Justia Construction Law Opinion Summaries

John and Cindy Henderson filed suit against Copper Ridge Homes (“Copper Ridge”) and First Bank regarding the construction of their new home in Magnolia, Mississippi. The case quickly spiraled into foreclosure proceedings upon the Hendersons’ defaulting on their loan with First Bank. The judge granted First Bank’s motion for judicial foreclosure. After that, the Hendersons unsuccessfully moved multiple times to amend their complaint to add wrongful foreclosure. The judge granted Copper Ridge’s and First Bank’s motions for summary judgment on the Hendersons’ claims, finding that the claims, which arose from the alleged faulty construction of the house traveled with the title to the property. Because the Hendersons no longer owned any interest in the house and land, the judge found that they had lost their right to seek damages. On appeal, the Hendersons argued the trial court erred by granting First Bank a judicial foreclosure, by granting Copper Ridge’s and First Bank’s motions for summary judgment, and by denying their motions for leave to amend and to add wrongful foreclosure to their complaint. Finding that the trial court erred in granting Copper Ridge’s and First Bank’s post-foreclosure motions for dismissal of the Hendersons’ claims, The Mississippi Supreme Court affirmed the grant of judicial foreclosure, reversed the grant of summary judgment to both parties, and remanded the case to the trial court for determination of the Hendersons’ claims. View "Henderson v. Copper Ridge Homes, LLC" on Justia Law

In the underlying action, a plaintiff filed a tort action against the subcontractor and developer for injuries allegedly arising from the subcontractor's work. The subcontractor did not defend the developer, and the jury found that plaintiff's injuries were not caused by the subcontractor's work.The court held that, where plaintiff in an underlying tort action alleges that his injuries arose out of the subcontractor's work, the developer is entitled as a matter of law to a defense under the indemnity clause. In this case, the trial court erred by submitting the question of the subcontractor's duty to defend to a jury. The court also held that the developer was entitled to a jury trial in its action for damages alleging breach of the covenant to provide insurance. Accordingly, the court reversed the trial court's judgment and remanded. View "Centex Homes v. R-Help Construction Co., Inc." on Justia Law

Dorothy Smith sued her homeowner's insurance carrier, Mississippi Farm Bureau Casualty Insurance Company (“Farm Bureau”), after Farm Bureau denied her claim based on the earth-movement exclusion in the policy. Smith filed suit against her home builder, Larry Brown, d/b/a Brown’s Construction Company, and Farm Bureau after learning that her home’s foundation was defective. Smith filed a claim for the repair of the foundation. Farm Bureau filed a motion for summary judgment, which was denied by the trial court. Farm Bureau then filed a petition for interlocutory appeal by permission, which the Mississippi Supreme Court granted. The Supreme Court found the trial court erred in denying Farm Bureau’s motion for summary judgment: the earth-movement exclusion was unambiguous and excluded coverage for the property damage suffered by Smith. View "Mississippi Farm Bureau Casualty Insurance Company v. Smith" on Justia Law

Plaintiffs Alvin and Diane Bhones sought a writ of mandamus to direct the circuit court to vacate its order setting aside a default judgment entered in their favor against Travis Peete and Beech Brook Companies, LLC. In 2015, the Bhoneses sued Beech Brook and Peete, the sole member of Beech Brook, based on their allegedly defective construction of the Bhoneses' new home. The complaint stated claims of breach of contract, breach of warranty, fraud, fraudulent misrepresentation, and negligence. The complaint was served on defendants on February 19, 2015, but they did not file an answer. On March 13, 2018, the Bhoneses moved for a default judgment. On March 21, 2018, the trial court entered a default judgment in favor of the Bhoneses. The Alabama Supreme Court found that because defendants did not present evidence to support their allegations that they had a meritorious defense and that the Bhoneses would not be unduly prejudiced if the default judgment was set aside, defendants failed to satisfy their initial burden of alleging and demonstrating the existence of all the Kirtland v. Fort Morgan Authority Sewer Service, Inc., 524 So. 2d 600 (Ala. 1988) factors. Therefore, defendants were not entitled to have the default judgment set aside and that the trial court exceeded its discretion in setting aside the default judgment. View "Ex parte Alvin Bhones and Diane Bhones." on Justia Law

Appellants, Sorokine and Koudriavtseva, are husband and wife. DBS and Kornach are California licensed contractors; DBS worked on their San Rafael house, while Kornach did not. Kornach, a longtime friend of Sorokine’s, had purchased materials for DIY projects at the property because of the discounts afforded to licensed general contractors. Sorokine does not speak English; Kornach often interpreted for Sorokine. After Koudriavtseva fired DBS, she hired unlicensed builders to complete the work and remedy alleged defects. DBS sued, alleging breach of contract and foreclosure of mechanic’s lien. Appellants’ response named as cross-defendants DBS, Komach, and ACIC, which had issued a surety bond to Kornach. The court of appeal reversed a directed verdict against appellants on a claim they violated an Internal Revenue Code provision and awarding $20,000 in sanctions and $122,995 in attorney fees against them. There was no evidence that appellants knew that 1099s issued to Komach were incorrect. The court also reversed directed verdicts against appellants on claims they had asserted against others; appellants were unable to prove damage because the trial court had granted a motion in limine preventing appellants from introducing evidence of payments made to an unlicensed contractor. The court also reversed an award of cost of proof damages to Kornach based on requests for admissions propounded by a different party. View "Design Built Systems v. Sorokine" on Justia Law

