Mealey's Construction Defects : Mealey's : Legal News & Analysis

Mealey's Construction Defects

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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
December 21, 2023
Indiana Panel: Acceptance Rule, Economic Loss Doctrine Don’t Bar Building Claims

INDIANAPOLIS — A trial court erred in dismissing claims arising from the alleged defective construction of a mixed-use building because neither the acceptance rule nor the economic loss doctrine serve to bar the claims in this instance, an Indiana panel found in reversing and remanding the trial court’s judgment.
December 20, 2023
In N.C. Federal Court, Parties Stipulate Dismissal Of Construction Defects Case

ASHEVILLE, N.C. — In light of a settlement reached between a custom homebuilder, its general contractor and a homeowning couple, in North Carolina federal court stipulated to the dismissal with prejudice of an action in which the couple alleged that their home was defectively built and launched a website publicizing their allegations against the builder.
December 19, 2023
Roofing Defendant Is Not Entitled To Know Settlement Amount, New Jersey Judge Says

FREEHOLD, N.J. — A sole remaining roofing defendant is not entitled to know the terms of a confidential settlement agreement signed between two other roofing defendants and the condominium association that sued all three companies for allegedly performing substandard work on a residential complex because public policy favors nondisclosure of confidential settlement agreements, a New Jersey judge found in denying the remaining defendant’s motion to compel discovery.
December 19, 2023
Nevada Federal Judge Finds Claims Against Dissolved Subcontractor Are Time-Barred

RENO, Nev. — Third-party claims and cross-claims for indemnification and contribution brought by two construction companies against a subcontractor that worked on the construction of a large distribution center that later suffered from defects are time-barred by statute because the subcontractor itself was dissolved more than three years before the claims against it were filed, a Nevada federal judge found in granting the subcontractor’s motion for summary judgment.
December 19, 2023
Ala. Federal Judge Compels Arbitration Of Construction Dispute Under 2 Contracts

MOBILE, Ala. — An Alabama federal judge compelled arbitration of a dispute brought by a homeowner who says her newly purchased manufactured home suffers from mold growth against the manufacturer and seller of the home under two separate arbitration agreements because the homeowner signed valid agreements with both parties.
December 14, 2023
Warranty For PEX Pipe Did Not Contain Arbitration Agreement, California Judge Says

FULLERTON, Calif. — No arbitration agreement existed between a pipe manufacturer and a plumbing company because the only agreement cited by the manufacturer was a warranty for its products, which a California federal court already said does not create a binding arbitration agreement in a previous case, a California judge found in denying the manufacturer’s motion to compel arbitration of the cross-claims brought against it by the company, which was sued for allegedly defective work it performed at a condominium complex.
December 14, 2023
Tenn. Panel Refuses To Consider Deficient Arguments In Construction Defects Case

KNOXVILLE, Tenn. — A Tennessee appellate panel refused to consider the merits of three issues raised by a pro se appellant who was found to have failed to perform construction work in a workmanlike manner by a trial court because the man’s appellate brief failed to comply with the Tennessee Rules of Appellate Procedure and the court’s local rules.
December 14, 2023
Indiana Panel: Trial Court ‘Harmonized’ Rules In Dismissing Roofing Claims

INDIANAPOLIS — A trial court “harmonized” two Indiana trial court rules by finding that a company that alleged that a roofing system on a building was negligently installed was required to add or substitute the real parties in interest within 30 days after the defendants moved for summary judgment on the grounds that the company did not own the building at issue, an Indiana appellate court panel found in affirming the trial court’s judgment.
December 14, 2023
California Judge: Parties Must Arbitrate Dispute Over Water Damage Renovation

FULLERTON, Calif. — A homeowner must arbitrate claims brought against a construction company and its owner for allegedly defective renovation work performed by the company to repair previous water damage at the home because the contract between the parties is enforceable and not unconscionable, a California judge held in granting the company and owner’s motion to compel arbitration.