Justia Construction Law Opinion Summaries

The Supreme Court affirmed the judgment of the court of appeal in this action alleging that Defendants entered into a lease-leaseback construction agreement in violation of various statutes and common law rules, holding that the specific lease-leaseback arrangement at issue in this case was not a "contract" within the meaning of Cal. Gov. Code 53511.Plaintiff brought this action alleging that the Fresno Unified School District and Harris Construction Co. entered into an unlawful lease-leaseback construction agreement. At issue before the Supreme Court was whether a lease-leaseback arrangement in which construction is financed through bond proceeds, rather than through the builder, is a "contract" within the meaning of section 53511. The Supreme Court held that the lease-leaseback arrangement in this case was not a "contract" under the statute because (1) the underlying project was fully funded by a prior sale of general obligation bonds and payment of the debt service on the bonds was from ad valorem property taxes; and (2) therefore, payment did not dependent on the lease-leaseback arrangement or on completion of the project. View "Davis v. Fresno Unified School District" on Justia Law

Robert and Gloria Brewer (the Brewers) alleged Luxe Homes, LLC failed to comply with the terms of their construction contract, and they filed suit at the Hinds County Chancery Court for specific performance, damages, fees and a declaratory judgment. Luxe Homes claimed in a motion to transfer venue that, according to the terms of the contract, the parties agreed to Rankin County Circuit Court as their exclusive forum. The chancellor denied the motion to transfer venue, and Luxe Homes petitioned for interlocutory appeal. The Mississippi Supreme Court granted the petition, and found the chancellor abused her discretion by denying Luxe Homes’ motion to transfer venue when the venue clauses, agreed to by the parties, unambiguously required that the parties resolve their disputes exclusively in Rankin County Circuit Court. Accordingly, the Supreme Court reversed the order of the chancellor and remanded this case with instructions to transfer venue to Rankin County Circuit Court. View "Luxe Homes, LLC v. Brewer" on Justia Law

Allie Construction, Inc., obtained writs of garnishment against the estate of Willard Mosier one day shy of the 20th anniversary of obtaining a judgment against his widow Debra Mosier, a beneficiary of his estate. The Alabama Supreme Court found Allie Construction properly commenced an enforcement action, and that action should be allowed to proceed. In reaching a contrary conclusion, the Supreme Court found the circuit court erred. The circuit court judgment was reversed and the matter remanded for further proceedings. View "Allie Construction, Inc. v. Mosier" on Justia Law

The Supreme Court affirmed the orders of the superior court granting motions to stay the superior court proceedings in four cases and refer them to arbitration in this construction dispute, holding that that superior court correctly found that these disagreement must be resolved through arbitration.Plaintiff substituted itself as the plaintiff and assignee of three subcontractors in in three mechanics' liens actions and then filed an additional complaint against the assignee of nine further subcontractors. Plaintiff further filed a complaint claiming it was owed $854,352 from Defendants. Defendants moved to stay the proceedings in all five cases and refer them to arbitration. The trial justice found that the language of the subcontracts required mandatory arbitration for the disputes and compelled the parties to participate in mandatory arbitration. The Supreme Court affirmed, holding that the disputes must be referred for arbitration. View "Petrolex II LLC v. Bailey Group LLC" on Justia Law

The issue this case presented for the Idaho Supreme Court's review centered on a residence in the Boise foothills that was damaged by a landslide, which ultimately prevented the builder from obtaining a certificate of occupancy. BrunoBuilt, Inc., the general contractor of the project, sued multiple parties, including Erstad Architects, PA, the architectural firm for the project, Andrew Erstad, the principal architect, and Cheryl Pearse, the project manager from Erstad Architects, PA (collectively, Defendants), for professional negligence in connection with work completed for construction of the residence. Defendants successfully moved for summary judgment on the basis that the two-year statute of limitations in Idaho Code section 5-219(4) barred BrunoBuilt’s claim. Two years after the district court issued its memorandum decision and order granting summary judgment, BrunoBuilt moved the district court for reconsideration, citing new evidence and arguments. The district court denied the motion for reconsideration, concluding it was “untimely, lacking in diligence, and improper.” BrunoBuilt then appealed, challenging the decision of the district court on summary judgment and additionally asserting that the court erred in an earlier order deconsolidating the cases with other defendants. Prior to oral argument, Defendants moved the Supreme Court to sanction counsel for BrunoBuilt pursuant to Idaho Appellate Rule 11.2 for non-disclosure of material procedural facts in its opening brief. After review, the Supreme Court affirmed the district court’s decision granting summary judgment against BrunoBuilt, and agreed that the conduct of BrunoBuilt’s attorney on appeal ran afoul of Rule 11.2, and imposed sanctions. View "BrunoBuilt, Inc. v. Erstad Architects, PA" on Justia Law

