Justia Construction Law Opinion Summaries

Articles Posted in Real Estate & Property Law
by
The Supreme Court held that public policy prohibits an agreement between a builder-vendor and a homebuyer to disclaim and waive the warranty of workmanship and habitability implied in every contract entered into between the buyer-vendor and homebuyer and to replace it with an express warranty.Plaintiff entered into a preprinted purchase agreement with M & RC II, LLC to buy a home that M & RC II's affiliate, Scott Homes Development Company, would build. Plaintiff later sued M & RC II and Scott Homes (together, Defendants) for breach of the implied warranty of workmanship and habitability. Defendant moved for summary judgment on the ground that Plaintiff had waived the implied warranty per the purchase agreement. The trial court granted summary judgment for Defendant. The court of appeals reversed. The Supreme Court affirmed, holding that the public policy underlying the implied warranty of workmanship and habitability clearly outweighed enforcement of the waiver of that warranty in the purchase agreement. View "Zambrano v. M & RC II LLC" on Justia Law

by
The Supreme Court reversed the decision of the court of appeals affirming the judgment of the trial court granting the motion for judgment on the pleadings filed by defendant Harnett County and dismissing the claims brought by plaintiff PF Development Group and all but one of the claims asserted by the remaining plaintiffs, holding that remand was required.At issue in this case was an ordinance adopted by the County that required residential property developers to pay one-time water and sewer capacity use fees associated with the lots they planned to develop as a precondition for obtaining the County's concurrence in the developer's application for the issuance of required water and sewer permits. In seeking relief from the trial court's orders, Plaintiffs argued on appeal that genuine issues of material fact existed. The court of appeals disagreed and affirmed. The Supreme Court reversed, holding that the "capacity use" fees at issue were "monetary exactions" subject to constitutional scrutiny and therefore must satisfy the "essential nexus" and "rough proportionality" test to avoid being treated as takings of Plaintiffs' property. View "Anderson Creek Partners, L.P. v. County of Harnett" on Justia Law

by
Plaintiffs Lynn Gerlach and Lola Seals appealed the judgment entered in their action against defendant K. Hovnanian’s Four Seasons at Beaumont, LLC under the Right to Repair Act (the Act), concerning alleged construction defects. After review, the Court of Appeal affirmed and published its opinion to clarify: (1) a roof is a manufactured product within the meaning of California Civil Code section 896(g)(3)(A) only if the roof is completely manufactured offsite; and (2) to prove a roof defect claim under subdivision (a)(4) or (g)(11) of section 896, a plaintiff must prove that water intrusion has actually occurred or roofing material has actually fallen from the roof. View "Gerlach v. K. Hovnanian's Four Seasons at Beaumont, LLC" on Justia Law

by
The Supreme Court affirmed the decision of the South Dakota Public Utilities Commission (PUC) approving the application of Crowned Ridge Wind II, LLC to construct a large wind energy farm in northeast South Dakota, holding that the PUC followed the applicable statutory directives in granting the construction permit and properly determined that Crowned Ridge satisfied its burden of proof under S.D. Codified Laws 49-41B-22.After a contested hearing, the PUC issued a written decision approving the permit. Two individuals who lived in rural areas near the project and had intervened to oppose Crowned Ridge's application sought review. The circuit court affirmed. The Supreme Court affirmed, holding (1) the PUC did not err when it determined that Crowned Ridge met its burden of proof to comply with all applicable laws and rules; and (2) the PUC's findings were not clearly erroneous as they related to crowned Ridge's burden under S.D. Codified Laws 49-41B-22(3). View "Christenson v. Crowned Ridge Wind, LLC" on Justia Law

by
The Supreme Judicial Court held that the housing appeals committee had jurisdiction over the projects at issue in this case and the power to remove or modify conditions that made such projects significantly more uneconomic.Under the Massachusetts Comprehensive Permit Act, Mass. Gen. Laws ch. 40B, 20-23, qualifying developers of low or moderate income housing have access to a comprehensive streamline permitting process and expedited appeal before HAC. The Act further authorizes HAC to strike or modify any conditions on a comprehensive permit application that would make it "uneconomic" to proceed with a project. At issue was whether the HAC has the power to reject conditions where a project has received a funding commitment from a public subsidizing agency and the developer receives a comprehensive permit subject to conditions but the rate of return for the original proposal is found to be uneconomic and HAC determines that the imposed conditions make the project "significantly more uneconomic" and therefore rejects them. The Supreme Judicial Court answered the question in the affirmative, holding that HAC is authorized to eliminate conditions that effectively prevent such projects by rendering them significantly more uneconomic. View "Zoning Board of Appeals of Milton v. HD/MW Randolph Avenue, LLC" on Justia Law

