Construction Law

Chinese Drywall Manufacturer Offers to Streamline Lawsuits in Federal Court

Posted on November 04, 2009
An article online this week states that Knauf Plasterboard Tianjin Co. Ltd., one of the leading defendants in a consolidated federal court lawsuit against drywall manufacturers in China, offered homeowners who sign up for he omnibus class action by December 2, 2009 and show proof that their homes were built with KPT drywall won't have to pay $15,000 to serve the company in China through the Hague Convention, according to an order issued Monday by United States District Court Judge Eldon Fallon...

Chinese Drywall Update: Tenebaum Brings Little Relief To US After Trip to China

Posted on October 28, 2009
A recent report in the Wall Street Journal details the ongoing frustrations of US homeowners who have been affected by the defective Chinese drywall epidemic. Homeowners were hopeful that Inez Tenebaum, Chair of the United States Consumer Product Safety Commission, would bring relief back to the US after a recent visit to China...

Insurance Companies Deny Claims, Drop Policies

Posted on October 16, 2009
I found an article on line this week which reports that in the wake of the defective Chinese drywall epidemic, insurance Companies have started to deny claims, and even worse, refusing to renew entire policies. Thousands of homeowners nationwide have been affected by the defective building materials are now finding little assistance...

Chinese Drywall: The Next EIFS?

Posted on September 15, 2009
Though the final number has yet to be determined, recent reports state that the total cost of damages from Chinese drywall could reach $25 billion. Most reports place the final number somewhere between $15 and $25 billion, while others state that after repairs and litigation costs, the $25 billion mark could be surpassed...

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Chinese Drywall Found in Las Vegas

Posted on September 04, 2009
A recent report states that the Chinese drywall problem has moved west. Homeowners in Las Vegas, Nevada have found instances of Chinese drywall in their homes, and have filed a class action lawsuit. The suit states that the drywall is causing health problems for homeowners in two Las Vegas neighborhoods...

Tax Rebate for Homeowners With Chinese Drywall

Posted on September 01, 2009
For those who have found that their homes were constructed or remodeled in recent years with defective drywall imported from China, relief may be on the way. But it may not be as easy to get as some may think. Though State and Federal government officials have been working to determine how to distribute a tax rebate to those homeowners affected by the Chinese drywall epidemic, it is not an open and shut case for those who want to receive funds...

Consumer Products Safety Commission States Chinese Drywall is Not Radioactive

Posted on August 26, 2009
After conducting tests on 21 samples of Chinese drywall, the Consumer Products Safety Commission reported that there was no presence of radioactive phosphogypsum in the drywall samples. Earlier this year reports claimed that the defective drywall imported from China was made with phosphogypsum, which contains radioactive properties...

New Testing Methods Being Used to Check for Chinese Drywall

Posted on August 24, 2009
Centek Laboratories, LLC has been in conversations with the Florida, Louisiana, Alabama, and North Carolina State Health Departments to discuss the laboratory?s ability to provide testing options for residents who believe their homes were built with defective Chinese drywall...

Chinese Drywall Victims Form Group, Target White House for Help

Posted on August 19, 2009
Last week, Port St. Lucie homeowner, Tirzah Pestenski, called the White House and invited Presidnet Obama over so he could witness firsthand the devastating effects defective Chinese drywall has had on her home. Pestenski is part of a small group of homeowners who have begun making calls to the White House asking for assistance to the growing Chinese drywall epidemic...

New Bill Focused on Chinese Drywall Manufactures Enters Senate

Posted on August 17, 2009
A new Bill introduced recently into the senate could make it easier for homeowners with defective Chinese drywall to take the manufacturer to court. The Foreign Manufacturers Legal Accountability Act of 2009 attempts to make it easier to bring foreign companies before an American court...

Consumer Product Safety Commission Creates Drywall Information Website

Posted on August 10, 2009
The Consumer Product Safety Commission (CPSC) recently set up a website to keep consumers, drywall manufacturers, builders and others aware of its investigation into the latest problematic Chinese drywall. The CPSC's Drywall Information Center offers updates on the investigation, help for homeowners trying to determine if their drywall is making them sick, where drywall problems have been reported and other related information...

