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    Construction Expert Witness Builders Information
    Shakopee, 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 Shakopee 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
    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

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

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

    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



    Construction Expert Witness News and Information
    For Shakopee Minnesota

    Ensuing Losses From Faulty Workmanship Must be Covered

    Housing Prices Up through Most of Country

    Colorado “property damage” caused by an “occurrence” and exclusions j(5) and j(6) “that particular part”

    Irene May Benefit Construction Industry

    Construction Defects Lead to Demolition of Seattle’s 25-story McGuire Apartments Building

    Timing of Insured’s SIR Payment Has No Effect on Non-Participating Insurer’s Equitable Contribution to Co-Insurer

    Appropriation Bill Cuts Military Construction Spending

    Exclusion Bars Coverage for Mold, Fungus

    Nevada Assembly Bill Proposes Changes to Construction Defect Litigation

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

    Judge Rejects Extrapolation, Harmon Tower to Remain Standing

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

    Local Government Waives Construction Fees to Spur Jobs

    When Does a Claim Against an Insurance Carrier for Failing to Defend Accrue?

    Arizona Homeowners Must Give Notice of Construction Defect Claims

    Construction Defect Not a RICO Case, Says Court

    Construction Defect Not an Occurrence in Ohio

    No Third-Quarter Gain for Construction

    Fifth Circuit Asks Texas Supreme Court to Clarify Construction Defect Decision

    Homeowners Sue Over Sinkholes, Use Cash for Other Things

    Know the Minnesota Statute of Limitations for Construction Defect Claims

    Denver Court Rules that Condo Owners Must Follow Arbitration Agreement

    Important Information Regarding Colorado Mechanic’s Lien Rights.

    Fire Reveals Defects, Appeals Court Affirms Judgment against Builder

    Court Orders House to be Demolished or Relocated

    Washington Supreme Court Sides with Lien Claimants in Williams v. Athletic Field

    Remodels Replace Construction in Redding

    “Other Insurance” and Indemnity Provisions Determine Which Insurer Must Cover

    Former New York Governor to Head Construction Monitoring Firm

    Minnesota Starts Wide-Ranging Registration of Contractors

    Windows and Lawsuits Fly at W Hotel

    Ensuing Loss Provision Found Ambiguous

    California Supreme Court Finds Associations Bound by Member Arbitration Clauses

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

    Safety Officials Investigating Death From Fall

    Mortar Insufficient to Insure Summary Judgment in Construction Defect Case

    Court Sends Construction Defect Case from Kansas to Missouri

    School Sues over Botched Pool

    No Coverage for Negligent Misrepresentation without Allegations of “Bodily Injury” or “Property Damage”

    Court Will Not Compel Judge to Dismiss Construction Defect Case

    Demand for Urban Living Leads to Austin Building Boom

    Insurer Must Defend Claims for Diminution in Value of Damaged Property

    Ohio Adopts Energy-Efficient Building Code

    Coverage Rejected Under Owned Property and Alienated Property Exclusions

    The King of Construction Defect Scams

    Court Clarifies Sequence in California’s SB800

    Arbitration Clause Found Ambiguous in Construction Defect Case

    Cogently Written Opinion Finds Coverage for Loss Caused By Defective Concrete

    Kansas Man Caught for Construction Scam in Virginia

    Background Owner of Property Cannot Be Compelled to Arbitrate Construction Defects

    In Oregon Construction Defect Claims, “Contract Is (Still) King”

    Arizona Court of Appeals Decision in $8.475 Million Construction Defect Class Action Suit

    Fourteen More Guilty Pleas in Las Vegas Construction Defect Scam

    Federal District Court Continues to Find Construction Defects do Not Arise From An Occurrence

    Unfinished Building Projects Litter Miami

    Utah Construction Defect Claims Dependant on Contracts

    Restitution Unlikely in Las Vegas Construction Defect Scam

    Construction Defects Lead to Demolition

    Defective Grout May Cause Trouble for Bridges

    Although Property Damage Arises From An Occurrence, Coverage Barred By Business Risk Exclusions

    Construction Defect Not Occurrences, Says Hawaii Court

    Construction Upturn in Silicon Valley

    Court Strikes Down Reasonable Construction Defect Settlement

    Court Rejects Anti-SLAPP Motion in Construction Defect Suit

    Las Vegas Home Builder Still in Bankruptcy

    Contractor Liable for Soils Settlement in Construction Defect Suit

    Australian Group Seeks Stronger Codes to Combat Dangerous Defects

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

    Condo Board May Be Negligent for not Filing Construction Defect Suit in a Timely Fashion

