Mealey's Construction Defects
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February 13, 2024
Pennsylvania Panel: Court Erred In Dismissing Construction Claims Over Party Name
HARRISBURG, Pa. — A trial court erred in dismissing construction defects claims arising from an allegedly leaky building based on the property owner’s attempt to amend its complaint to correctly name itself in the case caption because the defendant builders would not be prejudiced by such an amendment, a Pennsylvania appellate court panel found in vacating and reversing the trial court’s judgment.
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February 12, 2024
Construction Subcontractor Failed To Plead False Claims Act Violations, Judge Says
PHILADELPHIA — A subcontractor that was fired from a project to build a school at a Marine Corps base failed to state any False Claims Act (FCA) claims against the project’s general contractor because the subcontractor failed to show that the government was not aware of the contractor’s allegedly defective work when it issued payments to the contractor.
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February 12, 2024
Homeowner Fails To Secure Fees From Ohio Panel In Pool Construction Dispute
AKRON, Ohio — A homeowner who reached a settlement with a construction company and its contractors for the alleged defective construction of an inground pool and related features is not entitled to attorney fees incurred in filing a motion to enforce the settlement agreement because the homeowner failed to show that the defendants acted in bad faith, an Ohio appeals court panel found in affirming a trial court’s judgment.
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February 07, 2024
New York Justice Dismisses Claims, Denies Motion To Amend In Construction Dispute
NEW YORK — A New York justice dismissed claims of fraud, negligence, gross negligence and more in disposing of four motions to dismiss filed by designers of a construction project that was allegedly mismanaged, causing damage to a neighboring building.
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February 06, 2024
Following Stipulation, 6th Circuit Dismisses Home Construction Dispute
CINCINNATI — Following a stipulation filed by a homeowner and a builder, the Sixth Circuit U.S. Court of Appeals dismissed an appeal filed by the homeowner over a final judgment in favor of the builder based on a summary judgment order in which a trial court found that the homeowner could not assert counterclaims for construction defects against the builder because he moved into a new home and therefore accepted its condition.
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January 31, 2024
Montana High Court: Text Messages Properly Settled Home Construction Claims
HELENA, Mont. — A homeowning couple must finalize a settlement agreement resolving construction defects claims arising from allegedly defective remodeling of their home because text messages between one of the homeowners and the brother of the general contractor that performed the work constituted a valid settlement agreement that satisfied the statute of frauds, the majority of the Montana Supreme Court found Jan. 30 in affirming a trial court’s judgment.
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January 31, 2024
Oklahoma Federal Judge: Homeowners Can Add New Claims, But Not Defendants
MUSKOGEE, Okla. — Three homeowners who purchased allegedly defective manufactured homes from the same builder can add new claims for negligence, negligence per se and a violation of the Racketeer Influenced and Corrupt Organizations Act (RICO) but cannot add new defendants because the requirements of necessary and permissive joinder are not met, an Oklahoma federal judge found in adopting a magistrate judge’s report and recommendation.
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January 31, 2024
California Panel Says Homeowner’s Online Posts Against Contractor Are Not Protected
LOS ANGELES — A homeowner’s online posts criticizing repair work performed by a general contractor are not protected by litigation privilege because the posts had no substantial relationship to any litigation, a California panel found in affirming the trial court’s decision to deny the homeowner’s motion to strike the contractor’s complaint for libel.
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January 31, 2024
In Utah, Developer Sues Builder For Poor Construction Of Residential Project
OGDEN, Utah — In Utah state court, a real estate developer alleges that a now-defunct construction company failed to properly build two residential buildings and violated applicable building codes by failing to use correct lumber, among other issues.
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January 22, 2024
Texas Panel Finds Subsequent Homeowners Must Arbitrate Mold Growth Claims
HOUSTON — Citing two recent opinions from the state Supreme Court, a Texas panel found that subsequent owners of a home that allegedly suffers from mold growth caused by defective construction and design must arbitrate their claims against the homebuilder under the terms of the home’s original purchase agreement, despite being nonsignatories to that contract, because their breach of implied warranty claims do not stand independent of the contract.
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January 26, 2024
In Roofing Dispute, Florida Panel Says Trial Court Erred In Entering Default
WEST PALM BEACH, Fla. — A trial court erred in entering default judgment against a roofing contractor that allegedly performed defective roofing work on a home because the contractor’s counsel filed a notice of appearance before the default judgment was entered, a Florida panel found in reversing and remanding the trial court’s judgment.
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January 26, 2024
Vermont Judge Enters Judgment In Favor Of Homeowner Who Received Defective Deck
NEWPORT, Vt. — A Vermont judge found that a homeowner was entitled to a final judgment in his favor on breach of contract claims brought against a husband and wife who held themselves out to be general contractors because the deck the couple built was defective in multiple ways and did not meet the homeowner’s specifications.
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January 24, 2024
Alabama Supreme Court Orders Transfer Of Construction Defects Case
MONTGOMERY, Ala. — A trial court erred in denying a motion to transfer a case in which a couple alleged that the previous owners of their home failed to properly construct the home because in such cases venue is proper only in the county where the property is located, the Alabama Supreme Court found in granting a petition for writ of mandamus filed by the previous owners.
