Justia Construction Law Opinion Summaries

William Greenwood was in the business of salvaging valuable materials from old buildings. Greenwood was insured by Mesa Underwriters Specialty Insurance Company through a policy sold by Dixie Specialty Insurance. Greenwood was later sued by adjoining building owners who complained he had damaged their property, and Mesa denied coverage based, in part, on a policy exclusion for demolition work. Greenwood later brought suit against his insurers alleging breach of contract and bad-faith denial of coverage. Greenwood averred that his business was actually “deconstruction” rather than demolition, but the trial court granted summary judgment to the insurers. Finding no reversible error in that judgment, the Mississippi Supreme Court affirmed the trial court. View "Estate of Greenwood v. Montpelier US Insurance Company, et al." on Justia Law

Jeanne and Nevin Tergesen appealed a judgment dismissing their complaint and awarding Nelson Homes, Inc. damages for its breach of contract counterclaim. The Tergesens argued the district court erred in dismissing their rescission and breach of contract claims, and the court erroneously found the Tergesens breached the contract. After review, the North Dakota Supreme Court concluded the district court did not err in dismissing the Tergesens’ claims or finding the Tergesens breached the contract, but the court did err in calculating the amount of prejudgment interest on Nelson Homes’ damages. View "Tergesen, et al. v. Nelson Homes" on Justia Law

In case number 1190525, Paul Childs and Granger Construction Company, LLC ("Granger Construction"), appealed a circuit court judgment entered in favor of Harry ("Bud") and Brenda Pommer. In their cross-appeal, case number 1190580, the Pommers appealed the trial court's judgment entered in favor of Melissa Granger ("Melissa"), as the administratrix of the estate of Daniel Granger ("Granger"), deceased. In 2014, the Pommers decided to build a garage on property that they owned in Fairhope, Alabama. Childs was referred to Bud for the work. Childs brought Granger into the project as the licensed contractor for the work. The evidence presented at trial indicated that the project experienced significant delays. Evidence was presented indicating that Granger and Childs performed some of the physical labor on the project. In March 2015, when an invoice was presented to the Pommers, Bud and Brenda told the Childs and Granger that they did not want to give them another check based on how things had been going. A "heated" meeting between the parties resulted in the Pommers hiring an attorney. Bud requested the City conduct an inspection; the garage did not pass. The Pommers subsequently hired another contractor and other companies to repair work done by Granger Construction and to complete unfinished work on the project. The Pommers ultimately sued Childs and Granger Construction for breach of contract. Childs and Granger Construction filed their answer to the amended complaint and a counterclaim, asserting breach of contract/unjust enrichment against the Pommers. After review, the Alabama Supreme Court affirmed the trial court as to Granger Construction in case number 1190525. The Court reversed the trial court as to Childs, and rendered judgment in favor of Childs. In case number 1190580, the Court affirmed the trial court. View "Childs et al. v. Pommer" on Justia Law

The Sellers bought an Oakland property to “flip.” After Vega renovated the property, they sold it to Vera, providing required disclosures, stating they were not aware of any water intrusion, leaks from the sewer system or any pipes, work, or repairs that had been done without permits or not in compliance with building codes, or any material facts or defects that had not otherwise been disclosed. Vera’s own inspectors revealed several problems. The Sellers agreed to several repairs Escrow closed in December 2011, but the sewer line had not been corrected. In January 2012, water flooded the basement. The Sellers admitted that earlier sewer work had been completed without a permit and that Vega was unlicensed. In 2014, the exterior stairs began collapsing. Three years and three days after the close of escrow, Vera filed suit, alleging negligence, breach of warranty, breach of contract, fraud, and negligent misrepresentation. Based on the three-year limitations period for actions based on fraud or mistake, the court dismissed and, based on a clause in the purchase contract, granted SNL attorney’s fees, including fees related to a cross-complaint against Vera’s broker and real estate agent.The court of appeal affirmed. Vera’s breach of contract claim was based on fraud and the undisputed facts demonstrated Vera’s claims based on fraud accrued more than three years before she filed suit. Vera has not shown the court abused its discretion in awarding fees related to the cross-complaint. View "Vera v. REL-BC, LLC" on Justia Law

The Supreme Court accepted certification of a question about theUnderground Facility Damage Prevention and Safety Act, Fla. Stat. Chapter 556, and answered that the Act creates a standalone cause of action and that the cause of action sounds in negligence.The United States Court of Appeals for the Eleventh Circuit certified the question of whether a member-operator has a cause of action under Fla. Stat. 556.106(2)(a)-(c) to recover damages or obtain indemnification from an excavator for payments to a third party for personal injuries related to the excavator's alleged violation of the statute. The Supreme Court answered (1) liability under the Act is subject to proof of proximate causation and to the defense of comparative fault; (2) losses recoverable under the Act can include purely economic damages, independent of personal injury or property damage; and (3) the Act does not create a cause of action for statutory indemnity. View "Peoples Gas System v. Posen Construction, Inc." on Justia Law

