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    Union Hall, Virginia

    Virginia Builders Right To Repair Current Law Summary:

    Current Law Summary: (HB558; H 150; §55-70.1) Warranty extension applicable to single-family but not HOAs: in addition to any other express or implied warranties; It requires registered or certified mail notice to "vendor" stating nature of claim; reasonable time not to exceed six months to "cure the defect".


    Construction Expert Witness Contractors Licensing
    Guidelines Union Hall Virginia

    A contractor's license is required for all trades. Separate boards license plumbing, electrical, HVAC, gas fitting, and asbestos trades.


    Construction Expert Witness Contractors Building Industry
    Association Directory
    Peninsula Housing & Builders Association
    Local # 4844
    760 McGuire Pl
    Newport News, VA 23601
    http://peninsulahousing.org/

    Home Builders Association of Southside VA
    Local # 4863
    10300 Corporate Road
    Petersburg, VA 23805
    http://www.hbaofsouthside.com

    New River Valley Home Builders Association
    Local # 4837
    PO Box 2010
    Christiansburg, VA 24068
    http://www.nrvhba.com

    Tidewater Builders Association
    Local # 4854
    2117 Smith Ave
    Chesapeake, VA 23320
    http://www.tbaonline.org

    Roanoke Regional Home Builders Association
    Local # 4881
    1626 Apperson Dr
    Salem, VA 24153
    http://www.rrhba.com

    Home Builders Association of Central VA
    Local # 4827
    20334 Timberlake Rd Ste 3
    Lynchburg, VA 24502
    http://www.HBACV.org

    Builders & Associates of Southern VA
    Local # 4829
    PO Box 10178 Ste 28
    Danville, VA 24543



    Construction Expert Witness News and Information
    For Union Hall Virginia

    Nevada Assembly Bill Proposes Changes to Construction Defect Litigation

    Coverage Rejected Under Owned Property and Alienated Property Exclusions

    Statute of Limitations Upheld in Construction Defect Case

    Increased Expenditure on Injuries for New York City School Construction

    Homebuilding on the Rise in Nation’s Capitol

    Water District Denied New Trial in Construction Defect Claim

    Contractor’s Coverage For Additional Insured Established by Unilateral Contract

    Time to Repair Nevada’s Construction Defect Laws?

    Boyfriend Pleads Guilty in Las Vegas Construction Defect Scam Suicide

    Repair of Part May Necessitate Replacement of Whole

    Florida trigger

    Homeowner Has No Grounds to Avoid Mechanics Lien

    Construction Defects: 2010 in Review

    Fourteen More Guilty Pleas in Las Vegas Construction Defect Scam

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

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

    Renovation Contractors: Be Careful How You Disclose Your Projects

    Homeowners Must Comply with Arbitration over Construction Defects

    Liability policy covers negligent construction: GA high court

    Louisiana Politicians Struggle on Construction Bills, Hospital Redevelopment

    South Carolina Contractors Regain General Liability Coverage

    FHA Lists Bridges and Overpasses that May Have Defective Grout

    Texas covered versus uncovered allocation and “legally obligated to pay.”

    Cleveland Condo Board Says Construction Defects Caused Leaks

    Application of Efficient Proximate Cause Doctrine Supports Coverage

    Construction Defect Lawsuits? There’s an App for That

    Construction Defects in Home a Breach of Contract

    Policyholder Fails to Build Adequate Record to Support Bad Faith Claim

    Construction Defects Are Occurrences, Says Georgia Supreme Court

    Contractor Convicted of Additional Fraud

    No “Special Relationship” in Oregon Construction Defect Claim

    Defective Grout May Cause Trouble for Bridges

    Hospital Construction Firm Settles Defect Claim for $1.1 Million

    Contractor Manslaughter? Safety Shortcuts Are Not Worth It

    Construction Defect Litigation at San Diego’s Alicante Condominiums?

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

    Court Strikes Down Reasonable Construction Defect Settlement

    Boston Tower Project to Create 450 Jobs

    Home Repair Firms Sued for Fraud

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

    Defect Claims as Occurrences? Check Your State Laws

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

    California Appeals Court Remands Fine in Late Completion Case

    Residential Construction: Shrinking Now, Growing Later?