WCI Communities Announces 200 Homes Built With Defective Chinese Drywall

Posted on August 07, 2009
WCI Communities, based in Bonita Springs, Florida, has confirmed that they built at least 200 homes with the potentially dangerous defective Chinese drywall. WCI Communities recently filed for Chapter 11 bankruptcy and anticipates facing roughly $40 million in claims related to the defective drywall...

Consumer Product Safety Commission Head Visits Asia to Discuss Tighter Regulations

Posted on August 05, 2009
Inez Tenenbaum, head of the Consumer Product Safety Commission (CPSC), left last week on a trip to Asia which will focus on notifying and warning major exporters that tough regulations will be coming soon. These warnings come in the wake of thousands of American homes constructed with defective Chinese drywall being deemed dangerous to homeowners...

Status of Multidistrict Litigation Involving Chinese Drywall Cases

Posted on August 03, 2009
Judge Eldon E. Fallon, who is overseeing the combined litigation of defective Chinese Drywall cases in New Orleans, has advised attorneys that trials could start as soon as six months from now. The court is also scheduled to set agreed-upon guidelines for inspecting the affected homes...

Consumer Product Safety Commission Urges Congress for Assitance with Chinese Drywall Crisis

Posted on July 29, 2009
Last week, after increased scrutiny surrounding the Chinese drywall crisis, the Consumer Product Safety Commission sent a letter to select members of Congress outlining their process for investigating the source, severity and pervasiveness of the defective Chinese drywall problem...

Virginia Residents Affected by Chinese Drywall May Qualify for Tax Deduction

Posted on July 24, 2009
Virginia homeowners affected by the defective Chinese drywall crisis may qualify for special tax deductions. According to Virginia Senator, Jim Webb, the Internal Revenue Service (IRS) has declared residents in the Hampton Roads area whose homes have been severely damaged by Chinese Drywall able to qualify for the special tax deductions...

American Association for Justice Releases Time Line of Chinese Drywall Crisis

Posted on July 21, 2009
The American Association for Justice has released a time line of key events in the Chinese drywall crisis. The time line begins with the major hurricanes in 2004 and 2005, including Hurricane Katrina, coupled with a nationwide housing boom which spurred a demand for drywall...

Common Problems Associated With Roofs

Posted on July 16, 2009
Donald B. Brenner, Chair of Stark & Stark?s Construction Litigation group, interviewed Ron Wright, Chief Operating Officer of R.V. Buric Construction Consultants in a four-part video series. In this fourth and final installment, Mr. Brenner and Mr. Wright discuss the common problems associated with roofs...

Radioactive Chinese Drywall In U.S. Homes

Posted on July 15, 2009
I recently read an interesting article on The Consumerist discussing the recent defective Chinese drywall problem in the United States. According to the Consumerist, the US government believes that radioactive industrial waste from China is responsible for the recent sulfur stench associated with defective drywall imported from China in hundreds of Florida homes...

Common Problems Associated With Decks and Balconies

Posted on July 14, 2009
Donald B. Brenner, Chair of Stark & Stark?s Construction Litigation group, interviewed Ron Wright, Chief Operating Officer of R.V. Buric Construction Consultants in a four-part video series. In this third installment, Mr. Brenner and Mr. Wright discuss the common problems associated with decks and balconies in construction projects...

Exterior Insulation Finish Systems

Posted on July 09, 2009
Donald B. Brenner, Chair of Stark & Stark?s Construction Litigation group, interviewed Ron Wright, Chief Operating Officer of R.V. Buric Construction Consultants in a four-part video series. In this second installment, Mr. Brenner and Mr. Wright discuss exterior insulation finish systems (EIFS)...

Chinese Drywall Found in Bahamas

Posted on July 07, 2009
The Chinese drywall problem affecting United States homeowners has been reported in the Bahamas. After thousands of homes were condemned in the U.S., Stephen Wrinkle, President of the Bahamian Contractor Association, is calling for inspections of the materials which are slated to be used in the construction of the Bahamian national stadium...

Transition Analysis for Condominium Associations

Posted on July 06, 2009
Don Brenner, Chair of Stark & Stark?s Construction Litigation group, interviewed Ron Wright, Chief Operating Officer of R.V. Buric Construction Consultants in a four-part video series. In this first installment, Mr. Brenner and Mr. Wright discuss transition analysis for condominium associations and how building forensic investigations are conducted...

