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    Construction Expert Witness Builders Information
    Elgin, Minnesota

    Minnesota Builders Right To Repair Current Law Summary:

    Current Law Summary: Statutory warranties for one-year, two-year and ten-year periods limits types of construction defects actionable under warranty law; This statute (Chapter 327A) limits liability and excludes normal wear and tear, normal shrinkage caused by drying of the dwelling, loss due to insufficient ventilation, loss or damage from negligence, improper maintenance, or alteration to dwelling, loss or damage from failure to maintain or failure to mitigate


    Construction Expert Witness Contractors Licensing
    Guidelines Elgin Minnesota

    Residential contractors need to be licensed. If you work in two or more trades, certain trades will require a license. Call the state for details.


    Construction Expert Witness Contractors Building Industry
    Association Directory
    Rochester Area Builders Inc
    Local # 2465
    108 Elton Hills Lane NW
    Rochester, MN 55901
    http://www.rochesterareabuilders.com

    South Central Builders Association
    Local # 2412
    575 Havana Rd
    Owatonna, MN 55060


    Minnesota River Builders Association
    Local # 2487
    443 Belgrade Avenue
    North Mankato, MN 56003
    http://www.mnrba.com

    Crow River Builders Association Affil w/National Associated Home Builders
    Local # 2424
    PO Box 656
    Hutchinson, MN 55350
    http://www.crbahome.org

    Builders Association of Minnesota
    Local # 2400
    525 Park St Ste 150
    Saint Paul, MN 55103
    http://www.bamn.org

    Builders Association of the Twin Cities
    Local # 2433
    2960 Centre Pointe Drive
    Roseville, MN 55113
    http://www.batconline.org

    West Central Builders Assoc
    Local # 2432
    PO Box 447
    New London, MN 56273
    http://www.westcentralbuilders.com


    Construction Expert Witness News and Information
    For Elgin Minnesota

    BHA Expands Construction Experts Group

    Plaintiff Not Entitled to Further Damages over Defective Decking

    Insurers Reacting to Massachusetts Tornadoes

    Construction Defect Journal Marks First Anniversary

    Background Owner of Property Cannot Be Compelled to Arbitrate Construction Defects

    Appropriation Bill Cuts Military Construction Spending

    No Coverage for Construction Defects Under Alabama Law

    Developer’s Fraudulent Statements Are His Responsibility Alone in Construction Defect Case

    Construction on the Rise in Denver

    Homebuilding on the Rise in Nation’s Capitol

    Statutes of Limitations May be the Colorado Contractors’ Friend

    Follow Up on Continental Western v. Shay Construction

    Boston Tower Project to Create 450 Jobs

    Senate Committee Approves Military Construction Funds

    Nevada Construction Defect Lawyers Dead in Possible Suicides

    Florida Property Bill Passes Economic Affairs Committee with Amendments

    Insurer Rejects Claim on Dolphin Towers

    Ensuing Loss Provision Found Ambiguous

    School Sues over Botched Pool

    Defective Drains Covered Despite Water Intrusion Exclusion

    Restitution Unlikely in Las Vegas Construction Defect Scam

    Insurer Beware: Failure to Defend Ends with Hefty Verdict

    Limiting Plaintiffs’ Claims to a Cause of Action for Violation of SB-800

    Save A Legal Fee? Sometimes You Better Talk With Your Construction Attorney

    Washington Court Limits Lien Rights of Construction Managers

    Ohio Court Finds No Coverage for Construction Defect Claims

    There is No Non-Delegable Duty on the Part of Residential Builders in Colorado

    Lawsuit over Construction Defects Not a Federal Case

    Counterpoint: Washington Supreme Court to Rule on Resulting Losses in Insurance Disputes

    Loose Bolts Led to Sagging Roof in Construction Defect Claim

    Illinois Court Determines Insurer Must Defend Negligent Misrepresentation Claim

    Colorado “occurrence”

    Harmon Hotel Construction Defect Update

    Damron Agreement Questioned in Colorado Casualty Insurance v Safety Control Company, et al.

