BERT HOWE
  • Nationwide: (800) 482-1822    
    custom homes Iron County Utah Subterranean parking Iron County Utah tract home Iron County Utah office building Iron County Utah concrete tilt-up Iron County Utah condominiums Iron County Utah multi family housing Iron County Utah production housing Iron County Utah institutional building Iron County Utah high-rise construction Iron County Utah Medical building Iron County Utah custom home Iron County Utah townhome construction Iron County Utah low-income housing Iron County Utah hospital construction Iron County Utah landscaping construction Iron County Utah mid-rise construction Iron County Utah housing Iron County Utah industrial building Iron County Utah retail construction Iron County Utah structural steel construction Iron County Utah condominium Iron County Utah
    Arrange No Cost Consultation
    Construction Expert Witness Builders Information
    Iron County, Utah

    Utah Builders Right To Repair Current Law Summary:

    Current Law Summary: Case law precedent


    Construction Expert Witness Contractors Licensing
    Guidelines Iron County Utah

    Commercial and Residential Contractors License Required.


    Construction Expert Witness Contractors Building Industry
    Association Directory
    Iron County Home Builders Association
    Local # 4695
    PO Box 368
    Cedar City, UT 84721
    http://www.ichba.org

    Southern Utah Home Builders Association
    Local # 4623
    2303 N Coral Canyon Blvd Ste 200
    Washington, UT 84780
    http://www.suhba.com

    Central Utah Home Builders Association
    Local # 4674
    PO Box 27
    Ephraim, UT 84627
    http://www.cuhba.com

    Utah Valley Home Builders Association
    Local # 4670
    1443 W 800 N Ste 103
    Orem, UT 84057
    http://www.uvhba.com

    Home Builders Association of Utah (state)
    Local # 4600
    9069 South 1300 West
    West Jordan, UT 84088
    http://www.utahhba.com

    Salt Lake Home Builders Association
    Local # 4655
    9069 S 1300 W
    West Jordan, UT 84088
    http://www.slhba.com

    Park City Area Home Builders Association
    Local # 4690
    PO Box 980850
    Park City, UT 84098
    http://www.pcahba.com


    Construction Expert Witness News and Information
    For Iron County Utah

    Contractor Sues Supplier over Defective Products

    Contractor Manslaughter? Safety Shortcuts Are Not Worth It

    Construction Company Head Pleads Guilty to Insurance and Tax Fraud

    Supreme Court of Oregon Affirms Decision in Abraham v. T. Henry Construction, et al.

    Good and Bad News on Construction Employment

    Subcontractor Not Liable for Defending Contractor in Construction Defect Case

    Homeowners Not Compelled to Arbitration in Construction Defect Lawsuit

    Pennsylvania Court Extends Construction Defect Protections to Subsequent Buyers

    High School Gym Closed by Construction Defects

    Construction on the Rise in Washington Town

    Insurer Able to Refuse Coverage for Failed Retaining Wall

    Florida County Suspends Impact Fees to Spur Development

    San Diego Construction Defect Claim Settled for $2.3 Million

    Defect Claims as Occurrences? Check Your State Laws

    Cogently Written Opinion Finds Coverage for Loss Caused By Defective Concrete

    Failure to Meet Code Case Remanded to Lower Court for Attorney Fees

    Another Guilty Plea In Nevada Construction Defect Fraud Case

    Construction Defect Notice in the Mailbox? Respond Appropriately

    Condo Buyers Seek to Void Sale over Construction Defect Lawsuit

    Illinois Court Determines Insurer Must Defend Property Damage Caused by Faulty Workmanship

    Coverage for Construction Defects Barred by Business Risk Exclusions

    Broker Not Liable for Failure to Reveal Insurer's Insolvency After Policy Issued

    Insurer Must Cover Construction Defects Claims under Actual Injury Rule

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

    Florida “get to” costs do not constitute damages because of “property damage”

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

    Boyfriend Pleads Guilty in Las Vegas Construction Defect Scam Suicide

    South Carolina Legislature Defines "Occurrence" To Include Property Damage Arising From Faulty Workmanship

    No-Show Contractor Can’t Hide from Construction Defect Claim

    Florida Construction Defect Case Settled for $3 Million

    Utah Construction Defect Claims Dependant on Contracts

    Orange County Home Builder Dead at 93

    OSHA Cites Construction Firm for Safety Violations

    North Carolina Exclusion j(6) “That Particular Part”

