Anaheim California Building Consultant Directory

Arizona Court Affirms Homeowners’ Association’s Right to Sue Over Construction Defects

October 15, 2024 — Melissa Kenney - White and Williams LLP
In Gallery Community Association v. K. Hovnanian at Gallery LLC, No. 1 CA-CV 23-0375, 2024 Ariz. App. Unpub. LEXIS 696 (Ct. App.), the Court of Appeals of Arizona (Court of Appeals) discussed whether a homeowners’ association can file an action for breach of the implied warranty of workmanship and habitability arising from construction defects. At issue was whether the implied warranty extended to the areas within the community that the association maintained, including the common areas. The Court of Appeals held that homeowners’ associations can sue builder-vendors for breach of the implied warranty arising from construction defects. In this case, a homeowners’ association, responsible for managing and maintaining a community of townhomes, sued the developer/builder for alleged construction defects in the common area and exteriors of homes that the association maintained for the homeowners in the community. The alleged defects included the pool cabana and staircase walls in the common areas and the exterior walls, roofs, and staircases on the separately owned townhomes in the community. The builder filed a motion for summary judgment, arguing that the implied warranty extended to dwelling actions initiated by homeowners – not homeowners’ associations – and that the alleged construction defects at issue were not related to a dwelling. The trial court granted the motion. The Court of Appeals vacated the trial court’s grant of summary judgment and remanded for further proceedings. In reaching its decision, the Court of Appeals determined that both common law and statutory law authorized the homeowners’ association’s breach of implied warranty claim. Read the full story...
Reprinted courtesy of Melissa Kenney, White and Williams
Ms. Kenney may be contacted at kenneyme@whiteandwilliams.com

Executive Insights 2024: Leaders in Construction Law

August 05, 2024 — Construction Executive
The key risks that should always be taken into account when a contract is signed are risks associated with uncompensated delays and cost increases. Provisions relating to the scope of work deserve significant attention to help minimize these risks. Defining the scope of work is often put on the backburner while parties focus on negotiating the rest of the terms and conditions of the contract. And when these scopes are inserted, they are often not closely reviewed by attorneys who tend to defer to project personnel on scope. These situations can lead to costly disputes. Instead, make sure: (1) the correct plans and specifications have been referenced in the contract; (2) an attorney or his/her business counterpart is familiar with relevant specifications; (3) the exhibit containing the assumptions and clarifications is clearly written, has been coordinated with language in the body of the contract and can be clearly understood by attorneys and business people beyond the preconstruction personnel who drafted them; and (4) the contract addresses the order of precedence in the event of a conflict between or among contract provisions (including exhibits). With regard to specifications referenced above, an attorney review is advised because many specification sections, including submittal sections, change order sections, payment provisions and construction progress documentation sections, regularly vary from the negotiated sections of the actual contract. Contractors also unwittingly accept design risk through performance specifications, and the accompanying obligations and risks are underestimated by those tasked with the initial review of those documents. In sum, a clear scope is as important as clear terms and conditions. Reprinted courtesy of Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...

What Every Project Participant Needs to Know About Delay Claims

August 05, 2024 — Andrew G. Vicknair - The Dispute Resolver
A “delay” on a construction project is defined as the stretching out of the time for completion of certain key milestone scopes of work which can impact the completion date of an entire project, due to some circumstances or events that were not reasonably anticipated when the project began. 2 Construction Law ¶ 6.01 (Matthew Bender, 2024). While delays can be caused by any number of events, the most common are defective plans and specifications; design changes; severe weather and other, similar unforeseeable events; unforeseen or differing site conditions; unavailability of materials or labor; labor inefficiencies or stoppages; contractor negligence; and owner influences, including construction changes or outright interference by the owner or its agents. If the project schedule is not recovered following a delay, then the project schedule will likely be extended, resulting in an increase in the contractor’s costs of performance. A contractor that has experienced a delay on a project can take certain actions to pursue recovery of any damages the contractor may have incurred. However, to do so it is important to understand the different types of delays and the methods for establishing the delays. I. Types of Delays Delays may be categorized as (1) critical versus non-critical delays, (2) excusable versus non-excusable delays, and (3) compensable versus non-compensable delays. A critical delay is a delay that affects the project completion date and delays the entire project. In essence, a critical delay is one that will extend the critical path of a project. A non-critical delay is a delay that has no effect on the project’s critical path. Courts have recognized that delays to work not on the critical path will generally not delay the completion of a project. G.M. Shupe, Inc. v U.S., 5 Cl. Ct. 662, 728 (1984). Such a non-critical delay may affect the completion of certain activities, but does not affect the completion date of the entire project. In order for a delay to provide the basis for a claim for additional time or money, the delay must impact critical path activities on the project schedule. Read the full story...
Reprinted courtesy of Andrew G. Vicknair, D'Arcy Vicknair, LLC
Mr. Vicknair may be contacted at agv@darcyvicknair.com

Real Estate & Construction News Roundup (10/1/24) – Hybrid Work Technologies, AI in Construction and the Market for Office Buildings

November 05, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, commercial mortgage bond market in trouble, commercial real estate investments, pressure on mortgage REITs, and more!