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

    El Paso Increases Surety Bond Requirement on Contractors

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

    Hawaii Building Codes to Stay in State Control

    Bad Faith and a Partial Summary Judgment in Seattle Construction Defect Case

    Harmon Towers Case to Last into 2014

    Geometrically Defined Drainage Cavities in EIFS as a Guard Against Defects

    Construction on the Rise in Washington Town

    High School Gym Closed by Construction Defects

    Preparing For the Worst with Smart Books & Records

    No Coverage For Construction Defects When Complaint Alleges Contractual Damages

    Seven Former North San Diego County Landfills are Leaking Contaminants

    Fire Reveals Defects, Appeals Court Affirms Judgment against Builder

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

    Loss Caused by Seepage of Water Not Covered

    Can We Compel Insurers To Cover Construction Defect in General Liability Policies?

    Mobile Home Owners Not a Class in Drainage Lawsuit

    Architectural Firm Disputes Claim of Fault

    Statutes of Limitations May be the Colorado Contractors’ Friend

    Georgia Supreme Court Rules Construction Defects Can Constitute an Occurrence in CGL Policies

    An Upward Trend in Commercial Construction?

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

    Florida Contractor on Trial for Bribing School Official

    Construction Defect Exception Does Not Lift Bar in Payment Dispute

    Ninety-Day Extension Denied to KB Home in Construction Defect Insurance Claim

    Vegas Hi-Rise Not Earthquake Safe

    New OSHA Fall Rules to Start Early in Minnesota

    Arbitration Clause Not Binding on Association in Construction Defect Claim

    Negligent Construction an Occurrence Says Ninth Circuit

    California Posts Nation’s Largest Gain in Construction Jobs

    Court Clarifies Sequence in California’s SB800

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

    Construction Law Client Alert: California Is One Step Closer to Prohibiting Type I Indemnity Agreements In Private Commercial Projects

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

    California insured’s duty to cooperate and insurer’s right to select defense counsel

    Remodels Replace Construction in Redding

    The Hidden Dangers of Construction Defect Litigation

    Consulting Firm Indicted and Charged with Falsifying Concrete Reports

    BUILD Act Inching Closer To Reality

    Construction Defects Are Occurrences, Says South Carolina High Court

    Houses Can Still Make Cents: Illinois’ Implied Warranty of Habitability

    Southern California Lost $8 Billion in Construction Wages

    Construction Defects Leave Animal Shelter Unusable

    The Complete and Accepted Work Doctrine and Construction Defects

    Steps to Defending against Construction Defect Lawsuits

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

    UNION HALL VIRGINIA CONSTRUCTION EXPERT WITNESS
    DIRECTORY AND CAPABILITIES

    The Union Hall, Virginia 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 Union Hall'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
    Union Hall, Virginia

    Orange County Home Builder Dead at 93

    April 25, 2012 — CDJ Staff

    Randall E. Presley was a homebuilder in Southern California for more than thirty years, acting as head of Presley Development Company from 1956 until selling the firm to Lyon Homes in 1987. The two companies merged in 1991 as the Presley Cos. Mr. Presley saw the need in the 1950s to provide people in Southern California with low- to medium-priced quality homes.

    His firm built more than 160 communities and was among the ten largest homebuilding firms in the country, expanding beyond California. Mr. Presley was 93 when he succumbed to pneumonia. He is survived by a wife, three children, seven grandchildren, and 11 great-grandchildren.

    Read the full story…


    Colorado Court of Appeals holds that insurance companies owe duty of prompt and effective communication to claimants and repair subcontractors

    March 1, 2011 — Courtesy Colorado Construction Litigation

    In Dunn v. American Family Insurance, 09CA2173, 2010 WL 4791948 (Colo. App. Nov. 24, 2010), the Dunns reported a claim to American Family on their homeowners insurance policy after sewer and water backup caused sewage to flood their basement. American Family gave the Dunns contact information for a contractor (ICA) to remediate the flooding. However, ICA was unsuccessful and sewage began to infiltrate the Dunns’ HVAC system. Subsequently, black mold was detected in the HVAC system, the Dunns suffered health and respiratory problems, and they soon after vacated the home. The Dunns hired and fired two more contractors for unsatisfactory work throughout the winter before hiring a fourth to finish the job. Because the home remained vacant and unheated throughout the winter, the water pipes ruptured. The mold spread throughout the entire home and all of the contents needed to be replaced, which amounted to a claim of $340,000 on the policy.