    Ohio Court of Appeals Affirms Judgment in Landis v. Fannin Builders

    Lawsuit over Construction Defects Not a Federal Case

    Court Consolidates Cases and Fees in Soil Construction Defect Case

    New Jersey Court Rules on Statue of Repose Case

    Construction Defect Lawsuit Stayed by SB800

    Texas Law Bars Coverage under Homeowner’s Policy for Mold Damage

    Mobile Home Owners Not a Class in Drainage Lawsuit

    Faulty Workmanship Exclusion Does Not Bar Coverage

    Insurance Firm Under No Duty to Defend in Hawaii Construction Defect Case

    Changes To Indemnification Statute Are Here! Say Hello To Defense Duties

    Contractor’s Home Not Covered for Construction Defects

    SB800 Cases Approach the Courts

    Lien Claimant’s Right to Execute against Bond Upheld in Court of Appeals

    Hawaii Building Codes to Stay in State Control

    Construction Defects and Contractor-Owners

    Contractor Convicted of Additional Fraud

    Pictorial Construction Terminology Dictionary — A Quick and Helpful Reference

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

    California Lawyer Gives How-To on Pursuing a Construction Defect Claim

    Homeowners May Not Need to Pay Lien on Defective Log Cabin

    Equipment Costs? It’s a Steal!
    Corporate Profile

    SHAKOPEE MINNESOTA CONSTRUCTION EXPERT WITNESS
    DIRECTORY AND CAPABILITIES

    Leveraging from more than 5500 construction defect and claims related expert witness designations, the Shakopee, Minnesota Construction Expert Witness Group provides a wide range of trial support and consulting services to Shakopee's most acknowledged construction practice groups, CGL carriers, builders, owners, and public agencies. Drawing from a diverse pool of construction and design professionals, BHA is able to simultaneously analyze complex claims from the perspective of design, engineering, cost, or standard of care.

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    Construction Expert Witness News & Info
    Shakopee, Minnesota

    Manhattan Developer Breaks Ground on $520 Million Project

    November 18, 2011 — CDJ Staff

    Rebuilding an area of Midtown West that has been condemned for decades, the Gotham Organization has broken ground on a 1,200-unit project that will include housing for a variety of household incomes and a school. One unit of the project will be affordable housing for families of annual incomes up to $40,000. Another will be for middle-income households. Additionally, there will be a 31-story tower with 550 luxury units.

    The site CityBiz quotes Mayor Michael Bloomberg, as saying that the project “will grow our economy by creating 2,900 construction-related jobs.” The president of the Gotham Organization, David L. Picket notes that it will “create hundreds of new jobs, generate millions of dollars in revenue for the construction industry, contribute towards the building of a new primary, and provide homes to thousands of New Yorkers.”

    Read the full story…


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

    August 16, 2012 — Brady Iandiorio, Higgins, Hopkins, McLain & Roswell, LLC

    Recently, in the Arapahoe District Court, the Honorable Michael Spear, issued an order holding that builders do not owe a non-delegable duty to homeowners. In Marx and Corken v. Alpert Custom Homes, Inc., et al., Judge Spear’s order came in response to plaintiffs’ motion for determination of question of law seeking a finding that the defendants owed a non-delegable duty to the plaintiffs and thus, to strike defendants’ designation of nonparties at fault. After being fully briefed, Judge Spear, found that such a non-delegable duty does not exist.

    The case arises from the construction of a single-family residence in Aurora, Colorado. Through the construction and interaction with Alpert Custom Homes, Inc. and Scott and Sally Alpert, the defendants, Paul Marx and Kay Corken, the plaintiffs claimed they suffered various damages and losses, and brought claims for breach of contract-warranty, breach of contract, violation of the Colorado Consumer Protection Act, breaches of the implied covenant of good faith, promissory estoppel, willful breach of contract, and quantum meruit. During litigation, the defendants filed a designation of nonparties at fault, which named several parties which were at fault for the alleged construction defects at issue in the case.

    Read the full story…

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


    Construction Defect Lawsuit Stayed by SB800

    September 13, 2012 — CDJ Staff

    The California Court of Appeals has reversed the decision of the lower court and has stayed, instead of dismissed, a claim of construction defects. A group of Victorville homeowners sued their homebuilder, K. Hovnanian Communities on a claim of construction defects. Hovnanian argued that under the procedures set forth in SB800, the suit should be dismissed, and that the claims should undergo arbitration. The trial agreed, dismissing the claims of 82 plaintiffs under a first motion, and then granted a second motion to dismiss, which affected a further 21 plaintiffs. The homeowners appealed.

