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    Construction Expert Witness Builders Information
    Pike County, Missouri

    Missouri Builders Right To Repair Current Law Summary:

    Current Law Summary: (SB168/HB573) Missouri’s NOR law requires homeowners to provide notice of an alleged construction defect before filing a lawsuit. The contractor has the option to offer to inspect the defect, repair the defect, offer a settlement or dispute the claim. The law places deadlines on the contractor to serve notice on each subcontractor (14 days) and provide a written response to the claimant (14 days). HB1166 is a similar law that addresses Notice of Repair for Homeowner Associations.


    Construction Expert Witness Contractors Licensing
    Guidelines Pike County Missouri

    Licensing is done at the city level. Contractors must register to do business with the Secretary of State.


    Construction Expert Witness Contractors Building Industry
    Association Directory
    Home Builders Association of Greater Kansas City
    Local # 2636
    600 E 103rd St
    Kansas City, MO 64131
    http://www.kchba.org

    Home Builders Association of Columbia
    Local # 2618
    204 Peach Way Suite B
    Columbia, MO 65203
    http://www.columbiahba.com

    Midland Empire Home Builders Association
    Local # 2629
    PO Box 8278
    Saint Joseph, MO 64508
    http://www.mehba.org

    Home Builders Association of St. Louis and Eastern Missouri
    Local # 2690
    10104 Old Olive Street Rd
    Saint Louis, MO 63141
    http://www.stlhba.com

    Home Builders Association of Central Missouri
    Local # 2605
    1420 Creek Trail Dr
    Jefferson City, MO 65109
    http://www.hbacentralmo.com

    SE Missouri Home Builders Association
    Local # 2691
    3667 County Road 222
    Cape Girardeau, MO 63701


    Home Builders Association of Greater Springfield
    Local # 2654
    636 W Republic Rd Ste D 108
    Springfield, MO 65807
    http://www.springfieldhba.com