    American Family agreed to pay the full $340,000. However, the Dunns brought suit claiming that American Family breached the implied duty of good faith and fair dealing by: 1) failing to screen ICA for expertise; 2) failing to screen ICA for liability insurance coverage; 3) failing to monitor ICA’s work; 4) failing to advise them that flooding can cause further damage, including freezing pipes and mold; and, 5) failing to adequately and promptly communicate with them and remediation subcontractors in the course of investigating and handling their claim. The trial court found no duty owed by American Family beyond adjustment and timely payment of claims. Because American Family paid timely and in full, they dismissed all of the Dunns’ claims. However, the Court of Appeals reversed in part.

    Read the full story...

    Reprinted courtesy of Chad Johnson, Higgins, Hopkins, McLain & Roswell, LLC. Mr. Johnson can be contacted at johnson@hhmrlaw.com


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

    May 10, 2012 — CDJ Staff

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Read the court’s decision…


    Contractor’s Home Not Covered for Construction Defects

    September 13, 2012 — CDJ Staff

    The US District Court in Seattle has rejected most of the claims made by a Des Moines man over insurance coverage for water damage to his home. Judge John C. Coughenour granted summary judgment to Liberty Northwest in Ayar v. Liberty Northwest Insurance Corporation.

    Sayad Ayar was the general contractor for the construction of his house. As a homeowner held a $1.5 million insurance policy from Liberty Northwest (LNW) that excluded “faulty, inadequate, or defective construction.”

    In 2008, less than three years after his house was constructed, Mr. Ayar filed a claim after water leaked through his living room ceiling. LNW hired an engineering firm to investigate the damage. The engineering firm, CASE Forensics, concluded that the water intrusion was due to “the failure to install an adequate and continuous waterproof membrane, flashing, and drainage system within the balcony at the time of construction.” Ayar’s expert attributed the leakage to “damage done to the weather deck waterproofing during a storm event with high winds,” which would be covered under the policy. CASE Forensics reviewed these conclusions and rejected them. LNW denied coverage.

    Further problems lead to further investigations, and in each case, LNW attributed the problems to construction defects. During this process, LNW “authorized Ayar to cut into the ceiling’s drywall in order to assist in determining the source of the water intrusion.” Mr. Ayar moved his family to a rental home. He requested that LNW cover the rental and other other costs.

    LNW’s adjuster concluded that no coverage was available, but recommended paying Mr. Ayar $19,648.68 to reinstall drywall and repair the hole in the ceiling. The insurance company paid $2,000 to cover the cost of cutting into the ceiling. The also claimed the amount of drywall he removed was “excessive” and would not cover his relocation as “his home had been livable and because the loss was not covered.”

    Ayar made four claims to the court in support of the argument that LNW misrepresented “pertinent facts or insurance policy provisions.” The court rejected three of these, noting that as all water damage was excluded, LNW’s citation of other sources of water intrusion was not a misrepresentation. “LNW did not rely on this provision as the reason for denying coverage.” Nor was LNW’s reference to “fungi, wet or dry rot” a misrepresentation. As for their reference to construction defects, it “was clearly appropriate given that the construction defect exclusion was the principal basis or denying the claim.” However, the court found that regarding the removal of drywall, “a triable issue of the facts exists.”

    Ayar also claimed that LNW did not conduct a reasonable investigation, but the court found no evidence to support this conclusion. “This is not a case where the insurer failed to investigate or did so only half-heartedly.” Although the thoroughness of the investigation could not questioned, the court concluded that its timing could. Ayar claimed that LNW engaged in unreasonable delays. LNW counters that the delays were due to “Ayar’s own obstructive behavior and failure to cooperate with LNW’s investigation.”

    The court dismissed all of Ayar’s claims, with the exception of whether LNW should have informed him that they would not pay for drywall repair unless there was damage, and whether LNW’s investigation failed to conclude its investigation within a thirty-day time line.

    Read the court’s decision…


    No Coverage For Damage Caused by Chinese Drywall

    October 28, 2011 — Tred Eyerley, Insurance Law Hawaii

    The pollution exclusion barred coverage for alleged property damage and bodily injury in Evanston Ins. Co. v. Harbor Walk Dev., LLC, No. 2:10cv312 (E.D. Va. Sept. 9, 2011).

    Homeowners sued the insured, Harbor Walk, in three lawsuits, alleging the Chinese drywall installed in their homes emitted sulfides and other noxious gases. This caused corrosion and damage to the air-conditioning and ventilation units, refrigeration coils, copper tubing, faucets, metal surfaces, electrical appliances and other personal items. The homeowners also alleged the compounds emitted by the drywall caused bodily injury, such as allergic reactions, headaches, etc.