    Insurer Not Entitled to Summary Judgment on Construction Defect Claims

    Construction Defects as Occurrences, Better Decided in Law than in Courts

    Boston Tower Project to Create 450 Jobs

    Texas Windstorm Insurance Agency Under Scrutiny

    Background Owner of Property Cannot Be Compelled to Arbitrate Construction Defects

    Restitution Unlikely in Las Vegas Construction Defect Scam

    Mandatory Arbitration Provision Upheld in Construction Defect Case

    Micropiles for bad soil: a Tarheel victory

    Rihanna Finds Construction Defects Hit a Sour Note

    State Audit Questions College Construction Spending in LA

    Preventing Costly Litigation Through Your Construction Contract

    Windows and Lawsuits Fly at W Hotel

    Construction Defect Not an Occurrence in Ohio

    Kansas Man Caught for Construction Scam in Virginia

    Court Clarifies Sequence in California’s SB800

    Ensuing Loss Provision Does Not Salvage Coverage

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

    Insurer Rejects Claim on Dolphin Towers

    El Paso Increases Surety Bond Requirement on Contractors

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

    Dust Infiltration Due to Construction Defect Excluded from Policy

    Faulty Workmanship Causing Damage to Other Property Covered as Construction Defect

    Construction Suit Ends with Just an Apology

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

    Water Drainage Case Lacks Standing

    Pipes May Be Defective, But Owners Lack Standing

    Homeowners Sue Over Sinkholes, Use Cash for Other Things

    Architectural Firm Disputes Claim of Fault

    Washington Court Limits Lien Rights of Construction Managers

    Courts Are Conflicted As To Whether "Good Faith" Settlement Determinations Can Be Reviewed Via Writ Petition Or Appeal

    Repair of Part May Necessitate Replacement of Whole

    Arbitration Clause Not Binding on Association in Construction Defect Claim

    Summary Judgment in Construction Defect Case Cannot Be Overturned While Facts Are Still in Contention in Related Cases

    Unit Owners Have No Standing to Sue under Condominium Association’s Policy

    Plaintiffs In Construction Defect Cases to Recover For Emotional Damages?

    Going Green for Lower Permit Fees

    Ceiling Collapse Attributed to Construction Defect

    California Bill Would Notify Homeowners on Construction Defect Options

    Southern California Lost $8 Billion in Construction Wages

    Contractor Underpaid Workers, Pocketed the Difference

    Contract Not So Clear in South Carolina Construction Defect Case

    Ambitious Building Plans in Boston

    In Re Golba: The Knaubs v. Golba and Rollison, Debtors

    Construction Defect Claim Did Not Harm Homeowner, Court Rules

    Remodels Replace Construction in Redding

    Construction Employment Rises in Half of the States

    Death of Construction Defect Lawyer Ruled a Suicide

    Steps to Defending against Construction Defect Lawsuits

    Celebrities Lose Case in Construction Defect Arbitration

    Former Zurich Executive to Head Willis North America Construction Insurance Group

    Court Sends Construction Defect Case from Kansas to Missouri

    Statute of Repose Dependant on When Subcontractors Finished

    Green Buildings Could Lead to Liabilities

    Construction Defects: 2010 in Review

    Construction Worker Dies after Building Collapse

    Florida Law: Defects in Infrastructure Improvements Not Covered in Home Construction Warranties
    Corporate Profile

    IRON COUNTY UTAH CONSTRUCTION EXPERT WITNESS
    DIRECTORY AND CAPABILITIES

    The Iron County, Utah 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. Drawing from this considerable body of experience, BHA provides construction related trial support and expert services to Iron County'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
    Iron County, Utah

    Florida Law: Defects in Infrastructure Improvements Not Covered in Home Construction Warranties

    July 10, 2012 — CDJ Staff

    In April 2012, Governor Rick Scott signed into law House Bill 1013, despite lobbying from homeowner and condominium associations among others. The law was in response to a case in which the court had found that implied warranties covered external subdivision improvements. Prior to the court decision, these were not thought to be covered.

    According to an article in the Martindale-Hubble Legal Library, under the new law, road and drainage improvements will not be included implied warranty of a new home. The law took effect on July 1.