    Construction Expert Witness News and Information
    For Pike County Missouri

    Construction Company Head Pleads Guilty to Insurance and Tax Fraud

    Demand for Urban Living Leads to Austin Building Boom

    Construction Defect Not an Occurrence in Ohio

    Residential Construction Down in San Diego

    New Construction Laws, New Forms in California

    New Households Moving to Apartments

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

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

    Contractor Burns Down Home, Insurer Refuses Coverage

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

    Construction Defect Case Not Over, Despite Summary Judgment

    Webinar on Insurance Disputes in Construction Defects

    Restitution Unlikely in Las Vegas Construction Defect Scam

    Congress Addresses Homebuilding Credit Crunch

    State Audit Questions College Construction Spending in LA

    Window Manufacturer Weathers Recession by Diversifying

    Contractors Admit Involvement in Kickbacks

    Going Green for Lower Permit Fees

    California Assembly Bill Proposes an End to Ten Year Statute of Repose

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

    Tucson Officials to Discuss Construction Defect Claim

    Know the Minnesota Statute of Limitations for Construction Defect Claims

    South Carolina “occurrence” and allocation

    Harmon Towers Duty to Defend Question Must Wait, Says Court

    Vegas Hi-Rise Not Earthquake Safe

    Recent Case Brings Clarity and Questions to Statute of Repose Application

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

    Ensuing Loss Found Ambiguous, Allowing Coverage

    Australian Developer Denies Building Problems Due to Construction Defects

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

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

    Homebuilding Still on the Rise

    Homeowners Not Compelled to Arbitration in Construction Defect Lawsuit

    Home Repair Firms Sued for Fraud

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

    US Courts in Nevada Busy with Yellow Brass

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

    Exact Dates Not Needed for Construction Defect Insurance Claim

    Construction Employment Rises in Half of the States

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

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

    Homebuilding on the Rise in Nation’s Capitol

    Arbitration Clause Not Binding on Association in Construction Defect Claim

    Destruction of Construction Defect Evidence Leads to Sanctions against Plaintiff

    Architectural Firm Disputes Claim of Fault

    Anti-Assignment Provision Unenforceable in Kentucky

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

    No Coverage For Construction Defects When Complaint Alleges Contractual Damages

    Louisiana Politicians Struggle on Construction Bills, Hospital Redevelopment

    Geometrically Defined Drainage Cavities in EIFS as a Guard Against Defects

    Pier Fire Started by Welders

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

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

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

    Insurer Settles on Construction Defect Claim

    Celebrities Lose Case in Construction Defect Arbitration

    DA’s Office Checking Workers Comp Compliance

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

    Former New York Governor to Head Construction Monitoring Firm

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

    Increased Expenditure on Injuries for New York City School Construction

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

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

    Contractor Removed from Site for Lack of Insurance

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

    Businesspeople to Nevada: Revoke the Construction Defect Laws

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

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

    School District Settles Construction Lawsuit

    Arbitration Clause Found Ambiguous in Construction Defect Case

    Liability policy covers negligent construction: GA high court

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

    A Call to Washington: Online Permitting Saves Money and the Environment

    The Complete and Accepted Work Doctrine and Construction Defects

    Minnesota Starts Wide-Ranging Registration of Contractors

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

    Green Buildings Could Lead to Liabilities

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

    Gilroy Homeowners Sue over Leaky Homes

    Court Consolidates Cases and Fees in Soil Construction Defect Case

    New Apartment Tower on the Rise in Seattle

    Virginia Homebuilding Slumps After Last Year’s Gain

    No Coverage for Counterclaim Alleging Construction Defects Pled as Breach of Contract

    Seven Former North San Diego County Landfills are Leaking Contaminants

    After Katrina Came Homes that Could Withstand Isaac

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

    Construction Upturn in Silicon Valley

    Homebuilders Go Green in Response to Homebuyer Demand

    The Hidden Dangers of Construction Defect Litigation

    Condominium Exclusion Bars Coverage for Construction Defect
    Corporate Profile

    PIKE COUNTY MISSOURI CONSTRUCTION EXPERT WITNESS
    DIRECTORY AND CAPABILITIES

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









    Construction Expert Witness News & Info
    Pike County, Missouri

    Tampa Condo Owners Allege Defects

    October 23, 2012 — CDJ Staff

    Owners in the Bel Mare towers have filed a lawsuit alleging that the building have construction defects that could lead to problems during periods with high winds. The Tampa Bay Business Journal reports that the condo association has sued the developer, the general contractor, the architects, the structural engineers, and subcontractors.

    Read the full story…


    Counterpoint: Washington Supreme Court to Rule on Resulting Losses in Insurance Disputes

    September 1, 2011 — Douglas Reiser, Builders Counsel

    This is the fourth installment of posts on Vision One v. Philadelphia Indemnity, a Washington Supreme Court case touching on Washington construction and insurance law. After Williams v. Athletic Field got so much coverage, I wished that I had provided a forum for argument on Builders Counsel. While we await that opinion from the Supreme Court, I decided to let a few good writers have at Vision One here on the blog.  Last week, attorney Chris Carr weighed in. Today, insurance expert David Thayer returns to give his final impression. David provided an initial peak at the case earlier this year. Thanks to both Chris and David for contributing to the debate.

    In August 2011 the Washington Supreme Court will rule on a pair of joined cases that involve critical insurance coverage issues. The outcome of the ruling will impact a large swath of policyholders in Washington State including builders, developers, and homeowners to name a few.

    The cases are Vision One vs. Philadelphia Indemnity Insurance and Sprague vs. Safeco. The Vision one case comes from Division Two of the Appellate Court which overturned a lower court decision in favor the plaintiff, Vision One. Division Two decided that the collapse of a concrete pour during the course of construction did not constitute a resulting loss due to faulty workmanship. They further went on to redefine efficient proximate cause in a way that is harmful to policyholders by broadening rather than narrowing the meaning of exclusionary language in Philadelphia’s Builders Risk Policy.

