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    Construction Expert Witness Builders Information
    Catskill, New York

    New York Builders Right To Repair Current Law Summary:

    Current Law Summary: Case law precedent


    Construction Expert Witness Contractors Licensing
    Guidelines Catskill New York

    State license is required for Asbestos Abatement. All other licensing is done at the local level. Businesses must register with the Secretary of State.


    Construction Expert Witness Contractors Building Industry
    Association Directory
    Finger Lakes Home Builders & Remodelers Association
    Local # 3312
    PO Box 421
    Big Flats, NY 14814
    http://www.fingerlakesbuilders.com

    Southern Tier Home Builders & Rem Assoc
    Local # 3330
    2807 North St
    Endwell, NY 13760
    http://www.sthbra.com

    Tompkins/Cortland Bldrs&Remo
    Local # 3382
    PO Box 202
    Cortland, NY 13045
    http://www.tcbra.com

    New York State Bldrs Assn
    Local # 3300
    1 Commerce Plz Ste 704
    Albany, NY 12210
    http://www.nysba.com

    Capital Region B & R Assoc
    Local # 3305
    1202 Troy-Schenectady Road Ste 7
    Latham, NY 12110
    http://www.crbra.com

    Builders Association of the Hudson Valley
    Local # 3348
    1161 Little Britain Rd
    New Windsor, NY 12553
    http://www.hvbuilder.com

    Buffalo Niagara Builders Association
    Local # 3306
    90 Sylvan Pkwy
    West Amherst, NY 14228
    http://www.bnba.org


    Construction Expert Witness News and Information
    For Catskill New York

    Construction Defect Lawsuits? There’s an App for That

    Insurance Firm Defends against $22 Million Claim

    State Farm Too Quick To Deny Coverage, Court Rules

    Pipes May Be Defective, But Owners Lack Standing

    OSHA Extends Delay of Residential Construction Fall Protection Requirements

    Home Builder Doesn’t See Long Impact from Hurricane

    Granting Stay, Federal Court Reviews Construction Defect Coverage in Hawaii

    Construction Defect Not a RICO Case, Says Court

    Faulty Workmanship Exclusion Does Not Bar Coverage

    Alaska Supreme Court Dismisses Claims of Uncooperative Pro Se Litigant in Defect Case

    Preparing For the Worst with Smart Books & Records

    Construction Defect Bill Introduced in California

    Construction Jobs Expected to Rise in Post-Hurricane Rebuilding

    South Carolina Legislature Redefining Occurrences to Include Construction Defects in CGL Policies

    Water Damage Covered Under Efficient Proximate Cause Doctrine

    Crane Dangles and So Do Insurance Questions

    SB800 Cases Approach the Courts

    Contractor Sues License Board

    Nevada Assembly Sends Construction Defect Bill to Senate

    Construction Company Head Pleads Guilty to Insurance and Tax Fraud

    Homeowners Sue Over Sinkholes, Use Cash for Other Things

    Demand for Urban Living Leads to Austin Building Boom

    Insurer Unable to Declare its Coverage Excess In Construction Defect Case

    Texas Court of Appeals Conditionally Grant Petition for Writ of Mandamus to Anderson

    Ensuing Loss Provision Does Not Salvage Coverage

    Coverage for Construction Defects Barred by Business Risk Exclusions

    History of Defects Leads to Punitive Damages for Bankrupt Developer

    An Upward Trend in Commercial Construction?

    US Courts in Nevada Busy with Yellow Brass

    Going Green for Lower Permit Fees

    Application of Efficient Proximate Cause Doctrine Supports Coverage

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

    Celebrities Lose Case in Construction Defect Arbitration

    Lower Court “Eminently Reasonable” but Wrong in Construction Defect Case

    More Charges in Las Vegas HOA Construction Defect Scam

    Texas Construction Firm Files for Bankruptcy

    Construction Firm Sues City and Engineers over Reservoir Project

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

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

    Hovnanian Increases Construction Defect Reserves for 2012

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

    Court Sends Construction Defect Case from Kansas to Missouri

    Loose Bolts Led to Sagging Roof in Construction Defect Claim

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

    California Construction Bill Dies in Committee

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

    United States District Court Confirms That Insurers Can Be Held Liable Under The CCPA.