by
After Nygard removed his driveway and was about to pour a new one, an Orono inspector told Nygard that he needed a permit. The next day, Nygard finished the driveway and applied for a permit. The new driveway was narrower than the previous one. The city responded with a form, imposing several conditions. Nygard crossed out some conditions, initialed the modified form, and returned it. After several exchanges, the city notified Nygard that he must agree to the conditions or “this matter will be turned over to the prosecuting attorney.” Nygard did not acknowledge the conditions. A police officer drafted a statement of probable cause, alleging that “work had been completed without having first obtained a permit” and listing some alleged deficiencies in its construction. According to the Nygards, the police did not inspect the property and some allegations were not true.Nygard was acquitted of violating the city code. The Eighth Circuit affirmed the dismissal of his suit under 42 U.S.C. 1983, claiming the code was void for vagueness and alleging First Amendment retaliation, abuse of process, and malicious prosecution. Nygard’s prosecution was not based on falsehoods. The report did not claim that the conditions were required by the code but that Nygard had not agreed to the conditions and had replaced a driveway without a permit. Any failure to investigate did not defeat probable cause; the city already knew that he installed a driveway without a permit. View "Nygard v. City of Orono" on Justia Law

by
The Supreme Judicial Court vacated the judgment of the superior court affirming the decision of the Town of Boothbay Harbor's Board of Appeals (BOA) denying 29 McKown, LLC's administrative appeal from a code enforcement officer's (CEO) decision to life a stop work order he had issued to Harbor Crossing during the construction of the building, holding that 29 McKown was deprived of administrative due process.In this case concerning a real estate office building constructed by Harbor Crossing in Boothbay Harbor, 29 McKown sought review of the denial of its McKown's appeal. The superior court affirmed the BOA's decision. The Supreme Judicial Court vacated the order below, holding (1) 29 McKown was deprived of administrative due process; and (2) the CEO did not issue a judicially-reviewable decision in lifting the stop work order. View "29 McKown LLC v. Town of Boothbay Harbor" on Justia Law

by
The Supreme Court affirmed the judgment of the appellate court concluding that the Home Improvement Act (Act), Conn. Gen. Stat. 20-418 et seq., did not apply to work performed by Defendant on Plaintiff's property, holding that Plaintiff's claim under the Act was unavailing.The trial court found in favor of Plaintiff on his claims alleging breach of contract, violations of the Act, and violations of the Connecticut Unfair Trade Practices Act (CUTPA), Conn. Gen. Stat. 42-110a et seq. The trial court ruled in favor of Plaintiff. The appellate court affirmed with respect to the breach of contract count but reversed with respect to the remaining claims, ruling that the work performed by Defendant fell within the new home exception of the Act, and therefore, Plaintiff failed to state a claim under both the Act and CUTPA. The Supreme Court affirmed, holding that the work performed by Defendant fell within the new home exception. View "Winakor v. Savalle" on Justia Law

by
Blue Appaloosa, Inc., appealed a judgment affirming an Industrial Commission order determining it violated N.D. Admin. Code ch. 43-02-03 by beginning construction of a treating plant prior to obtaining a permit or filing a bond with the Commission. Finding no reversible error, the North Dakota Supreme Court affirmed. View "Blue Appaloosa v. NDIC" on Justia Law

by
Koch Construction, Inc.; Marilyn Koch, Personal Representative of the Estate of Michael P. Koch; and Koch Property Investments, Inc. (collectively “appellants”) appealed the judgment and amended judgment entered in favor of Toman Engineering Company (“Toman”). Michael Koch owned and operated Koch Construction and Koch Property Investments (“KPI”). Toman provided engineering services to Koch Construction on various projects, including designing a stormwater management system for the Koch Meadow Hills residential development project in Dickinson, North Dakota. Michael died in August 2017. The stormwater management system included a detention pond referred to as the Marilyn Way Stormwater Pond, which was the detention pond at issue in this case. In 2016, Janet Prchal, Dean Kubas, and Geraldine Kubas, owners of property near the Koch Meadow Hills development, sued the City of Dickinson and KPI for damages, alleging the development of Koch Meadow Hills caused water to drain and collect on their properties. The Prchal lawsuit was settled in September 2018, and the settlement required modifications to be made to the Marilyn Way Stormwater Pond before June 30, 2019. The reconstruction work on the detention pond occurred during the summer and fall of 2019. Toman served a summons and complaint on Koch Construction and Marilyn Koch, to collect unpaid amounts for engineering services Toman provided to the defendants in 2017. Toman filed the complaint in the district court in June 2019. The appellants argued the district court erred in deciding they committed intentional spoliation of evidence and dismissing their counterclaim as a sanction. After review of the district court record, the North Dakota Supreme Court concluded the district court abused its discretion when it dismissed the appellants’ counterclaim as a sanction for spoliation of evidence. Judgment was reversed and the matter remanded for a new trial. View "Toman Engineering Co. v. Koch Construction, et al." on Justia Law