    Read the full story…

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


    Williams v. Athletic Field: Hugely Important Lien Case Argued Before Supreme Court

    June 17, 2011 — Douglas Reiser, Builders Counsel

    Well, it finally made it. The most important Washington lien case of recent memory was argued in front of the Washington Supreme Court on Tuesday, June 14, 2011. So, what should we all expect?

    As I was reading through my RSS feeds this afternoon ? I was stopped dead in my tracks. Williams v . Athletic Field, the Division II case that has been a frequent topic here on Builders Counsel, has finally been argued before the Supreme Court. All of you who have been anxiously awaiting this day, you can check out the Supreme Court submissions by following this link.

    The Williams case has been the center of attention for construction lawyers and construction organizations over the past year. Some have called for complete lien law reform, others have tried to patch a hole in the law. Now, we can expect a ruling from the highest court in the state. That ruling will have a major impact on whether the Legislature feels compelled to change lien law.

    Read the full story…

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


    Who Is To Blame For Defective — And Still LEED Certified — Courthouse Square?

    September 1, 2011 — Douglas Reiser, Builders Counsel

    Remember Courthouse Square? I sure do. We have talked about the closed and evacuated LEED certified building a couple of times here on Builders Counsel. Well, it’s back in the news. This time building professionals are pointing fingers — but there is some talk about a fix. Still, its LEED certification remains.

    If you read my past articles about Courthouse Square, you can get caught up on this mess. The short of it is that Salem, Oregon had the five-story government building and bus mall completed in 2000 for $34 Million. It was awarded LEED certification during the USGBC’s infancy. Last year, it became public that the building had significantly defective concrete and design. The Salem-Keizer Transit District worked with the City of Salem to shut the building down, and it has not been occupied since.

    Last fall, Courthouse Square failed thorough forensic testing leading to a lengthy bout with a number of insurers.  The contractors and designers had been hauled into court, but the Transit District was able to settle with the architect and contractors. The only remaining party involved in the lawsuit appears to be the engineering firm, Century West Engineering. Most expert reports have pinned the responsibility for the poor design and materials on Century West’s shoulders.

    Read the full story…

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


    Safer Schools Rendered Unsafe Due to Construction Defects

    February 10, 2012 — CJD Staff

    Built on a program for safer school buildings, schools in Neenan County, Colorado have been shown to have mild-to-moderate structural problems, rendering some of them unsafe. The Denver Post reports that a third-party review of schools built by the Neenan Company has shown structural issues in all fifteen school buildings.

    One school, Meeker Elementary, has been closed as it could collapse under high winds or during an earthquake. Sargent Junior-Senior High School is in use, but there are plans to evacuate the buildings if winds exceed 25 mile per hour. Two schools have roofs that are unable to bear expected loads of snow during the winter.

    The Neenan Company says that the school buildings are not up to their standards and is working with the school districts to repair the buildings. Repairs are expected to be complete by August.

    Read the full story…


    Fifth Circuit Asks Texas Supreme Court to Clarify Construction Defect Decision

    November 7, 2012 — CDJ Staff

    The Fifth Circuit Court has withdrawn its decision in Ewing Construction Company v. Amerisure Insurance Company, pending clarification from the Texas Supreme Court of its decision in Gilbert Texas Construction, L.P. v. Underwriters at Lloyd’s London. The Fifth Circuit had applied the Gilbert case in determining that a contractual liability exclusion barred coverage for faulty workmanship. The Insurance Journal reports that this decision was both applauded and criticized, with a concern noted that “an insurer would now have its pick of either the ‘your work’ exclusion or the contractual liability exclusion without the exception for subcontracted work.”