    Harbor Walk’s insurer, Evanston, filed for a declaratory judgment that the pollution exclusion precluded coverage.

    Read the full story...

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


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

    September 30, 2011 — Douglas Reiser, Builders Counsel

    The Washington Supreme Court issued their opinion today on Williams v. Athletic Field, perhaps the most talked about construction law case in the past few years. I have discussed this case exhaustively here on Builders Counsel. Today we have a resolution.

    In an unanimous opinion issued today, the high court sided with lien filers who followed a sample form provided in RCW 60.04.091. Additionally, the court found that a lien company - and presumably other persons - could sign the lien for the lien claimant, as an agent, without invalidating the lien.

    Read the full story…

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


    Insurer Rejects Claim on Dolphin Towers

    July 22, 2011 — CDJ Staff

    A year after residents were forced to leave Dolphin Towers in Sarasota, Florida because of concrete problems, some residents are defaulting on their obligations, abandoning their units. In June, the building’s insurer, Great American, rejected a claim, arguing that the building’s problems were due to latent defects, not covered under the policy. Repair estimates, previously put at $8.2 million, have now risen to $11.5 million. If homeowners cover this cost, it would require an assessment of about $100,000 for each unit.

    About thirty owners are in arrears on dues and fees. Charlotte Ryan, the president of the Dolphin Tower board, wrote to owners, that “the board will have no choice but to lien your property and pursue foreclosure if you do nothing to bring your delinquencies up to date.” However, as homeowners default, the funding for repairs is imperiled. The board has already spent more than $500,000 on shoring up the building and hiring consultants. Their lawyers, on the other hand, are working on a contingency basis.

    Read the full story…


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

    October 28, 2011 — Tred Eyerley, Insurance Law Hawaii

    After carefully dissecting the earth movement exclusion, the court denied the insurer’s motion for summary judgment. High Street Lofts Condominium Assoc., Inc. v. Am. Family Mut. Ins. Co., 2011 U.S. Dist. LEXIS 109043 (D. Colo. Sept. 26, 2011).

    The City of Boulder performed road repair work near High Street’s property, some of which involved the use of a vibrating compactor to compact and set the roadbed. High Street noticed damage to its building, such as cracks in walls, sloping of floors and separations of porches from the building itself. High Street contacted the City of Boulder, who forwarded the complaint to its contractor, Concrete Express, Inc.

    High Street also filed a claim with its business insurer, American Family, who denied the claim. American Family relied on an opinion letter by High Street’s engineer. The letter indicated that the damage was the result of "soil consolidation/settlement," in response to the construction activities. Based on this letter American Family concluded the claim was excluded under the policy’s earth movement exclusion.

    High Street sued American Family, who moved for summary judgment.

    Read the full story...

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


    Homebuilding on the Rise in Nation’s Capitol

    November 7, 2012 — CDJ Staff

    Is the homebuilding crunch over in DC? The Washington Post has reported that while new home construction is up throughout the country, in the DC area, construction has reached levels last seen in 2006. From January to August 2012, there were more than 19,000 building permits issued in the area, nearly doubling the number issued by that point in 2011.

    While building is on a quicker pace, what’s being built has changed. As compared to 2006, there are more townhomes, condos, and smaller homes being built. The article notes that 11 percent of new construction is condos, while in 2006, it was only 5 percent.

    Read the full story…


    Denver Court Rules that Condo Owners Must Follow Arbitration Agreement

    November 7, 2012 — CDJ Staff

    Prior to initiating a construction defect lawsuit, the Glass House Residential Association voted to invalidate the arbitration agreement that had been written into its declaration and bylaws by the developer and general contractor. After the association started their construction defect claims, the developer and general contractor argued that the case must go to arbitration, as the arbitration clause contained a provision that it could not be altered without the agreement of the developer and general contractor.

    The Denver District Court has ruled against that association, determining that the res triction was not in violation of Colorado condominium law. And, as a post from Polsinelli Shughart PC on JDSupra notes, the Colorado Common Interest Ownership Act encourages the use of arbitration procedures to settle disputes. The CCIOA does prohibit “certain restrictions on the homeowners association’s ability to amend the condominium declarations,” however, preserving an arbitration agreement is not one of them.