    HOA Has No Claim to Extend Statute of Limitations in Construction Defect Case

    Homeowners Sue Over Sinkholes, Use Cash for Other Things

    The Year 2010 In Review: Design And Construction Defects Litigation

    Construction Law Client Alert: Hirer Beware - When Exercising Control Over a Job Site’s Safety Conditions, You May be Held Directly Liable for an Independent Contractor’s Injury

    Unfinished Building Projects Litter Miami

    Loss Caused by Seepage of Water Not Covered

    Guilty Pleas Draw Renewed Interest In Nevada’s Construction Defect Laws

    Housing Market on Way to Recovery

    Cabinetmaker Exceeds Expectations as Conditions Improve

    Home Repair Firms Sued for Fraud

    Court Rules on a Long List of Motions in Illinois National Insurance Co v Nordic PCL

    Landmark San Diego Hotel Settles Defects Suit for $6.4 Million

    Seller Cannot Compel Arbitration for Its Role in Construction Defect Case<

    Former New York Governor to Head Construction Monitoring Firm

    No Third-Quarter Gain for Construction

    After $15 Million Settlement, Association Gets $7.7 Million From Additional Subcontractor

    Construction Defect Lawsuits? There’s an App for That

    Building Inspector Jailed for Taking Bribes

    Construction Workers Face Dangers on the Job

    Exclusion Bars Coverage for Mold, Fungus

    Faulty Workmanship Causing Damage to Other Property Covered as Construction Defect

    A Performance-Based Energy Code in Seattle: Will It Save Existing Buildings?

    Minnesota Starts Wide-Ranging Registration of Contractors

    Cleveland Condo Board Says Construction Defects Caused Leaks

    The Complete and Accepted Work Doctrine and Construction Defects

    Construction Delayed by Discovery of Bones

    Construction Jobs Expected to Rise in Post-Hurricane Rebuilding

    Can Negligent Contractors Shift Blame in South Carolina?

    Ninety-Day Extension Denied to KB Home in Construction Defect Insurance Claim

    Virginia Chinese Drywall “property damage” caused by an “occurrence” and number of “occurrences”

    Negligent Misrepresentation in Sale of Building Altered without Permits

    Differing Rulings On Construction Defect Claims Leave Unanswered Questions For Builders, and Construction Practice Groups. Impact to CGL Carriers, General Contractors, Builders Remains Unclear

    Michigan Supreme Court Concludes No Statute of Repose on Breach of Contract

    Insurance Company Must Show that Lead Came from Building Materials

    Demand for Urban Living Leads to Austin Building Boom

    Is There a Conflict of Interest When a CD Defense Attorney Becomes Coverage Counsel Post-Litigation?

    Anti-Concurrent Causation Clause Bars Coverage for Landslide and Water Leak

    Virginia Homebuilding Slumps After Last Year’s Gain

    Homeowners May Not Need to Pay Lien on Defective Log Cabin

    Harmon Towers Duty to Defend Question Must Wait, Says Court

    2011 Worst Year Ever for Home Sales

    Home Builder Doesn’t See Long Impact from Hurricane

    Unlicensed Contractors Nabbed in Sting Operation

    Louisiana Politicians Struggle on Construction Bills, Hospital Redevelopment

    Recent Case Brings Clarity and Questions to Statute of Repose Application

    Montrose Language Interpreted: How Many Policies Are Implicated By A Construction Defect That Later Causes a Flood?

    Policyholder Fails to Build Adequate Record to Support Bad Faith Claim

    Boyfriend Pleads Guilty in Las Vegas Construction Defect Scam Suicide

    Delays in Filing Lead to Dismissal in Moisture Intrusion Lawsuit

    Insurer Not Liable for Construction Defect Revealed by Woodpecker

    Contractors with Ties to Trustees Reaped Benefits from LA Community College Modernization Program

    Claims Under Colorado Defect Action Reform Act Count as Suits

    Insurer Must Cover Construction Defects Claims under Actual Injury Rule

    Park District Sues over Leaky Roof

    Australian Group Seeks Stronger Codes to Combat Dangerous Defects

    Kentucky Court Upholds Arbitration Award, Denies Appeal
    Corporate Profile

    ELGIN MINNESOTA CONSTRUCTION EXPERT WITNESS
    DIRECTORY AND CAPABILITIES

    The Elgin, Minnesota Construction Expert Witness Group at BHA, leverages from the experience gained through more than 5,500 construction related expert witness designations encompassing a wide spectrum of construction related disputes. Leveraging from this considerable body of experience, BHA provides construction related trial support and expert services to Elgin's most recognized construction litigation practitioners, commercial general liability carriers, owners, construction practice groups, as well as a variety of state and local government agencies.