    Is Construction Heading Off the Fiscal Cliff?

    Federal District Court Predicts Florida Will Adopt Injury In Fact Trigger

    Nevada Bill Aims to Reduce Legal Fees For Construction Defect Practitioners

    Minnesota Starts Wide-Ranging Registration of Contractors

    Arizona Supreme Court Confirms Eight-Year Limit on Construction Defect Lawsuits

    Ohio subcontractor work exception to the “your work” exclusion

    Ohio Adopts Energy-Efficient Building Code

    Preparing for Trial on a Cause of Action for Violation of Civil Code section 895, et seq.

    Washington Court Limits Lien Rights of Construction Managers

    Nevada Assembly Bill Proposes Changes to Construction Defect Litigation

    Homebuilding Still on the Rise

    Safe Harbors- not just for Sailors anymore (or, why advance planning can prevent claims of defective plans & specs) (law note)

    Harmon Towers Duty to Defend Question Must Wait, Says Court

    Colorado “occurrence”

    School District Marks End of Construction Project by Hiring Lawyers

    Harsh New Time Limits on Construction Defect Claims

    Kansas Man Caught for Construction Scam in Virginia

    Sometimes It’s Okay to Destroy Evidence

    Contractors Admit Involvement in Kickbacks

    Insurer Able to Refuse Coverage for Failed Retaining Wall

    South Carolina “occurrence” and allocation

    Construction Defects and Contractor-Owners

    Contractual Liability Exclusion Bars Coverage

    Save a Legal Fee: Prevent Costly Lawsuits With Claim Limitation Clauses

    Lien Law Unlikely To Change — Yet

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

    Godfather Charged with Insurance Fraud

    Association May Not Make Claim Against Builder in Vermont Construction Defect Case

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

    New Construction Laws, New Forms in California

    Architect Not Responsible for Injuries to Guests

    Arbitration Clause Found Ambiguous in Construction Defect Case

    Death of Construction Defect Lawyer Ruled a Suicide

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

    District Court Awards Summary Judgment to Insurance Firm in Framing Case

    Construction Defect Litigation at San Diego’s Alicante Condominiums?

    Instant Hotel Tower, But Is It Safe?

    Construction Law: Unexpected, Fascinating, Bizarre

    Construction Defect Exception Does Not Lift Bar in Payment Dispute

    Construction Job Opening Rise in October

    Largest Per Unit Settlement Ever in California Construction Defect Case?

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

    Housing Prices Up through Most of Country
    Corporate Profile

    CATSKILL NEW YORK CONSTRUCTION EXPERT WITNESS
    DIRECTORY AND CAPABILITIES

    The Catskill, New York 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 Catskill'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
    Catskill, New York

    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.


    Texas res judicata and co-insurer defense costs contribution

    March 23, 2011 — Original story by CDCoverage.com, March 23, 2011

    In Truck Ins. Exchange v. Mid-Continent Casualty Co., No. 03-08-00526-CV (Tex. App. 3d Aug. 27, 2010), insured contractor DCI was sued by the project owner seeking damages for defective construction. DCI tendered its defense to its CGL insurers Truck and Mid-Continent. Truck agreed to defend while Mid-Continent denied a defense. While the underlying suit was pending, Mid-Continent sued DCI, but not Truck, and obtained a judicial declaration of no duty to defend or indemnify DCI in the underlying suit. After settling the underlying suit, Truck sued Mid-Continent seeking contribution towards defense costs and indemnity payments. The state trial court entered summary judgment for Mid-Continent. The intermediate appellate court affirmed.

    Read the full story...