    Read the full story…


    Colorado Statutes of Limitations and Repose, A First Step in Construction Defect Litigation

    December 20, 2012 — CDJ Staff

    Grund Dagner, a law firm operating in Denver and Boulder, Colorado notes on their blog that when defending a construction defect claim, one of their first steps is to determine if the claims are affected by the statutes of limitations or repose, and that they “have had much success raising these defenses with the court before trial.”

    Colorado has a two-year statute of limitations, starting from when the homeowner discovers the defect. Further, Colorado’s statute of repose precludes lawsuits beginning “more than six years after the substantial completion of the improvement to the real property.”

    Grund Dagner notes that they “recently obtained dismissal of claims related to eight of 22 buildings in a condominium project, where the homeowners in those building observed the defects more than two years before the HOA initiated its claims against our client.”

    Read the full story…


    Cleveland Condo Board Says Construction Defects Caused Leaks

    March 1, 2012 — CDJ Staff

    A Cleveland condo association has sued the developer of their building, claiming that construction defects resulted in water intrusion. The K&D Group, which still owns forty units in the 160-unit building, claim that it’s a maintenance issue that they’d like to see fixed, but it’s their responsibility as the developer. Doug Price, CEO of K&D calls it a “frivolous lawsuit.” He blames a “hostile board” and told The Plain Dealer “there’s simple maintenance that they refuse to do.”

    An outside company evaluated Stonebridge Towers. According to the condo board’s lawyer, Laura Hauser, the building design and construction are to blame for the water intrusion. Hauser said that the board’s “goal through this litigation is to find a resolution for the association, the building and the owners.”

    David Kaman, a Cleveland attorney not involved in the lawsuit, told the Plain Dealer that construction litigation in the Cleveland area had fallen off from 2007, but he sees it on the rise, which he attributes to cost-cutting on recently finished projects. “If an owner moves in and two years later the wallpaper needs to be replaced because the wall is leaking, that’s a construction defect.”

    Read the full story…


    Plaintiff Not Entitled to Further Damages over Defective Decking

    August 2, 2012 — CDJ Staff

    The Court of Appeal of the State of California, Third Appellate District has rejected an appeal from the successful plaintiff of a construction defect case in Evilsizor v. Calaveras Lumber Company. John Evilsizor hired Scott Hunton to remove and replace the deck at the rear of his home. Subsequently, the deck, which had been constructed with a product called SmartDeck, a product of the subsequently bankrupt US Plastic Lumber, exhibited problems. Hunton made some repairs. Calaveras Lumber offered replacement decking if Evilsizor would pay the difference in price. Mr. Evilsizor hired another contractor to replace the decking and then sued for lost use and compensation for the amount he paid the second contractor. Replacing the deck a second time cost Mr. Evilsizor $113,065.44.

    During the trial, the defendant conceded that the planking was defective. It has been recalled by the manufacturer. Additionally, the jury heard testimony from a construction and building codes consultant, Lonne Haughton, however the trial court found that Mr. Haughton did not have sufficient expertise in wood-plastic composite materials. Further, Haughton had been a California contractor for only three years, and though he claimed a college degree, this was “‘a distance learning diploma’ that required no in-class work.” The appeals court upheld the decision that Mr. Haughton was not qualified to testify as an expert about wood-plastic materials.

    The court also upheld the trial court’s exclusion of two pieces of evidence. One was a list of SmartDeck sales. However, the witness asked about it was not able “to testify who prepared it or confirm that it had been prepared by a Cascade employee.” Further, “the fact defendant bought and sold SmartDeck was not disputed.” The other was an e-mail in which US Plastics said they had “some bad product in the field.” This e-mail went to Westmark & Associates, and the plaintiff did not establish that it was ever sent to the defendant.

    Though the defense has suggested an award of $18,000 plus loss-of-use damages for one year and an additional $4,000 if the jury believed that leftover material from the front deck was used in the rear. As the plaintiff requested $100 per month of loss of use, this would have totaled $34,000. The jury awarded the cost of the decking, $6,275,82. The court cites earlier decision that the amount of the award is “a question of fact to be determined by the jury.”

    In conclusion, Mr. Evilsizor was not only unable to receive a larger award, but the court ruled that he must pay the defendant’s cost on appeal.