Short-term issues facing U.S. commercial real estate have made it an investment opportunity and values have bottomed out. (CNBC)
As organizations report plans to shake up their real estate portfolios, the flight to quality spurs interest in space planning, amenities and hybrid work technologies. (Joe Burns, Facilities Dive)
The conversation about AI’s potential benefits and risks has been a common refrain in construction recently. (Matthew Thibault, Construction Dive)

Read the full story...
Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

Climate Disasters Are an Affordable Housing Problem

October 01, 2024 — Juan Pablo Garnham & Arjuna Heim - Bloomberg
When Maui was devastated by wildfires in August 2023, some residents were initially fortunate. The neighborhood of Makawao, for example, was spared the worst effects of the fire that engulfed Lahaina, 35 miles to the west. Recently, though, we met a woman in that neighborhood who faces a different kind of threat: Her landlord has now demanded that she pay double her rent or face eviction. As housing advocates in the region, we’ve heard stories like this repeatedly, as residents report an acute fear of displacement and homelessness. A year after the fires killed more than 100 people, displaced 12,000 and disrupted the economy of the island, the disaster lingers for many in Maui and Hawai'i. Rents across the island have increased sharply, offering a cautionary tale for the rest of the US about how climate change, a housing crisis and the lack of adequate public policies can multiply the suffering of a community already in pain. Read the full story...
Reprinted courtesy of Bloomberg

Why Should Businesses Seek Legal Help Early On?

December 03, 2024 — Scott L. Baker - Los Angeles Litigation Blog
Most business owners are natural problem solvers. They assess the issue that lies before them and develop a strategy to overcome it. It’s a critical mindset to have, but do all business owners have the skillset to solve every issue? While it is understandable that business owners may want to attempt to resolve issues on their own, it is invariably beneficial to obtain guidance for legal issues earlier rather than later. 3 Reasons to Consult an Attorney Sooner than Later Many people might consider working with an attorney to be a last resort. Typically, this is not the case; rather, getting knowledgeable legal counsel sooner than later can help business owners because:

It’s Cheaper: Early legal intervention can often prevent disputes from leading to litigation, which can be expensive. Working with an attorney to resolve a conflict before it escalates into a larger issue is often a good business decision and wise investment.

Read the full story...
Reprinted courtesy of Scott L. Baker, Baker & Associates
Mr. Baker may be contacted at slb@bakerslaw.com

Insurers' Motion to Determine Lack of Occurrence Fails

August 19, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The federal district court, interpreting Massachusetts law, found there were genuine issues of fact as to whether the insured's mixing of biodiesel with home heating fuel was an occurrence. United States Fire Ins. Co. v. Peterson's Oil Serv., Inc., 2024 U.S. Dist. LEXIS 106980 (D. Mass. June 17, 2024). Homeowners sued Peterson's Oil Service, alleging that Peterson sold them fuel for home heating which contained more that 5% biodiesel. The homeowners further alleged that fuel containing more than 5% biodiesel did not meet industry standards and caued damage to their home heating equipment. Peterson allegedly did not fully disclose the presence of biodiesel in their fuel, despite knowing the risk posed by high-biodiesel blended fuel. The insurers, United States Fire Insurance Company and The North River Insurance Company, defended Peterson under a reservation of rights. United States Fire issued priomary policies with limits of $1,000,000 per occurrence and $2,000,000 as a general aggregate limit. An endorsement titled "Limited Coverage - Failure to Supply" limited the amount covered for "property damage arising out of the failure of any insured to adequately supply gas, oil, water, electricty or steam" to $250,000. North River issued umbrella policies with additional coverage in the amount of $15,000,000 per occurrnce and in the aggregate if property damage was caused by an occurrence. The umbrella policies also contained a "Failure to Supply Exclusion" which excluded coverage for "property damage arising out of the failure of an insured to adequately supply gas, oil, water, electricty or steam." Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Celebrating Excellence: Lisa Bondy Dunn named by Law Week Colorado as the 2024 Barrister’s Best Construction Defects Lawyer for Defendants

October 28, 2024 — David M. McLain – Colorado Construction Litigation
We are thrilled to announce that our very own Lisa Bondy Dunn has been recognized by Law Week Colorado as the 2024 Barrister’s Best Construction Defects Lawyer for Defendants. This prestigious accolade is a testament to Lisa’s dedication, expertise, and unwavering commitment to achieving the best outcomes for our clients. Lisa, a Partner at Higgins, Hopkins, McLain & Roswell (“HHMR”), has long been a leader in construction defect litigation, defending builders, contractors, developers, and design professionals in Colorado’s complex legal landscape. Her deep understanding of the industry and her relentless pursuit of practical, cost-effective solutions have earned her the respect of peers, clients, insurers, mediators, arbitrators, and courts alike. As noted by Law Week Colorado: “For over two decades, Lisa Dunn has represented developers, contractors and subcontractors in construction-related disputes. Dunn has spoken across the country on construction and insurance matters, and she’s worked on several appellate cases during her career. She’s admitted in four states, and has consulted and represented some of the nation’s largest builders.” Read the full story...
Reprinted courtesy of David McLain, Higgins, Hopkins, McLain & Roswell, LLC
Mr. McLain may be contacted at mclain@hhmrlaw.com

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