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    Construction Expert Witness Builders Information
    Fraser, Michigan

    Michigan Builders Right To Repair Current Law Summary:

    Current Law Summary: Article 24 of the Occupational Code dictates that a complaint against a builder must be filed with the Department of Consumer and Industry Service within 18 months of the completion, occupancy or purchase of a residence. If building official determines complaint has merit, "Notice to Respondent: sent to provide builder with opportunity to repair; additional administrative procedures follow to conclusion; Individual townships have local rules regarding properties; Example: Bloomfield has mandated that structures must meet ongoing minimum maintenance standards.


    Construction Expert Witness Contractors Licensing
    Guidelines Fraser Michigan

    Residential contractors need to be licensed. License required for plumbing and electrical trades.


    Construction Expert Witness Contractors Building Industry
    Association Directory
    Building Industry Association of Southeastern Michigan
    Local # 2328
    2075 Walnut Lake Road
    West Bloomfield, MI 48323
    http://www.builders.org

    Home Builders Association of Livingston County
    Local # 2355
    132 E Grand River Ave
    Brighton, MI 48116
    http://www.hbalc.com

    Home Builders Association of Barry County
    Local # 2310
    2700 S Broadway
    Hastings, MI 49058
    http://www.barrycountyhba.com

    Greater Lansing Home Builders & Remodelers Assoc
    Local # 2352
    2937 Atrium Dr Ste 201
    Okemos, MI 48864
    http://www.glhba.org

    MICHIGAN ASSOCIATION OF HOME BUILDERS
    Local # 2300
    6427 Centurion Dr #150B
    Lansing, MI 48917
    http://www.buildingmichigan.org

    Battle Creek Associated Home Builders
    Local # 2312
    P.O. Box 2197
    Battle Creek, MI 49016
    http://www.bcahb.org/

    Home Builders Association of the Holland Area
    Local # 2340
    211 Lincoln Ave
    Holland, MI 49423
    http://www.hbaholland.com


    Construction Expert Witness News and Information
    For Fraser Michigan

    Federal District Court Predicts Florida Will Adopt Injury In Fact Trigger

    Contractor Removed from Site for Lack of Insurance

    Colorado Court of Appeals Rejects Retroactive Application of C.R.S. § 13-20-808.

    Nevada Bill Aims to Reduce Legal Fees For Construction Defect Practitioners

    Connecticut Gets Medieval All Over Construction Defects

    Federal Judge Dismisses Insurance Coverage Lawsuit In Construction Defect Case

    Condominium Communities Must Complete Construction Defect Repairs, Says FHA

    Pier Fire Started by Welders

    Defective Drains Covered Despite Water Intrusion Exclusion

    Housing Market on Way to Recovery

    Nevada Court Adopts Efficient Proximate Cause Doctrine

    Another Colorado District Court Refuses to Apply HB 10-1394 Retroactively

    Remodels Replace Construction in Redding

    Time to Repair Nevada’s Construction Defect Laws?

    Death of Construction Defect Lawyer Ruled a Suicide

    Tucson Officials to Discuss Construction Defect Claim

    Harmon Towers Duty to Defend Question Must Wait, Says Court

    Contractor Underpaid Workers, Pocketed the Difference

    Park District Sues over Leaky Roof

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

    History of Defects Leads to Punitive Damages for Bankrupt Developer

    Appeals Court Upholds Decision by Referee in Trial Court for Antagan v Shea Homes

    Allowing the Use of a General Verdict Form in a Construction Defect Case Could Subject Your Client to Prejudgment Interest

    Former Zurich Executive to Head Willis North America Construction Insurance Group

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

    Water District Denied New Trial in Construction Defect Claim

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

    Court Consolidates Cases and Fees in Soil Construction Defect Case

    Construction Jobs Expected to Rise in Post-Hurricane Rebuilding

    Arizona Court of Appeals Rules Issues Were Not Covered in Construction Defect Suit

    Housing Prices Up through Most of Country

    Construction Defect Claim Did Not Harm Homeowner, Court Rules

    Lien Law Unlikely To Change — Yet

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

    Federal Court Denies Summary Judgment in Leaky Condo Conversion

    Follow Up on Continental Western v. Shay Construction

    Water Damage Covered Under Efficient Proximate Cause Doctrine

    Construction Defects in Home a Breach of Contract

    All Risk Policy Only Covers Repair to Portion of Dock That Sustains Damage

    California Bill Would Notify Homeowners on Construction Defect Options

    Congress Addresses Homebuilding Credit Crunch

    Tacoma Construction Site Uncovers Gravestones

    Insurer’s Discovery Requests Ruled to be Overbroad in Construction Defect Suit

    Will They Blow It Up?