Chinese Regulators Meet with Consumer Products & Safety Commission to Discuss Chinese Drywall Problem

Posted on June 30, 2009
As of last week, the Consumer Products Safety Commission (CPSC) stated that they had received more than 500 reports from homeowners in 19 states and the District of Columbia who believe their home was constructed with defective Chinese drywall. Due to the increasing number of US homeowners affected by the defective building product, officials from China?s General Administration for Quality Supervision, Inspection and Quarantine (ASIQ) office arrived in the US June 15, 2009 in order to investigate the reported problems with drywall made in their country...

Overview of Chinese Drywall Problem in the United States

Posted on June 29, 2009
I recently found an article online entitled, US senators call for Chinese drywall probe. This article is one of the best articles I?ve found recently discussing the Chinese drywall problem. The article includes an overview of the problem, an explanation of what Chinese drywall is and why it is causing so many problems for United States homeowners, and the status of pending litigation claims in the US...

U.S. Senators Ask IRS to Make Chinese Drywall Repairs Tax Deductible

Posted on June 23, 2009
Three United States Senators from Florida and Virginia have appealed to the Internal Revenue Service (IRS) requesting that the costs incurred to homeowners affected by Chinese Drywall be deductible for federal tax purposes. In a letter sent Tuesday June 16, 2009, the Senators ask the IRS to include Chinese Drywall in the list of ?unexpected events? which are currently listed as deductible under section 165(h) of the tax code...

Florida Attorney General Warns Homeowners of Chinese Drywall Scams

Posted on June 22, 2009
Florida Attorney General, Bill McCollum, issued a consumer advisory warning to homeowners in Florida who have been affected by Chinese Drywall alerting them of scams related to the defective drywall situation. The Attorney General?s office has received two reports of scams related to the Chinese drywall problem...

Nominee for Head of the Consumer Product Safety Commission Faces Chinese Drywall Questioning

Posted on June 17, 2009
Inez M. Tenenbaum, President Obama?s nominee for head of the Consumer Product Safety Commission, faced questions yesterday regarding the nationwide concern over defective Chinese drywall during her U.S. Senate confirmation hearing. Tenenbaum appeared before the Senate Committee on Commerce, Science, and Transportation and although she made no references as to the specific steps she would take to remedy the problem, she did promise that if she was selected to head the Commission, she would work tirelessly to find a resolution to the Chinese drywall issue...

Judicial Panel on Multidistrict Litigation Sends Chinese Drywall Cases To New Orleans For Pre-Trial Work

Posted on June 16, 2009
Yesterday, the Judicial Panel on Multidistrict Litigation transferred 10 Chinese drywall cases to the U.S. District Court for the Eastern District of Louisiana for coordinated pretrial proceedings. The JPML said it would treat dozens of additional cases as potential ad-ons...

Stark & Stark Shareholder Presents Seminar on Transition, Building Defects and Alternative Dispute Resolution

Posted on June 12, 2009
Donald B. Brenner, Shareholder and Chair of Stark & Stark's Construction Litigation Group, presented materials related to minimizing acrimony and conflict while preserving an Association's rights with respect to construction defects and/or repairs, in conjunction with David J...

New Tests Conducted in Florida to Determine Which Chemicals Are Used in Chinese Drywall

Posted on June 10, 2009
Last Thursday the Florida Department of Health completed another round of drywall testing aimed at determining which chemicals in Chinese drywall are responsible for emitting the sulfur gases. Earlier tests conducted on Florida homes this past March found hydrogen sulfide, carbon disulfide and carbonyl sulfide coming from several Chinese drywall samples taken from the homes...

Louisiana Senator Proposes Chinese Drywall Bill Allowing Homeowners to Collect From Drywall Manufacturers, Distributors and Suppliers

Posted on June 09, 2009
Louisiana Senator, Julie Quinn, has introduced a bill which would allow homeowners in Louisiana to sue manufacturers, distributors, and suppliers for damages incurred by the defective Chinese Drywall used to build their homes. Senator Quinn?s proposed legislation would allow Louisiana residents to collect 100% of the damages they have incurred due to the defective drywall, in addition to attorneys fees, from the manufacturer, distributor, or seller of the contaminated drywall...

Possible Solution to Remedy Effects of Chinese Drywall Being Tested in Florida

Posted on June 08, 2009
A duplex in Fort Myers, Florida underwent tests last Friday to see if pumping chlorine dioxide into homes containing Chinese drywall will reverse the effects of the gasses emitted by the defective drywall. The theory behind the test is that bacteria in the paper of Chinese drywall react with the gypsum core to emit a sulfuric gas which is responsible for corroding air-conditioning coils and other metals in homes...