    Reprinted courtesy of CDCoverage.com


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

    October 28, 2011 — CDJ Staff

    The US District Court has ruled in the case of D.R. Horton Los Angeles Holding Co. Inc. v. American Safety Indemnity, Co. D.R. Horton was involved in a real estate development project. Its subcontractor, Ebensteiner Co., was insured by ASIC and named D.R. Horton as an additional insured and third-party beneficiary. D.R. Horton, in response to legal complaints and cross-complaints, filed for coverage from ASIC under the Ebensteiner policy. This was refused by ASIC. ASIC claimed that “there is no potential coverage for Ebensteiner as a Named Insurer and/or D.R. Horton as an Additional Insured.” They stated that “the requirements for coverage are not satisfied.”

    The case same to trial with the deadline for discovery set at March 1, 2011. ASIC stated they were seeking the developer’s “job file” for the Canyon Gate project. D.R. Horton claimed that ASIC’s discovery request was overbroad and that it would be “unduly burdensome for it to produce all documents responsive to the overbroad requests.”

    D.R. Horton did agree to produce several categories of documents, which included:

    “(1) final building inspection sign-offs for the homes that are the subject of the underlying litigation;(2) an updated homeowner matrix for the underlying actions; (3) the concrete subcontractor files; (4) the daily field logs for D.R. Horton’s on-site employee during Ebensteiner’s work; (5) documents relating to concrete work, including documents for concrete suppliers; (6) documents relating to compacting testing; (7) documents relating to grading; and (8) D.R. Horton’s request for proposal for grading”

    The court found that the requests from ASIC were overbroad, noting that the language of the ASIC Request for Production of Documents (RFP) 3-5 would include “subcontractor files for plumbing, electric, flooring, etc. - none of these being at issue in the case.” The court denied the ASIC’s motion to compel further documents.

    The court also found fault with ASIC’s RFPs 6 and 7. Here, D.R. Horton claimed the language was written so broadly it would require the production of sales information and, again, subcontractors not relevant to the case.

    Further, the court found that RFPs 8, 10, 11, and 13 were also overbroad. RFP 8 covered all subcontractors. D.R. Horton replied that they had earlier complied with the documents covered in RFPs 10 and 11. The court concurred. RFP 13 was denied as it went beyond the scope of admissible evidence, even including attorney-client communication.

    The court denied all of ASIC’s attempts to compel further discovery.

    Read the court’s decision…


    Exclusions Bar Coverage for Damage Caused by Chinese Drywall

    July 5, 2011 — Tred R. Eyerly, Insurance Law Hawaii

    The insured homeowners were unsuccessful in arguing around the policy's exclusions when seeking coverage for damage caused by Chinese drywall. Ross v. C. Adams. Constr. & Design, L.L.C., 2011 La. App. LEXIS 769 (La. Ct. App. June 14, 2011).

    Before the insureds purchased and moved into their home, it was renovated. After moving in, the insures discovered foreign gypsum drywall, or Chinese drywall. The insureds submitted a claim to Louisiana Citizens Property Insurance Company. In an investigation, the insurer confirmed the presence of Chinese drywall and damage to the metal surfaces caused by corrosion. Louisiana Citizens refused coverage and the insureds sued. The trial court denied the insured's motion for summary judgment and granted summary judgment to Louisiana Citizens.

    The court of appeal affirmed. Initially, the court determined the insureds sustained a direct physical loss. The inherent qualities of the Chinese drywall created a physical loss to the home and required that the drywall be removed and replaced.

    Four exclusions, however, barred coverage. First, damages due to faulty or defective materials were excluded from coverage. The Chinese drywall emitted high levels of sulfuric gas which caused the damage to the insured's plumbing, electrical wiring and metal components.

    Read the full story…

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


    Brown Paint Doesn’t Cover Up Construction Defects

    April 25, 2012 — CDJ Staff

    In a decision that describes the case as illustrating “the perils that real estate brokers and their agents assume when acting as a dual listing agent to both the buyers and sellers of the same house,” the California Court of Appeals has issued a decision in William L. Lyon & Associates v. The Superior Court of Placer County. Lyon & Associates sought summary judgment to dismiss the claims of the Henleys who bought a home in a transaction where a Lyon agent represented both sides.