    Conspirators Bilked Homeowners in Nevada Construction Defect Claims

    2011 Worst Year Ever for Home Sales

    Former New York Governor to Head Construction Monitoring Firm

    Pipes May Be Defective, But Owners Lack Standing

    Ensuing Losses From Faulty Workmanship Must be Covered

    Insurer Not Liable for Construction Defect Revealed by Woodpecker

    Alabama “occurrence” and subcontractor work exception to the “your completed work” exclusion

    No Resulting Loss From Deck Collapsing Due to Rot

    Amerisure Case to be Heard by Texas Supreme Court

    Florida Construction Defect Case Settled for $3 Million

    Plans Go High Tech

    Condo Owners Allege Construction Defects

    Another Guilty Plea In Nevada Construction Defect Fraud Case

    Massachusetts Couple Seek to Recuse Judge in Construction Defect Case

    Wisconsin “property damage” caused by an “occurrence.”

    Pictorial Construction Terminology Dictionary — A Quick and Helpful Reference

    Florida trigger

    Firm Sued For Construction Defects in Parking Garage

    Ensuing Loss Found Ambiguous, Allowing Coverage

    Insurer’s Motion for Summary Judgment Based on Earth Movement Exclusion Denied

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

    Destruction of Construction Defect Evidence Leads to Sanctions against Plaintiff

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

    Limitations of Liability in Subcontractors’ Contracts May Not Be Enforceable in Colorado to Limit Claims by Construction Professionals.

    FHA Lists Bridges and Overpasses that May Have Defective Grout

    Kansas Man Caught for Construction Scam in Virginia

    No Duty to Indemnify When Discovery Shows Faulty Workmanship Damages Insured’s Own Work

    The Colorado Court of Appeals Rules that a Statutory Notice of Claim Triggers an Insurer’s Duty to Defend.

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

    Construction Workers Unearth Bones

    Harsh New Time Limits on Construction Defect Claims

    Quarter Four a Good One for Luxury Homebuilder

    A Loud Boom, But No Serious Injuries in World Trade Center Accident

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

    OSHA Cites Construction Firm for Safety Violations

    A Downside of Associational Standing - HOA's Claims Against Subcontractors Barred by Statute of Limitations

    Homeowner Has No Grounds to Avoid Mechanics Lien

    Texas exclusions j(5) and j(6).

    Steps to Defending against Construction Defect Lawsuits

    Boyfriend Pleads Guilty in Las Vegas Construction Defect Scam Suicide

    The U.S. Tenth Circuit Court of Appeals Rules on Greystone

    After Breaching its Duty to Defend, Insurer Must Indemnify

    No Choice between Homeowner Protection and Bankrupt Developers?

    Insurance Firm Defends against $22 Million Claim

    Discovery Ordered in Nevada Construction Defect Lawsuit

    Anti-Assignment Provision Unenforceable in Kentucky
    Corporate Profile

    FRASER MICHIGAN CONSTRUCTION EXPERT WITNESS
    DIRECTORY AND CAPABILITIES

    The Fraser, Michigan Construction Expert Witness Group is comprised from a number of credentialed construction professionals possessing extensive trial support experience relevant to construction defect and claims matters. Leveraging from this considerable body of experience, BHA provides construction related trial support and expert services to the nation's most recognized construction litigation practitioners, Fortune 500 builders, commercial general liability carriers, owners, construction practice groups, and a variety of state and local government agencies.

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    Construction Expert Witness News & Info
    Fraser, Michigan

    No “Special Relationship” in Oregon Construction Defect Claim

    July 10, 2012 — CDJ Staff

    Writing on his firm’s blog, Justin Stark discusses recent changes in construction defect claims in Oregon where, as he points out, “courts in Oregon have been lowering legal hurdles that construction defect plaintiffs must overcome in bringing their cases.” He cites a case in which water damage was discovered more than six years after construction was complete. The owners claimed breach of contract and negligence. The trial court found for the contractor, who argued “that there was no ‘special relationship’ with the owners that could support the negligence claim.”