The Supreme Court affirmed the judgment of the circuit court determining that the Historic Alexandria Foundation lacked standing to pursue the claims asserted in this case, holding that there was no error in the circuit court's judgment.Vowell, LLC filed applications to obtain certain permits for the renovation of property located in the Old and Historic District of the City of Alexandria. The Old and Historic Alexandria District Board of Architectural Review (the BAR) approved Vowell's applications, and the City Council affirmed the BAR's decision. The Foundation appealed the City's Council decision. The circuit court dismissed the matter with prejudice, concluding that the petition did not establish that the Foundation was an aggrieved party with standing to pursue the appeal. The Supreme Court affirmed, holding that the Foundation lacked standing because the allegations of the petition failed to establish that the Foundation suffered particularized harm that differed from that suffered by the public in general. View "Historic Alexandria Foundation v. City of Alexandria" on Justia Law

The Supreme Court affirmed the judgment of the trial court in favor of a contractor (Contractor) against the homeowners' association (HOA) that hired it to perform repair work, holding that the district court did not err.Specifically, the Supreme Court held that the district court did not err in (1) finding that the HOA had waived, by one of the methods described in Neb. Rev. Stat. 25-1126, its right to a jury trial and in refusing to allow the HOA to withdraw its waiver; (2) concluding that the HOA had to present expert testimony to support its defense and counterclaims asserting that the repair work was done in an unworkmanlike manner; (3) excluding lay testimony of other contractors, in finding the HOA's expert witness lacked foundation for his opinions, and in excluding testimony relating to what the court found to be compromise negotiations; and (4) awarding prejudgment interest and attorney fees. View "McGill Restoration v. Lion Place Condominium Association" on Justia Law

In this construction defect case brought by homeowners against several contractors, the Supreme Court affirmed the ruling of the district court that the limitations period against each contractor began to run upon the substantial completion of each contractor's project.The district court granted summary judgment in favor of the contractors in this case, generally agreeing that the limitations period for the homeowners' claims against the contractors began to run on the dates that each contractor substantially completed its work. The Supreme Court affirmed, holding that the district court did not err in finding that Homeowners' claims against the contractors were time barred as matter of law under Neb. Rev. Stat. 25-223 and by denying their oral motion seeking leave to amend their complaint to add a new claim. View "McCaulley v. C L Enterprises, Inc." on Justia Law

The First Circuit affirmed in part and reversed in part the judgment of the district court granting summary judgment in favor of Defendants and dismissing Blackstone Headwaters Coalition, Inc.'s complaint alleging that Defendants had violated the Federal Clean Water Act (CWA), 33 U.S.C. 1251 et seq., holding that the district court erred by granting summary judgment on Count I of the complaint.Plaintiff, a non-profit environmental organization, sued two companies and two individuals involved in the development of a residential construction site in Massachusetts. In Count I of the complaint, Plaintiff alleged that three defendants had violated the Federal CWA by failing to obtain from the EPA a construction general permit. Count II alleged that all four defendants had violated the Federal CWA by failing to prevent sediment-laden stormwater discharges from flowing from that construction site into waters leading to the Blackstone River. The district court granted summary judgment for Defendants. The First Circuit reversed in part, holding that nothing supported Defendants' argument that a citizen suit under the Federal CWA cannot be brought against an entity that is alleged to be an operator of a construction site that is unlawfully discharging pollutants into federal waters long as another entity controlled by the same individuals has such permit coverage. View "BBlackstone Headwaters Coalition, Inc. v. Gallo Builders, Inc." on Justia Law

The Supreme Court reversed the judgment of the circuit court concluding that the cluster development plans submitted by two developers were not subject to planning commission review under Va. Code 15.2-2232, holding that the circuit court erred.Two real estate developers proposed to build conventional subdivisions and then reconfigured their previously approved subdivisions into cluster developments. The county planning department advised the developers that they would need to undergo another comprehensive plan compliance review in accordance with section 15.2-2232 because their new plans significantly deviated from the previously approved plans. The developers sought writs of mandamus requiring the county to approve the plans and writs of prohibition preventing the county from ordering a comprehensive plan review. The circuit court ruled in favor of the developers and entered an order directing the county to approver the cluster development concept plans. The Supreme Court reversed, holding that the approvals of prior subdivision plans did not foreclose the requirement of a section 15.2-2232 review by the planning commission of different plans later submitted. View "Stafford County v. D.R. Horton, Inc." on Justia Law