Justia Construction Law Opinion Summaries

RICS executed a note secured by a mortgage on real estate. Meanwhile, TLA entered into a contract with RICS to provide architectural and engineering services for the project and recorded two documents related to its work on the project. Subsequently, TLA filed a petition to enforce its mechanics' lien. No claimant timely entered an appearance in TLA's mechanics' lien litigation to preserve the priority of their claims. Months later, Petra purchased the note and mortgage, which had not been recorded by the previous owner. Meanwhile, the superior court entered a consent order signed by RICS and TLS in the mechanics' lien litigation. RICS subsequently conveyed the property, and the court placed the property into receivership. Petra later filed a motion to file an answer and statement of claim out of time in the mechanics' lien proceedings. The court granted the motion, thereby restoring the mortgage's priority over TLA's mechanics' lien. The property was sold to Petra through a receivership action. The Supreme Court reversed the superior court's grant of Petra's motion, thereby restoring the priority of TLA's mechanics' lien, holding that the motion justice erred in determining that Petra's failure to file a timely statement of claim was the result of "excusable neglect." View "R.I. Constr. Servs., Inc. v. Harris Mill, LLC" on Justia Law

Plaintiff sold a parcel of land adjacent to a golf club to New South Properties (New South) for development as a residential community. New South hired Hunter Construction Group (Hunter) to prepare the parcel for construction. Hunter built erosion control structures and devices, including a silt collection basin. However, a dam Hunter constructed to form the silt collection basin ruptured, causing mud, water, and debris to flood the golf course. As a result of the damage to the golf course, Plaintiffs filed an action against New South, Apple Creek and Hunter, alleging negligence, nuisance, trespass, and violations of the Sedimentation Pollution Control Act (SPCA). The trial court granted summary judgment to Defendants on the SPCA claim. Plaintiffs appealed and withdrew their appeal against all defendants except Hunter. The court of appeals affirmed. Without considering the merits of Plaintiffs' appeal, the Supreme Court affirmed as modified, holding that because Hunter was never cited for a violation for section 113A-66 of the SPCA, Plaintiffs did not have standing to bring a civil action against Hunter pursuant to section 113A-66. View "Applewood Props., LLC v. New S. Props., LLC" on Justia Law

This dispute centered on a contract for the construction of a residence. The contract between the general contractor (Contractor) and the owners (Owners) was contingent upon Owners obtaining financing. After construction was completed, Contractor asserted a materialman's lien on the house, arguing that Owners had refused to fully compensate Contractor. After Owners filed suit to protest the lien, the parties agreed to discharge the lien. Contractor later sued Owners based on Owners' failure to disclose that they had obtained inadequate financing. The circuit court dismissed the complaint on the grounds that Contractor's claims were statutorily barred for failure to strictly comply with requirements for the notice of its lien. The order was silent as to the other two grounds Owners had asserted for dismissal and with respect to any of the arguments raised in defense of Owners' motion to dismiss. Contractor appealed, arguing reversal based on other arguments raised below but not ruled on. The Supreme Court affirmed, as (1) the circuit court did not provide a ruling on Contractor's first three arguments, and they were therefore not preserved for appellate review; and (2) Contractor's fourth argument had no merit given the Court's summary affirmance on the first three points. View "TEMCO Constr., LLC v. Gann" on Justia Law

Caliber Builders, Inc., sought to develop a parcel of land commonly referred to as "Golden Orchards." A small portion of the parcel is in Washington Township, but the bulk of it is in the Borough of Hillsdale, where it is included in the residential (R-2) zone. Intending of constructing an age-restricted housing development, which was a conditional use in the R-2 zone, Caliber submitted a preliminary site plan application to the Hillsdale Planning Board. Plaintiff Northgate Condominium Association, Inc., manages and operates a previously-existing condominium community built on an adjacent parcel of land in Washington Township. In this appeal, the issue before the Supreme Court was whether the lot designations contained in the notice of public hearings on an application for a conditional use approval sufficiently complied with the provisions of the Municipal Land Use Law to confer jurisdiction on the Planning Board, and whether the project design of the internal roadway complied with requirements of the Residential Site Improvement Standards. Upon review, the Supreme Court concluded that the developer's notice of public hearings, although using lot numbers that were not included on the official tax map, did not misidentify the lot to be developed, complied with the provisions of the Municipal Land Use Law, and conferred jurisdiction on the Planning Board. "Plaintiff fail[ed] to point to anything in the record supporting its claim that the project design of the internal roadway did not comply with density requirements under the Residential Site Improvement Standards." View "Northgate Condominium Association, Inc. v. Borough of Hillsdale Planning Board" on Justia Law

Plaintiff brought this suit against the City and County of Honolulu and the State, challenging the approval of a rail project and arguing that state law required that an archaeological inventory survey be completed prior to any approval or commencement of the project. The circuit court granted summary judgment in favor of the City and State on all of Plaintiff's claims. The Supreme Court vacated the circuit court's judgment on Plaintiff's claims that challenged the rail project under Haw. Rev. Stat. 6E and remanded. Plaintiff subsequently requested that the Supreme Court award $255,158 in attorney's fees and $2,510 in costs against the City and State for work performed in the trial court. The Supreme Court (1) granted Plaintiff's request for appellate attorney's fees and costs against the City in the amount of $41,192 in attorney's fees and $343 in costs; (2) and denied Plaintiff's request for trial level fees and costs without prejudice, as Plaintiff's request for fees and costs attributable to work performed at the trial level was more properly within the trial court's discretion. View "Kaleikini v. Yoshioka" on Justia Law