    This was overturned on appeal, with the court concluding that if there was a violation of the building code, then the negligence claim could stand. This was appealed to the Oregon Supreme court which concluded that “neither a special relationship nor a statutory standard of care, such as the building code, is necessary to bring a negligence claim here.”

    Stark notes that “many forms of construction contract incorporate the phrase ‘workmanlike,’ which implicates the ‘common law standard of care’ in negligence law.

    Read the full story…


    California Construction Bill Dies in Committee

    July 21, 2011 — CDJ Staff

    AB 20, which its sponsor, Linda Halderman (R-Fresno), stated would discourage class action lawsuits against builders and protect jobs in the construction industry, has died in committee. Although the Business Journal reported in June that Haldeman was promoting the bill during a talk in her district and the bill is still on her web site, the California Assembly reports that the bill failed in committee on March 15, 2011. It is possible that the bill could be reconsidered, but the Assembly Committee on Judiciary sees the bill as responding to issues quieted by SB 800 which gives builders the right to repair alleged defects before any suit can be filed.

    Read the full story…


    Des Moines Home Builders Building for Habitat for Humanity

    September 13, 2012 — CDJ Staff

    A group of Des Moines home builders is building two homes for low-income families. The homes are being constructed to meet the National Association of Home Builders’ emerald standard for green construction. According to the article in the Des Moines Register, the homes will be finished by the end of August.

    Read the full story…


    Construction Defect Destroys Home, Forty Years Later

    June 19, 2012 — CDJ Staff

    Fire investigators in Monroe, North Carolina have blamed a nail as the source of a fire that lead to a home being declared a total loss. The nail, part of the original construction, nicked a wire within a wall, causing a short, which started a fire. The home was built in the late 1960s.

    WBTV reported that the homeowner was awakened by a power outage. He went outside and saw flames coming from a vent in the roof. He was unable to contain the fire with a garden hose. Neighbors called firemen who were able to stop the blaze.

    Read the full story…


    Know the Minnesota Statute of Limitations for Construction Defect Claims

    July 10, 2012 — CDJ Staff

    Writing on the Benson Kerrane Storz Nelson web site, Alex Nelson gives an overview of the Minnesota laws covering statutes of limitation and repose. He notes that frequently when his firm declines to take a construction defect case its’ over a missed statute of limitation. He describes the time periods as both “short” and “ambigious.” The briefest limit is that a homeowner “has only 6 months within which to give written notice of the defect to the builder once the defect has manifested itself.” Any legal action must commence within two years of the same point.

    The Minnesota statutes also have a six-year limitation, which starts for a single home at transfer of title to the first purchaser or when the purchaser takes possession, whichever happens first. For a condo, it is the last of “completion of the common element,” first unit sale or “Termination of Declarant control.” Fraud or misrepresentation also has a six-year limit, while negligence claims are limited to within the first two years “after the manifestation of the defect.”

    The statues of repose also provide limits to filing construction defect lawsuits. Mr. Nelson points out that the longest are for negligence, fraud, and “major construction defects,” all of which have a ten-year limit. On the other hand, claims against general workmanship and materials must be made in the first year.

    Read the full story…


    Tucson Officials to Discuss Construction Defect Claim

    July 10, 2012 — CDJ Staff

    The mayor of Tucson, Arizona and the city council scheduled a meeting on June 26, 2012 in order to consult with the city’s attorneys concerning possible construction defect litigation involving the Martin Luther King, Jr. apartment building in that city. The memorandum was authored by Richard Miranda, the Tucson city manager.

    Read the full story…


    Mark Van Wonterghem To Serve as Senior Forensic Consultant in the Sacramento Offices of Bert L. Howe & Associates, Inc.

    March 1, 2012 — CDJ Staff

    Sacramento, CA — Bert L. Howe and Associates, Inc., is pleased to announce that Mark Van Wonterghem - General Contractor, has joined the firm as Senior Forensic Consultant. Mark will be responsible for leading the firm’s expansion in the newly formed Sacramento headquarters.

    His focus will continue to be working with construction practice groups and claims professionals in the Sacramento and Bay Area markets. He will utilize the resources of the Construction Experts Group at Bert L. Howe & Associates in furthering the litigation support needs attendant to the firm’s Northern California clientele.

