard L.L.C. on

On June 5, 2017, the Colorado Supreme Court gave developers and contractors another reason to consider jumping back into the condominium construction market. By upholding the Colorado Court of Appeals decision in the Vallagio...more

Interpreting clause 10.1 of the NEC to escape a time bar clause

by Dentons on

Relying on the role of “mutual trust”, “co-operation” and “good faith” to permit fair and equitable judgments is dangerous. It leads to uncertainty and opens the floodgates to pointless litigation....more

Vallagio Ruling Favorable for Condominium and Planned Community Developers

On June 5, 2017, the Colorado Supreme Court issued its eagerly anticipated ruling in Vallagio at Inverness Residential Condominium Association, Inc. v. Metropolitan Homes, Inc., et.al. (217 CO 69) (“Vallagio”). In its 5-2...more

New Requirements Under MCIOA: Preventative Maintenance Plans and Construction Defect Claims

by Hellmuth & Johnson PLLC on

Important changes to Minnesota law were recently made that will affect real estate developers, builders, associations and unit owners. Minnesota Statutes Chapter 515B, the Minnesota Common Interest Ownership Act (“MCIOA”),...more

Construction Advisory: Governor Signs Construction Defects Reform

by Sherman & Howard L.L.C. on

On May 23, 2017, Governor Hickenlooper signed House Bill 17-1279 (“HB 1279”) into law, which applies to all construction defect actions filed on or after that date. With the adjournment of the 2017 Colorado General Assembly...more

Waiver of Attorney-Client Privilege in Bad Faith Litigation

by Nexsen Pruet, PLLC on

The United States District Court has confirmed in a recent decision that in most circumstances, the attorney-client privilege will be waived in bad faith litigation in South Carolina. In Contravest, Inc. v. Mt. Hawley Ins....more

Absolute Pollution Exclusion—Not So Absolute

by Perkins Coie on

Slapping insurers with breach of contract and bad faith, Washington state’s highest court recently found that a general liability policy’s so-called “absolute” pollution exclusion may not be so absolute. In Xia et al. v....more

Illinois Appellate Court Attempts to Draw the Line Between Contract and Quasi-Contract; Holds That Quantum Meruit Is Only...

by Pepper Hamilton LLP on

Archon Construction Co. v. U.S. Shelter, LLC, 2017 Ill. App. LEXIS 197 (March 31, 2017) - U.S. Shelter, LLC, a developer, undertook to develop a new residential subdivision in Elgin, Illinois. As part of that project,...more

Attention Contractors: The Right to Cure Act may still be alive!

by Nexsen Pruet, PLLC on

Perhaps you forgot about it, or maybe you just gave up on it; regardless, you will be happy to hear that the Right to Cure Act just may be alive. In an Order dismissing Plaintiffs’ claims, entered in the Charleston County...more

Third Appellate District Holds Right to Repair Act Precludes Certain Common Law Claims for Damages Caused by Construction Defects

In Gillotti v. Stewart (No. C075611, filed 4/26/17, publication order 5/18/17), the California Court of Appeal for the Third Appellate District held that the Right to Repair Act, Civil Code section 895, et seq. (the “Act”)...more

Colorado Construction Defect Action Reform: HB 17-1279 Approved by Colorado Legislature; Governor’s Approval Imminent

by Snell & Wilmer on

Colorado developers frequently cite Colorado’s Construction Defect Action Reform Act (CDARA) as an obstacle to building new condominiums in the state. Developers contend that the law makes it too easy for condo boards to sue...more

Colorado State Legislature Finally Passes Construction Defects Reform Legislation

In a dramatic and seemingly overnight change of course, the Colorado House of Representatives unanimously approved House Bill 1279 on April 24, 2017. Days later, on May 4, 2017, HB 1279 passed unanimously in the Colorado...more

Maryland Senate Fails To Consider Bill Passed By House To Preclude Limitations On Construction Defect Claims

by Baker Donelson on

The Maryland Senate failed to vote on SB 670, which would prevent condominium developers from limiting the ability of the council of unit owners and individual unit owners to bring claims for building defect issues. The...more

Construction Alert: "When Is It Cool Not to Pay? Fridge Dispute at Texas Supreme Court Addresses Prior Material Breach Doctrine"

by Porter Hedges LLP on

The Texas Supreme Court recently issued an opinion that could impact the next construction project where multiple parties complain about who breached (and who breached first) and whether the parties must continue performing...more

Colorado Appellate Court Holds that Commercial Entity that Owns a Senior Living Facility Is a “Residential Property Owner” Within...

by Pepper Hamilton LLP on

Broomfield Senior Living Owner, LLC v. R.G. Brinkmann Co., 2017 Colo. App. Lexis 261 (March 9, 2017) - R.G. Brinkmann Company, as general contractor, was retained by Sunrise Development, Inc., a major national developer,...more

Alleged Violations of Florida Building Code Not Subject to Class Treatment

by Carlton Fields on

Two couples who own homes in central Florida attempted to bring a class action against a homebuilder, stemming from alleged violations of Florida’s building code. Section 553.84, Florida Statutes, provides for such a private...more

Insurance Coverage for Property Damage Caused by Defective Workmanship

by Pepper Hamilton LLP on

One of the principal points of contention between insurers and insureds is whether defective construction work is, or can be, an occurrence, thereby triggering coverage. Originally published in ConsensusDocs (Vol. 3,...more

Construction Advisory: Passage, Defeat, and Uncertainty: The Colorado General Assembly Tackles Construction Defect Reform in the...

by Sherman & Howard L.L.C. on

The Colorado General Assembly is heading towards the conclusion of this year’s legislative session. Although one construction defect bill, House Bill 1279, passed the House and is expected to pass the Senate, most bills have...more

No Negligence? No Causation? No Problem. Arizona Appellate Court Holds General Contractor Need Not Prove Subcontractor’s...

by Pepper Hamilton LLP on

Amberwood Dev., Inc. v. Swann’s Grading, Inc., No. 1 CA-CV 15-0786, 2017 Ariz. App. Unpub. LEXIS 207 (Ct. App. Feb. 23, 2017) - This case arose out of a housing development project, with Amberwood Development Inc....more

These Class Action Lawyers Made Their Fees The Old-Fashioned Way. They Earned Them!

by Brooks Pierce on

It's not very often that I see a fee application in a settled class action in the Business Court that doesn't strike me as requesting approval of an overpayment for a less than successful result. Those are most often in the...more

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