Are US Companies Selling Contaminated Chinese Manufactured Drywall Under Their Name?

Posted on June 04, 2009
At the Chinese Drywall conference I am attending in Florida, Daniel Becnel Jr. an attorney from Louisiana is presenting information on the potential health effects of prolonged exposure to Chinese Drywall. In his experience working with affected homeowners, some common medical complaints include nose bleeding, headaches, nausea, sinus and/or allergy related issues, difficulty breathing and chemical coughs...

Plaintiff?s Legal Theories Concerning Chinese Drywall Claims

Posted on June 04, 2009
The pending Chinese Drywall cases that have been filed are mostly class actions in Federal court. There are currently 70 + cases pending nationally. The damage claims most commonly sought in these actions are property, personal injury and medical monitoring...

Timeline of Chinese Drywall

Posted on June 04, 2009
2006 - 2007 Homeowner complaints of "rotten egg" smell November 2006 CTEH (Center for Toxicology and Environmental Health) air sampling report prepared for Knauf June 2008 Florida Department of Health receives its first call of sulfur odors in homes August 2008 Inquires about sulfur odors and copper corrosion EPA considers gypsum as possible source, but not viewed as widespread September 2008 Environ investigates homes for Lennar October 2008 Florida Department of Health hires state toxicologist (Dr...

Chinese Drywall - The Problem

Posted on June 04, 2009
I am in Florida at the first ever Chinese Drywall Litigation conference and will be live blogging the event. Scott Weinstein, managing partner of Morgan and Morgan (Ft. Meyers Florida) opened today?s seminar and provided a history of the Chinese drywall problem...

Norfolk, Virginia Bans Use of Chinese Drywall

Posted on May 21, 2009
After a unanimous vote of 8-0 at this past Tuesday?s City Council meeting, it is now illegal to use Chinese drywall when building or renovating in Norfolk, Virginia. Contractors are now required to certify that they will not use Chinese drywall in any future construction projects...

EPA Tests Confirm: Chinese Drywall Contains Toxic Chemicals US Drywall Does Not

Posted on May 20, 2009
The Environmental Protection Agency released new information from recent tests conducted on the materials used in Chinese Drywall. The EPA reports that drywall produced in China contains sulfur, and two other organic compounds which are generally used in the production of acrylic paint...

Chinese Drywall in Virginia

Posted on May 19, 2009
An article I recently found online discusses the battle a Virginia woman has fought after discovering the home she lived in for the past three years was built with defective Chinese drywall. Michelle Germano of Norfolk, Virginia has lost more than her home...

New Jersey Appellate Division Resurrects Deceased Contributory Negligence Doctrine: Consumer?s Pre-Purchase Notice of Product Defect Bars PLA Recovery of ?Other Property? Damage Inflicted After Purchase

Posted on May 18, 2009
Contributory negligence is the common-law construct whereby any negligence by a plaintiff acts as a total bar to recovery against a negligent tortfeasor. The contributory negligence doctrine has been uniformly criticized as overly harsh, allowing culpable parties to avoid the consequences of their actions, and leaving relatively innocent plaintiffs without recourse...

Stark & Stark Construction Litigation Group Chair to Present Chinese Drywall Seminar for the New Jersey Institute for Continuing Legal Education

Posted on May 15, 2009
Stark & Stark Shareholder and Construction Litigation group Chair, Donald B. Brenner, will serve as the moderator and as a presenter at the New Jersey Institute for Continuing Legal Education's seminar, Tackling Construction Law Issues. The seminar will take place Wednesday, July 29, 2009 from 9:00 AM to 4:00 PM at the New Jersey Law Center, New Brunswick, New Jersey...

First Piece of Chinese Drywall Federal Legislation Passed in Congress

Posted on May 14, 2009
An amendment calling for an immediate investigation into the correlation between Chinese drywall and the national foreclosure rate has been passed. Earlier this month, the drywall-related provision was successfully offered as an amendment to the ?Mortgage Reform and Anti-Predatory Lending Act...

