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    O Brien, Texas

    Texas Builders Right To Repair Current Law Summary:

    Current Law Summary: HB 730 amended the Texas Property Code by adding Title 16 and amending chapter 27. Overseen by the Texas Residential Construction Commission (TRCC) the code asserts that a contractor is not liable for any percentage of damages caused by failure to take reasonable action to mitigate damages or take reasonable action to maintain the residence. It also limits damages, requires written notification and response for right of repair and defines warranty periods. Additionally, SB 754 states“(5-10 Sec. 27.107) a contractor may assert as an affirmative defense to an allegation of a defect made in a complaint filed under this subchapter that the defect is the result of abuse, neglect, or unauthorized modifications or alterations of the home.”


    Construction Expert Witness Contractors Licensing
    Guidelines O Brien Texas

    No state license is required, however, general contractors must get permits at the local level. Separate boards license HVAC, and plumbing trades.


    Construction Expert Witness Contractors Building Industry
    Association Directory
    Home Builders Association of Texarkana
    Local # 4566
    PO Box 7048
    Texarkana, TX 75505
    http://www.texarkanahomebuilders.com

    Home Builders Association of West Texas
    Local # 4545
    4223 85th St
    Lubbock, TX 79423
    http://www.wthba.com

    Home Builders Association of Grayson - Fannin and Cooke Counties
    Local # 4563
    PO Box 1421
    Sherman, TX 75091
    http://www.hbagfc.org

    Home Builders Association of Greater Dallas
    Local # 4524
    5816 West Plano Pkwy
    Plano, TX 75093
    http://www.dallasbuilders.com

    Builders Association of Greater Fort Worth
    Local # 4530
    70001 Blvd 26 Ste 323
    Fort Worth, TX 76180
    http://www.fortworthbuilders.org

    North Texas Home Builders Association
    Local # 4578
    4410 Fairway Blvd
    Wichita Falls, TX 76308
    http://www.nthba.com

    East Texas Builders Association
    Local # 4542
    2023 Alpine Rd
    Longview, TX 75601
    http://www.easttexasbuilders.org


    Construction Expert Witness News and Information
    For O Brien Texas

    Fourteen More Guilty Pleas in Las Vegas Construction Defect Scam

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

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

    Construction Defect Not a RICO Case, Says Court

    Condominium Exclusion Bars Coverage for Construction Defect

    Bar to Raise on Green Standard

    School District Settles Construction Lawsuit

    Construction Defect Lawsuits? There’s an App for That

    JDi Data Introduces Mobile App for Litigation Cost Allocation

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

    Ambitious Building Plans in Boston

    Local Government Waives Construction Fees to Spur Jobs

    Brown Paint Doesn’t Cover Up Construction Defects

    Homebuilders Go Green in Response to Homebuyer Demand

    Defect Claims as Occurrences? Check Your State Laws

    Another Las Vegas Tower at the Center of Construction Defect Claims

    Builder Waits too Long to Dispute Contract in Construction Defect Claim

    Harmon Towers Case to Last into 2014

    The Complete and Accepted Work Doctrine and Construction Defects

    History of Defects Leads to Punitive Damages for Bankrupt Developer

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

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    One Colorado Court Allows Negligence Claim by General Contractor Against Subcontractor

    Construction Law: Unexpected, Fascinating, Bizarre

    AFL-CIO Joins in $10 Billion Infrastructure Plan

    When is a Construction Project truly “Complete”? That depends. (law note)

    Injured Construction Worker Settles for Five Hundred Thousand

    Construction on the Rise in Denver

    Another Guilty Plea in Las Vegas HOA Scandal

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

    Hovnanian Sees Second-Quarter Profit, Points to Recovery

    Construction Jobs Expected to Rise in Post-Hurricane Rebuilding

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

    District Court Awards Summary Judgment to Insurance Firm in Framing Case

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

    Homebuilding Still on the Rise

    Ohio Court Finds No Coverage for Construction Defect Claims

    Nevada Construction Defect Lawyers Dead in Possible Suicides

    US Courts in Nevada Busy with Yellow Brass

    Court Voids Settlement Agreement in Construction Defect Case

    Condo Owners Worried Despite Settlement

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

    Product Exclusion: The Big Reason Behind The Delay of LEED 2012

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

    Florida Property Bill Passes Economic Affairs Committee with Amendments

    California Supreme Court Finds Associations Bound by Member Arbitration Clauses

    Application of Efficient Proximate Cause Doctrine Supports Coverage

    Construction Defects Are Occurrences, Says Georgia Supreme Court

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

    Landmark San Diego Hotel Settles Defects Suit for $6.4 Million

    Architectural Firm Disputes Claim of Fault

    Harmon Towers Duty to Defend Question Must Wait, Says Court

    Contractor Removed from Site for Lack of Insurance

    Water District Denied New Trial in Construction Defect Claim

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

    In Colorado, Primary Insurers are Necessary Parties in Declaratory Judgment Actions