    The Court noted that “the parties disagree about the standard of review,” with the Court determining that as the facts were not in dispute, they would use “an independent standard of review.”

    Reviewing the relevant statues, the Court concluded that the terms of the limited warranty set out the pre-litigation procedure, noting that “plaintiffs admit they did not comply with the limited warranty because they challenge its validity and enforceability.” The Court concluded that “plaintiffs’ action was premature.”

    The Court further noted that “a civil action will not be filed until after the contractual procedures have been followed.” Until these procedures have been followed, the Court said that they “decline to resolve issues about validity and enforceability.” However, as these issues could arise after the limited warranty procedures, the court stayed, rather than dismissed the claims.

    Read the court’s decision…


    West Coast Casualty Promises Exciting Line Up at the Nineteenth Annual Conference

    March 28, 2012 — CDJ Staff

    West Coast Casualty has announced the lineup for the annual WCC Construction Defect Seminar. This year’s seminar will be the nineteenth anniversary, and it will be held on May 17th and 18th, 2012 in Anaheim, California. They are the largest construction defect event in the world and this year’s seminar will again bring the top people in the field to address many of the current issues and where the construction defect community will be going in the future.

    The event, anticipated to be even larger than prior years, will have numerous panels and presentations on the current state of construction defect litigation. Among the topics that will be presented are “Arbitrate? Let’s See You Make Me!” “Defending Construction Defect Failure Mechanisms?An Expert’s Perspective,” and “Current Trends in Effectively Handling SB800 Cases.”

    Speakers at the event will include judges, lawyers, and representatives of the insurance industry. One event, “Meet Your Judges, A Candid Discussion on Construction Defect Claims and Litigation from the Bench?” will include judges from five states, including the Honorable Nancy M. Saitta, Chief Justice of the Nevada Supreme Court, the Honorable Clifton Newman of the South Carolina Circuit Court, and the Honorable Rex Heeseman of the Los Angeles County Superior Court.

    Daniel A. Berman, Esq. and Stephen Henning, Esq. will be talking on the topic of “Social Networking Sites: Strategies, Ethical Pitfalls, and Practice Pointers for Litigating and Winning Your Construction Defect Case.” Mr. Berman is a Founding and Managing Partner of Wood, Smith, Henning & Berman LLP. He has been named a Southern California Super Lawyer for eight consecutive years. Mr. Henning is a Founding Partner of Wood, Smith, Henning & Berman, LLP and Fellow of the Litigation Counsel of America. Mr. Henning will also be one of the presenters on the panel “Important Court Decisions Impacting Construction Defect Claims.”

    The panel “Why Do We Need to Know Certain Things and How Decisions Are Made” will be presented by important figures in the construction claims industry, including Phyllis Modlin, Todd Schweitzer, Teresa D. Wolcott, and Lee Wright. Ms. Modlin is a Construction Defect Claims Supervisor responsible for nationwide claims for Markel Corporation. Mr. Schweitzer is an Assistant Vice President of Major Case for Construction Defect and Professional Liability Claims Services at Zurich North America. Ms. Wolcott is the National Product Manager for Construction Defect Claims within the Construction Claims Organization at Travelers Insurance. Mr. Wright is an Assistant Vice President and Senior Claims Consultant for XL Specialty Insurance.

    The event will also include a Science and Technology Fair in which exhibitors will be presenting technological problem solving and decision making as they relate to resolving ongoing construction and post construction-defect related issues while reducing costs for all those involved in claims and litigation. The fair is dedicated to these novel applications of science and technology that benefit the construction defect community but are not yet commonly available. This will be the third time the Construction Defect Seminar will include a Science and Technology Fair.

    Sessions at the event are approved for MCLE credit in Arizona, California, Colorado, Illinois, Maine, Minnesota, New York, Ohio, and Pennsylvania. MCLE credits vary by state; attendees can obtain up to 10.25 hours of credit in Arizona, California, Maine, and New York. Applications for several other states are still pending. Additionally, the event is also worth continuing education credits with the Florida Department of Insurance and for Registered Professional Adjusters. West Coast Casualty has applications pending for adjuster continuing education in an additional thirty-six states.

    West Coast Casualty recommends this event for anyone involved in construction or construction defect claims, whether they are a claims adjuster, a member of a homeowner board, a judge, a property manager, a construction claims attorney, a general contractor, or anyone else with an interest in this area. The event typically has more than 1,600 attendees. Those interested can register online.

