Mealey's Construction Defects
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July 30, 2024
Minnesota Panel Reverses Judgment On Damages Owed In Construction Defects Dispute
ST. PAUL, Minn. — The Minnesota Court of Appeals on July 29 reversed a lower court’s judgment on damages owed by a contractor on a breach of contract counterclaim after determining that the trial court impermissibly held a second trial on the issue of damages incurred by the homeowners in the construction defects dispute.
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July 30, 2024
Trial Court Erred In Lifting Stay On Claims Against Subcontractor, Panel Says
EDINBURG, Texas — A trial court erred in lifting a stay as it applied to third-party claims filed by a general contractor against a subcontractor because litigation of the third-party claims would impact ongoing arbitration proceedings regarding the same facts surrounding the dispute over construction defects discovered at an apartment complex, a Texas appellate court said in reversing the trial court’s ruling.
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July 29, 2024
Magistrate Judge: Hold Off On Defaults In Glass Case Until 3rd Defendant’s Case Resolved
BROOKLYN, N.Y. — A New York federal magistrate judge has recommended that the court dismiss without prejudice a plaintiff’s default judgment motion in a glass door and window building defect case until claims against a third defendant are resolved.
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July 29, 2024
Homeowners Properly Awarded Damages For Subcontractor’s Faulty Foundation Work
HOUSTON — The First District Texas Court of Appeals affirmed a trial court’s judgment and $412,687 award of damages in favor of homeowners who demolished a partially built home after discovering that the home’s foundation was defective, rejecting the subcontractor’s argument that the homeowners’ breach of contract claim is barred by the doctrine of equitable estoppel based on the contractor’s approval of the foundation.
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July 29, 2024
Louisiana Appeals Court Vacates Time-Bar Ruling In Construction Damage Case
NEW ORLEANS — A Louisiana appeals panel has vacated a lower court ruling that a woman’s construction-related property damage claim was improperly dismissed as prescribed, saying the evidence of the claim being time-barred is “so intertwined” with the merits evidence that the issue cannot be decided without also adjudicating the merits.
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July 29, 2024
South Carolina Appeals Court Affirms Arbitration Denial In Townhome Defect Suit
COLUMBIA, S.C. — The South Carolina Court of Appeals has affirmed a lower court’s denial of a townhome developer’s attempt to force arbitration of a construction defect claim by a secondary purchaser of one of the units, saying the builder did not comply with the notice requirements of the state’s arbitration law.
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July 25, 2024
Idaho Supreme Court Affirms $647,331 Default Judgment In Unfinished Home Case
BOISE, Idaho — In a 3-2 decision, the Idaho Supreme Court on rehearing affirmed its November ruling denying a motion by a builder to set aside a $647,331 default judgment for an uncompleted home, but the majority said it was “troubled” by the judgment and the way a trial court approved it and will change the applicable rules of civil procedure as a result.
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July 18, 2024
Texas Appeals Court Issues Mixed Ruling In Defective Stucco Case
HOUSTON — A Texas appellate court has affirmed in part and reversed in part summary judgment in a defective stucco construction defect case and remanded the case to a trial court.
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July 18, 2024
Arizona Appeals Court Affirms Judgment In HOA Defect Suit Against Developer
PHOENIX — An Arizona appellate court affirmed summary judgment in favor of developer K. Hovnanian, agreeing that the plaintiff homeowners’ association (HOA) lacked standing to bring construction defect claims under the state condominium law and because the homeowners’ sales contract barred them from assigning their defect claims to the HOA.
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July 15, 2024
Ohio Appeals Court Reverses Summary Judgment In Architect Inspection Suit
TOLEDO, Ohio — An Ohio appeals court panel has reversed summary judgment in favor of an architectural firm, finding that a trial court erred in finding no genuine issue of material fact about whether the firm breached a contract to inspect an extensive home damage repair project.
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July 05, 2024
Iowa Appeals Court: Home Project Designer Not Liable For Failed Siding
DES MOINES, Iowa — The Iowa Court of Appeals on July 3 affirmed summary judgment for a home improvement designer, agreeing that homeowners’ claims involving defective siding installation are not tort claims and that the designer was not a contractor who can be sued for breach of contract, breach of implied warranty or negligent construction.
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July 05, 2024
Walmart Subsidiary Can Amend Answer, Add Counterclaim In Building Defect Case
RICHMOND, Va. — A Virginia federal judge has granted a motion by Walmart Inc. subsidiary Sam’s East Inc. to file an amended answer and counterclaim in Summit Investments II’s construction defect lawsuit against it.
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July 03, 2024
Majority Says Fact Issues Exist On Whether New Flooring Caused Mold Growth
HOUSTON — After granting rehearing in a mold damage suit, the majority of a 14th District Texas Court of Appeals panel reversed course and determined that a question of fact exists as to whether defectively installed flooring was the cause of mold growth in the plaintiffs’ home.