    Construction Expert Witness News & Info
    Elgin, Minnesota

    Defect Claims as Occurrences? Check Your State Laws

    July 10, 2012 — CDJ Staff

    Although four states have defined construction defect claims as occurrences, contractors are still dealing with “coverage gaps for faulty work construction,” says Mike Tsikoudakis in a piece at Business Insurance. He quotes Julian Ehrlich, the senior VP of claims for Aon Risk Services that “one of the interesting and compelling aspects of the issue of coverage for defective construction is that jurisdictions differ, so policyholders don’t know what they’re going to get.” He further notes that “in context of construction defect, the term ‘occurrence’ is ambiguous.”

    One problem, as noted by Jeffrey J. Vita, a partner at Saxe Doernberger & Vita, is that construction firms end up needing to simultaneously defend against defect claims and to also file suit to be certain their insurance firms will cover claims. Insurance for construction defect claims is described as “expensive and somewhat limited.” Mr. Vita expects more states to help this situation with new laws, clarifying what is an occurrence.

    Read the full story…


    Williams v. Athletic Field: Hugely Important Lien Case Argued Before Supreme Court

    June 17, 2011 — Douglas Reiser, Builders Counsel

    Well, it finally made it. The most important Washington lien case of recent memory was argued in front of the Washington Supreme Court on Tuesday, June 14, 2011. So, what should we all expect?

    As I was reading through my RSS feeds this afternoon ? I was stopped dead in my tracks. Williams v . Athletic Field, the Division II case that has been a frequent topic here on Builders Counsel, has finally been argued before the Supreme Court. All of you who have been anxiously awaiting this day, you can check out the Supreme Court submissions by following this link.

    The Williams case has been the center of attention for construction lawyers and construction organizations over the past year. Some have called for complete lien law reform, others have tried to patch a hole in the law. Now, we can expect a ruling from the highest court in the state. That ruling will have a major impact on whether the Legislature feels compelled to change lien law.

    Read the full story…

    Reprinted courtesy of Douglas Reiser of Reiser Legal LLC. Mr. Reiser can be contacted at info@reiserlegal.com


    Fourteen More Guilty Pleas in Las Vegas Construction Defect Scam

    June 19, 2012 — CDJ Staff

    The ongoing case over claims that a group fixed homeowner board elections in order to supply the conspirators with a stream of construction defect cases and repairs has lead to fourteen guilty pleas. The judge recently issued charges against fifteen of the accused; one defendant did not join in the group as he was recovering from pneumonia. The prosecutors have asked the judge to delay sentencing, as the investigation is continuing. Prosecutors note that another dozen people may be indicted.

    Along with an earlier group who plead guilty, this brings the total number of guilty pleas in the case to twenty-five. All have promised to cooperate with authorities.

    The case has also involved four deaths, although authorities have not suspected foul play in the deaths. Nancy Quon, one of the four, was the construction defect attorney suspected to be at the center of the conspiracy.

    Read the full story…


    Florida Appeals Court Rules in Favor of Homeowners Unaware of Construction Defects and Lack of Permits

    December 9, 2011 — CDJ Staff

    The Florida Court of Appeals has ruled that a homeowner is not liable for defects in unpermitted alterations, reversing a lower court’s decision in Jensen v. Bailey. The Jensens sold their house to the Baileys. During the sale, the Jensens filled out a property disclosure statement, checking “no” to a question about “any improvement or additions to the property, whether by your or by others that have been constructed in violation of building codes or without necessary permits.”

    After moving in, the Baileys discovered several problems with the home. One involved a defective sewer connection leading to repeated backups. The Baileys also found problems with remodeling the Jensens had done in the kitchen, master bath, and bedroom. The remodeling work was not done with required permits nor was it up to code.

    The court noted that an earlier case, Johnson v. Davis, established four criteria: “the seller of a home must have knowledge of a defect in the property; the defect must materially affect the value of the property; the defect must not be readily observable and must be unknown to the buyer; and the buyer must establish that the seller failed to disclose the defect to the buyer.” The court found that the first of these criteria was crucial to determining the case.

    In the Johnson ruling, the then Chief Justice dissented, fearing that the courts “would ultimately construe Johnson’s requirement of actual knowledge to permit a finding of liability based on constructive knowledge,” quoting Justice Boyd, “a rule of constructive knowledge will develop based on the reasoning that if the seller did not know of the defect, he should have known about it before attempting to sell the property.” The Appeals Court concluded that the lower court hit this point in ruling on Jensen v. Bailey.