    Mr. Van Wonterghem possesses extensive consulting and testimony experience. Through 32 years of experience in the construction industry he leverages extensive practical experience with multiple trades including concrete foundations, walls and flatwork, structural wood and steel framing, finish carpentry, drywall, lath & plaster/stucco, window & door installations, deck coating systems, metal and membrane flashings and above/below grade waterproofing. This trade experience encompasses both the commercial and residential construction sectors and has been vital in his ability to provide concise explanation of construction industry standards, as well as trade-specific standards of care.

    Mr. Van Wonterghem has broad experience with all types of building construction ranging from concrete and steel commercial construction to high-end custom residential construction.

    In connection with the Construction Experts Group at BHA, Mr. Van Wonterghem provides construction consulting and litigation support services to a wide variety of recognized construction claims professionals, owners, and publicly traded builders.

    The firm’s Sacramento offices are located at the Gateway Oaks III office complex, 2520 Venture Oaks Way, Suite 435, Sacramento, CA 95833. Mr. Van Wonterghem can be reached via e mail at mvanwonterghem@berthowe.com or at (800) 783-1822.


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

    July 10, 2012 — Stephen A. Sunseri and Aarti Kewalramani, Gatzke Dillon & Ballance LLP

    The Court of Appeal, Second District, Division Three, ruled in Oak Springs Villas Homeowners Association v. Advanced Truss Systems, Inc., et al., (June 14, 2012, B234568) __ Cal.App.4th __ [2012 WL 2149923], that a non-settling defendant cannot appeal a trial court's good faith settlement determination. Instead, a non-settling defendant may only file a petition for writ of mandate pursuant to Code of Civil Procedure section 877.6 to challenge a good faith determination. This decision comes on the heels of a 2011 ruling in Cahill v. San Diego Gas & Electric Co. (2011) 194 Cal.App.4th 939, which found that a writ petition is not the sole means of challenging a trial court's good faith settlement determination.

    In Oak Springs Villas, supra, the condominium homeowners' association sued a developer, general contractor, and various subcontractors for alleged construction deficiencies and resultant property damage. The association eventually settled with the developer, but not with a truss manufacturer. The trial court approved the developer's motion for good faith settlement determination, and the truss manufacturer immediately appealed, instead of filing a writ petition. On appeal, the developer argued the good faith determination was not an appealable order. The truss manufacturer argued Cahill applied, as well as an older case, Justus v. Atchison (1977) 19 Cal.3d 564, which allowed for appeals when no remaining issues exist as to the appealing party.

    The Court of Appeal ruled in the developer's favor and declined to follow Cahill, stating the truss manufacturer should have filed a writ petition, as expressly required under Section 877.6, subdivision (e). The Court also believed Justus was inapplicable because a non-settling party should not be allowed to have two review opportunities ?Äì one after an adverse good faith ruling, and then another after the ultimate conclusion of the case.

    However, the greater effect is that Cahill and Oak Springs Villas simultaneously stand in conflict and appear to be valid law. One case allows for an appeal of a good faith settlement determination, while the other requires strict adherence to the statute. The Supreme Court is likely to review the issue. In the meantime, parties challenging good faith rulings are advised to consult the statutory requirements under Section 877.6, subdivision (e).

    Printed courtesy of Stephen A. Sunseri and Aarti Kewalramani, Gatzke Dillon & Ballance LLP. Mr. Sunseri can be contacted at ssunseri@gdandb.com and Ms. Kewalramani can be contacted at akewalramani@gdandb.com.


    Former New York Governor to Head Construction Monitoring Firm

    September 13, 2012 — CDJ Staff

    David Paterson, who succeeded Eliot Spitzer as Governor of New York, has started a new venture after leaving the Governor’s office in construction integrity monitoring. WNYC reports that Paterson will be the majority owner of Icon Compliance Services, LLC, which will both conduct investigations and work with law enforcement officials. Paterson says that in government projects “often concessions are made for political reasons in the public sector and then you never really get a product that you paid for.”

    Paterson will be working with a former vice president of Bovis Construction, Brian Aryai, who is also a former U.S. Treasury Agent. Aryai said that “it is astounding that some of the fraud that has come to the surface in the recent past,” and describes it as “almost laughable they were not detected.” Aryai tipped federal prosecutors that Bovis had been over billing on projects for at least a decade.

    Read the full story…


    Washington Court of Appeals Upholds Standard of Repose in Fruit Warehouse Case

    August 4, 2011 — CDJ Staff

    On July 28, the Washington Court of Appeals ruled in Clasen Fruit & Cold Storage v. Frederick & Michael Construction Co., Inc. that more than six years had passed since a contractor had concluded work and so granted a summary dismissal of the suit.

