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Construction Law Authority / Posts tagged "defect"

Becker & Poliakoff Wins Multi-Million Dollar Jury Verdict In Landmark Construction Case

Jury Finds Subsidiary of National Developer Hovnanian Enterprises Inc. Liable for Breach of Contract and Violation of the New Jersey Consumer Fraud Act MORRISTOWN, NJ & FORT LAUDERDALE, Fla. – June 5, 2017 – Becker & Poliakoff secured a landmark $9 million-plus jury verdict Thursday against a subsidiary of Hovnanian Enterprises, Inc. (NYSE: HOV). The award includes punitive (treble) damages for violation of the New Jersey Consumer Fraud Act and also entitles the plaintiff to recover attorneys’ fees, costs and prejudgment interest. The jury found that Hovnanian Enterprises used the subsidiary as an instrument to commit a fraud or injustice on purchasers of condominium units. The ultimate recovery against all parties, including the project architect and geotechnical engineer, could exceed $20 million. After a six-week trial in New Jersey Superior Court (Docket No. HUD-L-2560-13), the jury agreed that Hovnanian, after learning that the condominium building was being improperly constructed with plywood flooring...

Supreme Court decides Maronda Homes v. Lakeview Reserve

The Supreme Court issued its opinion in the Maronda Homes, Inc. of Florida v. Lakeview Reserve Homeowners Association, Inc., case earlier today. I previously blogged about the case and its ramifications on Florida’s common law implied warranties here. Subsequent to oral argument in that case the legislature enacted Section 553.835, Florida Statutes, which abrogated all common law implied warranties for “off site improvements” as noted here and here. The opinion recounts at length the procedural and factual history of the underlying case as well as the status of the law regarding common law implied warranties. It is the Supreme Court’s most comprehensive recitation of this area of the law since Gable v. Silver in 1972 and Conklin v. Hurley in 1983.  The original question dealt with whether the underlying 5th District Court of Appeal’s decision was correct, or if a prior 4th District Court of Appeal decision in Port Sewall v. First...

The “Infallible” Surety, Is Not Immune From The Impact Of A Bad Economy

When negotiating for payment and performance bonds, you should realize that even if you obtain the added protection, you are not 100% safe. Even though they might not be as likely as other construction entities to go out of business, sureties also go out of business. Furthermore, when they do, it can be as difficult to recover from a surety's estate as it is to recover from any other bankrupt construction entity....

HB 1013 signed by Governor Scott

Governor Scott signed HB 1013 into law late last week.  The legislation will take effect on July 1, 2012, and attempts to wipe out all common law implied warranties, including for pending litigation.  I think there are significant constitutional issues as applied to pending claims. We may find out quickly as the Lakeview v. Maronda case is still pending before the Supreme Court.  The Court may be able to address the scope of the warranty and also the constitutionality issue at one time. It will be an interesting decision but may be one of limited value going forward....

Article on HB 1013 in Miami Herald

Today's Miami Herald has an article, by Toluse Olorunnipa, about the ongoing battle over HB1013.  The Governor's office has received over 1,000 emails in recent days opposing the legislation. Opposition to the legislation outnumbers the supporters by a nearly 4-1 margin.  Per Governor Scott's deputy press secretary “The Governor is currently reviewing the bill and will make a decision in the allotted timeframe.”  The whole article is worth reading here.  As usual proponents of the legislation throw out the phrase "judicial activism" which completely ignores that the entire implied warranty was created by the judiciary to overcome another judicial doctrine, caveat emptor.  I have discussed the merits of the bill on numerous posts on the blog so I will not repeat them.  I know the Governor's office has been in touch with proponents and opponents of the bill to obtain information.  The best thing to do at this point is to continue contacting Governor Scott's...

HB 1013 (SB 1196) presented to Governor Scott

HB 1013, which eliminates common law implied warranties in common areas of all communities in the state, was sent Friday to Governor Rick Scott for his consideration. Governor Scott has until April 28, 2012 to act on the bill. He can sign the bill into law, veto it, or allow it to become law without his signature. This legislation leaves Florida home buyers with no protections for shared amenities and thereby shifts the burden for repairs to the homeowners and we urge Governor Scott to veto HB 1013. If you have not yet contacted Governor Scott, please do so and urge him to veto HB 1013. It is the only way to prevent this bill from becoming law.  You can e-mail Governor Scott at Rick.Scott@eog.myflorida.com and copy his Legislative Affairs Director, Jon Costello, at Jon.Costello@eog.myflorida.com. You can copy and paste the following suggested text in your message to the Governor: Please veto HB 1013, which eliminates common law...

Orlando Sentinel Editorial Opposes HB 1013

The Orlando Sentinel Editorial page of April 4, 2012, has come out in opposition to HB 1013, the anti-common law implied warranty legislation.  The editorial is reprinted in part below. To view the full editorial please follow the link.  Do not forget to contact the Governor's office to veto this legislation.  Editorial Below- When a leaking underground drainage system pitted roads and driveways and created sinkholes in lawns at aWinter Garden subdivision, homeowners sued the developer to cover the damage and repair costs. After conflicting rulings in lower courts, the case reached the Florida Supreme Court, which heard arguments on it in December. But before the justices had issued a ruling, the Florida Legislature stepped in like Judge Judy and moved to decide the case — and any future ones like it — in favor of the developer. Lawmakers often carp about being pre-empted or overruled by "activist judges." But in this case, lawmakers trumped the judges. Lobbied...

Ask the Governor to veto HB 1013(SB 1196)

The Governor's office has received numerous calls and emails in opposition to HB 1013, the anti-implied warranty legislation.  We are asking that you continue to urge Governor Scott to veto HB 1013.  It is the only way to prevent this bill from becoming law.  The bill has not yet been sent to the Governor for consideration, but we expect it to be sent very soon.  Therefore, please contact Governor Scott as soon as possible so that your voice can be heard. You can e-mail Governor Scott at Rick.Scott@eog.myflorida.com and copy his Legislative Affairs Director, Jon Costello, at Jon.Costello@eog.myflorida.com.  You can copy and paste the following suggested text in your message to the Governor:  Please veto HB 1013, which eliminates common law implied warranties in common areas of all communities in the state.  This legislation will result in greater costs for Florida’s homeowners, in the form of repairing shoddy construction, and ultimately lead to more foreclosures.  This...

Letter to Governor Scott re: HB 1013/SB 1196

Below is the text of a letter sent today by Alan Becker, Esq., a founding shareholder of the Becker & Poliakoff, asking Governor Scott to veto HB 1013 which wiped out common law implied warranties for common area property.  We are requesting that you join us and ask Governor Scott to veto this legislation. Dear Governor Scott: I am writing to you with regard to the recently passed HB 1013 (companion SB 1196, “the legislation”) which eliminates common law implied warranties as it pertains to common areas of all communities in the state and asking that you veto this legislation. I was a member of the legislature when what is now section 718.203, providing statutory implied warranties for condominiums, was enacted and am a founding member of Becker & Poliakoff, P.A. which represents close to 4,000 community associations in the state of Florida. With that background, I can state that this legislation is absolutely harmful to consumers, will result in...