    Read the full story…


    Court Rejects Anti-SLAPP Motion in Construction Defect Suit

    September 1, 2011 — CJD Staff

    The California Court of Appeals has upheld the denial of an anti-SLAPP motion in Claredon American Insurance Company v. Bishop, Barry, Howe, Haney & Ryder. This case was triggered by a water intrusion problem at a condominium complex, the Terraces at Emerystation, built and sold by Wareham Development Corporation. The insurer, Claredon, retained Risk Enterprise Management as the third party claims administrator. REM retained the law firm Bishop, Barry, Howe, Haney & Ryder. The construction defect case was settled in 2007 and the condo owners moved back by early 2008.

    Due to issues with the claims settlement, Claredon filed against REM for “professional negligence, indemnity, apportionment and contribution,” with a cross-complaint that the cross-defendants negligently defended the developer, Wareham.

    In response, the cross-defendants filed a motion to strike the cross-complaint under the anti-SLAPP statute. The trial court denied this motion and now this has been upheld by the appeals court.

    The court noted that “The fundamental thrust of the cross-complaint is not protected litigation-related speech and petitioning activity undertaken on another’s behalf in a judicial proceeding.”

    Read the court’s decision…


    Claims Under Colorado Defect Action Reform Act Count as Suits

    July 10, 2012 — CDJ Staff

    The Colorado Court of Appeals has affirmed the judgment of the lower court in Melssen v. Auto-Owners Insurance. The Melssens built a custom home for the Holleys, during which time the Melssens retained a comprehensive general liability policy from Auto-Owners, which “obligated Auto-Owerns to defend the Melssens with respect to any ‘suit’ seeking damages for ‘property damage’ during the policy period.” Soon after the house was constructed, cracks developed in the drywall, then outside stucco and basement slab. The Holleys contended that “approximately $300,000 of damages to the Holleys’ property was caused by the Melssens’ engineering and construction defects” and filed a claim under the Colorado Defect Action Reform Act (CDARA). The Melssens “demanded Auto-Owners defend and indemnify the Melssens and forwared Auto-Owners the notice of claim.”

    Although the Melssens notified Auto-Owners in June 2008, it was not until October 2008 that Auto-Owners denied coverage stating that the claims were sustained outside the policy period. The Melssens filed an action against Auto-Owners. At trial, the jury ruled in favor of the Melssens awarding them damages, to which the trial court added costs and attorney fees.

    On appeal, Auto-Owners contended that the trial court erred in allowing the Melssens to argue that the CDARA notice of claim “was the functional equivalent of a complaint commencing a suit.” The appeals court found that “the CDARA notice of claim process constituted an alternative dispute resolution proceeding under the policy.” The court agreed that jury should not have been asked to determine if a CDARA action is a “suit,” but as the jury found for the Melssens, the concluding it “constituted harmless error.” Further, the court found that an action under the CDARA satisfied the definition of a “suit.”

    The court found for the Melssens, affirming the lower court’s decision and remanding the case to the lower court for the awarding of appeals costs to the Melssens.

    Read the court’s decision…


    State Audit Questions College Construction Spending in LA

    August 17, 2011 — CDJ Staff

    A state audit of the Los Angeles Community College District found many problems with their construction spending. Their report, as described in the Los Angeles Times, found construction money spent for other purposes, such as promotional photography and public relation tours, $28.3 million spent on projects that were later cancelled, and oversight committees that provided no oversight.

    Earlier this year, the LA Times ran a series of articles detailing problems with the Los Angles Community College District’s construction program. The LA Times reported that the State Controller’s audit reached many of the same conclusions.

    The Community College District disputed the findings.

    Read the full story…


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

    January 6, 2012 — Tred Eyerly, Insurance Law Hawaii

    A portion of a dock on Lack Michigan operated by the Ports of Indiana suffered visible damage. See Ports of Indiana v. Lexington Ins. Co., 2011 U.S. Dist. LEXIS 130979 (S.D. Ind. Nov. 14, 2011). Lexington Insurance Company insured the port. Lexington agreed that a portion of the dock was damaged and paid $1.2 million for repairs. A dispute arose, however, over whether additional sections of the dock were damaged and whether the damage was the result of more than one "occurrence."

    An expert report opined that a significant drop creating record lows in the water level of Lake Michigan in 2007 caused damage to the dock. Lexington maintained that only 128 feet of the dock was damaged; other portions of the dock did not sustain "direct physical loss or damage."