    New Washington Law Nixes Unfair Indemnification in Construction Contracts

    Tucson Officials to Discuss Construction Defect Claim

    Policing Those Subcontractors: It Might Take Extra Effort To Be An Additional Insured

    Condo Owners Allege Construction Defects

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    New Buildings in California Soon Must Be Greener

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    Construction Defect Claim Did Not Harm Homeowner, Court Rules

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    Plans Go High Tech

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    Pictorial Construction Terminology Dictionary — A Quick and Helpful Reference

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    Crane Dangles and So Do Insurance Questions

    Construction Workers Unearth Bones

    Florida Chinese drywall, pollution exclusion, “your work” exclusion, and “sistership” exclusion.

    Boston’s Tunnel Project Plagued by Water

    Homeowner may pursue negligence claim for construction defect, Oregon Supreme Court holds

    Water Is the Enemy

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

    Homeowners May Not Need to Pay Lien on Defective Log Cabin

    Florida Contractor on Trial for Bribing School Official

    The Flood Insurance Reform Act May be Extended to 2016

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    Cabinetmaker Exceeds Expectations as Conditions Improve
    Corporate Profile

    O BRIEN TEXAS CONSTRUCTION EXPERT WITNESS
    DIRECTORY AND CAPABILITIES

    The O Brien, Texas Construction Expert Witness Group at BHA, leverages from the experience gained through more than 5,500 construction related expert witness designations encompassing a wide spectrum of construction related disputes. Leveraging from this considerable body of experience, BHA provides construction related trial support and expert services to O Brien'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
    O Brien, Texas

    Condo Owners Allege Construction Defects

    July 6, 2011 — CDJ Staff

    Last November, mold problems were discovered at the Siena Condominiums in Montclair, New Jersey, which had been described by their developers as “an enclave of luxury in an urban village setting.” The owners have filed a lawsuit against Pinnacle Companies, Kohl Parnters, and Herod Development, seeking “compensatory damages, interest, reasonable attorney’s fee and costs, and for such other, further, and different relief as the Court may deem just and proper.”

    According to the article on Baristanet.com, an engineering report commissioned by the condominium association revealed many problems, including improperly installed windows and siding. The developers commissioned two engineering reports themselves and found evidence of water pounding on the roof. Despite these reports and repeated promises, no repairs have been made.

    Read the full story…


    Construction Defect Journal Seeks Article Submissions Regarding SB800 and Other Builders Right to Repair Laws

    October 28, 2011 — CDJ Staff

    As we approach the tenth anniversary of the passage and signing of SB800, California’s right-to-repair law, we’d like to hear your reactions to the law, your experiences with it, and your thoughts on it and right-to-repair laws in other states.

    We invite you to submit articles either reacting to SB800 or on other matters relevant to construction defect and claims issues. You can promote your firm’s capabilities and get valuable exposure through the publication of your articles. Construction Defect Journal is widely read by our highly targeted audience of decision makers, construction attorneys, builders, owners, and claims professionals.

    Articles may contain relevant images, your firm’s name, and links to your corporate website or third parties and can be submitted through e-mail to submitstory@constructiondefectjournal.com. Please remember to include your contact information if you would like it to be published with your content. If you are submitting photos or PDF documents with your article, please send them as e-mail attachments. Items submitted are assumed to be cleared for publishing upon receipt by CDJ.

    Normally articles are published in full, although we reserve the right to edit content for space purposes. All articles submitted are considered for publication. For additional questions please contact editor@constructiondefectjournal.com.