United States Supreme Court Will Hold Hearing to Decide Whether or Not to Consolidate Chinese Drywall Lawsuits

Posted on May 13, 2009
On Wednesday, May 27, 2009 the United States Supreme Court will hold a hearing in Louisville, Kentucky in order to decide whether cases filed in federal court for those homeowners affected by defective Chinese Drywall across the country should be consolidated in one court with one judge...

The Economic Loss Doctrine: A license to sell defective building products?

Posted on May 12, 2009
Stark & Stark Construction Litigation Shareholder, John Randy Sawyer, and Associate, Joseph D. Gumina, authored the article, The Economic Loss Doctrine: A license to sell defective building products? for the May 11, 2009 edition of the New Jersey Law Journal...

Florida Doctor Offers Updated Report and FAQs Focusing on Chinese Drywall

Posted on May 07, 2009
Dr. Gary Rosen, Ph.D., is a Florida licensed building contractor who specializes in property damage appraisals, expert testimony, and assessment & remediation of Chinese drywall. Dr. Rosen has compiled information after months of research which summarizes information acquired from several published reports and from his own personal investigations...

North Carolina Couple Sues Over Defective Chinese Drywall

Posted on May 04, 2009
Mary and Daniel Flannigan, residents of Holly Springs, North Carolina, have spent the past few years trying to figure out what was causing the rotten egg smell in their home, and more importantly, what was causing their mysterious health problems. The Flannigan?s have joined with several other homeowners in filing a lawsuit against the builders, suppliers and manufactures of the defective Chinese drywall, which is responsible for the mysterious odor and health problems...

Answers to Commonly Asked Questions About Chinese Drywall

Posted on May 01, 2009
I recently found a fellow blogger who posed some interesting questions regarding the on-going developments related to Chinese drywall. Homeowners and condominium associations may be following the recently filed lawsuits alleging class action claims against the manufacturers and distributors of Chinese Drywall and wondering how this helps them get the defective material out of their homes? Assuming class certification is even possible (and that is a subject for another blog), it will take many years for the class actions to be adjudicated...

What Causes the ?Rotten Egg? Smell in Chinese Drywall?

Posted on April 30, 2009
The Florida Department of Health has stated that the main component in Chinese drywall which is responsible for producing the strong rotten egg smell in homes, is caused by strontium sulfide. Strontium sulfide can emit corrosive gases when in the presence of heat and humidity...

Demand, Not Money, Prompted Chinese Drywall Imports

Posted on April 28, 2009
While most people seem to believe money was the motivating factor as to why homes in the United States were built with defective drywall imported from China, it is not. It was simply an issue of demand. Due to the increased demand for building supplies during the housing boom in the wake of hurricanes Katrina and Wilma, builders, contractors and developers imported drywall from China in order to rebuild American homes...

Florida Senator Urges Governor to Create Chinese Drywall Task Force

Posted on April 24, 2009
In addition to Florida Congressman, Robert Wexler, introducing legislation establishing an immediate study and federal ban on dangerous Chinese drywall, Florida Senator Dave Aronberg is now asking Governor Crist to create a Chinese Drywall Task Force...

Virginia Department of Health Offers Answers to Resident's Questions Concerning Defective Chinese Drywall

Posted on April 23, 2009
The Virginia Department of Health recently published a list of frequently asked questions associated with the growing concerns over defective Chinese Drywall. This is in response to the over 100,000 homes currently listed as having been built with defective drywall imported from China over the past several years...

Florida Congressman Robert Wexler Asks Governor Crist to Declare State of Emergency for Homes Affected by Chinese Drywall

Posted on April 22, 2009
Florida Congressman, Robert Wexler, recently introduced legislation establishing an immediate study and federal ban on dangerous Chinese drywall. This legislation comes in response to the thousands of Florida homes affected by the defective product. The reports of serious health risks affecting residents throughout the state due to the defective Chinese drywall found in residential home built by developers during the past few years are staggering...

Homes Initially Thought to Be Chinese Drywall Free, Now Not Able To Guarantee Safety

Posted on April 21, 2009
Homeowner warranties and insurance policies may be of no help to homeowners who have Chinese Drywall due to exclusions in the policies. New Orleans, Louisiana residents, who were initially informed that their homes were built with only United States manufactured materials, are now being informed that the construction company who built their homes is not able to guarantee that Chinese materials were not used in the construction of their homes...

