Justia Construction Law Opinion Summaries

A landowner submitted a site development plan to the county planning board, proposing to construct a mixed-use condominium building. Joel Broida, who lived across the street from the landowner's parcel of land, filed a motion to deny approval of the site development plan. The planning board approved the plan. Broida appealed. A hearing examiner dismissed the appeal, holding that Broida lacked standing. Broida appealed. The board of appeals (Board) split evenly on the issue of Broida's standing and decided to re-vote at a later date. The landowner then filed a complaint for a declaratory judgment, declaring that the Board's split decision was final and required the appeal to be dismissed. The circuit court granted summary judgment in favor of the landowner. The court of special appeals reversed, holding that Broida had standing to appeal. The court therefore did not address whether there was a final Board decision. The Court of Appeals reversed, holding (1) there was no final administrative decision and, therefore, the landowner failed to exhaust its administrative remedies; and (2) because there was no final administrative decision, the lower courts erred in reaching the merits of the case, and the declaratory judgment action should have been dismissed. Remanded. View "Renaissance v. Broida" on Justia Law

Plaintiffs filed this diversity action to foreclose a contractor's lien and an architect's and engineer's lien against Phoenix Land & Acquisition, LLC (Phoenix Land) and Phoenix Health, LLC (Phoenix Health), as owners of the property in dispute, and three financial institutions with recorded security interests in the property. Phoenix Land filed a counterclaim, asserting breach of contract, negligence, breach of implied warranty, breach of fiduciary relationship, and deceptive trade practices by plaintiffs. Plaintiffs appealed the district court's order denying their motion to compel arbitration of Phoenix Land's counterclaim. The court held that the district court did not err in finding plaintiffs' motion to compel arbitration on the ground that they had waived their right to arbitrate the dispute; they knew of the right and acted inconsistently with that right; and Phoenix Land suffered prejudice by plaintiffs' inconsistent actions. Accordingly, the court affirmed the judgment of the court. View "Erdman Co., et al. v. Phoenix Land & Acquisition, et al." on Justia Law

David Miller purchased a home owned by respondents Linda Lankow and Jim Betz. The home had previously been extensively remediated because of moisture intrusion damage. Respondents Donnelly Brothers and Total Service Company and defendant Diversified Contractors, Inc. did the remediation work. After discovering and notifying respondents and defendants of additional moisture intrusion damage, buyer began to repair the home. Buyer then commenced an action against respondents and defendant to recover damages. The district court excluded buyer's expert witness evidence as a sanction for the spoliation of evidence that resulted from buyer starting to make repairs to his home. The court then granted respondents' summary judgment motion on the basis that buyer could not make a prima facie case without the expert evidence. The court of appeals affirmed. The Supreme Court reversed, holding that the duty of a custodial party to preserve evidence may be discharged when the custodial party has a legitimate need to destroy the evidence and gives the noncustodial party notice sufficient to enable the noncustodial party to protect itself against the loss of the evidence. View "Miller v. Lankow" on Justia Law

Respondent Annapolis Towne Centre (ATC), the owner and developer of a mixed-use development, entered into an agreement with petitioner Hovnanian Land Investment, a residential developer, under which ATC agreed to sell a portion of the property to Hovnanian for the construction of a residential tower. The contract required certain conditions to be met by ATC prior to the closing and contained a clause stating that any waiver of the contract had to be in writing. Before closing, Hovnanian terminated the agreement, alleging that ATC failed to meet a condition precedent. ATC sought a declaratory judgment, and both parties filed motions for summary judgment on the issue of whether ATC had complied with the condition precedent. The circuit court granted ATC's motion for summary judgment on that issue, holding that Hovnanian waived the condition precedent. The court of special appeals affirmed. The Court of Appeals reversed, holding that summary judgment was not appropriate because (1) a condition precedent may be waived by a party's conduct, despite a non-waiver clause, but whether Hovnanian's actions amounted to a waiver was a dispute of material fact; and (2) the question of whether ATC strictly fulfilled the condition also involved material questions of fact. Remanded. View "Hovnanian Land Inv. Group, L.L.C. v. Annapolis Towne Centre at Parole, L.L.C." on Justia Law

Defendants, the owner and operator of a Nevada company that inspected homes for construction defects and encouraged homeowners to file claims against their builder under a Nevada statute, appealed an injunction enjoining them from conducting further inspections. Del Webb Communities, Inc. (Del Webb), the developer of a retirement community where defendants inspected many homes, sued, alleging that defendants' business practices violated federal and state law. The court held that the general prohibition against operating "by means of illegal, unlicensed and false practices" was too vague to stand. Accordingly, the court affirmed the remaining provisions of the injunction but rejected the district court's reliance on Nevada's common law of champerty to create a tort cause of action for which Del Webb could obtain relief. Therefore, the court vacated the injunction in part and affirmed in part. View "Del Webb Cmty, Inc. v. Partington, et al." on Justia Law