    Harsh New Time Limits on Construction Defect Claims

    April 26, 2011 — April 26, 2011 by Scott F. Sullan, Esq., Mari K. Perczak, Esq., and Leslie A. Tuft, Esq. of Sullan2, Sandgrund, Smith & Perczak, P.C. in the HindemanSanchez blog

    A recent Colorado Supreme Court decision, Smith v. Executive Custom Homes, Inc., 230 P.3d 1186 (Colo. 2010), considerably shortens the time limit for bringing many construction defect lawsuits. Homeowners and homeowner associations risk losing the right to seek reimbursement from builders, developers and other construction professionals unless they carefully and quickly act upon discovery of evidence of any potential construction defect.

    The Statute of Limitations for Construction Defect Claims
    Colorado’s construction defect statute of limitations limits the time for homeowners and homeowners associations to bring lawsuits for construction defects against “construction professionals,” including developers, general contractors, builders, engineers, architects, other design professionals, inspectors and subcontractors. The statute requires homeowners and associations to file suit within two years “after the claim for relief arises.” A claim for relief “arises” when a homeowner or association discovers or reasonably should have discovered the physical manifestation of a construction defect.

    The two-year time limitation applies to each construction defect separately, and will begin to run upon the appearance of a “manifestation” of a construction defect (which may include, for example, a condition as simple as a roof leak or drywall cracks), even if the homeowner or association does not know the cause of the apparent problem.

    The Smith Opinion and its Effect on the Statute of Limitations
    In Smith v. Executive Custom Homes, Inc., the plaintiff homeowner, Mrs. Smith, slipped on ice that had accumulated on her sidewalk because of a leaking gutter and suffered injury. When she first noticed the leak, she reported it to her property manager, who reported it to the builder. The builder attempted to repair the gutter, unbeknownst to Mrs. Smith, and she did not notice further problems until approximately one year after she first observed the leak, when she fell and suffered serious injury. She sued the builder within two years of her injury, but nearly three years after she first learned of the leak.

    The Colorado Supreme Court dismissed Mrs. Smith’s claims as untimely and held that under the construction defect statute of limitations, the two-year period for suing for injuries due to construction defects begins when the homeowner first observes the physical manifestation of the defect, even if the resulting injury has not yet occurred. The court acknowledged that this ruling could result in “unfair results,” especially if a serious and unforeseeable injury occurs more than two years after the first time the homeowner noticed the problem, and as a result the victim is unable to seek redress from those responsible for the defect.

    Read the full story…

    Reprinted courtesy of Scott F. Sullan, Esq., Mari K. Perczak, Esq., and Leslie A. Tuft, Esq. of Sullan2, Sandgrund, Smith & Perczak, P.C., and they can be contacted through their web site.


    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


    Pipes May Be Defective, But Owners Lack Standing

    September 13, 2012 — CDJ Staff

    The United States District Court in Minnesota has determined that Steven and Cecilia Thundander cannot make a class-action claim against Uponor, Inc. over the plumbing in their home, as they do not have Article III standing. In this situation, the alleged defect is that Uponor made fraudulent claims that the pipes met National Sanitation Foundation (NSF) standards for use in potable water systems. Uponor submitted samples of other pipes, and their substitution was discovered when the NSF made an inspection of the manufacturing facility. The court noted that “the Thunanders contend that Uponor failed to inform homeowners, plumbers and consumers that it had been selling pipe that failed to meet NSF toxicity requirements at the time of sale and installation.”

    The Court noted that the Thunanders have not tested their piping to determine if they “demonstrate toxicity or lack of compliance with the NSF 61 standards,” noting also that the Complaint seeks to require Uponor to instruct the plaintiffs on “how to test the piping and water to determine the level of risk.” Lacking testing, the Court could not find that the Thundanders have defective pipes. The Court found that the “Plaintiffs have failed to adequately plead an injury in fact sufficient to confer standing as to their product liability claims.”

    The Court also concluded that it could not determine if the Plaintiff’s warranty actions could not be applied, as they “have failed to allege a plausible defect.” Even in the presence of a defect, the Court noted that more than eight years had passed before the filing of the suit, when the warranties under both Indiana and Minnesota law have a four-year statute of limitations. The Court also rejected the Thunanders tort claims, once again because “Plaintiffs have not tested their pipes,” noting that “a tort requires the existence of an injury.”

    In conclusion, Judge Nelson rejected the entirety of the complaint, granting the motions to dismiss by the defendants. However, despite the problems with the Thunanders’ claims, she found that they were not “patently frivolous or groundless.” Therefore, she denied attorney fees requested by one of the defendants.