Report Says Chinese Drywall Not Isolated to Florida: Also Found in Maryland, Virginia, Arizona, and Texas

Posted on April 20, 2009
According to a recent report on the Homeowners Consumer Center?s website, the defective Chinese drywall initially thought to have been isolated to Florida, has now been reported in Mississippi, Alabama, Louisiana, Maryland, Virginia, Arizona, and Texas...

Chinese Drywall Class Action Suit May Not Help Homeowners For Years If Ever

Posted on April 17, 2009
I was reading Scott Wolfe's (@scottwolfejr) post on whether or not builders are getting a free pass on Chinese Drywall claims and I began to think about how a class action lawsuit will help homeowners remedy the problems with their homes today. Based on the uptick in traffic coming to this blog and my firm's website from defective Chinese Drywall searches it is obvious that homeowners and condominium associations are following the recently filed lawsuits alleging class action claims against the manufacturers and distributors of Chinese Drywall...

Expansion of the New Jersey Consumer Fraud Act

Posted on April 16, 2009
The New Jersey Supreme Court announced a sweeping expansion of the NJ Consumer Fraud Act, N.J.S.A. 56:8-2 ("CFA"), to include work done by contractors performing interior work on new construction. In Czar Inc. Heath, A-114-07, decided 3/13/09, the Supreme Court ruled 6-1 that new homeowners who act as their own general contractors for interior finish work have a right to assert claims under the CFA against the Czar, Inc ("Czar"), the subcontractor responsible for doing installation of kitchen cabinets, doors, chair railing and other interior finishes...

Louisiana Governor Reaches Out to EPA and CDC for Assistance

Posted on April 15, 2009
Last week, Louisiana Governor Bobby Jindal asked the Environmental Protection Agency and the Center For Disease Control and Prevention for help in investigating the effects of Chinese drywall. In the letter, Governor Jindal requested assistance from the EPA and the CDC in developing and implementing chemical testing protocols in homes in Louisiana that are experiencing severe copper corrosion associated with Chinese-made drywall...

Defective Chinese Drywall Leads to Health Problems

Posted on April 14, 2009
An article on US News & World Report's website earlier this week reported that a Florida woman has been complaining of burning eyes, sinus headaches, and a general heaviness in her chest since moving into her brand-new, 4,000-square foot house in Florida a few years ago...

A Simple Checklist you can Follow to Determine if You have Chinese Drywall in your Condo

Posted on April 09, 2009
1. Does your drywall smell from rotten eggs? If so, the rotten egg smell is caused by sulphur leaching out of the drywall. It will not go away, although its intensity may vary depending upon environmental factors such as the size of the room; the amount of ventilation available, the proximity of windows and doors, and whether there are multiple cut-outs in the drywall...

Chinese Drywall May Damage Or Corrode HVAC and Electrical Systems In Homes

Posted on March 31, 2009
Builders and homeowners in Florida and other states across the country are becoming more and more concerned about Chinese-manufactured drywall that is suspected of being defective. Specifically, it is believed that the drywall contains chemicals that may corrode HVAC systems and damage electrical components...

Problems With Chinese-manufactured Drywall

Posted on March 17, 2009
Stark & Stark is conducting an investigation into problems with allegedly defective Chinese-manufactured drywall. According to a recent article posted by Newsinferno.com, the allegedly defective Chinese Drywall was, for the most part, produced by Knauf Plasterboard Tianjin Co...

WCI Communities Bankruptcy and Chinese Drywall

Posted on March 03, 2009

Fourth and Fifth Circuits Reign in ?Business Risk? Doctrine Rulings in Favor of Coverage Under General Contractors? CGL Insurance Policies Add Clarity, Signal Return to ?Plain Language?

Posted on February 26, 2009

Foul Odor In Home A Result of Chinese Drywall

Posted on February 24, 2009
WCI Communities, with developments in New Jersey, Florida, Connecticut, Maryland, New York and Virginia, filed for Chapter 11 bankruptcy protection Aug. 4 as it faced about $2 billion in debt. There have been reports of complaints about foul odors coming from drywall in homes built by WCI...

Defective Chinese Drywall

Posted on February 18, 2009
Stark & Stark's Construction Litigation Team is investigating possibly defective Chinese drywall (a.k.a. "sheetrock," "plasterboard") that has allegedly ruined many new condominium units in several states. Over the past few months, owners of newer condominium units nationwide have been complaining of drywall that smells like rotten eggs...