    The Fifth Circuit is now asking the Texas Supreme Court two questions to clarify Gilbert, which Brian S. Martin and Suzanne M. Patrick see as a sign that the Court has realized that it overly expanded the scope of the earlier ruling. A response is expected from the Texas Supreme Court by spring 2013.

    Read the full story…


    Insurance Company Must Show that Lead Came from Building Materials

    August 17, 2011 — CDJ Staff

    The Fourth Circuit Court of Appeals for Louisiana has reversed the summary judgment of a lower court in the case of Widder v. Louisiana Citizens Property Insurance Company. Judge Roland L. Belsome wrote the opinion for the panel of three judges. Ms. Widder discovered that her home and its content were contaminated by lead. She applied to her insurer, Louisiana Citizens Property Insurance, which denied her claim.

    In response to Ms. Widder’s suit, LCPIC applied for a summary judgment on the grounds that there was no physical loss and that the policy did not cover defective material, latents defects, and pollution damage.

    The appeals court found that the lead contamination of Widder’s home did meet the standards of a direct physical loss, citing a recent Chinese Drywall case. There, it was found, “when a home has been rendered unusable or uninhabitable, physical damage is not necessary.”

    The lower court addressed only one of LCPIC’s exclusions, addressing only the exclusion on basis of “faulty, inadequate or defective material.” The appeals court noted that the evidence offered at trial does not show that the building materials were the source of the lead. This provided the appeals court with a matter of fact to remand to the lower court.

    Read the court’s decision…


    Flooded Courtroom May be Due to Construction Defect

    September 1, 2011 — CDJ Staff

    The General Services Administration wouldn’t pin it on a construction defect, but a spokesperson said that a pipe that was misaligned during installation was the likely cause of a flood in the Thomas F. Eagleton US Courthouse on August 23. According to the St. Louis Dispatch, the burst pipe caused a 17-story waterfall in the courthouse, soaking ceilings and floors, and drenching the building’s contents.

    The building was dedicated eleven years ago. During the nearly ten years before the building was complete, there were construction disputes and soil contamination issues.

    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…


    Exact Dates Not Needed for Construction Defect Insurance Claim

    March 1, 2012 — CDJ Staff

    The Texas Court of Appeals reversed the decision of the trial court in Vines-Herrin Custom Homes v Great American Lloyds Insurance Company on December 21, 2011. Vines-Herrin Custom Homes built a single-family home in Plano, Texas in 1999. They obtained a commercial general liability policy from Great American, later purchasing coverage from Mid-Continent, which the decision describes as “a sister company of Great American.”

    While the home was under construction, Emil G. Cerullo sought to purchase it. At the time, it was under contract to another buyer. Two months later, Vines-Herrin told Cerullo that the deal had “fell through.” Cerullo bought the house with modifications from the original plan. Upon moving in, Cerullo began having water intrusion and other problems. “Cerullo noticed water gathering on window sills and damage to the sheetrock and baseboard.” Additional problems followed, including cracks, leaks, “and in early 2002, the ceiling and roof began to sag.”

    Cerullo sued Vines-Herrin, claiming negligent construction. Vines-Herrin filed a claim seeking defense and indemnification under the insurance policies. Coverage was denied and Vines-Herrin filed suit to require coverage and also bringing claims for “breach of the duty of good faith and fair dealing, breach of contract, and DTPA and insurance code violations.”

    In May, 2006 Vines-Herrin stated that it had no more defense funds and went into arbitration with Cerullo. The underlying construction defect action was settled for about $2.5 million. As part of the settlement, “Cerullo became the rightful owner of all remaining claims, rights, and causes of action against” Vines-Herrin’s insurers. He then joined the coverage lawsuit.