    The prior owners of the home, the Costas, had used a Lyon agent in purchasing their home. When they later sought to sell it, that agent “became aware of some of the house’s defects and problems.” In response, the Costas sought the help of another agent, Connie Gidal, also of Lyons & Associates. Photos taken in the presence of Ms. Gidal show defects of the paint and stucco. The Costas also took the step of painting the house dark brown. During the sale process, “rain caused many of the painted-over defects to reappear.” The Costas “purchased more dark brown paint and covered up the newly visible damage prior to inspection by the Henleys.”

    With the damage concealed, the Henleys bought the home in May 2006. The agreement with Lyons & Associates noted that “a dual agent is obligated to disclose known facts materially affecting the value or desirability of the property to both parties.” Escrow closed on May 9, 2006. The contract with the broker included a two-year limit on the time to bring legal action.

    The Henleys moved in during June 2006, and “began to discover construction defects that had been concealed by the Costas.” In addition to the painted-over stucco problems, the Henleys found that the Costas had “installed quartzite stone overlays on the backyard steps in a manner that caused water intrusion on the house’s stucco walls.”

    In May 2009, the Henleys sued the Costas, Ron McKim Construction, Lyons & Associates, and Ms. Gidal. Their complaint alleged that Lyons & Associates had committed breach of contact, negligence, fraud, breach of fiduciary duty, and negligent nondisclosure in connection with the construction defects. The Costas named Lyons in a cross complaint. Lyons moved for summary judgments on the grounds that the two-year statute of limitations had expired before the complaint and cross-complaint were filed. Both the Henleys and the Costas opposed this claim. The court denied the motion and Lyons appealed.

    The appeals court upheld the denial, noting that the both California Supreme Court decision and later action by the legislature compels real estate brokers and salespersons “to conduct a reasonably competent and diligent visual inspection of the property offered for sale.” The court noted that under California law, brokers have responsibilities to both sellers and buyers. The section of law cited by Lyons applies to seller’s agents. The court rejected the contention by Lyons that they were “cooperating brokers.” The Henleys were “not constrained by the two-year statute of limitations.”

    Lyons contended that even if California’s statute did not apply, there was a contractual limit of two years. The court also rejected this, agreeing with the Henleys that “the two-year limitation period must be extended by the discovery rule.”

    The court noted that “Lyon & Associates may not reap the benefit of a shortened contractual limitation period when its own alleged malfeasance contributed to the delay in the discovery of the buyer’s injury.” The court found that the Henleys could proceed with their breach of contract claim, because, “when a breach of contract is committed in secret, such as the intentional nondisclosure of a real estate broker regarding a previously visible construction defect, the contractual limitations period is properly held subject to the discovery rule.” The court felt that the interpretation favored by the California Association of Realtors would “halve the applicable statute of limitations period.”

    In addition to rejecting Lyon request for summary judgment on the claims made by the Henleys, the court also rejected the request of summary judgment on the claims made by the Costas, concluding that neither claim is time-barred. Costs were awarded to both the Henleys and Costas.

    Read the court’s decision…


    Insurer Has Duty to Disclose Insured's Interest In Obtaining Written Explanation of Arbitration Award

    October 23, 2012 — Tred Eyerly, Insurance Law Hawaii

    The issue faced by the Minnesota Supreme Court was whether the insurer had a duty to disclose the insured's interest in obtaining a written explanation of an arbitration award that identified the claims of recovery and the portions of the award attributable to each. Remodeling Dimensions, Inc. v. Integrity Mut. Ins. Co., 2012 LEXIS Minn. 404 (Minn. Sup. Ct., Aug. 22, 2012).

    Remodeling Dimensions, Inc. ("RDI") built an addition for the homeowners and installed windows in the original part of the house. After construction began, the homeowners also asked RDI to fix the master bedroom window in the original part of the house.