    Read the full story…


    Texas Windstorm Insurance Agency Under Scrutiny

    April 5, 2011 — April 5, 2011 Beverley BevenFlorez - Construction Defect Journal

    Representative Larry Taylor has introduced a bill in the Texas Legislature (HB 2818) that would further regulate the Texas Windstorm Insurance Agency (TWIA). According to Taylor, “In order to be adequately prepared for future hurricane seasons, it is imperative that TWIA be operating at maximum efficiency, that the Reserve Trust Fund be solvent and that the agency have adequate management measures in place to protect consumers and ensure that claims are paid in a timely manner. House Bill 2818 is an important step in the right direction toward restoring public confidence in TWIA.”

    HB 2818 includes measures that would create an expert panel that would advise the commissioner on how to evaluate loss from the storm, and a greater transparency of TWIA Board meetings and actions.

    In addition, the Texas Department of Insurance (TDI) has placed TWIA on Administrative Oversight. According to TDI, “While under Administrative Oversight, the Department may require its prior review and approval of executive decisions, certain expenditures, and other transactions. The insurer is required to fully cooperate with the Department and provide complete and timely disclosure of all information responsive to Department requests.”

    Read the full story (Rep. Taylor’s Press Release)...

    Read the full story (Texas Department of Insurance’s Press Release)...


    Ohio Casualty’s and Beazer’s Motions were Granted in Part, and Denied in Part

    May 10, 2012 — CDJ Staff

    The case Trinity Homes LLC and Beazer Homes Investments LLC has reached the summary judgment stage. The remaining plaintiffs are Trinity Homes LLC (Trinity) and Beazer Homes Investments LLC (Beazer), and the only defendant remaining is Ohio Casualty Insurance Company (Ohio Casualty). “Ohio Casualty has filed a motion for summary judgment (Dkt. #409) on all claims against it, and Trinity and Beazer have filed a cross-motion seeking partial summary judgment (Dkt. #431) in their favor.” Ohio Casualty’s Motion for Summary Judgment was granted in part and denied in part, and Beazer’s motion was granted in part and denied in part.

    The court’s ruling presented a bit of background on the companies involved in the litigation: “Trinity is an Indiana limited liability company with its principal place of business in Indiana and is one of several construction related companies owned by Beazer, which is a limited liability company incorporated under the laws of Delaware having its principal place of business in Atlanta, Georgia. Beazer’s predecessor, Beazer Homes Investment Corporation, acquired the stock of Crossman Communities, Inc. in 2002. Crossman and its subsidiary owned all interests in Trinity. Beazer and Trinity are in the business of residential real estate development and construction.”

    Furthermore, “Ohio Casualty’s home office is in Ohio, where it is incorporated. It sells insurance policies to commercial entities such as Plaintiffs. It purchased a book of business from Great American Insurance Company, a subsidiary of which had sold commercial general liability policies (‘CGL’) and umbrella liability policies to Trinity, covering the period of time between May 1, 1994 through May 1, 1999. For ease of reference, we will refer to these policies as the Ohio Casualty policies. Trinity sold and acted as a general contractor for the construction of new homes in Central Indiana throughout the period of time in which the Ohio Casualty policies were in place.”

    The court disagreed with almost every argument put forth by Ohio Casualty. However, they did concede “that Ohio Casualty is obligated to indemnify Trinity only for damages arising during its policy periods for pro rata liability as opposed to several and indivisible, by reason of its having limited its indemnity obligation to ‘those sums’ that Trinity becomes liable to pay for property damage which ‘occurs during the policy period.’”

    Finally, the court ruled that “Ohio Casualty Company’s Motion For Summary Judgment (Dkt. #409) is GRANTED IN PART, that is, to the extent that Beazer is not an insured under the Ohio Casualty insurance policies, but the motion is DENIED in all other respects.”

    The court further ruled that “Trinity and Beazer’s Motion For Partial Summary Judgment (Dkt. #431) is GRANTED IN PART, that is: (1) Trinity is an insured under the Ohio Casualty CGL and umbrella policies in effect for the time period from May 1, 1994 to May 1, 1999; (2) the claims at issue in the Underlying Lawsuits are "property damage" claims resulting from an "occurrence" and are therefore within the policy coverage provided under the Ohio Casualty Policy; and (3) none of the exclusions in the Ohio Casualty Policy bars coverage. Trinity and Beazer’s Motion is DENIED in all other respects. Moreover, material questions of fact remain with respect to whether payments made to the 54 homeowners, who were part of the putative class in the underlying Colon class action but were not included in the certified settlement class, were voluntary payments and as such do not qualify for indemnification. Material questions of fact also preclude a summary ruling on the issue of whether Ohio Casualty is estopped from raising their voluntary nature as a defense to indemnity.”

