Construction Defect

It’s Time For Investors To Pay Up (NY)

When a new condominium building in New York City is found to have construction defects, who pays? In 2013, New York courts ruled that condominium boards could only seek compensation from investors if the board could prove a fiduciary relationship existed between the board and the investors. This ruling made it almost impossible for boards to recoup compensation for construction defects because...Read More

Philadelphia Partners Win Summary Judgement in the EDPA In Construction Defect Coverage Case (PA)

In Estate Chimney & Fireplace, LLC v. Burlington Insurance Company, Philadelphia Partners, Robert J. Cosgrove and Colleen E. Hayes were awarded summary judgement. By way of background, the Insured had commenced a declaratory judgment action, in the EDPA, seeking defense and indemnification from The Burlington Ins. Co. for underlying lawsuits stemming from its allegedly defective work in...Read More

New Jersey Expands Standing for Unit Owner Claims in Condominium Association Litigation (NJ)

The New Jersey Appellate Court, in a published decision on October 2, 2020, expanded the scope of claims an Association may bring with respect to construction defect and consequential damage claims. In that case, the Association sued on behalf of the unit owners, asserting claims of defective workmanship in the construction of the common elements that caused consequential damages. Among the...Read More

Eastern District of Pennsylvania Acknowledges Kvaerner is Still Good Law (PA)

The Eastern District of Pennsylvania in a declaratory judgment action, In re Shelter Structures, Inc., recently reaffirmed that Pennsylvania law typically does not provide coverage under a CGL policy for faulty workmanship. The underlying facts alleged that Shelter violated various building codes in the design and construction of an aircraft hangar. The aircraft hangar collapsed, destroying an...Read More

Insurer Not Obligated to Defend or Indemnify Insured for Breach of Contract Claims (PA)

In Atain Insurance Co. v. Xcapes et al., the United States District Court for the Eastern District of Pennsylvania analyzed whether Atain Insurance Company (“Atain”) was obligated to, inter alia, defend and indemnify its insured, Xcapes, a home improvement contractor, with respect to state lawsuits filed against Xcapes asserting breach of contract, unjust enrichment/quasi contract, violations...Read More

WCM Victorious on Statute of Repose in PA Construction Defect Lawsuit.

WCM Partner Bob Cosgrove and Philadelphia associate Zhanna Dubinsky won a motion for judgment on the pleadings in the Pennsylvania Court of Common Pleas, Chester County. In John Adams, et al. v. Wilkinson Enterprises, Inc., et al., the plaintiffs were the owners of luxury homes in the Chester County, Pennsylvania area who had purchased their new homes in 2003 and 2004.  The plaintiffs alleged...Read More

Residential Property Exclusion Holds Water Following Hurricane (PA)

Recently, in Elite Restoration Inc. v. First Mercury Insurance Company, the Eastern District of Pennsylvania considered whether First Mercury Insurance Company (“FMIC”) was entitled to judgment on the pleadings pursuant to Federal Rule of Civil Procedure 12(c) and a declaration that it was not obligated to defend and indemnify Elite Restoration, Inc. (“Elite”) in respect of an underlying claim...Read More

Consumer Protection Law Helps Pierce the Corporate Veil and Leads to Treble Damages (PA)

The Pennsylvania Superior Court recently affirmed the trial court’s decision to pierce the corporate veil and award treble damages under the Pennsylvania Unfair Trade Practices and Consumer Protection Law, Pennsylvania’s Consumer Protection Law, in relation to home repairs in Philadelphia.  In Sereda v. Center City Acquisitions LLC the Superior Court heard the appeal of defendants Center City...Read More

Sham Entities Means The Veil Gets Pierced (PA)

A Pennsylvania Superior Court recently affirmed a trial court’s decision, in Sereda v. Ctr. City Acquisitions LLC, imposing personal liability on the sole owner of a limited liability company which constructed a new house that had issues with respect to the floors and windows. The Serenadas purchased a new house from Ctr. City Acquisitions, LLC, which, with respect to its ownership, was owned,...Read More

General Contractors Could Face Increasing Exposure in Pennsylvania (PA)

Pennsylvania is currently one of five states in the country that does not prohibit broad indemnity by subcontractors to general contractors or owners of construction projects. Broad indemnity requires subcontractors to indemnify the owner or general contractor, regardless of who is at fault. Under broad indemnity provisions, subcontractors are required to indemnify the owners or general...Read More