    Citing other Florida cases, the court noted that the Johnson rule does require “proof of the seller’s actual knowledge of the defect.” The court cited a case in which it was concluded that the seller “should have known” that there was circumstantial evidence was that the seller did know about the defects, as the seller had been involved in the construction of the home.

    In the case of the Jensens, the lower court concluded that they did not know that the work was defective, nor did they know that they were obligated to obtain permits for it. The Appeals Court found this one fact sufficient to reverse the decision and remand the case to the lower court for a final judgment in favor of the Jensens.

    Read the court’s decision…


    Ohio Adopts Energy-Efficient Building Code

    June 19, 2012 — CDJ Staff

    In a compromise between environmental groups, who were looking for stricter standards, and homebuilders, who were trying to contain building costs, the state of Ohio has adopted buildings codes that will increase the energy efficiency of new homes. The estimated costs are about $1,100 with estimated annual savings of $230. According to Corey Roblee of the International Code Council, “It’s something needed in the state of Ohio.”

    The Ohio Home Builders Association opposed a proposal to adopt the guidelines of the International Code Council. Builders will be able to either follow the ICC guidelines or they can use the Ohio guidelines to meet the same energy efficiency. Vincent Squillace, the executive vice president of the OHBA, said, “We came up with an equivalent code that’s more strict but is about $2,000 cheaper per home to implement than the original code.”

    The new code will require that at least 75% of lighting must be high efficiency, increases the degree of insulation, and specifies more efficient windows, among other changes.

    Read the full story…


    Florida County Suspends Impact Fees to Spur Development

    November 18, 2011 — CDJ Staff

    Hernando County, just north of Tampa on Florida’s west coast, has suspended impact fees for a year, hoping to spur development. Hernando Today reports that the move drew applause from the audience at the county commissioners meeting. Many of those in attendance were builders or members of the Greater Hernando Chamber of Commerce.

    Not all were convinced. Frankie Burnett, the mayor of Brooksville, told the commissioners that his city council were not convinced that this would spur development. “Development should pay its fair share, even in slow economic times.” Burnett’s letter to the board warned that “if lowering impact fees succeeded in stimulating more residential overbuilding, it would only further depress the current real estate market.”

    Read the full story…


    Texas contractual liability exclusion

    May 18, 2011 — May 18, 2011 - CDCoverage.com

    In Ewing Construction Co., Inc. v. Amerisure Ins. Co., No. C-10-256 (S.D. Tex. April 28, 2011), insured Ewing was the general contractor for an athletic facility constructed for a school district. The school district sued Ewing alleging defective construction of the project. The underlying complaint included contract and negligence causes of action, and sought damages for the repair of the damages and loss of the use of the project. The complaint did not allege damage to any property other than the project itself. Ewing tendered its defense to its CGL insurer Amerisure. Amerisure denied a defense and Ewing filed suit against Amerisure. The federal district trial court entered summary judgment for Amerisure. Applying Texas law, the court held that all of the damages fell within the “contractual liability” exclusion precluding any duty to defend or indemnify.

    Read the full story…

    Reprinted courtesy of CDCoverage.com


    Construction Defect Case Not Over, Despite Summary Judgment

    November 7, 2012 — CDJ Staff

    The Supreme Court of Oregon has concluded in an en banc decision that a motion to reconsider a summary judgment is not a motion for a new trial. In coming to their conclusion the court overturned an earlier Oregon Supreme Court case, Carter v. U.S. National Bank. Although the decision does not bear on construction defects, the underlying case did. Due to the decision, these claims can now be evaluated in a trial.

    The case, Association of Unit Owners of Timbercrest Condominiums v. Warren, came about after an apartment complex was converted into condominium units. The developers hired Big Al’s Construction for some of the remodeling work. The condominium association later sued the developer and the contractor over claims of construction defects. The defendants filed a motion for summary judgment, which the court granted.

    But that wasn’t the end of things. The plaintiff soon filed a “motion to reconsider,” noting that the summary judgment seemed to be in conflict with both law and other recent rulings, and additionally, the grounds for the decision were not in the order. The judge then notified the parties that the court had “pulled the trigger too quickly” and had seven questions for the parties to answer.