    Read the court’s decision…


    Virginia Chinese Drywall and pollution exclusion

    May 27, 2011 — CDCoverage.com

    In Nationwide Mut. Ins. Co. v. The Overlook, LLC, No. 4:10cv69 (E.D. Va. May 13, 2011), homeowner Edmonds sued insured developer/general contractor Overlook seeking damages resulting from defective Chinese drywall installed in Edmonds’ home. Overlook’s CGL insurer Nationwide defended Overlook under a reservation of rights and filed a declaratory judgment action. The federal district trial court granted Nationwide’s motion for summary judgment.

    Read the full story…

    Reprinted courtesy of CDCoverage.com


    Ohio Court of Appeals Affirms Judgment in Landis v. Fannin Builders

    April 20, 2011 — April 20, 2011 Beverley BevenFlorez - Construction Defect Journal

    The Ohio Court of Appeals affirmed the judgment in Landis v. William Fannin Builders. Landis contracted Fannin Builders to build their home. The case involved staining problems on the T1-11 siding chosen by the plaintiffs.

    After a year and a half of discussion on how to resolve the problem of uneven staining on the siding, Landis filed suit “against Fannin Builders, alleging claims for breach of contract, breach of the express limited warranty, and violation of the Ohio Consumer Sales Practices Act (“OCSPA”). Fannin Builders, in turn, filed a third-party complaint against 84 Lumber, alleging claims for breach of contract and indemnification. With the trial court’s leave, Fannin Builders also later amended its answer to add a counterclaim against appellees for breach of contract and unjust enrichment. In the counterclaim, Fannin Builders alleged that appellees still owed it $3,908.98 for the construction of appellees’ home.”

    “In its decision, the trial court found in appellees’ favor on their breach of contract claim and against appellees on their claims for breach of the express limited warranty and violation of the OCSPA. Additionally, the trial court found in Fannin Builders’ favor on its counterclaim for breach of contract and against Fannin Builders on its third-party claims for breach of contract and indemnity. The trial court determined that appellees’ damages amounted to $66,906.24, and after setting off the $3,908.98 that appellees owed Fannin Builders under the construction contract, the trial court awarded appellees $62,997.26. The trial court reduced its decision to judgment on May 18, 2010.”

    Fannin Builders appealed this judgment and assigned the following errors:

    [1.] The Trial Court Erred as a Matter of Law by Concluding that Appellant Breached its Contract with Appellees when it provided a Semi-Transparent Oil-Based Stain that Simply did not Meet their Approval.

    [a.] The Contract does not Contain a Satisfaction Clause.

    [b.] Even if the Court Implies a Satisfaction Clause, the Court Should Apply an Objective Standard.

    [2.] The Trial Court Erred as a Matter of Law by Failing to Consider Appellant’s Right to Cure.

    [3.] The Trial Court committed Reversible Error by not Assessing Damages Using “Diminished Value Standard,” and by Creating a Remedy that Constitutes Economic Waste.

    [4.] The Trial Court Erred as a Matter of Law by Concluding that Appellant is Barred from Seeking Indemnification When 84 [Lumber] Never Fulfilled its Obligations Pursuant to the Settlement Agreement Entered on August 2, 2005.

    In response to the first assigned error, the Court of Appeals stated: “Because the failure to provide siding of a uniform color, not appellees’ displeasure, breached the contract, we reject Fannin Builders’ contention that the trial court implied a satisfaction clause into the contract and found a breach of that clause. Accordingly, we overrule Fannin Builders’ first assignment of error.”

    The Court of Appeals overruled the second assignment of error and provided the following reasoning: “Although Fannin Builders depends upon a term of the limited warranty for its right to cure, the trial court concluded that no breach of the limited warranty occurred. Fannin Builders breached the duty of workmanlike conduct implicit in the construction contract, not the limited warranty requiring it to satisfy the BIA’s Quality Standards. Consequently, the limited warranty does not apply to this case, and thus, it does not prevent appellees’ recovery of damages.”

    The Appeals Court found “the trial court’s award of damages” was “both reasonable and supported by competent, credible evidence,” and therefore concluded “that the trial court did not err in setting appellees’ damages at $62,997.26.” The Fannin Builders third assignment of error was overruled.