    The non-jury trial was held under the controlling law of the time which “imposed a duty to defend only if the property damage manifested or became apparent during the policy period.” The court concluded in Cerullo’s favor. During the post-judgment motions, the Texas Supreme Court rejected the manifestation rule. Under this ruling, the trial court set aside its judgment and found in favor of the insurance companies. The trial court noted that although “the Residence was covered by an uninterrupted period of insurance (which began before the Residence was constructed) and that the damages to the Residence manifested during the uninterrupted period of insurance coverage,” “Mr. Cerullo failed to allege the date when actual physical damage to the property occurred.”

    The first claim by Cerullo and Vines-Herrin was that the “Final Judgment” occurred in October 2004, and that all proceedings thereafter were void. The court rejected this as the “final judgment” is not “final for the purposes of an appeal unless it actually disposes of every pending claim and party or unless it clearly and unequivocally states that it finally disposes of all claims and all parties.” Despite the use of the word “final,” the trial court’s decision did not do this.

    The second issue was the application of the Texas Supreme Court case Don’s Building Supply Inc. v. OneBeacon Insurance. In this case, framing rot due to defective stucco was not discovered until after the end of the policy period. The Supreme Court noted that “the key date is when injury happens, not when someone happens on it.”

    The appeals court found that the trial court misapplied the Don’s Building Supply decision. Rather than an exact date, “so long as that damage occurred within the policy period, coverage was provided.” The appeals court noted that “Cerullo alleged the house was constructed in 1999 and he purchased it in May 2000.” “By April of 2001, Cerullo noticed that the windowsills in the study were showing signs of leakage and water damage.” As the court put it, “the petitions then alleged a litany of defects.”

    The court noted that coverage by Great American was in effect from November 9, 1999 to November 9, 2000. In May of 2000, the house suffered “substantial flooding from a rainstorm that caused damage.” This was during the policy period. “As a matter of law, actual damages must occur no later than when they manifest.”

    The court concluded that as damage manifested during the period of coverage, so must have the damage. The court ruled that “contrary to the trial court’s determination otherwise, the evidence showed Great American’s duty to indemnify was triggered, and expert testimony establishing the exact date of injury was not required to trigger the duty.”

    Read the court’s decision…


    Florida Construction Defect Case Settled for $3 Million

    June 19, 2012 — CDJ Staff

    The Runaway Beach Club Condominium Association of Kissimmee, Florida has settled its construction defect claims against the parties involved in the construction and development of the buildings. The association claimed that defective roofs and improperly installed windows had lead to leaks and associated damages. A trial date had been set, but parties involved were able to reach this settlement instead.

    Read the full story…


    Court Voids Settlement Agreement in Construction Defect Case

    September 1, 2011 — CDJ Staff

    A U.S. District Court Judge in Florida has ruled in favor of a company that sought to void a settlement agreement. The case, Water v. HDR Engineering, involved claims of construction defects at Florida’s C.W. Bill Young Regional Reservoir. The Tampa Bay Water Authority attributed these to both HDR Engineering’s design and Bernard Construction Company which had built the embankment. Bernard Construction filed a complaint against their subcontractor, McDonald.

    Tampa Bay Water settled with Bernard Construction and McDonald, in an agreement that set a minimum and maximum settlement, but also would “prohibit Barnard and McDonald from presenting any evidence on several claims and positions of TBW, to require Barnard to call certain witnesses at trial, to preclude Barnard and McDonald from calling other witnesses, and to restrict the filing of trial and post-trial motions.” HDR Engineering moved to void the agreement as collusive.

    The judge that the agreement¬? contained “133 paragraphs of ‘Agreed Facts’ that the parties stipulated would survive any order declaring the Settlement Agreement void or unenforceable.” He characterized these as stipulating “that Barnard neither caused nor contributed to TBW’s damages.” HDR motioned that a summary judgment be given to Barnard Engineering.

    The court found that “the evidence identified by TBW is patently insufficient to survive summary judgment.” Further, TBW’s expert initially held Barnard responsible for “lenses, pockets, streaks and layers within the embankment,” but then later withdrew this assigning the responsibility to HDR. Further, the court notes that, “TBW’s arguments that lenses, pockets, streaks, and layers in the soil wedge caused or contributed to its damages and that Barnard is liable for those damages have been foreclosed by the Agreed Facts.”