In 1985, Palo Alto established the Commercial Downtown zoning district with parking regulations that allowed for “payment of an in-lieu monetary contribution to the city to defray the cost” of new, off-site parking spaces for “sites which would otherwise be precluded from development due to parking constraints.” In 1995, the city recognized the need to further mitigate insufficient downtown parking facilities and established an in-lieu parking fee for new, nonresidential development in the “University Avenue parking assessment district.” City staff has periodically submitted “five-year findings” on the parking fund, consistent with the Mitigation Fee Act (Gov. Code, 66000).The plaintiffs, developers who paid the fees as a condition of approval of a building project, sued, seeking a refund of their unexpended fees. The city argued that the fee was not subject to the Mitigation Fee Act; that the five-year finding and refund provisions did not apply; that, even if the Act did apply, the claim was barred by the statute of limitations; and that it complied with the Act’s requirements by belatedly adopting five-year findings.The court of appeal reversed the trial court, ordering a refund of the plaintiffs’ unexpended fees. The fee is subject to the Act, and the action is not time-barred. The failure to timely make five-year findings triggered the refund provision. Section 65010(b), does not require that plaintiffs make an independent showing of prejudice for a violation of section 66001(d) View "Hamilton and High, LLC v. City of Palo Alto" on Justia Law

Government Code 65913.4 provides for streamlined, ministerial approval of affordable housing projects meeting specified requirements. Berkeley denied Ruegg’s application for ministerial approval of a mixed-use development under section 65913.4. Ruegg alleged violations of both section 65913.4 and the Housing Accountability Act (HAA, section 65589.5). The trial court found Berkeley was not required to approve the proposed project under section 65913.4 and denied Ruegg’s petition without reaching the HAA issues. The court of appeal, without addressing the HAA, directed the trial court to grant the writ petition.On remand, the trial court reasoned that it could not avoid ruling on the HAA issues. With respect to the section 65913.4 claim the court ordered Berkeley to issue the permits; it set a briefing schedule and hearing date concerning the HAA issues. The court of appeal declined to prohibit that hearing. Berkeley issued the permit. After a hearing, the trial court found that the disapproval of the application violated the HAA and that Ruegg was entitled to the “albeit duplicative” injunctive relief. The court of appeal affirmed, finding that the trial court had jurisdiction to address the HAA issue, which was not forfeited nor rendered moot by the prior order. View "Ruegg & Ellsworth v. City of Berkeley" on Justia Law

BrunoBuilt, Inc., was constructing a custom home on a vacant lot in 2016 when a landslide occurred beneath the Terra Nativa subdivision in the Boise foothills. Following damage to the lot, BrunoBuilt filed a professional negligence suit against numerous engineers and engineering firms involved in the construction of the subdivision, arguing that they failed to identify preexisting landslide conditions and other geological circumstances that made residential development unsafe at this site. In the fall of 2018, BrunoBuilt discovered additional damage to the finished custom home itself. It then brought suit against additional defendants, including Briggs Engineering, Inc., and Erstad Architects. Briggs Engineering moved for summary judgment, which the district court granted. The court concluded that BrunoBuilt’s action was time barred by the two-year statute of limitations under Idaho Code section 5-219(4). BrunoBuilt appealed this decision, arguing that the malpractice claim did not begin to accrue until there was damage to the custom home, rather than just the land. To this the Idaho Supreme Court disagreed with BrunoBuilt’s analysis and affirmed the district court that BrunoBuilt’s claim was time barred. View "Brunobuilt, Inc. v. Briggs Engineering, Inc." on Justia Law

Plaintiff River’s Side at Washington Square Homeowners Association was established to manage a development consisting of 25 residential units and common areas. It sued Defendants River’s Side LLC et al. for construction defects in the residential units. Defendants demurred to six of the seven causes of action asserted against them, arguing a homeowners association lacked standing to sue on behalf of its members for defects in residential units that it did not own and had no obligation to repair. Plaintiff alleged it had standing to bring this action on behalf of its members pursuant to Civil Code section 945, Civil Code section 5980, and Code of Civil Procedure section 382. The trial court sustained the demurrer without leave to amend, holding that Plaintiff lacked standing under Civil Code sections 945 and 5980, and that Code of Civil Procedure section 382 was inapplicable. Because the order sustaining the demurrer left one cause of action remaining, it was not immediately appealable, and Plaintiff thus challenged the order by petition for writ of mandate. The Court of Appeal concluded Plaintiff had standing to bring claims for damages to the common areas pursuant to Civil Code sections 945 and 5980, and that it at least nominally alleged such damages. The Court further concluded Plaintiff might have standing to bring claims for damages to the residential units that sound in contract or fraud if it could meet the requirements for bringing a representative action pursuant to Code of Civil Procedure section 382. The Court also determined Plaintiff should have been granted leave to amend to cure any standing defect. The Court thus granted the petition for mandamus relief and directed the trial court to reversed its order granting the demurrer. View "River's Side at Washington Sq. Homeowners Assn. v. Superior Court" on Justia Law

In this case concerning the meaning and application of a standard title insurance policy exclusion (Exclusion 3(a)) designed to cover any defects, encumbrances, or adverse claims created or suffered by the insured in the context of construction lending, holding that this Court's opinion in First American Title Insurance Co. v. Action Acquisitions, LLC, 218 Ariz. 394 (2008), sets forth the proper interpretation and application Exclusion 3(a).In its underlying rulings, the trial court invoked Action Acquisitions to interpret Exclusion 3(a) in the construction lending context. The court of appeals reversed, instead applying the bright-line rule articulated in BB Syndication Services, Inc. v. First American Title Insurance Co., 780 F.3d 825 (7th Cir. 2015). The Supreme Court reversed in part and vacated the judgment in part, holding (1) this Court adopts Action Acquisitions' causation test for Exclusion 3(a)'s applicability; and (2) the court of appeals erred in applying the BB Syndication approach. View "Fidelity National Title Insurance Co. v. Osborn III Partners, LLC" on Justia Law