    The fourth and final assignment of error was also overruled by the Court of Appeals. “While Fannin Builders correctly asserts that 84 Lumber never installed the replacement siding, it ignores the fact that it ordered 84 Lumber to remove the replacement siding from appellees’ property. Thus, Fannin Builders precluded 84 Lumber from completely performing under the August 2, 2005 letter agreement. […] Consequently, Fannin Builders cannot now claim that the letter agreement is unenforceable or that it is entitled to indemnification from 84 Lumber. Because Fannin Builders assumed all liability for the defective siding in the letter agreement, it is responsible for appellees’ damages.”

    James A. Zitesman, Columbus, Ohio Business Attorney, compared the case to Jones v. Centex (Ohio App. 2010), which had a different verdict:

    “The common thread is the implied warranty of good workmanship. In the Jones case, the Court found that the buyers had in fact waived all implied warranties, including the implied warranty of good workmanship. In the contract between Jones and Centex, the builder stated that it “…would not sell the property to Purchasers without this waiver.” Probably should have been a sign to the buyers.

    In the Landis case, the Court stated, “Contracts for the future construction of a residence include a duty, implied by law, that the builder must perform its work in a workmanlike manner.” The Court gave significant weight to the concept of the implied warranty of good workmanship. The builder relied upon the BIA Warranty which limits builders’ liability and exposure to legal issues. The trial court concluded there was no breach of the limited warranty, rather the builder “breached the duty of workmanlike conduct implicit in the construction contract, not the limited warranty requiring it to satisfy the BIAs Quality Standards.”

    The Supreme Court of Ohio has accepted the Jones v. Centex Homes case for review.

    Read the full story...


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

    November 18, 2011 — CDCoverage.com

    In Town & Country Property, LLC v. Amerisure Ins. Co., No. 1100009 (Ala. Oct. 21, 2010), property owner Town & Country contracted with insured general contractor Jones-Williams for the construction of a car dealership. All of the construction work was performed by Jones-Williams subcontractors. After completion, Town & Country sued Jones-Williams for defective construction. Jones-Williams’ CGL insurer Amerisure defended. The case was tried and a judgment was entered against Jones-Williams in favor of Town & Country. After Amerisure denied any obligation to pay the judgment, Town & Country sued Amerisure in a statutory direct action.

    Read the full story…

    Reprinted courtesy of CDCoverage.com.


    Insurer Must Cover Construction Defects Claims under Actual Injury Rule

    March 1, 2012 — Tred Eyerly, Insurance Law Hawaii

    The Texas Court of Appeals held that the insured need not prove the exact dates physical damage occurred in order to trigger defense and indemnity coverage. Vines-Herrin Custom Homes, LLC v. Great Am. Lloyds Ins. Co., 2011 Tex. App. LEXIS 10027 (Tex. Ct. App. Dec. 21, 2011).

    In 1999, the insured built a home. He was insured under a CGL policy issued by Great American from November 9, 1998 to November 9, 2000. Thereafter, the insured held a CGL policy issued by Mid-Continent from November 9, 2000 to September 18, 2002.

    After construction was completed, the insured sold the house to the buyer in May 2000. After moving in, the buyer found numerous construction defects in the home, including water entering cracks in the home, and sinking and sagging of parts of the house. The buyer sued the insured, who sought coverage under the two policies. When the insurers refused to defend the underlying suit, the insured sued for a declaratory judgment.

    The underlying case went to arbitration and an award of $2.4 million was granted to the buyer. The insured assigned to the buyer his claims against the insurers.

    Read the full story…

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


    Can Negligent Contractors Shift Blame in South Carolina?

    July 10, 2012 — CDJ Staff

    Clay Olson looks back to a 1991 Carolina case, Nelson v. Concrete Supply Company. The court concluded in that case that “a plaintiff in South Carolina may recover only if his/her negligence does not exceed that of the defendant’s and amount of plaintiff’s recovery shall be reduced in proportion to amount of his or her negligence; if there is more than one defendant, plaintiff’s negligence shall be compared to combined negligence of all defendants.” In 2005, he reports, as part of tort reform in South Carolina, the legislature further addressed this.

    He then suggests a possible outcome of this is that negligent contractors may be able to shift some of the blame (and cost of the settlement) to other defendants who may not be to blame. He offers a scenario in which a contractor is sued for construction defects and a jury has to allocate responsibility for indivisible damage. “A jury need only find the two subcontractors to have each contributed 15% of the indivisible damage.” He adds in another 15% for claims against the architect. Minor blame is given to the manufacturers, and suddenly the negligent contractor is paying less than 50% of the total settlement.

