Mealey's Construction Defects
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September 26, 2023
Colorado Panel: Parties Can Extend Accrual Period For Construction Defects Claims
DENVER — In what it called a case of first impression, a Colorado panel found that a provision in a construction contract that extends the accrual period for construction defects claims is not invalid under Colorado’s Construction Defect Action Reform Act (CDARA) because nothing in the law expressly prohibits contracting parties from doing so.
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September 25, 2023
In Home Flooding Dispute, New Mexico Panel Says Trial Court Erred In Granting Fees
ALBUQUERQUE, N.M. — A state trial court erred in granting attorney fees under New Mexico’s Unfair Practices Act (UPA) to a group of companies and individuals who allegedly failed to properly develop a subdivision and construct a new home that suffered from flooding because the homeowners’ claim under the UPA were not groundless even though they did not prevail on it, a New Mexico panel found in reversing the trial court’s decision in part.
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September 22, 2023
Roofing Repair Dispute Stayed So Parties Can Negotiate Potential Settlement
HUNTINGTON, W.Va. — A West Virginia federal judge granted a joint motion to stay a trial in a suit filed against a roofer by a technology company so the parties can negotiate claims arising from allegedly defective roof repair work performed by the roofer on the company’s office building.
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September 22, 2023
Florida Panel Reverses, Finds Man Failed To Show New Roof Caused Actual Damages
WEST PALM BEACH, Fla. — A man who claims that a new roof installed on his home leaked and caused water damages failed to prove a necessary element of his Florida Deceptive and Unfair Trade Practices Act (FDUTPA) claim because he did not present any evidence of actual damages, a Florida appellate court panel said, finding that the trial court erred by not granting a directed verdict in favor of the company that performed the roof work.
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September 20, 2023
In Roof Repair Case, La. Federal Judge Dismisses Claims Against Shingles Manufacturer
LAKE CHARLES, La. — In granting a shingles manufacturer’s motion to dismiss for failure to state a claim, a Louisiana federal judge dismissed all claims against the manufacturer brought by two homeowners who claim that their home’s roof was improperly repaired because the claims were either time-barred or insufficiently pleaded.
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September 19, 2023
Kansas Panel: Arbitrator Will Decide If Claims Arise From Construction Defects
TOPEKA, Kan. — It is unclear whether an arbitration provision in a new home construction contract requires a homeowning couple’s claims against the homebuilder to be arbitrated because the contract was never entered into the record, a Kansas appellate panel found in affirming a trial court’s decision to grant the builder’s motion to compel arbitration.
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September 18, 2023
In Home Construction Case, Connecticut Judge Denies And Grants Summary Judgment
STAMFORD, Conn. — In disposing of two motions for summary judgment, a Connecticut judge found that two subcontractors who allegedly performed defective work on a home were not required to indemnify a third subcontractor but that one of the two was not entitled to summary judgment against the claims of the general contractor.
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September 18, 2023
Texas Panel Affirms Summary Judgment Findings In New Home Construction Dispute
FORT WORTH, Texas — In affirming a trial court’s decision to grant summary judgment in favor of a homeowning couple who alleged that their home was defectively constructed before the project was wholly abandoned by the homebuilder, a Texas panel overruled all seven challenges raised by the homebuilder and its owner on appeal.
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September 14, 2023
New York Justice Dismisses Majority Of Defective Condo Construction Claims
NEW YORK — In granting a motion to dismiss filed by a building developer and the building’s sponsor, a New York justice found that claims for fraud in the inducement, breach of the covenant of good faith and fair dealing and unjust enrichment brought by the purchasers of a nearly $18 million penthouse in New York City all failed for different reasons.
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September 14, 2023
Alabama Federal Judge Orders Arbitration Of Model Home Construction Dispute
DOTHAN, Ala. — An Alabama federal judge granted a motion to compel arbitration filed by a model home manufacturer that was sued by a homeowner who says the home she purchased did not meet her specifications, finding that the homeowner consented to arbitration.
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September 14, 2023
Insured’s Hurricane Irma Claim Is Ripe For Appraisal, Florida Panel Affirms
WEST PALM BEACH, Fla. — A Florida appeals panel on Sept. 13 held that a homeowners association insured’s claim for roof damage caused by Hurricane Irma is ripe for appraisal because its commercial property insurer admitted coverage for the insured’s initial claim, affirming a lower court’s order staying the lawsuit and compelling appraisal.
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September 12, 2023
Alabama Federal Judge Partly Grants Summary Judgment In Chinese Drywall Case
MOBILE, Ala. — A manufacturer of defective Chinese-manufactured drywall is entitled to summary judgment on several claims brought by two homeowning couples who say the drywall damaged their homes because several claims fail as a matter of law, an Alabama federal judge found in partly granting the manufacturer’s motion for summary judgment.
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September 12, 2023
Pennsylvania Panel Affirms Dismissal Of Defective Home Construction Claims
HARRISBURG, Pa. — In two separate orders, a Pennsylvania panel found that a trial court properly applied the applicable statute of repose, applicable statute of limitations, economic loss doctrine and gist of the action doctrine in granting summary judgment in favor of a homebuilder and a window manufacturer that were sued by homeowners who say their home was defectively constructed.
