News & Analysis as of

Construction Defects

Can Insurers Take Their Time? - Fourth Circuit Finds No Bad Faith for Delay in Investigating Construction Defect Claim

by Nexsen Pruet, PLLC on

Construction defect claims often include coverage disputes spiced with allegations of bad faith designed to turn up the heat on the insurer. The Fourth Circuit, in its review of one such recent North Carolina case, held while...more

California Court of Appeal: Inserting The Phrase “Ongoing Operations” In An Additional Endorsement Is Not Enough to Preclude...

In a victory for additional insureds, a California appeals court held, in Pulte Home Corp. v. American Safety Indemnity Co., Cal.Ct.App. (4th Dist.), Docket No. D070478 (filed 8/30/17), that an insurer’s denial of coverage...more

Appeals Court Finds Manuscript Additional Insured Endorsements Ambiguous Regarding Completed Operations Coverage for Additional...

In Pulte Home Corp. v. American Safety Indemnity Co. (No. D070478; filed 8/30/17), a California appeals court found that manuscript additional insured endorsements on construction subcontractors’ policies were ambiguous...more

Is the Retroactive Statute of Repose for Construction Defect Claims Constitutional?

by Payne & Fears on

With the February 24, 2015, enactment of Assembly Bill 125 (2015 Nevada Laws, Ch. 2), much has changed in the world of residential construction defect litigation. One of the most dramatic shifts has been the reduction of the...more

Probability and non-probability sampling: innovative tools of truncating evidence in complex construction disputes

by Dentons on

Probability sampling is a well-established technique used to reduce the costs in lengthy and complex construction disputes. Properly applied, it is a truly innovative tool of truncating evidence in construction disputes. But,...more

Superior Court Explains The Personal Participation Doctrine

by Morris James LLP on

The Washington House Condominium Association Of Unit Owners v. Daystar Sills Inc., C.A. N15C-01-108 WCC CCLD (August 8, 2017) - When is a corporate employee responsible for tortious conduct in that capacity? This decision...more

Claim Barred by Florida's Construction Defect Statute of Repose? Maybe Not. Florida Court Says You Should Read The Construction...

Claim professionals are often reminded that even the most meritorious claim is worthless if not filed within the applicable statute of limitations or statute of repose. In the world of construction defect claims, Florida law...more

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

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