    He notes that the previous system in place also had its problems, but notes that this one may not be “fair and equitable.”

    Read the full story…


    Contractor Underpaid Workers, Pocketed the Difference

    February 10, 2012 — CDJ Staff

    Property Casualty 360 reports that the owner of a construction company in California’s Bay Area has been arraigned in San Francisco Superior Court. The fifty-seven felony counts include charges of payroll theft and insurance fraud.

    San Francisco District Attorney, George Gascon is quoted as saying that Doherty’s actions “hurts the honest businesses that were unable to successfully compete for these projects which the defendant was able to underbid and win as a result of this scheme.”

    Frances Ann Doherty, owner of Doherty Painting & Construction has been charged with submitting false documentation as to what wages she paid her workers. It is alleged that over three years she pocketed $600,000. Additionally, she is charged with underpaying her insurer by more than $100,000 by submitting to them the fake payroll information.

    Read the full story…


    Surveyors Statute Trumps Construction Defect Claim in Tennessee

    June 19, 2012 — CDJ Staff

    The Tennessee Court of Appeals has issued an opinion in the case of Dale v. B&J Enters. (Tenn. App., 2012), affirming the ruling of the Chancery Court for Knox County. The homeowners purchased properties in Knoxville, Tennessee in 2007 and 2008. Subsequently, according to the complaint, they found “significant sink holes and depressions throughout the subdivision.” The plaintiffs determined that a previous developer in 2004 had been aware of the sink holes. The Knox County Metropolitan Planning Commission, upon giving approval, made requirements that included that sink holes, even if they were filled, had to be designated on the site plans. The developer did not indicate these locations on the final plans. The plaintiffs made claims of “failure to disclose, misrepresentation, misrepresentation by concealment, and violation of the Tennessee Consumer Protection Act.” They filed their suit in June 2009.

    The defendants in the initial case, argued that they did not create the final plat, the site plan indicating the features and lot lines. This had been the work of the previous developer. In September, 2009, the plaintiffs amended their complaint to include the previous developer and its engineering firm. The engineering firm disavowed any responsibility. The developer noted that the surveyor, Benchmark Associates, had “failed to properly include the sink holes and/or depressions on the final plat.” In June, 2010, the plaintiffs added Benchmark.

    Benchmark argued that the plaintiffs’ claims should be dismissed, as Tennessee has a four-year statute of limitations on claims against surveyors. The final plat was recorded on May 19, 2006, and the plaintiff filed their claims against Benchmark on June 16, 2010, slightly less than a month over four years. The plaintiffs argued that “the real issue [was] the tortious misrepresentation by Benchmark.” The Chancery Court found for Benchmark.

    On appeal, the plaintiffs raised three issues. They argued that the trial court applied the wrong section of the law, and should have applied the section applying to construction and not surveyors. They also argued that the timeliness of the claim should be based on when the defects were discovered. The also raised the question of whether the laws concerning surveyors bar claims for misrepresentation. The appeals court upheld the decision of the Chancery Court.

    For the plaintiff’s first claim, although the statute addressing deficiencies in construction mentions surveying, an earlier court ruling found that the legislature had removed a reference to surveyors in one part of the statute, but failed to do so in the second part. The earlier court had concluded that the “obvious intent of the legislature was to place all limits on actions against surveyors into the new statute.” As the applicable statute states that “any such action not instituted within this four (4) year period shall be forever barred,” the court held that the plaintiffs’ claims must be time barred. Further, as the intent of the legislature was determined to “place all limits on actions against surveyors into one statute,” the court felt that it could not apply the Consumer Protection Act.

    Read the court’s decision…


    2011 West Coast Casualty Construction Defect Seminar – Recap

    June 1, 2011 — CDJ Staff
    Event exhibitors and sponsors contribute to an informative and engaging environment
    Event exhibitors and sponsors contribute to an informative and engaging environment

    This year’s meeting was the best yet for the industry-leading construction defect and claims event.

    This year’s seminar concluded on May 13, 2011 with the Construction Defect Community Charitable Foundation Golf Tournament, held at Strawberry Farms Golf Course.