    The court dismissed all claims against the defendants. The defendants filed their responses, objecting that that “‘there is no such thing’ as a motion for reconsideration.” Further, while “the rules do allow for post-judgment review of pre-judgment rulings through a motion for a new trial,” the plaintiffs had not filed for a new trial. But did they need one? They did file an appeal.

    The judge in the case admitted that there was no such thing as a motion to reconsider, and felt bad about prematurely signing the judgment. The case was sent to the Court of Appeals to determine if the motion to reconsider was a request for a new trial. The Court of Appeals concurred.

    In reviewing the decision, the Oregon Supreme Court concluded that there were a maximum of three questions to address. Was the motion for reconsideration a motion for a new trial? If so, was the later notice of appeal premature? And if so, was the plaintiff required to file a new appeal? The court determined that the answer to the first question was no.

    Prior decisions pointed to the conclusion “that a motion for reconsideration of a summary judgment amounts to a motion for a new trial,” but here the court concluded that “our prior cases erred,” and turned to the summary judgment rule for clarification. The court noted that “the rule contemplates that summary judgment and trial are separate and distinct events.” With this conclusion, the Oregon Supreme Court remanded the case to the Court of Appeals for further proceedings.

    Read the court’s decision…


    Supreme Court of New York Denies Motion in all but One Cause of Action in Kikirov v. 355 Realty Assoc., et al.

    April 28, 2011 — April 28, 2011 Beverley BevenFlorez - Construction Defect Journal

    In the construction defect suit Kikirov v. 355 Realty Associates, LLC, et al., the Supreme Court of the State of New York granted a dismissal of the plaintiff’s fourth cause of action, but denied the defendants’ motion in all other respects. The plaintiff alleged breach of contract, among other claims. “355 Realty was the sponsor of 355 Kings Highway Condominium, a condominium project located at 355 Kings Highway, in Brooklyn, New York. The condominium units were allegedly marketed as ‘ultra luxury condos,’ and a ‘Manhattan style condominium building,’ which would be the ‘epitome of luxury and quality.’ The construction of the six-story 28 unit residential condominium building began in approximately November 2003. […] Plaintiff entered into a purchase agreement, dated December 21, 2005, with 355 Realty (which was executed on behalf of 355 Realty by Michael Marino, as its member) for the purchase of Unit 2G in the building.”

    The plaintiff alleged that construction defects emerged soon after moving into the unit: “After taking occupancy of his condominium unit, plaintiff allegedly experienced serious leakage and moisture problems in his unit, which caused a dangerous mold condition to develop, in addition to causing actual damage to the structural elements of his unit. According to plaintiff, the walls, moldings, and wood floors of his unit are constantly wet and moist, and there is severe buckling of the wood floors. Plaintiff claims that these problems have caused his unit to be uninhabitable. Plaintiff alleges that he has been forced to remove all of his personal belongings from his unit and has been unable to occupy his unit.”

    According to the plaintiff, Foremost attempted to repair the defects, but only made the situation worse: “Specifically, plaintiff asserts that Foremost’s contractors opened his walls to remove the stained drywall, but never corrected the cause of the leaks, destroyed the walls, and never properly taped and painted the sheet rock. Plaintiff alleges that Foremost repaired the openings in a defective manner. Plaintiff also claims that his floor was repaired at that time by a subcontractor hired by Foremost, but the basic structural problem was never resolved and the leaks continued, compromising the beams and causing the mold conditions, in addition to all of the physical damage present in the unit. On or about July 16, 2009, plaintiff allegedly sent a notice of the defects to 355 Realty and to the managing agent designated by the condominium board, by certified mail, return receipt requested. Plaintiff asserts that defendants have failed and refused to repair and remedy the defective condition, and that the damage is extensive and requires major structural repairs.”

    The plaintiff filed suit on May 4, 2010, and the original complaint asserted eight causes of action. “By decision and order dated September 13, 2010, the court granted a motion by defendants to dismiss plaintiff’s second cause of action for breach of implied covenants of good faith and fair dealing, his third cause of action for breach of implied warranties, his fifth cause of action for negligence as against 355 Realty, Michael Marino, Anthony Piscione, Ahron Hersh, and Toby Hersh, his seventh cause of action for negligence as against Vision, Foremost, and MMJ, and his eighth cause of action for violations of General Business Law § 349 and § 350, and granted plaintiff leave to replead his first cause of action for breach of contract as against 355 Realty, Michael Marino, Anthony Piscione, Ahron Hersh, and Toby Hersh, his fourth cause of action for breach of statutory warranties, and his sixth cause of action for breach of contract as against Vision, Foremost, and MMJ.”