Plaintiffs William and Vivian Allen contracted defendant V and A Brothers, Inc. (V&A) to landscape their property and build a retaining wall to enable the installation of a pool. At the time, V&A was wholly owned by two brothers, Defendants Vincent DiMeglio, who subsequently passed away, and Angelo DiMeglio. The corporation also had one full-time employee, Defendant Thomas Taylor. After V&A completed the work, Plaintiffs filed a two-count complaint naming both corporate and individual defendants. The first count was directed solely to V&A and alleged that the corporation breached its contract with Plaintiffs by improperly constructing the retaining wall and using inferior backfill material. The second count was directed to the corporation and Vincent's estate, Angelo, and Taylor individually, alleging three "Home Improvement Practices" violations of the state Consumer Fraud Act (CFA). Before trial, the trial court granted the individual defendants' motion to dismiss the complaint against them, holding that the CFA did not create a direct cause of action against the individuals. Plaintiffs' remaining claims were tried and the jury returned a verdict in favor of plaintiffs on all counts, awarding damages totaling $490,000. The Appellate Division reversed the trial court's order dismissing the claims against the individual defendants under the CFA. The panel remanded the matter to determine whether any of the individual defendants had personally participated in the regulatory violations that formed the basis for Plaintiffs' CFA complaint. The panel precluded relitigation of the overall quantum of damages found by the jury in the trial against the corporate defendant. Upon review, the Supreme Court held that employees and officers of a corporation might be individually liable under the CFA for acts they undertake through the corporate entity. Furthermore, individual defendants are not collaterally estopped from relitigating the quantum of damages attributable to the CFA violations. The Court remanded the case for further proceedings. View "Allen v. V & A Bros., Inc." on Justia Law

Plaintiffs Stephen and Marilee Bell hired contractor Defendant Perception Construction Management, Inc. (PCM) to build a log home. The parties' relationship deteriorated, and the Plaintiffs terminated the contract before construction was complete. Plaintiffs refused to pay PCM's final invoices, and PCM filed suit to enforce a lien it placed on the home for the unpaid invoices. Plaintiffs filed multiple counterclaims, including construction defect and breach of contract. PCM prevailed at trial, and the district court found PCM was entitled to damages, prejudgment interest and attorney fees. Plaintiffs appealed, contending that the district court erred by excluding certain evidence relating to their defense against the lien, and in its determination of the monies allegedly owed under the lien. The Supreme Court found that the district court impermissibly excluded Plaintiffs' evidence, and as such, the Court vacated the district court's judgment and remanded the case for further proceedings. View "Perception Construction Management, Inc. v. Bell" on Justia Law

May Construction Company appealed from a circuit court order declaring a lien on real property, owned by Town Creek Construction & Development, subordinate to a mortgage filed by Chambers Bank and unenforceable against a lien bond issued by Ohio Casualty Insurance Company. For reversal, May argued that the circuit court erred in (1) interpreting the materialmen's lien statute, (2) ruling that construction commenced after the execution of Chambers's mortgage, and (3) finding that May could not recover against the lien bond. Town Creek cross-appealed, arguing that the circuit court erred in ruling that May was entitled to a lien in the amount of $353,000. The Supreme Court reversed and remanded the direct appeal, holding that the circuit court erred in ruling that construction had not commenced prior to the recording of Chambers's lien because the ruling was based on the intent of the parties contrary to that plain language of the materialmen's lien statute. The Court then affirmed the cross-appeal, finding that the circuit court did not err in calculating the amount Town Creek owed May.

Plaintiff John Stuart decided to build a new house on a small farm. He contacted his insurance agent of nineteen years, Defendant Ronald Pittman for "course-of-construction" insurance to cover any problems in the course of building his house. Mr. Pittman discussed the scope of coverage that the policy would provide. Relying on Mr. Pittman's oral assurance of what the policy would cover, Plaintiff agreed to it. Construction started in 2003. Plaintiff received a premium statement, but not a written copy of the policy. An ice storm struck Plaintiff's building project. Plaintiff contacted Mr. Pittman to initiate an insurance claim. Mr. Pittman told Plaintiff that damage should be covered by the policy. In 2004, Plaintiff received a declaration page from Country Mutual Insurance Company, and found that damage to his house was not covered. Plaintiff brought an action against both Mr. Pittman and the Insurance Company alleging breach of the oral "policy" that he and Mr. Pittman agreed to at the onset of the building project. At the conclusion of the trial's evidentiary phase, Defendant moved for a directed verdict, arguing that Plaintiff failed to prove that the oral insurance binder covered his project. The trial court denied the motion, and the jury would later rule in favor of Plaintiff. The verdict was overturned on appeal. The court held that there was no evidence from which a jury could have found in favor of Plaintiff. On appeal to the Supreme Court, Plaintiff argued that the appellate court misinterpreted the Oregon law that required him to prove that the oral binder superseded the "usual exclusions" of the written policy. The Supreme Court found that the written policy was, as a matter of law, deemed to include all terms of the oral binder. Accordingly, the Court reversed the appellate court's decision and affirmed the judgment of the trial court.

Duane Peterson, Mid Am Group, LLC, and Mid Am Group Realty (collectively âMid Amâ), Village Homes at Harwood Groves, LLC (Village Homes), and First International Bank and Trust (First International) all had a stake in the insurance proceeds from a 2007 hail storm that damaged their respective properties. The trial court granted summary judgment to Village Homesâ Homeownersâ Association that represented ten property owners of the Village Homes community impacted by the storm. Mid Am developed and built the insured properties, but Mid Am had only sold ten of fifty units. When the hail storm hit, Mid Am submitted a proof of loss with its insurance company for the residences it still owned. First American was in the process of foreclosing on those unsold Mid Am properties. The insurance check was sent to Mid Am, but First American sued to get possession of the proceeds, and the individual owners were permitted to intervene. The court took control of the proceeds, and held that neither Mid Am nor First International were entitled to them. The court ruled that Mid Am, as fiduciary to the ten owners, should distribute the proceeds among them. Mid Am appealed, arguing that the ownersâ association did not have standing to intervene in the suit for the proceeds. The Supreme Court concluded that the ownersâ association had standing to intervene, and that it was not an error of the trial court to allow the owners to make their claim for the proceeds. The Court affirmed the grant of summary judgment.