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July 03, 2024
Breach Of Contract Claims In Construction Defect Suit Barred By Res Judicata
RICHMOND, Va. — Breach of contract claims arising out of an ex-husband’s defective construction work are barred by the doctrine of res judicata because the claims arose out of the same conduct alleged in the parties’ divorce proceeding, the Virginia Court of Appeals said in affirming a portion of a trial court’s ruling.
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July 02, 2024
Negligence Claim Related To Defect In Top Landing Of Stairs Can Proceed, Panel Says
SANTA ANA, Calif. — The Fourth District California Court of Appeal reversed a portion of a trial court’s ruling in favor of a contractor after determining that a plaintiff’s negligence claim can proceed because it is related to a set of stairs with an alleged latent defect, which is subject to a 10-year statute of limitations under California law.
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July 02, 2024
Judge Denies Sealant Maker’s Dismissal Motion In Defects Suit Over Shattered Panes
SEATTLE — A Washington federal judge denied a dismissal motion filed by a manufacturer of the sealant used in double-paned insulated glass units (IGUs) in a suit filed against it by a condominium homeowners association (HOA) alleging conspiracy to conceal the possibility of the units failing and shattering, finding that the HOA’s allegations are sufficient for personal jurisdiction over the manufacturer.
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July 02, 2024
Illinois Appeals Court Affirms Dismissal Of Duplicative Construction Defects Suit
CHICAGO — An Illinois trial court did not abuse its discretion in dismissing a man’s complaint alleging various construction defects against the previous owners of his condominium after finding that his complaint is nearly identical to a complaint filed by the building’s board of managers on behalf of the unit owners.
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July 02, 2024
Colorado High Court: Government Immunity Trumps Economic Loss Claim
DENVER — The Colorado Supreme Court has ruled that the state’s governmental immunity law bars tort and breach-of-duty claims against Aspen, Colo., for construction defects in a city-sponsored affordable housing condominium project and precludes claims by a condominium association under the high court’s economic loss rule.
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July 02, 2024
Suit Limitation Provision Is Unenforceable Based On Contractor’s Unlicensed Status
ALEXANDRIA, Va. — A Virginia federal judge partially denied a motion to dismiss filed by defendants involved in the construction and sale of two couples’ homes because the one-year suit limitation provision in the sales contracts is unenforceable because the contractor who signed the contract is unlicensed.
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July 02, 2024
Fraud Claims Against Seller In Defects Dispute Can Proceed, Panel Says
DETROIT — The Michigan Court of Appeals affirmed a trial court’s dismissal of an innocent misrepresentation claim alleged against the seller of a property because an “as is” clause contained in the agreement of sale bars the claim; however, the panel said the buyers’ claims for fraud can proceed because questions of fact exist regarding the state of the property and the seller’s knowledge of a number of construction defects at the property.
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June 21, 2024
Fact Issue Exists On Roofing Company’s Intent To Transfer Warranty, Court Says
MONTGOMERY, Ala. — A trial court erred in entering summary judgment for a roofing company on claims of breach of contract, breach of express warranty and negligence arising out of a warranty dispute because a question of fact exists as to whether the company intended to extend its warranty for roof repairs, completed as part of the sale of a home, to the homeowners who purchased the home, the Alabama Supreme Court said in reversing the trial court’s ruling.
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June 20, 2024
Arbitration Clause Is Not Enforceable In Defects Dispute, New Jersey Panel Says
TRENTON, N.J. — A trial court properly determined that an arbitration clause included in a condominium association’s bylaws does not compel arbitration of the association’s claims against a development company and numerous construction and design firms because the arbitration clause is unenforceable absent an agreement by all the parties to arbitrate, a New Jersey appellate panel said.
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June 20, 2024
Georgia Appeals Panel Reverses Trial Court’s Ruling In Pool Repair Dispute
ATLANTA — The Fifth Division Georgia Court of Appeals reversed and remanded a trial court’s ruling against a swimming pool company on a breach of contract claim after determining that the evidence does not support the trial court’s finding that the company made a substandard repair by using duct tape to fix a gas leak.
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June 10, 2024
Homeowners Ask Alaska Federal Judge To Reconsider Dismissal Of Faulty Window Claims
ANCHORAGE, Alaska — An Alaska federal judge erred in dismissing two homeowners’ defective windows claims as untimely by finding that the claims accrued much earlier than they actually did, the homeowners argue in a motion for reconsideration of the dismissal order.
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June 10, 2024
In Faulty Shingles Case, Parties File Stipulation Of Dismissal With Prejudice
KANSAS CITY, Kan. — In Kansas federal court, a group of property owners and a roofing manufacturer jointly filed a joint stipulation to voluntarily dismiss a dispute over the company’s allegedly faulty shingles with prejudice.