Washington was driving a vehicle he owned when an Indianapolis police officer pulled him over in September 2016. Washington was arrested and charged with dealing in marijuana, resisting law enforcement, and obstruction of justice. The officer had Washington’s vehicle towed and held for forfeiture under Indiana Code 34- 24-1-1(a)(1) and 2(a)(1). In November 2016, Washington demanded the return of his vehicle per I.C. 34-24-1-3. He filed a federal class-action complaint, claiming such seizures violate the due process clause. In February 2017, the Prosecutor’s Office released the vehicle to Washington. The district court certified a class and granted Washington summary judgment, declaring I.C. 34-24-1-1(a)(1) (read in conjunction with other provisions of the chapter) unconstitutional in allowing for seizure and retention of vehicles without an opportunity for an individual to challenge pre-forfeiture deprivation. While an appeal was pending, Indiana amended the statute, arguably increasing the available process by providing for a probable cause affidavit, a motion for provisional release, and a shortened window for the Prosecutor to file a forfeiture complaint. The Seventh Circuit remanded for consideration of the constitutionality of the amended statute, expressing no opinion regarding the constitutionality of the old or new versions of the statute, regarding mootness, or regarding the class. View "Washington v. Marion County Prosecutor" on Justia Law

The Supreme Court vacated the decision of the circuit court ordering the arbitration of a private construction dispute stayed, holding that the circuit court lacked the authority to issue the order staying the arbitration.In this private construction dispute, the circuit court ordered arbitration stayed until the court could decide an insurance coverage dispute between one of the contractors connected to the arbitration and the contractor’s insurer. CityDeck Landing LLC petitioned the Supreme Court for a supervisory writ asking the Court to exercising its superintending constitutional authority to vacate the circuit court’s order. The Supreme Court granted the writ, holding that the circuit court exceeded its jurisdiction by putting the private arbitration on hold. View "State ex rel. CityDeck Landing LLC v. Circuit Court for Brown County" on Justia Law

NRP made preliminary arrangements with the City of Buffalo to build affordable housing on city‐owned land and to finance the project in part with public funds. The project never came to fruition, allegedly because NRP refused to hire a political ally of the mayor. NRP sued the city, the Buffalo Urban Renewal Agency, the mayor, and other officials The district court resolved all of NRP’s claims in favor of defendants. The Second Circuit affirmed. NRP’s civil RICO claim against the city officials is barred by common‐law legislative immunity because the mayor’s refusal to take the final steps necessary to approve the project was discretionary legislative conduct, and NRP’s prima facie case would require a fact-finder to inquire into the motives behind that protected conduct. NRP’s “class of one” Equal Protection claim was properly dismissed because NRP failed to allege in sufficient detail the similarities between NRP’s proposed development and other projects that previously received the city’s approval. NRP’s claim for breach of contract was properly dismissed because the city’s “commitment letter” did not create a binding preliminary contract in conformity with the Buffalo City Charter’s requirements for municipal contracting. NRP fails to state a claim for promissory estoppel under New York law, which requires proof of “manifest injustice.” View "NRP Holdings LLC v. City of Buffalo" on Justia Law

In 2007, the VA sought to lease space for a Parma, Ohio VA clinic. A pre-solicitation memorandum stated that the building must comply with the Interagency Security Committee (ISC) Security Design Criteria. The subsequent Solicitation discussed the physical security requirements. Premier submitted a proposed design narrative that did not address those requirements. In 2008, Premier and the VA entered into a Lease. Premier was to provide a built-out space as described in the Solicitation. About 18 months later, the VA inquired about Premier’s first design submittal, advising Premier to obtain access to the ISC standards, because “the project needs to be designed according to the ISC.” The ISC denied Premier’s request, stating that the documents had to be requested by a federal contracting officer who has a “need to know.” The VA forwarded copies of three ISC documents. Some confusion ensued as to which standard applied. The VA then instructed Premier to disregard the ISC requirements and to incorporate the requirements from the latest VA Physical Security Guide. Months later, the VA changed position, stating that “[t]he ISC is the design standard.” Premier’s understanding was that only individual spaces listed in a Physical Security Table needed to comply with the ISC. The VA responded that the entire building must conform to the ISC at no additional cost. Premier constructed the building in accordance with the ISC standards then unsuccessfully requested $964,356.40 for additional costs. The Federal Circuit affirmed summary judgment in favor of the government. The contract unambiguously requires a facility conforming to ISC security requirements. View "Premier Office Complex of Parma, LLC v. United States" on Justia Law

The Supreme Court affirmed as modified the decision of the court of appeals affirming the circuit court’s denial of Appellant’s postconviction motion, holding that trial counsel did not provide ineffective assistance and that there was no Brady violation in the proceedings below.Appellant was convicted of sixteen felonies based on allegations that he had repeated sexual contact with two juveniles and exposed them to pornography. Appellant filed a postconviciton motion asserting, among other things, ineffective assistance of counsel claims and a claim that the State violated its obligations under Brady v. Maryland, 373 U.S. 83 (1963). The circuit court denied the postconviction motion. The court of appeals affirmed. The Supreme Court affirmed as modified, holding (1) even if trial counsel’s performance was deficient, there was no prejudice to Defendant; and (2) the State did not violate Defendant’s due process rights under Brady when it failed to disclose impeachment evidence about a government witness’s pending charges. View "State v. Wayerski" on Justia Law