    The Disneyland Hotel in Anaheim, California was the place where more than 1,500 attendees convened for two days of professional development activities and seminars that included CLE workshops and panel discussions of special interest to legal and insurance professionals concerned with construction defect and claims litigation. Key events included “Challenges for Experts in Construction Defect Claims and Litigation,” “Keeping Up with Construction Defect Coverage,” and “Tips for Avoiding the ‘Perfect Storm’ in Handling of Wrap Claims.”

    Supporting the golf tournament at the 15th hole
    Supporting the golf tournament at the 15th hole

    This year’s Ollie award was given to George D. Calkins II, Esq. The West Coast Casualty Jerrold S. Oliver Award of Excellence was named in honor of the late Judge Jerrold S. Oliver, and recognizes an individual who is outstanding or has contributed to the betterment of the construction community.

    In addition to being the most comprehensive professional development seminar in the area of construction defects, this year’s seminar was equally valuable as a networking opportunity for members of the industry. People participated in professional development events during the day and then continued networking in the evening at numerous social events. The Lawn Party as well as the legendary Wood, Smith, Henning & Berman events were very well attended. Additional valuable networking events were hosted by a number of industry professionals at the House of Blues, and Tortilla Joe’s.

    As of this writing the 2011, West Coast Casualty's Construction Defect Seminar has applied for or has already received the following continuing education accreditation in the following areas;

    Read the full story…

    For more information about next year’s event, visit West Coast Casualty.


    Micropiles for bad soil: a Tarheel victory

    March 14, 2011 — Original article by by Melissa Brumback on March 14, 2011

    Despite foundation challenges, construction is almost complete on the expansion at University of North Carolina’s Kenan stadium. The project started with a deep foundation system from design-build contractor GeoStructures. Known as the Carolina Student-Athlete Center for Excellence, the addition was built on a parcel with a knotty mix of fill soils, subsurface boulders and varying depths to rock. To achieve uniform foundation support, GeoStructures designed a Micropile system (also known as a Mini pile system) which could be drilled into the variable ground conditions.

    Read the full story...

    Reprinted courtesy of Melissa Brumback of Ragsdale Liggett PLLC. Ms. Brumback can be contacted at mbrumback@rl law.com.


    Public Relations Battle over Harmon Tower

    October 23, 2012 — CDJ Staff

    Tutor Pernini claims that CityCenter is portraying the construction firm as “the scum of the earth” in an attempt to influence eventual jurors, according to an article at Vegas Inc. The contractor’s attorneys have requested information regarding the public relations efforts of MGM Resorts and CityCenter, characterizing CityCenter’s PR as a “litigation spin doctor.”

    CityCenter has requested that at least one subpoena be canceled. Judge Elizabeth Gonzales has already allowed one to go through, although she has noted that Perini cannot request documents from CityCenter’s lawyers to the litigation consultants under attorney/client privilege. Tutor Perini claims that in 2010, Patricia Glaser, who has represented CityCenter, said her goal was to portray Perini as “the scum of the earth,” and make that certain that judges and juries would not “adopt the world view espoused by the opposing party.”

    Read the full story…


    Hilton Grand Vacations Defect Trial Delayed

    October 23, 2012 — CDJ Staff

    A settlement agreement between Conti Electric and Westgate Resorts has lead to a delay in starting the trial over construction defect claims and billing disputes over Hilton Grand Vacations a time share tower in Las Vegas. According to the Las Vegas Review-Journal, the dispute includes claims of $23.3 million owed to the general contractor against which the developer has placed $30 million in construction defect claims.

    Read the full story…


    Construction Defect Notice in the Mailbox? Respond Appropriately

    August 4, 2011 — Douglas Reiser, Builders Counsel

    Recently, I have seen a rash of ignored construction defect notices. What is a construction defect notice? It’s a statutorily required notice, sent from a homeowner to a contractor, listing a number of defects found at their property. If you get one, don’t ignore it.

    The Revised Code of Washington includes a number of provisions intended for residential construction disputes. Among them is the “Notice to Customer” requirement in RCW 18.27.114, which can preempt a contractor’s lien rights, and the “Notice of Construction Defects” found in RCW 64.50.020.

    The Notice of Construction Defects is a standard notice mandated by RCW 64.50, a chapter in the Revised Code of Washington, intended to provide a pre-litigation resolution process for contractors and consumers. The chapter applies only to those losses “caused by a defect in the construction of a residence or in the substantial remodel of a residence.”(See “Action” RCW 64.50.010).

    Unfortunately, many contractors will simply ignore these notices or tell the homeowner to make a warranty claim. But, the notice actually provides a contractor with a forty-five (45) day window to alleviate the dispute.

    Read the full story…

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