    After completion of the project, the house sustained storm damage.

    Read the full story…

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


    Construction Law Alert: A Specialty License May Not Be Required If Work Covered By Another License

    March 7, 2011 — By Steve Cvitanovic of Haight Brown & Bonesteel, LLP.

    Contractors should always be sure that they understand the licensing in any Subcontract or Prime Contract before entering into any agreement. However, on March 3, 2011, in the case of Pacific Casson & Shoring, Inc. v. Bernards Bros., Inc. 2011 Cal.App.Lexis 236, the Court of Appeal determined that if a specialty license is subsumed within another license, the specialty license may not be required.

    Bernards entered into a subcontract with Pacific to excavate, backfill, grade and provide geotechnical design parameters for a hospital. The Prime Contract required the bidder to maintain a Class C-12 specialty earthwork license. However, Pacific only held a Class A general engineering license which it turns out was suspended during the performance of the work. Pacific sued Bernards for nonpayment of $544,567, but the lawsuit was dismissed because the trial court found that Pacific (1) lacked a C-12 license, and (2) Pacific’s Class A license was suspended for failure to pay an unrelated judgment. Pacific was also ordered to disgorge $206,437 in prior payments.

    The Court of Appeal reversed and remanded. The Court of Appeal agreed with Pacific and held that a C-12 specialty license was not required despite the Prime Contract. The Court of Appeal found that the C-12 specialty license would have been “superfluous” since it was fully encompassed within the Class A requirements. However, the Court of Appeal also remanded the case for further

    Read the full story...

    Reprinted courtesy of Steve Cvitanovic of Haight Brown & Bonesteel, LLP.


    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…


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

    March 28, 2012 — Bret Cogdill, Colorado Construction Litigation

    In multi-family construction defect litigation in Colorado, homeowners associations rely on associational standing to pursue claims affecting more than two units and to bring claims covering an entire development. This practice broadens an association’s case beyond what individual, aggrieved owners would otherwise bring on their own against a developer or builder-vendor. However, reliance on associational standing to combine homeowners’ defect claims into a single lawsuit has its drawbacks to homeowners.

    A recent order in the case Villa Mirage Condominium Owners’ Association, Inc., v. Stetson 162, LLC, et al., in El Paso County District Court, presents an example. There, the HOA unsuccessfully sought a determination from the court that its claims against subcontractors were not barred by the statute of limitations. To do so, the HOAs attempted to apply the Colorado Common Interest Ownership Act (“CCIOA”), which governs the creation and operation of HOAs, and a statute intended to apply to persons under a legal disability.

    Under CCIOA, during the period of “declarant control” the developer may appoint members to the association’s executive board until sufficient homeowners have moved into the development and taken seats on the board.

    Read the full story…

    Reprinted courtesy of Bret Cogdill of Higgins, Hopkins, McClain & Roswell, LLC. Mr. Cogdill can be contacted at cogdill@hhmrlaw.com.


    Wine without Cheese? (Why a construction contract needs an order of precedence clause)(Law Note)

    August 11, 2011 — Melissa Brumback

    For today’s law note, I’m addressing a comment that came to me last week from Dave O’Hern of Miller O’Hern Construction.  Dave writes:

    I am a general contractor doing a fuel tank replacement project for our county. In the specifications there is a spec for a UL 142 tank, on the plans the spec references UL 2085 ? a much more expensive tank. My subcontractor bid the UL 142 tank. The specifications state that the specs and plans are on the same level of precedence.

    The county wants me to furnish the more expensive tank without compensation citing the clause that states the plans and specs are complementary and what is called for by one is binding as if called by all and the most stringent requirement will apply.

    Read the full story…

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


    Water Drainage Case Lacks Standing

    March 28, 2012 — CDJ Staff

    The Texas Court of Appeals has ruled in the case La Tierra de Simmons Familia Ltd. V. Main Event Entertainment, LP. The trial court had found for Main Event. On appeal, the court threw out some of the grounds on which the trial court had reached its decision.