    Read the court's decision…


    Mississippi exclusions j(5) and j(6) “that particular part”

    June 7, 2011 — CDCoverage.com

    In Lafayete Ins. Co. v. Peerboom, No. 3:10cv336 (S.D. Miss. June 2, 2011), claimant homeowner Peerboom hired insured contractor Absolute to raise Peerboom’s house two feet to avoid future flooding. While Absolute was raising the house, it fell, resulting in physical injury to the home. Peerboom sued Absolute for negligence, breach of contract, and fraud, seeking damages for the destruction of the home. Absolute’s CGL insurer Lafayette defended under a reservation of rights and filed a declaratory judgment action.

    Read the full story…

    Reprinted courtesy of CDCoverage.com


    District Court Awards Summary Judgment to Insurance Firm in Framing Case

    August 4, 2011 — CDJ Staff

    In the case of Continental Western Insurance Company v. Shay Construction Inc., Judge Walker Miller has granted a summary judgment against Shay Construction and their co-defendant, Milender White Construction Company.

    Shay was the framing subcontractor for Milender White on what the court described as “a major construction project in Grand County, Colorado.” Two of Shay’s subcontractors, Wood Source Inc. and Chase Lumber Company furnished materials, labor, and equipment to Shay. They subsequently sued for nonpayment and sought to enforce mechanic’s liens, naming both Shay and Milender as defendants. Milender White alleged that Shay had “breached its obligation under its subcontracts with Milender White.”

    Shay’s insurance provider, Continental Western, stated that its coverage did not include “the dispute between Shay, its subcontractors, particularly the cross claims asserted by Milender White.” Shay then sued Continental Western, alleging breach of contract and statutory bad faith.

    The court, however, has found with Continental Western and has granted them a summary judgment. They found “no genuine issue as to any material fact.” The judge did not side with Continental Western on their interpretation of the phrase “those sums that the insured becomes legally obligated to pay as damages.” The court found that the Colorado courts have not limited this to tort actions only. However, as Milender’s cross claim included claims of faulty workmanship on the part of Shay, Judge Miller found for Continental.

    Read the court’s decision…


    Faulty Workmanship Causing Damage to Other Property Covered as Construction Defect

    September 30, 2011 — Tred Eyerley, Insurance Law Hawaii

    In yet another recent construction defect case, the Illinois Court of Appeal found for coverage. See Milwaukee Mut. Ins. Co. v. J.P. Larsen, Inc., 2011 Ill. App. Ct. LEXIS 872 (Ill. Ct. App. Aug. 15, 2011).

    Weather-Tite, Inc. hired Larson as a subcontractor to apply sealant to windows installed by Weather-Tite in a condominium building. The windows subsequently leaked and caused water damage. The homeowner’s association sued Weather-Tite for breach of express and implied warranties. Weather-Tite filed a third-party complaint against Larsen alleging that, if it was liable to the association for breach of warranty, Larsen was liable for contribution as a joint tortfeasor. Weather-Tite and Larsen both tendered defenses to Milwaukee Insurance. The tenders were denied and Milwaukee Insurance filed suit to determine rights under the policy.

    Cross-motions for summary judgment were filed by all parties. The trial court granted Milwaukee Insurance’s summary judgment motion as to Weather-Tite, but granted Larsen’s cross-motion against Milwaukee Insurance.

    On appeal, the appellate court considered whether the underlying pleadings alleged facts demonstrating "property damage" resulting from an "occurrence" within the terms of the policy.

    Read the full story…

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


    Construction Firm Sues City and Engineers over Reservoir Project

    October 28, 2011 — CDJ Staff

    The city of Fremont, Ohio and Arcadis have been sued by Trucco Construction. Trucco had been hired by the city to build a reservoir designed by Arcadis, the News-Messenger reports. Peter Welin, attorney for Trucco, said that he found “startling evidence of the company’s negligence” when he deposed Arcadis engineers. “This project could never be built the way they bid it.”

    Their suit alleges that Arcadis and the city were aware that the site was not conducive to construction and also that Arcadis failed to be a neutral party in discussions between Trucco and the city regarding compensation.

    Sam Wamper, an attorney for Fremont, said he was going to file a motion which would include “quite an interesting story,” but declined to elaborate.

    Read the full story...