    The plaintiff amended their complaint on October 18, 2010, and “has repleaded these three causes of action by asserting a first cause of action for breach of contract as against 355 Realty, Michael Marino, Anthony Piscione, Ahron Hersh, and Toby Hersh, a second cause of action for breach of statutory warranties, and a third cause of action for breach of contract as against Vision, Foremost, and MMJ. In addition, plaintiff, in his amended complaint, has added a fourth cause of action for fraud.”

    The defendants, on the other hand, “argue that each of the four causes of action alleged by plaintiff in his amended complaint fail to state a claim upon which relief may be granted, and that plaintiff’s amended complaint must be dismissed pursuant to CPLR 3211 (a) (7). Defendants also cite to CPLR 3211 (a) (1), and (5), asserting that dismissal is also required based upon documentary evidence and the Statute of Limitations contained in the limited warranty.” The defendants’ motion to dismiss the first cause of action, breach of contract against 355 Realty, was denied: “While defendants dispute that the alleged defects are actually structural in nature, plaintiff’s allegations as to their structural nature are sufficient, at this juncture, to withstand defendants’ motion to dismiss. Thus, dismissal of plaintiff’s first cause of action must be denied.”

    Next, the court reviewed the second cause of action, which was breach of statutory warranties: “Defendants’ motion also seeks dismissal of plaintiff’s second cause of action for breach of statutory warranties, which alleges that, under applicable law, including General Business Law § 777-a, et seq., the sponsor warranted to purchasers of units that the units would be constructed in a skillful, careful, and workmanlike manner, consistent with proper design, engineering, and construction standards and practices, and free of material latent, design, and structural defects. Defendants argue that General Business Law § 777-a, known as the housing merchant implied warranty, is inapplicable to this case because it is limited to the construction of a ‘new home,’ defined in General Business Law § 777 (5) as ‘any single family house or for-sale unit in a multi-unit residential structure of five stories or less.’ As noted above, the building in which plaintiff’s condominium unit is located is a six-story building.”

    The motion to dismiss the second cause of action is denied. The court provided this reasoning: “the full text of the offering plan has not been provided, the court is unable to examine the entire written agreement so as to determine the purpose of the inclusion of the text of General Business Law § 777.”

    In the third cause of action, the plaintiff alleges “a breach of contract claim as against Vision, Foremost, and MMJ based upon their contract with 355 Realty, pursuant to which they agreed to be the general contractors/construction managers for the condominium, to undertake oversight responsibility for the design and construction of the condominium, to prepare and/or review drawings, plans, and specifications for the condominium, and to otherwise manage and oversee the project. Plaintiff alleges that Vision, Foremost, and MMJ breached their contractual obligations in that the condominium units were improperly and inadequately designed and constructed, and completed in an incompetent and unworkmanlike manner, with material design and construction defects.”

    The motion to dismiss the third cause of action was denied as well: “Plaintiff alleges, in his amended complaint, that Vision, Foremost, and MMJ have acknowledged notice of the defects and have not denied that they are responsible for providing a warranty to plaintiff. Plaintiff also refers to this warranty, in his amended complaint, by noting that paragraph 16 of the purchase agreement stated that the ‘[s]eller shall not be liable to . . . the [p]urchaser for any matter as to which an assignable warranty . . . has been assigned . . . to [p]urchaser and in such case the sole recourse of such . . . [p]urchaser . . . shall be against the warrantor . . . except that in the event a contractor or subcontractor is financially unable or refuses to perform its warranty . . . [s]eller shall not be excused from its obligations enumerated in the [offering p]lan under Rights and Obligations of Sponsor.’ Consequently, the court finds that dismissal of plaintiff’s third cause of action as against Foremost and MMJ must also be denied.”

    In the fourth cause of action, the plaintiff alleges “that defendants made false statements and representations orally, in advertisements, and in the purchase agreement, that the condominium was properly and adequately designed and constructed and completed in a competent and workmanlike manner, in accordance with the condominium plans and specifications and proper design, engineering, and construction standards and practices consistent with applicable standards for a first class, luxury condominium in Brooklyn.”

