Archives: Construction Defect Claims

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Filing a Motion to Stay Under Notice and Opportunity to Cure Statute Without an Answer Could Result in a Default Judgment

A majority of states now have some form of a “notice and opportunity to repair” statute (“NOR statute”) for construction defect claims.  The statutes generally provide that before filing suit a property owner must provide a contractor with notice of the alleged defect, the opportunity to inspect the property, and the opportunity to offer to … Continue Reading

Is that Certificate Listing You as an Additional Insured Worth the Paper It’s Written On?

A trend, and now common practice, in the construction industry is for an owner or contractor to require contractors and subcontractors to name it as an additional insured (“AI”) on their commercial general liability (“CGL”) insurance policies. The goal is to shift risk to those performing the work by having a subcontractor’s insurance policy, rather … Continue Reading

Construction Defect Claims: Insurance Coverage Under South Carolina Law

By: Josephine H. Hicks, Parker Poe Partner Construction projects often result in damages claims for construction defects. Securing insurance coverage for those claims will depend on many factors, including the specific facts and damages at issue, and which state’s law governs. The standard commercial general liability policy (“CGL”) provides coverage for “property damage” that is caused … Continue Reading

Notice and Opportunity to Repair Statutes and CGL Carriers’ Duty to Defend: The Eleventh Circuit Weighs In, Sort of, on Florida’s Statute and an Insurer’s Duty to Defend

Over recent years and after a push from construction trade groups, states across the county adopted notice and opportunity to repair (“NOR”) statutes. The statutes generally provide that before a property owner initiates an action in court against a builder, the owner should give the builder notice of the alleged defect, permit the builder to … Continue Reading

Smith v. D.R. Horton, Inc.: The End of Arbitration for Residential Developers and Builders in South Carolina?

Mark Twain famously wrote that the reports of his death were exaggerated.  Following the South Carolina Supreme Court’s decision in Smith v. D.R. Horton, Inc. last month,[1] you may have heard arbitration is dead for South Carolina residential builders.  In that decision, the Court found an arbitration agreement unconscionable and therefore unenforceable.  While the decision … Continue Reading

The Ongoing Tension Over Class Actions and Statistical Evidence and the Significance for Residential Developers and Builders

For developers and builders of single-family communities and multi-family housing, an increasingly common tactic is for plaintiffs’ counsel to assert a class action, a procedural device that allows one person to sue on behalf of related persons who are not parties to the lawsuit. Plaintiffs’ counsel then relies on statistical extrapolation from limited inspections of … Continue Reading