    Contractor Convicted of Additional Fraud

    November 18, 2011 — CDJ Staff

    A Pennsylvania contractor in prison for fraud has been convicted with insurance fraud. The York Daily Record reports that Steven D. Gebhart was already in jail for fraud for about $350,000 for work he either failed to finish or even start or by using substandard materials and practices when he was convicted of insurance fraud. Gebbert’s offices were destroyed in a fire that was later determined to be arson. He was not charged with this, but instead for overestimating his losses to the insurance company. Sentencing for the fraud charge will be on December 21.

    Read the full story…


    Contractor Manslaughter? Safety Shortcuts Are Not Worth It

    August 11, 2011 — Douglas Reiser, Builders Counsel

    It’s been a while since I discussed the importance of safety. But, a recent article on ENR.com compelled this brief article. Don’t shortcut safety — you could be facing serious criminal repercussions.

    A New York crane company owner and one of his employees are each facing a second-degree manslaughter charge for the death of two construction workers.  The charges stem from the collapse of a crane in New York City. The district attorney determined that the crane owner cut a few corners to reduce its operation costs, significantly sacrificing safety.

    Another example was the 2010 trial of another New York crane operator who was charged with manslaughter. In that case, the criminal charges failed to stick, but an administrative judge found that the contractor used a damaged sling to support the steel collar binding the tower-crane mast to the 18th floor of a high-rise building being constructed. The company also used four slings instead of the eight, as specified by the crane manufacturer; improperly attached the slings and failed to pad or soften them.

    Read the full story…

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


    Delaware “occurrence” and exclusions j(5) and j(6)

    June 10, 2011 — CDCoverage.com

    In Goodville Mut. Cas. Co. v. Baldo, No. 09-338 (D. Del. June 2, 2011), claimants condominium association and unit owners sued project developer Rehoboth and general contractor Capano seeking damages because of moisture penetration property damage to common elements and individual units resulting from construction defects. Rehoboth and Capano filed a third party complaint against insured property manager Baldo alleging that, if Rehoboth and Capano were liable to claimants, Baldo was also liable because of Baldo’s failure to properly manage, maintain, and repair the property

    Read the full story…

    Reprinted courtesy of CDCoverage.com


    California Posts Nation’s Largest Gain in Construction Jobs

    March 28, 2012 — CDJ Staff

    California added about 8,900 construction jobs in January, 2012, as compared to December, 2011, leading the nation in the number of added construction jobs. Thirty-four other states also saw added construction jobs. A year prior, only twenty-eight states added construction jobs. The Associated General Contractors of America analyzed the monthly report from the Labor Department. Ken Simonson, the chief economist for the Associated General Contractors of America noted that “the gains this January partly reflect very mild weather this winter and exceptionally cold and snowy conditions a year before.”

    Read the full story…


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

    November 18, 2011 — Samir R. Patel, Esq. and Todd E. Verbick, Esq., Lorber, Greenfield & Polito, LLP

    There has been a fair share of publicity about the SB-800 amendments to the Civil Code (Civil Code section 896, et seq.) that codified construction defect litigation in 2002. Most of the publicity is geared toward the pre-litigation standards allowing a builder the right to repair before litigation is commenced by a homeowner. Less focus and attention has been given to the fact that violation of the SB-800 performance standards is being used by plaintiff’s counsel as an additional tool in the plaintiff’s pleading tool box against builders. Closer scrutiny to SB-800 reveals that those provisions should in fact act as a limitation to the pleading tools available to plaintiffs and an additional tool for builders in the defense of cases governed by SB-800.

    The typical construction defect complaint contains the boiler plate versions of numerous causes of action. These causes of action include Strict Liability, Negligence, Negligence Per Se, Breach of Contract, Breach of Contract – Third-Party Beneficiary, Breach of Express Warranties, Breach of Implied Warranties, among others. The wide array of causes of action leave a defendant “pinned to the wall” because they require a complex defense on a multitude of contract and tort related causes of action. Furthermore, the statutes of limitations as to these claims widely differ depending upon if the particular defect is considered latent or patent. The truth of the matter remains, no matter what the circumstances, if a construction defect matter ultimately goes to trial, it is inevitable that plaintiffs will obtain a judgment on at least one of these causes of action.