    The court dismissed the fourth cause of action stating, “it must be dismissed because it is duplicative of his first cause of action for breach of contract.” Therefore, “defendants’ motion to dismiss plaintiff’s amended complaint is granted to the extent that it seeks dismissal of plaintiff’s fourth cause of action, and it is denied in all other respects.”

    Read the court’s decision…

    Court Voids Settlement Agreement in Construction Defect Case

    September 1, 2011 — CDJ Staff

    A U.S. District Court Judge in Florida has ruled in favor of a company that sought to void a settlement agreement. The case, Water v. HDR Engineering, involved claims of construction defects at Florida’s C.W. Bill Young Regional Reservoir. The Tampa Bay Water Authority attributed these to both HDR Engineering’s design and Bernard Construction Company which had built the embankment. Bernard Construction filed a complaint against their subcontractor, McDonald.

    Tampa Bay Water settled with Bernard Construction and McDonald, in an agreement that set a minimum and maximum settlement, but also would “prohibit Barnard and McDonald from presenting any evidence on several claims and positions of TBW, to require Barnard to call certain witnesses at trial, to preclude Barnard and McDonald from calling other witnesses, and to restrict the filing of trial and post-trial motions.” HDR Engineering moved to void the agreement as collusive.

    The judge that the agreement¬? contained “133 paragraphs of ‘Agreed Facts’ that the parties stipulated would survive any order declaring the Settlement Agreement void or unenforceable.” He characterized these as stipulating “that Barnard neither caused nor contributed to TBW’s damages.” HDR motioned that a summary judgment be given to Barnard Engineering.

    The court found that “the evidence identified by TBW is patently insufficient to survive summary judgment.” Further, TBW’s expert initially held Barnard responsible for “lenses, pockets, streaks and layers within the embankment,” but then later withdrew this assigning the responsibility to HDR. Further, the court notes that, “TBW’s arguments that lenses, pockets, streaks, and layers in the soil wedge caused or contributed to its damages and that Barnard is liable for those damages have been foreclosed by the Agreed Facts.”

    As TBW failed to provide sufficient evidence to withstand summary judgment, the court granted summary judgment, mooted the claim against McDonald, and terminated the agreement between TBW and the other parties.

    Read the court’s decision…


    Fifth Circuit Reverses Insurers’ Summary Judgment Award Based on "Your Work" Exclusion

    November 18, 2011 — Tred Eyerley, Insurance Law Hawaii

    Application of the facts to the "your work" exclusion was the key to resolving coverage issued in Am. Home Assurance Co. v. Cat Tech L.L.C., 2011 U.S. App. LEXIS 21076 (5th Cir. Oct. 5, 2011).

    Ergon Refining, Inc. hired Cat Tech L.L.C. to service a hydrotreating reactor. In January 2005, Cat Tech replaced certain parts in the reactor. After Cat Tech finished the job and left, Ergon noticed a high pressure drop in the reactor, forcing it to be shut down. Cat Tech returned in February 2005, removed, repaired and replaced the damaged parts, and loaded new parts. After completion, a second large pressure drop occurred during the reactor’s start-up process. The reactor was shut down until October 2005, when Ergon hired a different contractor to perform the repair work. Additional damage to the reactor was found.

    Read the full story…

    Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com


    Conspirators Bilked Homeowners in Nevada Construction Defect Claims

    March 28, 2012 — CDJ Staff

    Courthouse News has a summary of the current lawsuit over a Nevada conspiracy to defraud homeowners by taking control of homeowner boards and then providing inadequate repairs. Homeowners in eight Las Vegas area communities are involved in the suit, which claims that the conspirators purchased units in the communities and then transferred fractional interests to others to allow them to run for HOA board elections. The suit claims that David Amesbury and his firm helped manipulate the elections.

    Once homeowner boards were controlled by the conspirators, Nancy Quon, the construction defect attorney whose recent death appears to be by suicide, handled the litigation against homebuilders. She would settle out of court, engaging Silver Lining Construction to “do very minor and superficial repairs” to the homes. The remainder of the money was split by the conspirators. The suit also notes that the construction defect claims were “frivolous,” and?in addition to the negative publicity?caused the homes to lose at least 5% of their value.

    Read the full story…


    Good Signs for Housing Market in 2013

    December 20, 2012 — CDJ Staff

    Dan Green, a loan officer at Waterstone Mortgage, is optimistic about the construction market in 2013. He notes that the rise in building permit, housing starts, and housing completions are all good signs. Mortgage rates are still low, making these new homes attractive to buyers.