    Read the court’s decision…


    Excess Carrier Successfully Appeals Primary Insurer’s Summary Judgment Award

    December 9, 2011 — Tred R. Eyerly, Insurance Law Hawaii

    Although the excess carrier was given inadequate notice of the underlying arbitration, the trial court determined it shared responsibility with the primary carrier for the arbitration award. Finding disputed issues of fact, the Washington Court of Appeals reversed in Am. States Ins. Co. v. Century Surety Co., 2011 Wash. App. LEXIS 2488 (Wash. Ct. App. Oct. 31, 2011).

    The primary insurer, American States, issued two liability policies to Professional Home Builders (PHB), a siding contractor. The policies were for successive years, 1998-1999 and 1999-2000. Each policy had annual limits of $1 million per occurrence. PHB also had a commercial excess liability policy for 1999-2000 with Century Surety Company.

    PHB was sued by Residential Investment Partners (RIP) for construction defects after moisture entered the building envelope, causing decay and damage. Century’s expert determined the decay started before the 1999-2000 policy period.

    RIP and PHB went to arbitration.

    Read the full story…

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


    Consulting Firm Indicted and Charged with Falsifying Concrete Reports

    August 17, 2011 — CDJ Staff

    The New York Times reports that a company paid to inspect concrete at major public works projects in New York has been charged with falsifying results. They had been hired by the city three years ago after their predecessor was found to have falsified results.

    According to the Times, investigators found nothing legitimate in nearly three thousand reports. The owner and five employees of American Standard Testing and Consulting Laboratories have been indicted on twenty-nine counts, including charges under New York’s racketeering law. Prison terms could be up to twenty-five years.

    Prior to the city’s contract with American Standard, the city employed a firm called Testwell. Testwell was found in 2008 to have falsified its test results.

    Read the full story…


    Statute of Repose Dependant on When Subcontractors Finished

    July 10, 2012 — CDJ Staff

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

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

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

    Read the full story…


    Workers Hurt in Casino Floor Collapse

    February 10, 2012 — CDJ Staff

    More than a dozen construction workers fell about thirty feet when a floor collapsed in a Cincinnati casino. The workers were pouring cement on the second-floor level when the accident happened. The area in question will be the gaming area in the completed casino. Scott Allen, OSHA’s regional spokesperson, said their investigation of the accident would probably take about a month to complete.

    The cause of the collapse is still undetermined. Although the weather has been wet in the area, experts thought it unlikely to be the cause. A construction forensics professor at Ohio State University said that “concrete pouring is very common” and that “you cannot go wrong unless something happens with the connection.” Engineering experts said it was more likely an issue with the metal decking.

    Read the full story…


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

    February 10, 2012 — CDJ Staff

    Safety Control and EMC appealed the judgment in Colorado Casualty Insurance Company versus Safety Control Company, Inc., et al. (Ariz. App., 2012). The Superior Court in Maricopa County addressed “the validity and effect of a Damron agreement a contractor and its excess insurer entered into that assigned their rights to sue the primary insurer.” Judge Johnsen stated, “We hold the agreement is enforceable but remand for a determination of whether the stipulated judgment falls within the primary insurer’s policy.”

    The Opinion provides some facts and procedural history regarding the claim. “The Arizona Department of Transportation (“ADOT”) hired DBA Construction Company (“DBA”) to perform a road-improvement project on the Loop 101 freeway. Safety Control Company, Inc. was one of DBA’s subcontractors. As required by the subcontract, Safety Control purchased from Employer’s Mutual Casualty Company (“EMC”) a certificate of insurance identifying DBA as an additional insured on a policy providing primary coverage for liability arising out of Safety Control’s work.”

    A collision occurred on site, injuring Hugo Roman. Roman then sued ADT and DBA for damages. “Colorado Casualty tendered DBA’s defense to the subcontractors, including Safety Control. Safety Control and EMC rejected the tender. Roman eventually settled his claims against DBA and ADOT. DBA and ADOT stipulated with Roman for entry of judgment of $750,000; Roman received $75,000 from DBA (paid by Colorado Casualty) and $20,000 from ADOT, and agreed not to execute on the stipulated judgment. Finally, DBA, ADOT and Colorado Casualty assigned to Roman their rights against the subcontractors and other insurers.”

    Colorado Casualty attempted to recover what “it had paid to defend DBA and ADOT and settle with Roman. However, Roman intervened, and argued that “Colorado Casualty had assigned its subrogation rights to him as part of the settlement agreement.” The suit was not dismissed, but the Superior Court allowed Roman to intervene. “Roman then filed a counterclaim against Colorado Casualty and a cross-claim against the subcontractors.”