    On its own, the Strict Liability cause of action can be a thorn in a defendant’s side. A builder is obviously placing a product into the stream of commerce and strict liability is a tough standard to defend against, particularly when it concerns intricate homes comprised of multiple components that originally sold for hundreds of thousands of dollars. A Negligence cause of action can also be difficult to defend because the duty of care for a builder is what a “reasonable” builder would have done under the circumstances. An interpretation of this duty of care can easily sway a jury that will almost always consist of sympathetic homeowners. A Negligence Per Se cause of action can also leave a defendant vulnerable to accusations that a builder violated the Uniform Building Code or a multitude of other obscure municipal construction-related code provisions during the construction of the home. Lastly, the Breach of Contract cause of action leaves a builder relying on dense and intricate purchase and sale agreements with dozens of addenda which leave the skeptical jurors turned off by what they view as one-side, boilerplate provisions. Ultimately, when a matter is about to go to trial, the complexity of these complaints can benefit a plaintiff and increase a plaintiff’s bargaining power against a defendant who is attempting to avoid a potentially large judgment.

    Enter the SB-800 statutes. The SB-800 statutes apply to all homes sold after January 1, 2003. Civil Code section 938 specifically states that “[t]his title applies only to new residential units where the purchase agreements with the buyer was signed by the seller on or after January 1, 2003.” (Civil Code §, 938.) As time progresses, more residential construction defect cases will exclusively fall under the purview of SB-800. Slowly but surely more SB-800 governed litigation is being filed, and its exclusive application is looming on the horizon.

    On its surface, this “right to repair” regime has left builders with a lot to be desired despite the fact that it is supposed to allow the builder the opportunity to cure any deficiencies in their product before litigation can be filed by potential plaintiffs. However, the application of the time line for repair has shown to be impractical for anything but the most minor problems involving only small numbers of residential units. Moreover, the fact that the fruits of the builder’s investigation into the claimed defects in the pre-litigation context can freely be used as evidence against it in litigation makes builders proceed with trepidation in responding with a repair. For these reasons, more SB-800 litigation can be expected to result due to the shortcomings of the pre-litigation procedures, and savvy defense counsel should anticipate the issues to be dealt with in presenting the defense of such cases at trial.

    This fact should not necessarily be met with fear or disdain. Within the SB-800 statutes, the legislature made it clear that they were creating a new cause of action for construction defect claims, but it further made it clear that this cause of action is a plaintiff’s exclusive remedy. The legislature giveth, but at the same time, the legislature taketh away. Throughout numerous provisions within the SB-800 statutes, the Civil Code states that claims for construction defects as to residential construction are exclusively governed by the Civil Code, and that the Civil Code governs any and all litigation arising under breaches of these provisions. Civil Code section 896 specifically states:

    In any action seeking recovery of damages arising out of, or related to deficiencies in, the residential construction … the claimant’s claims or causes of action shall be limited to violation of, the following standards, except as specifically set forth in this title. (Civil Code §, 896.)

    Civil Code section 896 then provides approximately fifty-plus standards by which a construction defect claim is assessed under that provision. Civil Code section 896 covers everything from plumbing to windows, and from foundations to decks, and in several instances expressly dictates statutes of limitations as to specific areas of construction that severely truncate the 10-year latent damage limitations period. As for any construction deficiencies that are not enumerated within Civil Code section 896, Civil Code section 897 explicitly defines the intent of the standards and provides a method to assess deficiencies that are not addressed in Civil Code section 896. Civil Code section 897 states:

    Intent of Standards

    The standards set forth in this chapter are intended to address every function or component of a structure. To the extent that a function or component of a structure is not addressed by these standards, it shall be actionable if it causes damage. (Civil Code §, 897.)

    Therefore, Civil Code section 897 acts as a catch-all by which defects that are not covered within Civil Code section 896 can be evaluated on a damage standard mirroring the Aas case (damages must be present and actual). The result of sections 896 and 897 being read in combination is a comprehensive, all-inclusive set of performance standards by which any defect raised by Plaintiffs can be evaluated and resolved under a single SB-800 based cause of action.

    Civil Code section 943 makes clear that a cause of action for violation of SB-800 performance standards is a plaintiff’s sole remedy for a residential construction defect action. Specifically, Civil Code section 943 states:

    Except as provided in this title, no other cause of action for a claim covered by this title or for damages recoverable under 944 is allowed. In addition to the rights under this title, this title does not apply to any action by a claimant to enforce a contract or express contractual provision, or any action for fraud, personal injury, or violation of a statute. (Civil Code §, 943.)