    As TBW failed to provide sufficient evidence to withstand summary judgment, the court granted summary judgment, mooted the claim against McDonald, and terminated the agreement between TBW and the other parties.

    Read the court’s decision…


    District Court Awards Summary Judgment to Insurance Firm in Framing Case

    August 4, 2011 — CDJ Staff

    In the case of Continental Western Insurance Company v. Shay Construction Inc., Judge Walker Miller has granted a summary judgment against Shay Construction and their co-defendant, Milender White Construction Company.

    Shay was the framing subcontractor for Milender White on what the court described as “a major construction project in Grand County, Colorado.” Two of Shay’s subcontractors, Wood Source Inc. and Chase Lumber Company furnished materials, labor, and equipment to Shay. They subsequently sued for nonpayment and sought to enforce mechanic’s liens, naming both Shay and Milender as defendants. Milender White alleged that Shay had “breached its obligation under its subcontracts with Milender White.”

    Shay’s insurance provider, Continental Western, stated that its coverage did not include “the dispute between Shay, its subcontractors, particularly the cross claims asserted by Milender White.” Shay then sued Continental Western, alleging breach of contract and statutory bad faith.

    The court, however, has found with Continental Western and has granted them a summary judgment. They found “no genuine issue as to any material fact.” The judge did not side with Continental Western on their interpretation of the phrase “those sums that the insured becomes legally obligated to pay as damages.” The court found that the Colorado courts have not limited this to tort actions only. However, as Milender’s cross claim included claims of faulty workmanship on the part of Shay, Judge Miller found for Continental.

    Read the court’s decision…


    US Courts in Nevada Busy with Yellow Brass

    August 2, 2012 — CDJ Staff

    Judge Robert C. Jones, the chief judge of the United States District Court of Nevada, and Judge Peggy A. Leen, a magistrate judge with the same court, have issued orders in cases involving allegations of high-zinc yellow brass plumbing components. Judge Jones issued orders on Waterfall Homeowners Association v. Viega, Inc. and Greystone Nevada, LLC v. Anthem Highlands Community Association on July 9, 2012. Judge Leen issued orders on Southern Terrace Homeowners Association v. Viega, Inc. on July 10, and The Seasons Homeowners Association, Inc. v. Richmond American Homes of Nevada, Inc. on July 19.

    Chief Judge Jones held an omnibus hearing on Waterfall v. Viega on June 12. During that hearing “Chief Judge Jones had already agreed that the claims against the product manufacturers should be be severed from the majority of the other claims and that discovery should proceed on different tracks.” Judge Leen ordered that the Southern Terrace claims be referred to Chief Judge Jones to determine if it should be consolidated with other yellow brass cases.

    Chief Judge Jones’s decision in Greystone Nevada rests on issues of whether the affected homeowners had signed arbitration agreements. The judge found that the “Defendant’s claims that the seven homeowners they have identified are subsequent purchasers who need not arbitrate with Greystone is definitively refuted by the evidence.”

    Judge Leen cites the Greystone decision in her ruling on Seasons Homeowners Association v. Richmond American Homes of Nevada. Richmond seeks to compel individual arbitration, stating that “the arbitration clause used singular rather than plural terms, and therefore, class arbitration was foreclosed.” Judge Leen determined that “under Nevada law, a homeowners association has statutory authority to represent homeowners associations in these types of actions. She did, however, accept Richmond’s argument that they could compel arbitration.

    The Waterfall order involves an attempt by two homeowners associations to seek a class action against seventeen defendants, the first twelve of whom are described as “the Viega Defendants” and “the Uponor Defendants.” Chief Judge Jones notes that “many of these Defendants have been sued in identical class actions by the same law firms, but with different named defendants.” The homeowner association seek to “represent their own 998 members directly but also wish to represent up to 10,000 homeowner associations representing up to 250,000 similarly situated homeowner members throughout the Las Vega area via this class action.”

