This Month’s Construction Defect Claims/Litigation Headlines

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To maximize our client’s technology choices, JDi Data continues to deliver value with our premier comprehensive and innovative cost administrative software Vendor Cost Control to facilitate immediate solutions with real time reporting and time saving techniques that lower business costs and provide reconciliation during complex construction defect litigation. We pride ourselves on staying up to date with the latest news in the construction defect industry. Check out a few of this month’s construction defect litigation headlines:

Limitations of Liability in Subcontractors’ Contracts May Not Be Enforceable in Colorado to Limit Claims by Construction Professionals. –

The Colorado Homeowner Protection Act of 2007 (“HPA”), codified at C.R.S. § 13-20-806(7), specifically voids express waivers of, or limitations on, a residential property owner’s ability to enforce any rights, remedies, and damages provided by law in a construction defect case. Practically speaking, this means that limitation of liability provisions in contracts between construction professionals and residential homeowners are void and will not be enforced in Colorado. The HPA can extend even further, however, to subcontractors on residential projects, as seen in a recent District Court ruling.

California Bill Would Notify Homeowners on Construction Defect Options-

The California Building Industry Association supported Assembly Bill 1892, but its goals of informing homeowners of their rights under SB800 have been accomplished through the administrative process. The Department of Consumer Affairs has now posted text on its web site noting that “prior to pursuing legal action or responding to a construction defect solicitation, you must first contact your home builder.” The text goes on to note that “if the home builder fails to follow any of the procedures, the homeowner is entitled to proceed with the filing of an action.”

Arbitration of Construction Defect Claims Against Developer and General Contractor –

Denver District Court orders arbitration of construction defect claims in Glass House Residential Association v. Alta Riverfront LLC et al, no. 2012CV1531. The Glass House ruling provides direction for developers and general contractors to choose a preferred method of dispute resolution for construction defect claims. The Denver District Courts recently upheld mandatory arbitration in a construction defect lawsuit.

Colorado Attorney Announces Top Five Tips for Homeowners to Curb Insurance Company Litigation –

Homeowners can get tangled up and confused with insurance companies and builders, who are in a better position to manipulate policies and warranties to defeat claims. Colorado attorney Aaron Atkinson gives top five tips for avoiding claims disputes.

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