    Frederick & Michael Construction Co., Inc. (F&M) was contracted to construct several buildings for Clasen Fruit and Cold Storage. These were completed in March, 1999. The buildings suffered wind damage to the roofs in 2001, 2003, 2005, and 2006. In the first two incidents, F&M repaired the roofs with Clasen paying for repairs.

    In 2005, Clasen hired Continuous Gutter to make repairs. The final incident was the collapse of the roof of one building. This was attributed to “excessive moisture in the roof’s vapor barriers.” At this point, Clasen demanded that F&M pay for repair and replacement costs. In 2008, Clasen sued F&M for damages for breach of contract and negligent design and construction of the roof.

    The decision then covered the meanings, in Washington law, of “termination of services” and “substantial completion.” The panel concluded that construction was “substantially completed in 1997” and “relevant services” by 2001. “But Clasen did not sue until 2008, some seven years after termination of any roof related services.”

    Read the court’s decision…


    AFL-CIO Joins in $10 Billion Infrastructure Plan

    June 30, 2011 — CDJ Staff

    The AFL-CIO has announced plans to generate up to $10 billion in funding for infrastructure development, training construction workers, and making buildings more energy efficient, pledging $20 million to retrofit buildings. Bloomberg News reports that union officials made the announcement in Chicago at the Clinton Global Initiative, releasing a statement from Richard Trumka, president of the union, “we, at the AFL-CIO, believe that together, with our partners in business and government, we can profitably invest significant resources to make America more competitive and energy efficient.” A foot injury prevented Mr. Trumka from attending the event.

    The statement also quoted Mark Ayers, president of the Building and Construction Trades Department of the AFL-CIO, “the time is now to become intensely focused on the creation of jobs.”

    Read the full story…


    Court Clarifies Sequence in California’s SB800

    December 20, 2012 — CDJ Staff

    As California’s Right-To-Repair law, SB800, nears its ninth birthday, it has remained “largely untested in the legal system” as noted by Megan MacNee of Wood, Smith, Henning & Berman LLP on the site RealEstateRama. She writes that some homeowners have requested documents prior to filing a claim, which she describes as an attempt to “game the system,” and “analogous to requiring a party to litigation to comply with discovery before a complaint is filed.”

    The court determined that homeowners may not request documents from the builder until they have actually filed a claim. The court noted that SB800 lacks any clear indication that homeowners may request documents before filing a claim (and also does not indicate that a builder would have to provide documents in these circumstances). The court concluded that the section that sets up the prelitigation procedures occurs before they section on documents discovery.¬? “Because the document request is part of the prelitigation procedure, and the prelitigation procedure does not begin until the homeowner has served notice of a claim, it follows that there can be no prelitigation obligation to produce documents under section 912, subdivision (a) unless the homeowner has commenced the prelitigation procedure by serving notice of a claim.”

    Read the full story…


    Appeals Court Upholds Decision by Referee in Trial Court for Antagan v Shea Homes

    May 10, 2012 — CDJ Staff

    In the case Antangan v. Shea Homes Ltd. Partnership (Cal. App., 2012), Plaintiffs appealed “an order vacating a judgment and entering a modified judgment in their construction defect action against defendants Shea Homes, Inc. and Shea Homes Limited Partnership,” while the Defendant, Shea Homes Limited Partnership (Shea Homes) appealed “an order of the judicial referee denying its motion to strike and tax costs.”

    On the Antagon issue, the appeals court concluded that “the trial court did not err by vacating and modifying its judgment so that the cost of referee’s fees would be equally divided by the parties and consistent with a prior stipulation they filed in court.”

    On the Shea Homes issue, the appeals court concluded: “1) the judicial referee did not err by ruling that plaintiffs’ offers to compromise (§ 998) were validly served on Shea Homes’ counsel, 2) the offers substantially complied with statutory requirements, 3) the offers were not required to be apportioned, and 4) the referee’s award of $5,000 as costs for a person assisting plaintiffs’ counsel was not an abuse of discretion.” The appeals court affirmed the judgment.

    Here is a brief history of the trial case: “Plaintiffs Chito Antangan, Jimmy Alcova and other homeowners brought an action against defendants Shea Homes, Inc. and Shea Homes Limited Partnership for damages alleging that the properties they purchased from these ‘developer defendants’ were defective. Plaintiffs claimed numerous construction defects required them ‘to incur expenses’ for ‘restoration and repairs’ and the value of their homes had been diminished.”