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September 06, 2023
Texas High Court Denies Motion For Rehearing In Construction Arbitration Case
AUSTIN, Texas — The Texas Supreme Court denied a homeowner’s motion for rehearing regarding its finding that the homeowner, as the subsequent purchaser of a home that allegedly suffered from mold damage, is required to arbitrate its claims against the builder because the claims for breach of implied warranty arose from the home’s original sales contract, which contained an arbitration agreement.
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August 31, 2023
In Faulty Roofing Dispute, Kansas Federal Judge Keeps Documents Sealed
KANSAS CITY, Kan. — Nine provisionally sealed documents containing details about whether a shingles manufacturer failed to disclose problems related to its defective shingles and compensate property owners injured by the alleged defective shingles should remain sealed because they are either unnecessary or duplicative or contain confidential information, a Kansas federal judge found in partly granting the manufacturer’s motion to seal.
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August 30, 2023
Maryland Federal Judge Dismisses Failed Retaining Wall Claims With Prejudice
BALTIMORE — After two joint stipulations were filed stating that a settlement had been reached, a Maryland federal judge dismissed with prejudice claims between three companies arising from the allegedly defective construction of a retaining wall on a newly purchased property and released interlocutory liens placed on the property during litigation.
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August 29, 2023
Florida Federal Judge Terminates Certifying Agency From Brazilian Plywood Case
FORT LAUDERDALE, Fla. — A plywood certifying agency that was alleged by a coalition of American plywood manufacturers to have certified substandard Brazilian structural plywood as meeting U.S. standards was terminated Aug. 28 by a Florida federal judge from the case brought against it after filing a joint motion to dismiss with the coalition.
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August 29, 2023
In Colo. Casino Construction Dispute, Not All Counterclaims Have Limited Damages
DENVER — Not all counterclaims brought by the owners and operators of a casino who claim that a general contractor defectively constructed parts of their casino are subject to the actual damages limitations of Colorado’s Construction Defect Action Reform Act (CDARA) because some of the claims arise from the contractor’s alleged mismanagement of the project and not construction defects, a Colorado judge held in denying the contractor’s motion for a determination of law.
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August 24, 2023
In Leaking Roof Case, California Panel Says Arbitrator Did Not Exceed His Authority
SACRAMENTO, Calif. — An arbitrator did not exceed his authority in denying a roofing company’s request for damages for breach of contract because the award was authorized by the terms of the subcontract between the roofing company and a general contractor that refused to pay the company full price for its work on a building that experienced leaks, a California panel held in affirming a trial court judgment confirming the award.
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August 22, 2023
Texas Panel: Construction Defects Case Should Be Stayed In Favor Of Arbitration
AMARILLO, Texas — Litigation concerning allegedly defective construction performed at a condominium complex should be stayed pending parallel arbitration proceedings because a decision made in one proceeding could materially affect the other, a Seventh District Texas Court of Appeals panel found Aug. 21 in reversing a trial court’s denial of a motion to stay the litigation.
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August 22, 2023
Mich. Federal Judge Renders Final Judgment In Defective Home Construction Dispute
FLINT, Mich. — After a homebuilder dismissed its remaining claims with prejudice, a Michigan federal judge entered final judgment in its favor based on a summary judgment order in which the judge found that the homeowner cannot assert counterclaims for construction defects against the builder because he moved into a new home and therefore accepted its condition.
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August 21, 2023
N.C. Judge Dismisses Some Of Homeowners Associations’ Claims In Construction Case
WILMINGTON, N.C. — Claims of breach of contract brought against the developer of a planned community by its homeowners association fail because the association failed to identify which provisions of the community’s declaration were breached by the developer when it allegedly oversaw the defective construction of common areas, a North Carolina federal judge held in ruling on two separate motions to dismiss filed by the developer and former board members of the association.
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August 21, 2023
Louisiana Federal Judge Says 2 General Contractors Cannot Testify About Causation
LAKE CHARLES, La. — Two general contractors can testify about their field but not about what caused a sprinkler to become defective during the construction of a fitness club, a Louisiana federal judge found in partly granting a motion to exclude expert testimony filed by a subcontractor that installed the sprinkler and its insurer.
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August 16, 2023
Collateral Estoppel Does Not Bar Home Construction Claims, N.C. Panel Finds
RALEIGH, N.C. — Defective home construction claims brought by a homeowner against a real estate agent are not barred by collateral estoppel because similar claims resolved through arbitration against the homebuilder ultimately concerned different duties and obligations, despite the fact that the agent and the builder shared common agents, a North Carolina panel held Aug. 15 in affirming a trial court’s judgment denying the agent’s motion for summary judgment.
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August 10, 2023
In Construction Dispute, Agency Relationship Binds Party To Arbitration Agreement
TALLAHASSEE, Fla. — A company can be compelled to arbitrate even though it did not sign the contract for the sale of tiles used in a construction project that were allegedly defective because the project’s general contractor acted as the company’s agent when signing the contract with the tile manufacturer, a Florida appellate court panel found Aug. 9 in remanding a trial court’s decision.