    Read the full story…


    Denver Court Rules that Condo Owners Must Follow Arbitration Agreement

    November 7, 2012 — CDJ Staff

    Prior to initiating a construction defect lawsuit, the Glass House Residential Association voted to invalidate the arbitration agreement that had been written into its declaration and bylaws by the developer and general contractor. After the association started their construction defect claims, the developer and general contractor argued that the case must go to arbitration, as the arbitration clause contained a provision that it could not be altered without the agreement of the developer and general contractor.

    The Denver District Court has ruled against that association, determining that the res triction was not in violation of Colorado condominium law. And, as a post from Polsinelli Shughart PC on JDSupra notes, the Colorado Common Interest Ownership Act encourages the use of arbitration procedures to settle disputes. The CCIOA does prohibit “certain restrictions on the homeowners association’s ability to amend the condominium declarations,” however, preserving an arbitration agreement is not one of them.

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    Texas covered versus uncovered allocation and “legally obligated to pay.”

    April 27, 2011 — April 27, 2011, by CDCoverage.com

    In Markel American Ins. Co. v. Lennar Corp., No. 14-10-00008-CV (Tex. Ct. App. April 19, 2011), insured homebuilder Lennar filed suit against its insurer Markel seeking recovery of costs incurred by Lennar to repair water damage to homes resulting from defective EIFS siding. Following a jury trial, judgment was entered in favor of Lennar and against Markel. On appeal, the intermediate appellate court reversed. Applying Texas law, the court first held that Lennar failed to satisfy its burden of allocating damages between covered and uncovered. In a prior decision, the court had held that, while the costs incurred by Lennar for the repair of the resulting water damage

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    Reprinted courtesy of CDCoverage.com


    Boyfriend Pleads Guilty in Las Vegas Construction Defect Scam Suicide

    November 7, 2012 — CDJ Staff

    One of the odder twists of the Las Vegas construction defect scandal was the charge that Nancy Quon’s boyfriend helped her in an initial suicide attempt. Quon, implicated by not charged in the case of taking control of homeowner boards in order to profit from construction defect settlements. William Webb was alleged to have bought the drug GBH in order to allow Quon, his girlfriend, to commit suicide. Ms. Quon later overdosed on a combination of alcohol and prescription drugs.

    In addition to pleading guilty to the drug charges, Webb also made a plea bargain with prosecutors in which he did not admit guilt in an insurance fraud charge, but acknowledged that prosecutors would likely be successful at obtaining a conviction. Webb will be sentenced February 7 and is expected to receive a sentence of six years imprisonment.

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    Louisiana Politicians Struggle on Construction Bills, Hospital Redevelopment

    June 16, 2011 — CDJ Staff

    Louisiana politicians are still working on a compromise in the state’s construction budget, as reported in the Times-Picayune. Rob Marrianneax, the chair of the Senate Revenue and Fiscal Affairs Committee, removed a $45 million request from Governor Bobby Jindal and added $4 million for projects that Jindal vetoed last year.

    Two senators have formed competing plans to fund redevelopment construction for New Orleans’s Methodist Hospital. Mitch Landrieu, the mayor of New Orleans, hoped for $30 million dollars in state bonds. Senator Cynthia Willard-Lewis proposed an amendment that would supply $1.6 million, while Senator J.P. Morrell has an amendment that would supply $4 million.

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    Plaintiffs In Construction Defect Cases to Recover For Emotional Damages?

    March 16, 2011 — March 16, 2011 - Construction Defect Journal Staff

    A recent post to the Markusson, Green, Jarvis Blog reports on an important appeals decision which promises to impact construction defect litigation in Colorado.

    The post provides analysis on the recovery of inconvenience damages. The focus of the piece is centered on Hildebrand v. New Vista Homes II, LLC, 08CA2645, 2010 WL 4492356 (Colo. Ct. App. Nov. 10, 2010), wherein it was held that " the plain language of Construction Defect Action Reform Act permits recovery of damages for inconvenience, and that the trial court did not err by allowing inconvenience damages to go to the jury".

    According to the MGJ Blog "The Hildebrand decision is important because it provides Construction Defect Plaintiffs with a foothold for collecting emotional damages. While several questions of law remain as to who or under exactly what circumstances a Plaintiff may recover these types of damages, the Hildebrand case has clearly set forth that emotional damages may be considered as part of actual damages pursuant to CDARA."

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