    All claims were settled against all of the defendants except Safety Control and EMC. “The superior court ruled on summary judgment that EMC breached a duty to defend DBA and that as a result, ‘DBA was entitled to settle with Roman without EMC’s consent as long as the settlement was not collusive or fraudulent.’ After more briefing, the court held the stipulated judgment was neither collusive nor procured by fraud and that EMC therefore was liable to Roman on the stipulated judgment and for his attorney’s fees. The court also held Safety Control breached its subcontract with DBA by failing to procure completed-operations insurance coverage and would be liable for damages to the extent that EMC did not satisfy what remained (after the other settlements) of the stipulated judgment and awards of attorney’s fees.” Safety Control and EMC appealed the judgment.

    Four reasons were given for the decision of the ruling. First, “the disagreement between Roman and Colorado Casualty does not preclude them from pursuing their claims against EMC and Safety Control.” Second, “the settlement agreement is not otherwise invalid.” Third, “issues of fact remain about whether the judgment falls within the EMC policy.” Finally, “Safety Control breached the subcontract by failing to procure ‘Completed Operations’ coverage for DBA.”

    In conclusion, the Superior Court affirmed in part, reversed in part, and remanded . “Although, as stated above, we have affirmed several rulings of the superior court, we reverse the judgment against EMC and remand for further proceedings consistent with this Opinion to determine whether the stipulated judgment was a liability that arose out of Safety Control’s operations. In addition, we affirm the superior court’s declaratory judgment against Safety Control but remand so that the court may clarify the circumstances under which Safety Control may be liable for damages and may conduct whatever further proceedings it deems appropriate to ascertain the amount of those damages. We decline all parties’ requests for attorney’s fees pursuant to A.R.S. § 12-341.01 without prejudice to a request for fees incurred in this appeal to be filed by the prevailing party on remand before the superior court.”

    Read the court’s decision…


    Construction Defect Case Not Over, Despite Summary Judgment

    November 7, 2012 — CDJ Staff

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

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

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

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

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

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

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

    Read the court’s decision…


    Subcontractor Not Liable for Defending Contractor in Construction Defect Case

    February 10, 2012 — CDJ Staff

    The California Court of Appeals has ruled on January 9, 2012 in Hensel Phelps Construction Company v. Urata & Sons Cement, upholding the judgment of the lower court.

    Hensel Phelps was the general contractor for a high-rise in Sacramento. They were sued by the owners of the building after problems were discovered in the concrete slabs of the building’s parking garage. Instead of welded steel wire mesh, the slabs had been constructed with fiber mesh. Hensel Phelps filed a cross-complaint against Urata Cement, the subcontractor that had performed the cement work. Urata refused to defend Hensel Phelps. The owners’ case was subsequently dismissed due to the statute of limitations.

    Although the original case was over, Hensel Phelps continued in their claims against Urata. “Urata argued that a handwritten interlineation required Hensel Phelps to prove Urata was at fault for the injury alleged in the building owners’ complaint before Urata was obliged to defend Hensel Phelps in that action.”

    The lower court concluded that Urata would have been obligated to defend Hensel Phelps if the owners’ lawsuit had alleged that the damage was due to the subcontractor’s work or if evidence at trial established this. The lower court found neither of these true. Instead, the use of the fiber mesh was a design issue and “that decision was outside the scope of the subcontractor’s work.”

    During the trial, Hensel Phelps conceded that Urata was not at fault. The appeals court could find no reading of the contract that would cause Urata to be obligated to defend Hensel Phelps, calling Hensel Phelps’s reading of the contact as “grammatically infeasible.”

    Judges Nicholson, Raye, and Butz upheld the decision of the lower court and awarded costs on appeal to Urata.

    Read the court’s decision…


    BHA Expands Construction Experts Group

    October 28, 2011 — Bert L. Howe & Associates, Inc. - Corporate Offices

    Bert L. Howe & Associates, Inc., one of the nation’s leading construction forensics firms is pleased to announce the expansion of the company’s civil and structural engineering capabilities.

    JERRY M. MILES, PE - Mr. Miles has been a licensed civil engineer in California since 1987 and has served as the lead civil engineer on many projects in several states. His experience includes contract administration services as the owner’s representative on a variety of projects including mastered planned communities, residential subdivisions, shopping centers and multi-family residential projects. He has also been involved in providing water quality management plans and storm water pollution prevention plans. Mr. Miles has also served on the Town of Apple Valley’s Building Department Dispute Resolution Board.