Respondents were involved in the development and construction of Holcomb Condominiums (Condos). Appellant was the homeowners' association for Condos. Appellant filed, on behalf of itself and all condominium homeowners, a constructional defect complaint against Respondents, alleging a variety of defects and claims for negligence and breach of warranty. The district court dismissed Appellant's complaint as time-barred by the two-year contractual limitations period found in nearly identical arbitration agreements attached to each of the homeowners' purchase contracts. The court also denied as futile Appellant's request to amend its complaint to add causes of action for willful misconduct and fraudulent concealment based on missing roof underlayment, finding that the claim would also be time-barred by the contractual limitations period. The Supreme Court reversed and remanded, holding (1) arbitration agreements containing a reduced limitations period that are attached to and incorporated into purchase contracts are unlawful; (2) the district court erred in finding Appellants' negligence-based claims and breach of warranty claims were time-barred; and (3) because the contractual limitations provision was unenforceable, the district court's denial of the motion to amend on this basis was improper. View "Holcomb Condo. Homeowners' Ass'n v. Stewart Venture, LLC" on Justia Law

The Sponsors formed West Run to construct and manage West Virginia University off-campus housing and retained CBRE to secure financing. CBRE provided prospective lenders with confidential information. Huntington’s predecessor loaned $39.975 million and construction began. A competing project (Copper Beach) was built across the street. West Run learned that Huntington had loaned $20 million for that project; West Run alleged that Huntington divulged to Copper Beach proprietary West Run information provided by CBRE. West Run‘s occupancy dropped from 95 percent to 64 percent. West Run sued, alleging that Huntington had breached its duty of good faith and fair dealing by financing Copper Beech. Two similar projects, involving the Sponsors, alleged breach of contract based on Huntington‘s failure to provide funds under their construction loan agreements. Huntington claimed that they had sold insufficient units to require Huntington to disburse additional funds under the agreements. The district court dismissed. The Third Circuit affirmed in part, holding that the complaint contained no corroborating facts that confidential information was disclosed and that no contract terms prohibited Huntington from lending to competitors. The court vacated with respect to the other projects for a chance to provide evidence showing that the pre-sale numbers in the original complaint were incorrect. View "W. Run Student Hous. v. Huntington Nat'l Bank" on Justia Law

In 2003, a stampede at a Chicago nightclub killed 21 people and injured 50 others. Security guards had released pepper spray to break up a fight on the dance floor, and a rush to the exit crushed these victims. The operators of a restaurant and bar in the building were acquitted on charges of involuntary manslaughter. They were held in indirect criminal contempt for willful violation of court orders concerning building code violations, and received two-year prison sentences. Those orders prohibited occupancy of a suspended mezzanine and occupancy of the second floor of the building. The appellate court ruled that the original orders were not clear and reversed the finding of indirect criminal contempt in 2011. The Illinois Supreme Court reversed and remanded for consideration of other issues, holding that the jury could have found the defendants guilty as charged beyond a reasonable doubt View "People v. Le Mirage, Inc." on Justia Law

This case arose out of a verbal agreement entered into by Contractor and Landowner to construct a subdivision on a parcel of land. Disagreements arose between the parties, and the subdivision was never completed. Landowner filed this action against Contractor asserting Contractor had failed to make payments on an endloader that had been purchased for the project. Contractor counterclaimed for unjust enrichment based on excavation services he performed on the property. The jury found in favor of Landowner with regard to the endloader and in favor of Contractor with regard to his counterclaim. The trial court found Contractor was entitled to a prejudgment interest on his award of damages on his unjust enrichment claim. Contractor filed a motion to amend the judgment order, contending that the court erred in determining the date on which prejudgment interest began to accrue and had utilized an incorrect prejudgment interest date. The circuit court denied the motion. The Supreme Court reversed the denial of Contractor's motion to amend the judgment order, holding that the trial court erred by awarding Contractor prejudgment interest instead of allowing the jury to determine whether an award of prejudgment interest was warranted. Remanded. View "Ringer v. John" on Justia Law

Plaintiff (HOA) was a condominium owners' association that brought suit on its own behalf and on behalf of its members against various individuals and corporations seeking damages arising from the alleged defective development, negligent construction, and misleading marketing of a condominium complex. The complex consisted of dozens of units owned by members of the HOA. The circuit court granted Respondents' motion to join all unit owners, denied the HOA's motion for a protective order, and certified six questions to the Supreme Court. The Court answered only one of the questions, finding it unnecessary to address the remaining questions, holding (1) a unit owners' association is an adequate representative when a lawsuit is instituted by a unit owners' association on behalf of two or more unit owners pursuant to the Uniform Common Interest Ownership Act and the damages sought include unit specific damages affecting only individual units; and (2) this case should proceed in accordance with W. Va. Trial Court R. 26. View "Univ. Commons Riverside Home Owners Ass'n v. Univ. Commons Morgantown, LLC" on Justia Law