    In response, Shea Homes filed a motion for an order to appoint a judicial referee. The motion was granted and it was ruled that “a referee would ‘try all issues’ and ‘report a statement of decision to this court.’”

    On May 10, 2010 the judicial referee (Thompson) “awarded plaintiffs damages and various costs, and ruled that ‘Shea Homes shall bear all of the Referee’s fees.’” The latter ruling would become a matter for contention later on.

    In July of 2010, the plaintiffs “sought, among other things, $54,409.90 for expert fees, and $14,812.50 for the services of Melissa Fox for ‘exhibit preparation & trial presentation.’ Shea Homes filed a motion to strike and/or tax costs claiming: 1) Fox was a paralegal, 2) plaintiffs were not entitled to attorney’s fees, and 3) the fees for Fox’s services were an indirect and improper method to obtain attorney’s fees. The referee disagreed and awarded $5,000 for Fox’s services. The referee also ruled that plaintiffs had properly served valid offers to compromise (§ 998) on Shea Homes’ counsel in 2009. He said those offers to defendants in the case at that time did not have to be apportioned.”

    “Antangan contends the trial court erred when it vacated and modified its original judgment, which ordered Shea Homes to pay all the referee’s fees. We disagree.”

    Antagon contended that the trial court erred when it vacated and modified its original judgment regarding Shea Homes paying the referee’s fees. The appeals court disagreed: “A trial court has inherent authority to vacate or correct a judgment that is void on its face, incorrect, or entered by mistake. (§ 473; Rochin v. Pat Johnson Manufacturing Co. (1998),67 Cal.App.4th 1228; Olivera

    Read the court’s decision…


    Late Filing Contractor Barred from Involving Subcontractors in Construction Defect Claim

    March 1, 2012 — CDJ Staff

    The Colorado Court of Appeals looked at that state’s Construction Defect Action Reform Act in determining if a general contractor could add subcontractors as third-party defendants to a construction defect lawsuit. Shaw Construction, LLC was the general contraction of the Roslyn Court condominium complex, and was sued by the homeowners’ association in a construction defect case. United Builder Services was the drywall subcontractor on the project. MB Roofing had installed roofs, gutters, and downspouts. The certificate of occupancy for the last building was issued on March 10, 2004. The project architect certified completion of all known remaining architectural items in June, 2004.

    The HOA filed a claim against the developers of the property on January, 21, 2009. A week later, the HOA amended its complaint to add Shaw, the general contractor. Shaw did not file its answer and third-party complaint until March 29, 2010, sending its notice of claim under the CDARA on March 30.

    The subcontractors claimed that the six-year statute of limitations had ended twenty days prior. Shaw claimed that the statute of limitations ran until six years after the architect’s certification, or that the HOA’s suit had tolled all claims.

    The trial court granted summary judgment to the subcontractors, determining that “substantial completion occurs ‘when an improvement to real property achieves a degree of completion at which the owner can conveniently utilize the improvement of the purpose it was intended.’”

    The appeals court noted that “Shaw correctly points out that the CDARA does not define ‘substantial completion.’” The court argued that Shaw’s interpretation went against the history and intent of the measure. “Historically, a construction professional who received a complaint responded by ‘cross-nam[ing] or add[ing] everybody and anybody who had a part to play in the construction chain.’” The court concluded that the intent of the act was to prevent unnamed subcontractors from being tolled.

    The court further rejected Shaw’s reliance on the date of the architect’s certification as the time of “substantial completion,” instead agreeing with the trial court that “the architect’s letter on which Shaw relies certified total completion.”

    The appeals court upheld the trial court’s determination that the statute of limitation began to run no later than March 10, 2004 and that Shaw’s complaint of March 29, 2010 was therefore barred. The summary judgment was upheld.

    Read the court’s decision…


    Yellow Brass Fittings Play a Crucial Role in Baker v Castle & Cooke Homes

    May 10, 2012 — CDJ Staff

    Baker v Castle & Cooke Homes Hawaii, et al. is a “class action filed by homeowners who allege that their homes have a construction defect. They allege that their plumbing systems include brass fittings susceptible to corrosion and likely to cause leaks. They bring this action against the developer of their homes and the manufacturers of the brass fittings.”