Drywall Imported From China Causing Construction Problems

Posted on January 13, 2009
The construction industry appears to be the latest victim of the stream of defectively manufactured goods from China that have poured into our country over the last few years. As if the construction market has not experienced enough hardship in these trying economic times, reports have recently surfaced of defective drywall products that were imported from China as the likely cause of putrid sulfur odor emissions being experienced in newly constructed homes and failure of metal devices typically installed behind sheetrocked walls, such as HVAC systems and metallic wiring...

New Jersey?s Consumer Fraud Act Applied to Home Improvement

Posted on December 19, 2008
In a recent unpublished decision under New Jersey?s Consumer Fraud Act, the Appellate Division in D. Wyatt Stone and Stone Foundation, LLC v. Kahr Properties, LLC, December 2008 App. Div. 09-2-2471), decided the appeal of a judgment in the Plaintiff?s favor for damages, attorneys' fees and costs arising from a home improvement project...

Nevada Supreme Court Denies Builder's Request in "Stucco Case"

Posted on October 02, 2008
Last Thursday the Nevada Supreme Court denied attempts from Del Webb (a national builder of active adult communities) and their contractors seeking to limit the number of homeowners within a community from pursuing construction defect claims. The court stated that subsequent buyers of a home (in addition to the original owners) which had been deemed defective have the right to sue under the Nevada State defect law...

What every builder should know about the New Jersey Consumer Fraud Act

Posted on September 02, 2008
Every builder operating in New Jersey is most likely aware that our state has plaintiff-friendly laws in the context of construction defect litigation. Even so, the gravity of claims made against builders for alleged defects typically has a direct correlation to relatively known and controllable factors, i...

Claims may exist under Consumer Fraud Act whether or not direct contact occurred between consumer and violator of Act

Posted on July 17, 2008
Matera et. al. v. M.G.C.C. Group, Inc. et. al., Docket No. L-1812-04 Judge Louis Locascio of the New Jersey Superior Court recently ruled in the matter of Matera et. al. v. M.G.C.C. Group, Inc. et. al., Docket No. L-1812-04, that a cause of action under New Jersey?s Consumer Fraud Act exists where there is no direct contact between the parties but there is a connection between the defendants? ?alleged violation of the Consumer Fraud Act and plaintiff?s ascertainable loss...

Municipalities Cannot Require Builders to Provide Common Open Spaces

Posted on July 02, 2008
The New Jersey Appellate Division ruled this month in two companion cases, New Jersey Shore Builders Association v. Township of Jackson, A-5805-06 (June 23, 2008) and Builders? League of South Jersey v. Egg Harbor Township, A-1563-07 (June 23, 2008), that municipalities cannot require as a condition of approval that builders and developers provide on-site recreation areas or facilities, or common open space, outside the context of planned unit developments...

Homeowner's Association Standing To Assert Without Joining the Homeowners

Posted on March 31, 2008
Donald B. Brenner, Shareholder and Chair of Stark & Stark's Construction Litigation group, authored the article Homeowner's Association Standing To Assert Without Joining the Homeowners for the March 24, 2008 edition of the New Jersey Law Journal. You can read the full article here...

$5 Million Verdict In Favor Of New Jersey Residential High-Rise Building

Posted on March 25, 2008
On March 11, 2008, in the matter of Camelot Condominium Association, Inc v. Dryvit Systems, Inc., pending before the Superior Court of New jersey, Docket No. BER-L-012457-04, a jury entered a verdict in favor of the Plaintiff and against Dryvit Systems, Inc ("Dryvit") for violations of the New Jersey Consumer Fraud Act...

Condo Association Equitably Estopped from Consumer Fraud Act Relief When Its Conduct Resulted in the Violation

Posted on March 04, 2008
After a condominium association president declined a contractor?s request to execute a written change order and directed the contractor to proceed with the additional work, the association was barred from seeking relief under the Consumer Fraud Act (?CFA?) (N...

Property Owner Did Not Waive Arbitration Clause by Participating in Lawsuit

Posted on December 12, 2007
In an unpublished case, the Appellate Division recently affirmed the trial court?s decision that defendant property owner did not waive the arbitration clause of its AIA construction contract with plaintiff construction company by participating in plaintiff lawsuit for a year before invoking the arbitration clause...