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January 23, 2024
Builder Appeals Order Finding Claims Against Dissolved Contractor Were Time-Barred
RENO, Nev. — A builder that allegedly failed to properly construct a large distribution center has appealed to the Ninth Circuit U.S. Court of Appeals a Nevada federal court order finding that its cross-claims for indemnification and contribution against a subcontractor that worked on the project are time-barred by statute because the subcontractor itself was dissolved more than three years before the claims against it were filed.
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January 19, 2024
5th Circuit Affirms Remand Of Class Action Mold Dispute As A Local Controversy
NEW ORLEANS — Under the Class Action Fairness Act’s (CAFA) local controversy exception, a Fifth Circuit U.S. Court of Appeals panel affirmed a trial court’s order remanding a putative class dispute in which a homebuilder is alleged to have defectively constructed a large number of homes in Louisiana.
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January 17, 2024
Delaware Supreme Court Affirms $4 Million Reduction Of Faulty Construction Damages
WILMINGTON, Del. — A trial court did not err in reducing an award in favor of a condominium complex’s homeowners association from $12.9 million to $8.3 million for damages caused by a builder’s negligent construction of parts of the condominium units because the association relied on inadmissible testimony to increase the award, the Delaware Supreme Court held in affirming the trial court’s judgment.
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January 16, 2024
In License And Construction Dispute, Calif. Panel Says Builder Is Entitled To Fees
LOS ANGELES — A construction company that was sued for allegedly performing remodeling work without a license is entitled to attorney fees under the terms of the construction contract because it prevailed in an arbitration proceeding covering the allegedly defective work, a California appeals court panel held in affirming a trial court’s award of attorney fees.
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January 12, 2024
S.C. Panel: Nonsignatories Can Be Compelled To Arbitrate Home Construction Claims
COLUMBIA, S.C. — Two subsequent purchasers of a newly constructed home that allegedly suffers from construction defects can be compelled to arbitrate their claims against the builder of the home even though they did not sign the home’s original warranty because their breach of warranty claim relied upon the agreement, which contained an arbitration clause, a South Carolina panel found in reversing a trial court’s decision to deny the builder’s motion to compel arbitration.
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January 12, 2024
Homeowning Company Appeals Judgment, Other Orders In Chinese Drywall Dispute
TAMPA, Fla. — A company that says it purchased a home that suffers from defectively manufactured Chinese drywall appealed to the 11th Circuit U.S Court of Appeals an order denying its motion for reconsideration, an order granting summary judgment in favor of the drywall manufacturer on statute of limitations grounds and a final judgment all entered by a Florida federal trial court.
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January 11, 2024
In Construction Dispute, Calif. Judge Dismisses Motion Containing Decided Issues
LOS ANGELES — A California judge denied a property developer’s motion for summary adjudication of cross-claims brought against it by a builder after both companies were sued by the owners association of a condominium complex for allegedly violating California building standards because the motion contained issues the developer raised in a previous motion.
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January 03, 2024
Faulty Construction Claims Against Developer Not Time-Barred, Calif. Judge Says
LOS ANGELES — Claims of defective construction brought by the board of a condominium complex against the complex’s developer are not barred by the applicable 10-year statute of limitations because the developer was in possession of the complex when the defective construction allegedly occurred, a California judge found in denying the developer’s motion for summary judgment/adjudication.
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January 03, 2024
In Condo Repair Dispute, Utah Panel Reverses Judgment On Construction Lien Claim
SALT LAKE CITY — Despite failing to timely file its preliminary notice of a construction lien, a builder that performed certain repairs on a condominium that suffered from a sewer backup before it was terminated from the project is entitled to recover on its claim for foreclosure of the lien because Utah law allows lien holders to recover for work performed five days after an untimely notice is filed, a Utah panel found in partly reversing a trial court’s judgment.
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December 22, 2023
Following Stipulation, Indiana Federal Judge Orders Dismissal Of Roofing Claims
HAMMOND, Ind. — An Indiana federal judge dismissed claims arising from the allegedly defective construction of exterior walls and roofing in a new housing development after the owner of the development, the general contractor and a subcontractor filed a joint stipulation of dismissal.
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December 22, 2023
Iowa Panel Says Record Regarding Faulty Construction Supports Jury Verdict
DES MOINES, Iowa — A trial court did not err in denying a man’s motions for a new trial and judgment notwithstanding the verdict (JNOV) because the record supports the jury’s verdict that the man misrepresented the condition of a home he renovated and sold to a couple who sued the man after discovering multiple construction defects in the home, an Iowa appellate panel found in affirming the trial court’s judgment.
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December 22, 2023
Settlement Of Construction Claims Was Made In Good Faith, California Judge Finds
LOS ANGELES — A settlement among three defendants and the owners of a home that allegedly suffers from multiple construction defects was made in good faith because the settlement amount was reasonable and reached through mediation, a California judge found in granting the motion to approve the good faith settlement.