    Zurn, the manufacturer of the allegedly defective brass fittings, sought a dismissal, or if that could not be achieved, then “a more definite statement, of five of the six claims.” Zurn moved for summary judgment on the sixth claim, or alternately sought “summary judgment on one of the five claims it” sought to dismiss.” The court granted in part the motion, and denied the motion for summary judgment.

    The developer, Castle & Cooke, sought dismissal of the First Amended Complaint stating “that Plaintiffs have not complied with Hawaii’s Contractor Repair Act, chapter 672E of Hawaii Revised Statutes, which requires, among other things, a plaintiff to give a contractor the results of any testing done before filing an action against that contractor.” The court couldn’t determine “certain facts essential to ruling” on Castle & Cooke’s motion, and therefore denied the motion, but ordered Plaintiffs to submit requested material by the stated deadline.

    The Baker v Castle & Cooke case began with the Plaintiffs claim that the use of yellow brass fittings can lead to construction defects. They allege that “yellow brass is particularly susceptible to dezincification, a corrosion process in which zinc leaches into potable water that comes into contact with the brass. According to Plaintiffs, as the brass corrodes, it becomes porous and mechanically weak. Plaintiffs further allege that the PEX systems in the putative class members’ homes have begun to, or are about to, leak water into the walls, ceilings, and floors of their homes. Plaintiffs allege that the leakage will cause water damage and mold growth, exposing the occupants to toxins.”

    In response to the plaintiffs’ claims, Zurn argued “because their yellow brass fittings have not failed to date, Plaintiffs fail to allege, and have no evidence showing, that they have suffered any actual injury.” Plaintiffs replied, “even if the fittings have not failed as of today, failure in the future is inevitable.”

    However, the court stated, “whether Plaintiffs have suffered any injury, or whether Plaintiffs are attempting to proceed based solely on future injury, implicates Plaintiffs’ standing to bring this action, as well as whether this case is ripe for adjudication.” The court has requested the parties to submit “supplemental briefing on whether this case should be dismissed pursuant to Rule 12(b)(1). In supplemental briefs, Zurn argues that dismissal is appropriate because Plaintiffs lack standing, and Castle & Cooke argues that dismissal is appropriate because Plaintiffs’ claims are not ripe.”

    The court continues to discuss the problem of standing: “To establish standing, a plaintiff must demonstrate three things. First, the plaintiff must suffer an "injury-in-fact," which means that there must be a concrete and particularized "invasion of a legally protected interest" and the invasion is actual or imminent. Lujan v. Defenders of Wildlife, 504 U.S. 555, 560 (1992). Second, the injury must be fairly traceable to the challenged action. Third, a favorable decision must be likely to redress the injury. Id. It is the first element (injury-in-fact) that is in issue here.”

    The court found that the plaintiffs do have standing: “Even if the court could not rely on the allegations that the pipes will soon leak, the court would conclude that, for standing purposes, Plaintiffs have a sufficient injury-in-fact in the form of their alleged economic loss.” In a hearing, Plaintiffs argued that their homes had decreased in value.

    The court also denied Castle & Cooke’s motion to dismiss based on a lack of ripeness, stating “the same reasons Plaintiffs satisfy the injury-in-fact requirement for standing purposes, they satisfy the constitutional ripeness requirement.”

    Plaintiffs asserted six counts against Zurn. Zurn, in response, made a motion to dismiss counts VIII, IX, X, XII, and XIII. The court granted Zurn’s motion for Counts VIII, IX, and X only: “Counts VIII (product liability), IX (negligence), and X (strict liability) sound in tort. Zurn argues that, because Plaintiffs allege no injury other than to the PEX systems and the yellow brass fittings themselves, the economic loss rule bars their tort claims. The court agrees.”

    The court disagreed with Zurn’s motion regarding Count XII: “Count XII asserts that Zurn has breached the implied warranty of merchantability. Zurn argues that Count XII is barred by the applicable statute of limitations and that Plaintiffs do not sufficiently allege an injury. The court disagrees.”

    Zurn’s motion regarding Count XIII was also denied: “Count XIII asserts that Zurn violated section 480-2 of Hawaii Revised Statutes.” Furthermore, “Plaintiffs allege that Zurn ‘engaged in unfair and deceptive acts or practices when [it] designed, manufactured and sold Yellow Brass Fittings.’ Zurn argues that Plaintiffs fail to state a claim under section 480-2(a) because their claims are barred by the statute of limitations and they do not adequately allege reliance or a cognizable injury. The court disagrees.”