    His more than 26 years of engineering experience includes geotechnical evaluations, structural design of wood-framed, masonry, and concrete tilt-up buildings, small and large subdivision engineering construction/improvements plans, hydrology/hydraulic reports and design, forensic investigation and expert witness testimony. Mr. Miles has qualified as an expert in numerous jurisdictions and Federal court. He has been called upon to provide deposition testimony on more than twenty-five occasions and has successfully testified at arbitration and trial. Click here to view Mr. Miles’ Current CV.

    MATTHEW J. STIEFEL, PE - With a background that spans a multitude of design and new construction projects to catastrophic claims analysis, Mr. Stiefel brings a unique set of credentials and experience to the construction experts group at Bert L. Howe & Associates. Mr. Stiefel has more than 13 years’ experience in civil, structural, and geotechnical engineering; providing design and construction consulting services on a variety of projects that include multi-family and single family dwellings, commercial buildings, transportation facilities, industrial facilities, storm drain channels, water and wastewater pipelines. His engineering experience encompasses multiple disciplines of civil engineering including geotechnical design and evaluation, foundation design, structural design of wood-framed buildings, preparation of grading plans and site drainage analysis. He has provided cause and origin analysis for insurance adjusters on many residential and commercial sites related to issues involving moisture intrusion and mold, foundation movement, site drainage, soil movement, wind damage, and other various losses. Click here to view Mr. Stiefel’s Current CV.


    An Upward Trend in Commercial Construction?

    March 28, 2012 — Melissa Dewey Brumback, Construction Law North Carolina

    Year-end economic indicators demonstrate that private commercial construction may be increasing in 2012, primarily as demand grows for new projects built in the United States.

    According to an article in Businessweek, the Architecture Billings Index held at 52 in December, indicating a modest expansion in the market. The American Institute of Architects said that the commercial and industrial component of the number climbed to 54.1 in December, the highest in 10 months.

    The monthly survey of U.S.-based architecture firms is one of the main indicators of nonresidential construction, and these numbers suggest that modest improvement may be on the horizon.

    The information is confirmed by data from the Census Bureau that shows that spending on lodging, office, commercial and manufacturing buildings grew 8.2 percent in November to $9.2 billion from a year ago. These types of commercial and industrial projects are historically canaries in the mine and are usually the first part of the industry to improve as the economy expands.

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


    Florida: No Implied Warranties for Neighborhood Improvements

    July 10, 2012 — CDJ Staff

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

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

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

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    Bound by Group Builders, Federal District Court Finds No Occurrence

    August 11, 2011 — Tred Eyerly, Insurance Law Hawaii

    The homeowners sued their contractor, alleging the contractor had defectively constructed and failed to complete their home.  State Farm Fire and Casualty Co. v. Vogelgesang, 2011 U.S. Dist. LEXIS 72618 (D. Haw. July 6, 2011).  The homeowners' complaint pled, among other things, damage caused by breach of contract and negligence.  State Farm agreed to defend under a reservation of rights.

    State Farm filed suit in federal court for declaratory relief.  Judge Mollway granted State Farm's motion for summary judgment.  Relying on the Hawaii Intermediate Court of Appeal's decision in Group Builders, Inc. v. Admiral Ins. Co., 123 Haw. 142, 231 P.3d 67 (Haw. Ct. App. 2010), Judge Mollway determined that the claims asserted in the underlying litigation arose from the contractor's alleged breach of contract.  Group Builders held that breach of contract claims based on allegations of shoddy performance were not covered under CGL policies.

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


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

    April 4, 2011 — April 4, 2011 in CDCoverage.com

    In American Family Mut. Ins. Co. v. American Girl, Inc., 673 N.W.2d 65 (Wis. 2004), the insured general contractor was hired by the owner to design and build a warehouse on the owner s property. The general contractor hired a soil engineer to do a soil analysis and make site preparation recommendations. The soil engineer determined that the soil conditions were poor and recommended a compression process which the general contractor followed. After the warehouse was completed and the owner took possession, excessive soil settlement caused the foundation to sink which in turn caused structural damage to the warehouse. The warehouse had to be torn down.

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    Reprinted courtesy of CDCoverage.com


    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.

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