    Civil Code section 944 provides the method for computing damages within a construction defect action, as follows:

    If a claim for damages is made under this title, the homeowner is only entitled to damages for the reasonable value of repairing any violation of the standards set forth in this title, [and] the reasonable cost of repairing any damages caused by the repair efforts… . (Civil Code §, 944.)

    A cursory review of these statutes yields the conclusion that the legislature was attempting to create an exclusive cause of action that trumps all other causes of action where SB-800 applies. The remedy available to plaintiffs is limited to that allowed by the Civil Code. As noted above, “[n]o other cause of action for a claim covered by this title…is allowed.” (Civil Code §, 943.) Therefore, Civil Code sections 896, 897, 943, and 944 specifically prohibit the contract-based and tort-based causes of action typically pled by plaintiffs.

    Plaintiff’s counsel has seized upon the language of section 943 to advance the argument that SB-800 still allows a plaintiff to advance typical contract and tort based causes of action. On the surface, this argument may seem compelling, but a minimum of scrutiny of the express language of section 943 dispels this notion. Section 943 says that it provides rights “[i]n addition” to those under the SB-800 Civil Code provisions. Clearly, the language in section 943 is intended to expressly underscore the fact that a plaintiff is not precluded from seeking relief in addition to that allowed under SB-800 for damages not arising from a breach of the SB-800 standards or for damages in addition to those recoverable under Section 944. This language does not provide an unfettered license to bring a Strict Liability, Negligence or other cause of action against a builder where SB-800 applies.

    In fact, this language only keeps the door open for plaintiffs to pursue such causes of action not arising from a breach of the SB-800 standards should there be such supporting allegations. For example, if a plaintiff alleges that a builder breached an “express contractual provision” related to the timing of the completion of the home and close of escrow, and the contract specifies damages in this regard, a plaintiff may have a viable separate cause of action for Breach of Contract for recovery of those damages precisely because that is not an issue expressly dealt with in SB-800 in the performance standards under sections 896 and 897, or in the damage recovery terms under 944. As it stands, the vast majority of complaints are seeking redress for violation of the same primary right; that is, defects specifically outlined in Section 896 and 897 or which result in damages as stated in Section 944.

    So, how does a builder defend against a complaint that contains multiple causes of action regarding construction defects for a home sold after January 1, 2003? There are numerous ways to approach this. First and foremost, these superfluous and improper causes of action can be attacked by demurrer seeking dismissal of all causes of action other than the cause of action alleging violation of SB-800. If the the time period within which to file a demurrer has passed already, a motion for judgment on the pleadings can be utilized to attack the improper causes of action in the same way as a demurrer can be used for this purpose.

    The limitation to a demurrer or motion for judgment on the pleadings is that the judge is restricted to viewing only the four corners of the pleading when making a ruling. It is typical for plaintiffs’ counsel to cleverly (or one might even say, disingenuously) leave the complaint purposely vague to avoid a successful defense attack on the pleadings by not including the original date the residence was sold. In that instance, a motion for summary adjudication can be used to attack a plaintiff’s complaint. By simply providing evidence that the homes were originally sold after January 1, 2003, the improper causes of action should be subject to dismissal by summary adjudication. If the plaintiff is a subsequent purchaser, the builder still has recourse to enforce the pleading limitations under SB-800. Civil Code section 945 states that “[t]he provisions, standards, rights, and obligations set forth in this title are binding upon all original purchasers and their successors-in-interest.” (Civil Code §, 945.)

    Attacking a plaintiff’s complaint to eliminate multiple causes of action can have numerous benefits. The practical result is that a plaintiff will only have one viable cause of action. The advantage is that the SB-800 performance standards include the defined performance standards and shortened statutes of limitations periods with regard to specific issues. Furthermore, as to defects which are not specifically provided for in Civil Code section 896, Civil Code section 897 requires a proof of actual damages. Therefore, a plaintiff must provide evidence of current damages and not simply conditions that may potentially cause damage in the future.

    The Appellate Courts have yet to directly address and interpret these SB-800 provisions. The time for that is undoubtedly drawing near. For now, however, plaintiffs will have to find ways to accurately plead construction defect claims within the confines of one cause of action for breach of the performance standards enumerated within the Civil Code.