    The judge has denied the Viega Defendants’ attempt to deny class certification, noting that the plaintiffs “argue that they intend to argue for class certification under Rule 23(b)(3). He also denied the motions by the two groups of the Viega Defendants. The U.S. Viega Defendants sought to be dismissed from the case for a variety of reasons. The judge noted of the claim that the plaintiffs had no injury of fact and are not alleging actual damage is contradicted by the allegations of actual damage made by the plaintiffs. ”They have alleged that the parts are defective and have already begun to corrode in at least a few sample circumstances, even if they have not yet failed.” To the argument that there re not particular claims made against defendants, the judge notes, “it is clear from the Complaint which Defendants are alleged to have manufactured and sold which brands of allegedly defective products, and which Defendants are alleged to have installed them.”

    The German Viega firms also sought to be dismissed from the suit, noting that “they have no property, employees, accounts, advertisements, etc. in Nevada and have not sold any products in Nevada.” However, the judge notes that “at least Waterfall, and perhaps Red Bluff, was still under construction when Viega, Inc. became the sole shareholder of Vanguard Industries, Inc.”

    Finally, both of Chief Judge Jones’s rulings cite a related case in the U.S. District Court for the District of Minnesota involving a class action settlement for those with F1807 systems. He notes in both these cases that “Plaintiffs disclaimed any claims based upon F1807 components.”

    Read the courts' decisions…

    Waterfall Homeowners Association v. Viega, Inc.

    Greystone Nevada, LLC v. Anthem Highlands Community Association

    Southern Terrace Homeowners Association v. Viega, Inc.

    The Seasons Homeowners Association, Inc. v. Richmond American Homes of Nevada, Inc.


    After Construction Defect Case, Repairs to Austin Building

    August 2, 2012 — CDJ Staff

    The Austin Business Journal reports that remediation is about to begin on Met Center 10, a building that was “at the center of a complex structural defect case.” Claims were made that Grubb & Ellis failed to disclose known structural defects to a group of investors who purchased the building. The brokerage was ordered to pay $6.75 million. Repairs will take an estimated six months at a cost of $3.7 million.

    Read the full story…


    Hawaii State Senate Requires CGL Carriers to Submit Premium Information To State Legislature

    March 20, 2011 — March 20, 2011 Construction Defect Journal Staff

    In light of the decision in Hawaii’s Intermediate Court of Appeals in Group Builders, Inc.,v. Admiral Insurance Company, 231 P.3d 67(2010), Hawaii’s state senate is requesting that "every domestic and foreign insurance company that has ever issued commercial general liability policies in the State is requested to submit information to the Legislature on the total premiums received for their commercial general liability policies during the past ten years"

    Read Full Text of Hawaii State Senate Resolution


    Developer’s Fraudulent Statements Are His Responsibility Alone in Construction Defect Case

    February 10, 2012 — CDJ Staff

    The Texas Court of Appeals ruled on December 21 in the case of Helm v Kingston, a construction defect case. After purchasing what was described as “an extremely well-built” two-bedroom townhouse, Mr. Kingston made complaints of construction defects. Greenway Development did not repair the defects to Kingston’s satisfaction, and he filed notice of suit. In his suit, he claimed that GDI and its president, John Helm, had committed fraud and negligent misrepresentation. Kingston claimed that Helm “fraudulently induced Kingston to believe that the townhouse evidenced the highest quality of workmanship when in fact the quality of workmanship was atrocious.” Helms brought a counterclaim that Kingston’s suit was frivolous.

    About four years after Kingston purchased the townhome, the suit proceeded to trial. The trial court determined that Helm was not “liable in his individual capacity,” but this was reversed at appeal.

