News & Analysis as of

Construction Defects

Connecticut Appellate Court Holds That Owner’s Loss in Arbitration to General Contractor on Claims of Defective Work Operates as...

by Pepper Hamilton LLP on

Girolametti v. Michael Horton Assoc., 2017 Conn. App. Lexis 228 (June 6, 2017) - A General Contractor brought claims for unpaid added work, via mandatory arbitration, against a building owner who asserted defective work...more

New Definition for Term "Completion" in Florida for Construction Defect Lawsuits

by Miller & Martin PLLC on

For those that perform work in Florida, the Florida legislature updated the law pertaining to when construction defect lawsuits must be brought. While the Statute of Limitations for construction defect cases is four years,...more

In Supreme Court Showdown, California Appeals Courts Choose Sides Regarding Whether Right to Repair Act is Exclusive Remedy for...

Earlier, we wrote about an appellate court split concerning the Right to Repair Act (Civil Code sections 895 et seq.) which applies to construction defects in newly constructed residential properties including single-family...more

Use It or Lose It: California Court of Appeal Addresses Statutes of Limitations for Latent Construction Defects and Damage to Real...

The First Appellate District of the California Court of Appeal recently confirmed California’s latent defect statute of limitations, codified in California Code of Civil Procedure section 337.15, bars only claims based on...more

The Continuing Saga of Sebo v. American Home Assurance Company: The Second District Court of Appeal Rules on Remand

On July 20, 2017, the Second District Court of Appeal issued an order that closed its books on the Sebo appeal. Mr. Sebo made a homeowner’s claim to American Home contending construction deficiencies had allowed water to...more

The Importance of Careful Coverage Analysis

Ohio has joined the majority of jurisdictions in holding that a general liability policy may provide coverage for claims made by a project owner for property damage allegedly caused by the defective work of a subcontractor....more

Florida’s Legislature Moves to Overrule Appellate Decision Regarding the Statute of Repose

by Cozen O'Connor on

Statutes of limitations and statutes of repose limit the length of time within which a cause of action may be brought. Unlike a statute of limitations, which begins to run after a loss occurs, a statute of repose for a...more

2016: A Busy Year for the Supreme Court of Virginia, Including 2 Significant Decisions for the Construction Industry

by Williams Mullen on

If you are a design professional providing services in Virginia, or a general contractor on a public works project for the Commonwealth of Virginia, you need to know of two Virginia Supreme Court decisions in 2016. You ask...more

Minnesota Legislature Revises Minnesota Common Interest Ownership Act

by Stinson Leonard Street on

In recent years, very few condominium projects have been developed in Minnesota despite strong demand from potential condominium homeowners. Many developers attribute their reluctance to build condominiums to litigation risk...more

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

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