    The court denied the motion for summary judgment with respect to Counts XI and XII.

    Castle & Cooke sought to dismiss “Plaintiffs’ claims against it under section 672E-2 of Hawaii Revised Statutes, which provides for dismissal when claimants fail to comply with chapter 672E.” There was some discussion regarding the test results. Apparently, the plaintiffs had failed to provide a written notice of claim at least 90 days before filing the action. However, it is unclear if the Plaintiffs have since complied with the requirements of the chapter. “The court has received no supplemental information from either party about whether any test results from another case have been turned over or whether those materials are subject to a confidentiality agreement. The record at this point does not establish noncompliance with the requirement in chapter 672E to provide such information. The court therefore denies the motion to dismiss.”

    In summary, “Zurn’s motion to dismiss is granted as to Count VIII, Count IX, and Count X. Zurn’s motion to dismiss is denied with respect to Plaintiffs’ other claims. Zurn’s request for a more definite statement and its summary judgment motion are denied. Plaintiffs are given leave to file an amended Complaint no later than May 21, 2012.” Furthermore, “the court denies Castle & Cooke’s motion, but directs Plaintiffs to file, within two weeks, either a certificate of compliance with section 672E-3(c), or an explanation as to why they have not complied. Castle & Cooke may submit a response within two weeks of Plaintiffs’ submission. Each party’s submission is limited to 1000 words.”

    Read the court’s decision…


    In Colorado, Repair Vendors Can Bring First-Party Bad Faith Actions For Amounts Owed From an Insurer

    December 20, 2012 — Brady Iandiorio, Higgins, Hopkins, McLain & Roswell

    With the aftermath of Sandy still being felt up and down the Eastern seaboard, the question of many victims turns to how they can rebuild their lives and homes.  One of the first things many people do is call on their insurance carriers to help rebuild whatever damaged property they have.  In a recent case here in Colorado, those rebuilding efforts got reaffirmed by a Court of Appeals case, Kyle W. Larson Enterprises, Inc., Roofing Experts, d/b/a The Roofing Experts v. Allstate Insurance Company, --- P.3d ----, 2012 WL 4459112 (Colo. App. September 27, 2012).

    The facts of the case are pretty straightforward and could describe many repair vendors in numerous situations.  Roofing Experts contracted with four homeowners insured by Allstate to repair their damaged roofs.  The contracts provided that repair costs would be paid from insurance proceeds.  The contracts also allowed Roofing Experts full authority to communicate with Allstate regarding all aspects of the insurance claims.  Before work began, Roofing Experts met with adjusters from Allstate to discuss the four homes and the amount of each claim.  After receiving approval for the claims, Roofing Experts began the repairs.  During construction, Roofing Experts discovered additional repairs were necessary to maintain certain manufacturer’s warranties and to conform to applicable building codes. 

    Read the full story…

    Reprinted courtesy of Brady Iandorio, Higgins, Hopkins, McLain & Roswell, LLC. Mr. Iandorio can be contacted at iandiorio@hhmrlaw.com


    Don MacGregor To Speak at 2011 West Coast Casualty Construction Defect Seminar

    January 1, 2011 — February 08, 2011 CDJ Staff

    “Challenges for Experts in Construction Defect Claims and Litigation” will be held Thursday May 13, 2011 between 1:30 and 3:00 PM at this year’s West Coast Casualty Construction Defect Seminar. Among the various topics covered will be of Right to Repair/Opportunity to Repair statutes, improper testing methodologies, new challenges where a case involves a Wrap Policy, OCIPS, CCIPS, and other owner controlled insurance programs, as well as the need for realistic testing protocols for the party the expert is retained to represent.

    During the presentation Mr. MacGregor will be working in connection with a group of construction and design experts each of which have extensive experience with construction defect and claims related litigation. This particular session is expected to attract a standing-room only crowd, drawing in excess of 1700 attendees.

    The West Coast Casualty Construction Defect Seminar is the largest seminar of its type. This year’s event is scheduled for will take place on May 12 and 13, 2011, at The Disneyland Hotel and Resort. For more information regarding the years event please visit http://www.westcoastcasualty.com/dyncat.cfm?catid=3322

    http://www.westcoastcasualty.com/dyncat.cfm?catid=3322

    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