    The case involved two commercial lots in northwest Austin, Texas. The uphill tract (Phase III of the Anderson Arbor development) diverts its runoff onto the lower tract (the “Ballard tract”). The owners of the Ballard tract claim that “the drainage system was designed or constructed in a manner that has damaged and continues to damage the Ballard tract.”

    Both tracts have undergone changes of ownership since the construction of the drainage system in 2004. At the time the drainage system was constructed, the parcel was owned by Sears Roebuck and Co. Sears later sold the property. Main Event Entertainment is the current tenant. Likewise, the Ballard tract was previously owned by the Ballard Estate which sold the property to La Tierra on an “as is” basis in 2007.

    After La Tierra bought the Ballard tract, La Tierra’s engineer “witnessed and videotaped what he described as ‘flooding’ on the Ballard tract caused by storm water discharge from the Anderson Arbor drainage system during a rainfall event.” La Tierra determined that an adequate drainage system would cost about $204,000. Development plans were put on hold.

    La Tierra sued Main Event and various other parties associated with the uphill tract, seeking “actual damages for (1) decrease and loss in rental income due to delay in obtaining the development permit, (2) interest on carrying costs during that time period, (3) the cost to build a water conveyance system on the Ballard tract, (4) engineering fees incurred to redesign the water conveyance system, (5) unspecified out-of-pocket real estate expenses, and (6) property devaluation occasioned by the need to construct an expensive water conveyance system.” The trial court never reached these claims, ruling instead that La Tierra lacked standing, that its claims were barred under the statute of limitations, and that there was no evidence of damage.

    La Tierra appealed, arguing that “(1) the summary-judgment evidence does not conclusively establish that property damage claims accrued or were discovered prior to September 11, 2007, which is within the limitations period and was after La Tierra purchased the property; (2) even if the property was damaged before La Tierra acquired ownership of the Ballard tract, standing exists based on the assignments of interest from the Ballard Estate heirs, and the discovery rule tolls limitations until the injury was discovered on September 11, 2007; (3) limitations does not bar La Tierra's request for injunctive relief; (4) La Tierra's water code claim against Main Event and M.E.E.P. is viable based on their control over the drainage system, which makes them necessary and indispensable parties for injunctive relief; (5) La Tierra presented more than a scintilla of evidence to raise a fact issue on damages, causation, and other essential elements of its causes of action; and (6) the trial court abused its discretion when it sustained the defendants' objections to La Tierra's summary-judgment evidence.”

    The appeals court concluded that La Tierra’s second claim was irrelevant to standing, as La Tierra “obtained assignments from the Ballard Estate heirs ? nearly one year after the lawsuit was initially filed.” Nor did the court accept their first point. The water system had been operating unaltered since January, 2004, with monthly maintenance and inspection to maintain its designed operation. Further, a feasibility report La Tierra received stated that “over sixteen acres drain into those ponds, and thus onto this site.” The court noted that “the underlying facts giving rise to a cause of action were known before La Tierra acquired ownership of the Ballard tract.”

    The court concluded that the drainage issue is a permanent injury, but that it “accrued before La Tierra acquired an ownership interest in the property.” As La Tierra has standing, the appeals court ruled that it was improper for the trial court to rule on the issues. The appeals court dismissed the questions of whether the case was barred under the statute of limitation and also the question of whether or not La Tierra had damages.

    As the issue of standing would not allow La Tierra to bring the suit, the appeals court found for the defendants, dismissing the case for this single reason, and otherwise affirming the ruling of the lower court.

    Read the court’s decision…


    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…


    Defense for Additional Insured Not Barred By Sole Negligence Provision

    August 11, 2011 — Tred Eyerly, Insurance Law Hawaii

    A general contractor was entitled to a defense as an additional insured when the underlying complaint did not allege it was solely negligent. A-1 Roofing Co. v. Navigators Ins. Co., 2011 Ill. App. LEXIS 656 (Ill. Ct. App. June 24, 2011).