    Read the full story…

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


    Webinar on Insurance Disputes in Construction Defects

    July 10, 2012 — CDJ Staff

    Seth Lamden, of the firm Neal Gerber Eisenberg will be presenting a webinar on “Insurance Coverage Disputes in Construction Defects” on July 17, 2012 at 1 p.m. EDT. Mr. Lamden’s presentation will focus on “handling both the construction and insurance components of construction defect claims.” He will be discussing recent case law and new insurance products. The presentation will present information on evaluating various types of insurance policies, explaining common issues, contract requirement, and the economic loss doctrine. Mr. Lamden will advise attendees on how to avoid getting into a construction defect case. He will conclude his presentation with a brief question-and-answer session.

    Read the full story…


    Architect Not Responsible for Injuries to Guests

    September 1, 2011 — CDJ Staff

    The Texas Court of Appeals has ruled, with one dissent, that the architectural firm that designed a home was not responsible to the injuries caused to guests when a balcony collapsed. Judge David Puryear wrote the majority opinion in Black + Vernooy Architects v. Smith.

    Black + Vernooy designed a vacation home for Robert and Kathy Maxfield in 2000. The Maxfields hired a general contractor to build the home. The general contractor hired a subcontractor to build a balcony; however, the subcontractor did not follow the architect’s design in building the balcony.

    A year after the house was completed; the Maxfields were visited by Lou Ann Smith and Karen Gravely. The balcony collapsed under the two women. Ms. Gravely suffered a broken finger, a crushed toe, and bruises. Ms. Smith was rendered a paraplegic as a result of the fall. They sued the Maxfields, the general contractor, and the architects for negligence. The Maxfields and the general contractor settled. A jury found that the architects held 10% of the responsibility. The architects appealed the judgment of the district court.

    The Appeals Court reversed this judgment, noting that “there has been no allegation that the Architects negligently designed the balcony or that the Architects actually created the defects at issue.” Further, “the Smiths allege that the defect was caused by the construction practices of the contractor and subcontractor when the balcony was not built in accordance with the design plans of the Architects.”

    The court found that even though the architects had a duty “to endeavor to guard against defects and deficiencies in the construction of the home and to generally ascertain whether the home was being built in compliance with the construction plans,” this duty did not extend to third parties.

    Read the court’s decision…


    Negligent Construction an Occurrence Says Ninth Circuit

    June 30, 2011 — CDJ Staff

    One June 27, the US Court of Appeals has rejected an appeal from Mid-Continent Casualty Company. Mid-Continent had appealed a summary judgment granted to Titan Construction Company.

    Titan Construction had built condominiums for the Williamsburg Condominium Association, which later filed a construction defect lawsuit against Titan and other defendants. Titan settled with the developer, Kennydale, assigning its rights against Mid-Continent to Kennydale. Mid-Continent filed suit, claiming that “it had no obligation to indemnify or defend Titan, Kennydale, or various other defendants.” The district court found in favor of Mid-Continent, granting a summary judgment, concluding that Titan’s insurance covered “occurrences,” and none had taken place.

    On appeal, the court found that the negligent construction of the condominiums constituted an “occurrence” The case was remanded and the district court this time found in favor of Titan, “concluding that Mid-Continent failed to raise a triable issue as to the applicability of the remaining policy exclusions.

    The Ninth Circuit Court of Appeals has now affirmed that decision and Titan’s summary judgment stands.

    Read the court’s decision…


    More Charges in Las Vegas HOA Construction Defect Scam

    May 10, 2012 — CDJ Staff

    VegasInc.com reports that U.S. District Judge James Mahan has unsealed fourteen more criminal cases in the ongoing Las Vegas HOA corruption probe. One of the fourteen is Lisa Kim, whose Platinum Community Services managed communities in which Nancy Quon and Leon Benzer were involved.

    Two attorneys were also named. Brian Jones had previously been named in civil litigation as working to rig HOA elections in favor of the straw buyers. Jeanne Winkler had done legal work for one of the communities and for the developer before her disbarment.

    Eight of the names released were of alleged straw buyers. These individuals are said to have bought fractional shares of homes so they could stand for election on the HOA boards. One of the individuals named, Arnold Meyers, had sued the Jasmine Homeowners Association, claiming that their HOA elections were tainted. Myers claimed that homeowners received postcards stating that he did not own his condo. His suit was dropped after two homeowners claimed that their names had been forged on Meyer’s affidavits.

    Read the full story…