    A second trial was held ten years later on the question of whether Kingston’s unit was a townhome or an apartment. A jury found that Helm “engaged in a false, misleading or deceptive act or practice that Kingston relied on to his detriment.” Kingston was awarded $75,862.29 and an additional $95,000 in attorney fees by the jury. Helms made an unsuccessful appeal to the Appeals Court, after which Kingston was awarded an additional $10,000. Helms then made an unsuccessful appeal to the Texas Supreme Court, which lead to an additional $3,000 for Kingston. There was also a verdict of $48,770.09 in pre-judgment interest and “five percent post-judgment interest accruing from the date of the judgment until the time the judgment is paid. Helm appealed.

    In his appeal, Helm raised seven issues, which the court reorganized into five Kingston raised one issue on cross-appeal.

    Helms’ first claim was that Kingston “failed to satisfy the requirement of” Texas’s Residential Construction Liability Act and that by not filing under the RCLA, Kingston’s fraud and misrepresentation claims were preempted. Further Helms claimed that the RCLA limited Kingston’s damages. The court rejected this, as the RCLA deals with complaints made to a contractor and not only did Helm fail to “conclusively establish” his “status as a ‘contractor’ under the statutory definition,” Helm testified that he was “not a contactor” at the pre-trial hearing.

    Helms’s second claim was that Kingston’s later claim of a misconstructed firewall should be barred, claiming that Kingston “‘had knowledge of a defect in the firewall’ as early as 1997 but did not assert them until 2007.” The court rejected this because Kingston’s claim was that “Helm ‘fraudulently induced Kingston to believe that the townhouse evidenced the highest quality of workmanship when in fact the quality of the workmanship was atrocious.’”

    Helms also challenged whether his statements that the residence was of “good quality” constituted fraud and misrepresentation under Texas’s Deceptive Trade Practices-Consumer Protection Act. The court concluded that Helm was in a position to make knowledgeable statements and further that “residential housing units are not artistic works for which quality is inherently a matter of subjective judgment.” Helm also claimed that Kingston could have avoided certain repair expenses through the “exercise of reasonable care.” Helms argued that the repairs could have been made for $6,400. The court disagreed, as these claims were cited only to invoke the DTPA, and that later petitions established additional defects.

    Helms’s next claim was that he was not allowed to designate responsible third parties. The court rejected this because there GDI represented matters concerning the residence only through Helm’s statements. The court noted that “Helm is correct that?third parties may be liable for fraud if they ‘participated in the fraudulent transactions and reaped the benefits,’” but they note that “Helm never specifically alleged that GDI or CREIC participated in Helm’s alleged fraudulent transactions.

    The final issue in the decision was about court costs, and here the court denied claims on both sides. Helm argued that the award of legal fees were excessive, as they exceeded the actual damages. The court noted that they “may not substitute our judgment for that of the jury,” and also that “the ratio between the actual damages awarded and the attorney’s fees is not a factor that determines the reasonableness of the fees.” But the court also rejected Kingston’s claim for post-judgment interest on $10,312.30 that Helm had deposited in the trial court’s registry. The court noted that the monies were to be paid out upon final judgment, but the mandate did not include any reference to interest.

    Read the court’s decision…


    Pictorial Construction Terminology Dictionary — A Quick and Helpful Reference

    July 10, 2012 — CDJ Staff

    Does it seem like contractors speak their own language? Construction defect professionals can be hampered by not knowing the terminology. The Bert L. Howe & Associates, Inc. web site has a handy Pictorial Construction Terminology Dictionary in which more than a thousand terms are not only defined, but illustrated with pictures that give a visual component to each definition.

    Whether you’re wondering what a balustrade is, or you need to identify a joist girder, or hundreds of other terms, the Pictorial Construction Terminology Dictionary is there to help you. It can be found at http://www.berthowe.com/bhapedia.php.