    A-1 was the general contractor for a roof resurfacing job at a high school. Jack Frost Iron Works Inc. (“Frost”) was one of A-1’s subcontractors. Frost had a CGL policy with Navigators Insurance Company under which A-1 was an additional insured.

    An employee of Frost’s subcontractor Midwest Sheet Metal Inc. was killed at the job site when a boom-lift he was operating flipped over. The boom-lift had been leased by another Frost subcontractor, Bakes Steel Erectors, Inc. (BSE). The deceased's estate filed suit against A-1, BSE and two other defendants.

    Read the full story…

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


    Massachusetts Couple Seek to Recuse Judge in Construction Defect Case

    September 30, 2011 — CDJ Staff

    After seeing their $1 million jury award overturned on appeal by a judge who called the award “against the weight of evidence and likely due to misapprehension, confusion or passion,” Kathryn and Christian Culley are seeking to have him removed from the case. The Massachusetts Supreme Judicial Court has rejected their claim.

    The Culleys claim that Judge Thomas R. Murtagh’s decision was influence by him membership in the Andover Country Club which is represented by the opposing counsel in their construction defect case. Justice Margot G. Botsford had denied the Culley’s request, ruling that they had other remedies available to them.

    The SJC noted in their ruling that if the Culleys are alleging judicial misconduct a request must be made to the Commission on Judicial Conduct. Their lawyer plans to file a new motion for recusal with the SJC.

    Read the full story…


    Homeowners Must Comply with Arbitration over Construction Defects

    January 6, 2012 — CDJ Staff

    The California Court of Appeals has upheld a decision by the Superior Court of Kern County that homeowners must comply with arbitration procedures in their construction defect claim. The California Court of Appeals ruled on December 14 in the case of Baeza v. Superior Court of Kern County, denying the plaintiff’s petition that the trial court vacate its order.

    The plaintiffs in the case are homeowners in various developments built by Castle & Cook. The homes were sold with a contract that provided for “nonadversarial prelitigation procedures, including mediation, and judicial reference.” The homeowners made defect claims and argued that Castle & Cooke failed to comply with statutory disclosure requirements and that some of the contracts violate related statutes.

    The appeals court found that there was no ground for appeal of the lower court’s order to continue with prelitigation procedures. The court noted that the plaintiffs could not seek a review of the mediation until a judgment was issued, but that then the issue would be moot. The court felt that there were issues presented that needed clarification, and so they reviewed this case. This was cleared for publication.

    The court considered the intent of the legislature in passing the Right to Repair Act, noting that “under the statutory scheme, the builder has the option of contracting for an alternative nonadversarial prelitigation procedure,” as established in Chapter 4. The court noted that Chapter 4 “contains no specifics regarding what provisions the alternative nonadversarial contractual provisions may or must include.”

    The plaintiffs contended that the builder was in violation of the standards set out in Section 912, however the court responded that these sections set out one set of procedures, but they concluded that “if the Legislature had intended the section 912 disclosure provisions…it could have made the requirements applicable to all builders by locating them in a section outside Chapter 4.”

    Read the court’s decision…


    Defect Claims as Occurrences? Check Your State Laws

    July 10, 2012 — CDJ Staff

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

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

    Read the full story…


    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…


    New Washington Law Nixes Unfair Indemnification in Construction Contracts

    April 25, 2012 — Douglas Reiser, Builders Cousel

    Contractual fairness ? it is part of my mantra. If you read the blog, you probably know that I preach brevity, balance and clarity in contracting. The State of Washington did well to finally eliminate something that has angered me for quite some time ? unfair indemnification.

    One of my favorite construction contract revisions is mutual indemnification. Many “up the chain” contractors and owners are going to stick you with a unilateral indemnification clause that protects them for just about everything, including their own fumbling of a project. Adding mutual indemnification provides some balance, and keeps parties reliant upon each other for success on the job site.

    Read the full story…

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