    Printed courtesy of Lorber, Greenfield & Polito, LLP. Mr. Patel can be contacted at spatel@lorberlaw.com and Mr. Verbick at tverbick@lorberlaw.com.


    Statute of Repose Dependant on When Subcontractors Finished

    July 10, 2012 — CDJ Staff

    Scott C. Sandberg of Snell and Wilmer writes a post on the JDSupra site about the Colorado Court of Appeals decision in Shaw Construction v. United Builder Services. Sanberg notes that when the general contractor was sued by an HOA, the contractor turned around and sued its subcontractors. The contractor made three claims. They claimed that “improvement” referred to the whole project, that “substantial completion” was reached when the architect certified completion, and that the statute of repose was tolled by the HOA’s service of a Construction Defect Action Reform Act notice.

    The subcontractors claimed that “improvement” only referred to their specific work, which reached “substantial completion” when they finished, despite work to be done by other later, and the HOA’s notice to the contractor did not affect the subcontractors. The Colorado court agreed with the subcontractors.

    Sandberg notes that some of the contractor’s were not addressed by the court, noting that “the court did not decide whether an improvement triggering the statute of repose can be determined on a trade-by-trade basis,” and that “the court did not decide whether substantial completion occurs when a certificate of occupancy is issued or when the architect certifies completion.”

    Read the full story…


    A Lien Might Just Save Your Small Construction Business

    April 4, 2011 — Douglas Reiser in the Builders Counsel Blog

    Many owners incorrectly believe that payment to the general contractor gets the owner off the hook for payment to subcontractors and suppliers. This assumption sometimes fosters the irresponsible owner, who fails to ensure that everyone is getting paid. Fortunately for those contractors further down the contracting chain, this assumption is incorrect.

    Suppliers and subcontractors can file a lien to secure payment for their labor and materials. A filing party must offer proper notice (if applicable) and file an adequate and timely lien in the County where the work is performed. You can read our earlier posts on these topics by following this link.

    A lien notice and a lien put an owner on notice that your business has provided labor and/or materials for the improvement of the owner’s property (See RCW 60.04.031 for more info). If the owner fails to take care to ensure that your business is paid the law mandates that the owner may have to pay twice.

    Read the full story...

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


    Equipment Costs? It’s a Steal!

    July 8, 2011 — CDJ Staff

    KCBD reports on the problems of a Lubbock, Texas contractor. It’s hard to do the job when your tools keep getting stolen. Corey Meadows, owner of Top Cut Interiors, told KCBD that he had chained an air compressor to a table saw. Since the thieves couldn’t cut the chain, they cut the table saw “and just took the air compressor and the chain.” Meadows estimates the thieves cost him $2,000 in damaged or stolen equipment and time lost.

    Read the full story…


    Florida: No Implied Warranties for Neighborhood Improvements

    July 10, 2012 — CDJ Staff

    A new law in Florida ends suits from homeowners associations from suing over damages from off-site improvements on the basis of implied warranties. Rob Samouch, writing for the Naples Daily News quotes House Biill 1013: “There is no cause of action in law or equity available to a purchaser of a home or to a homeowners’ association based upon the doctrine or theory of implied warranty of fitness and merchantability or habitability for damages to off-site improvements." The off-site improvements are defined as: "The street, road, driveway, sidewalk, drainage, utilities, or any other improvement or structure that is not located on or under the lot on which a new home is constructed.”

    Mr. Samouch notes that “there are no statutory warrant rights in homeowner associations of fitness and merchantability or habitability like there is for condominium associations.” He predicts that the Florida legislature will have to address this issue “once new homeowners start screaming and yelling to them about their shoddy infrastructure for which they have no legal remedy.”

    The bill took effect on July 1, 2012 and applies to “all cases accruing before, pending on, or filed after July 1, 2012.”

    Read the full story…


    David McLain to Speak at the CDLA 2012 Annual Conference

    June 19, 2012 — CDJ Staff

    The Colorado Dense Lawyers Association will be holding their 2012 Annual Conference from July 26 through the 28, in Crested Butte, Colorado. The CDLA provides benefits to its member defense trial lawyers, including educational and information resources.

    David McLain of Higgins, Hopkins, McLain & Roswell, LLC will be joining in a discussion with William J. McConnell, PE of Vertex Engineering on Saturday, July 28. Their topic will be common building code violations alleged in construction defect cases and how to respond to these allegations.

    Read the full story…