The process still works if everyone cooperates.  That means plaintiffs, developers, subcontractors and insurance companies. A breakdown exists in the following areas: Plaintiffs are not being uniformly required to provide actual defect analyses – only a theoretical list of defects, subcontractors are not honoring contractual indemnity obligations, additional insured endorsements are often illusory, and insurance…

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A homeowners association, on behalf of its members, sued a condominium developer and various other parties for construction design defects that allegedly made their homes unsafe and uninhabitable for a significant portion of the year. Two defendants were architectural firms that allegedly designed the homes in a negligent manner but did not make final decisions…

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The purpose of the Contractors’ State License Law (Business & Professions Code sections 7000 et seq.) is to “protect the public from incompetent or dishonest providers of building and construction services,” and prohibits a contractor who has violated the statue from recovering “for the fruits of his labor.” This case considered whether a contractor who…

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The California Court of Appeals recently issued two decisions holding that California’s Right to Repair Act (“SB 800”) is not the exclusive remedy for a homeowner seeking damages for construction defects that have also resulted in property damage. Rather, a homeowner who incurs property damage due to construction defects may also pursue common law tort…

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Article by: Charles S. Redfield Since the California Supreme Court issued its decision in Crawford v. Weather Shield Mfg., Inc. (2008) 44 Cal.4th 541, general contractors and their insurers have been able to force subcontractors to participate in the defense of general contractors through Type I indemnity agreements without needing to establish the subcontractor’s liability….

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by Christine Balbo Reed In Forrest Construction, Inc. v. The Cincinnati Insurance Co., 703 F.3d 359 (2013) the United States Court of Appeals for the Sixth Circuit held that an insurer breached its policy with an insured contractor when it declined to defend the contractor from a counterclaim for defective workmanship asserted by the contractor’s…

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June 01, 2013 | Author: Joseph M. Fenech Centex Homes, et al. v. The Superior Court of San Diego County, Court of Appeal, Fourth District (March 25, 2013) Government Code section 901 provides that a cause of action for equitable indemnity or partial equitable indemnity accrues on the date “a defendant is served with the…

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February 11, 2013 | Author: David L. Blinn (2012) 55 Cal.4th 186 Construction defect claims often involve continuous and progressive loss. Recently, in State of California v. Continental Insurance Co., the California Supreme Court weighed in on whether successive policy limits can be stacked in such losses, although the loss there was a pollution clean-up…

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February 11, 2013 | Author: Joseph Aguilar The beginning of 2013 brings many different changes in the world of California Construction Law. California Senate Bill 474 (“SB 474”), passed in 2011, provided sweeping changes to the indemnity obligations of contractors and subcontractors in private commercial construction projects entered into after January 1, 2013. This legislation…

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