Consumers Cannot Waive Regulatory Requirement for Written Home Improvement Contracts

Posted on November 30, 2007
The Appellate Division recently denied a landscaping contractor?s suit to collect amounts due for extra work in addition to that called for in his contract for complete landscaping of the defendants? home. Online Contracting, Inc. v. Tripucka, No. A-2622-06 (App...

Gehry - Construction Defects are Inevitable

Posted on November 13, 2007
World famous architect Frank Gehry, and his firm Gehry Partners is a defendant in a recent lawsuit brought by the Massachusetts Institute of Technology alleging design and construction defects in a $300 Million building on the Cambridge, Massachusetts campus...

Builder's Risk Policy Does Not Cover Damage to City Sewer Pipe

Posted on October 23, 2007
Plaintiff WHP9, the developer of a multi-building residential project in North Bergen, secured a builder?s risk policy from defendant Centennial Insurance and liability insurance from another carrier before beginning construction. WHP 9, Inc. v. Centennial Ins...

Appellate Division Enforces Terms of Association?s Insurance Policy

Posted on October 08, 2007
In an unpublished decision, the Appellate Division recently enforced an insurer?s duty to indemnify and defend a condominium association for damages resulting from an occurrence during the policy period even though they were not discovered until after the policy had expired...

New Jersey Federal Court Declines to Hear Minnesota Insurance Coverage Dispute.

Posted on October 01, 2007
Judge Noel L. Hillman of the United States District Court for the District of New Jersey, sitting in Trenton, recently dismissed a case before her on the grounds that the New Jersey court was an inappropriate place to hear the dispute. The case is First Colonial Insurance Co...

District Court Defines "Residential Construction"

Posted on September 26, 2007
As the real estate market contracts, contractors, subcontractors and suppliers with unpaid balances will need to protect their interests by, among other things, taking advantage of applicable lien laws. In construing New Jersey?s lien laws, definitions of ?residential? and ?commercial? construction have long been considered by many to be a gray area...

If You Volunteer For Something, Do It Right.

Posted on September 21, 2007
There are often instances during construction projects where someone, a field superintendent, a manufacturer?s representative, a salesman, a consultant, etc. will ?stop by? a job site and ?inspect? work that is being done. Sometimes the inspection is needed before the manufacturer issues a warranty, or it may be done by the product distributor as a favor to the installer...

Consumer Fraud Case Hits New Jersey Supreme Court - Appellate Division

Posted on September 18, 2007
The New Jersey Supreme Court Appellate Division recently upheld a judgment against a stucco/masonry contractor under the New Jersey Consumer Fraud Act in Briggs v. Luisi, et al.. The case involved allegations by the owners of a single family home that the stucco/masonry contractor negligently performed repair work on the exterior of the house and on cracks in the home's foundation, and that the contractor violated the Consumer Fraud Act through affirmative misrepresentations and knowing omissions in connection with a five year warranty issued covering the work...

Lying Home Seller Found Liable for Hiding Mold

Posted on September 14, 2007
After a bench trial, a judge in New Haven, Connecticut ruled that the seller of a house that had obvious, visible mold damage - black mold stains in the utility room and water stained and rotted wood inside - had intentionally concealed the existence of this problem, and was liable to the buyers for the cost to prevent further water intrusion, the cost to repair the damage caused by past water intrusion, and $25,000 for emotional distress...

Construction Defect Case Frequent Claim

Posted on September 12, 2007
A component product?s failure to perform as represented by its manufacturer is a frequent claim in a construction defect cases. Often, defendants of such claims attempt to hide behind general disclaimers and limitations of warranty. Addressing the failure of a component product of yachts, the Federal Court for the New Jersey District recently denied a manufacturer?s summary judgment motion, having concluded that a general disclaimer of warranty will not automatically defeat an express warranty created by representations, descriptions and affirmations set forth in a product bulletin...

Stay issued in DJ action arising out of Amherst Mews case

Posted on September 04, 2007
In Transcontinental Insurance Co v. Jocama Construction Co, inc, et al, Case No. 06-CV-03358, 2007 U.S Dist. Lexis 54901, U.S. District Judge Freda Wolfson issued a stay of a declaratory judgment action filed by Transcontinental Insurance Co against Jocama Construction...

When Transition Negotiations Breakdown - Part 7

Posted on August 29, 2007
This is part seven of a seven part series by Donald B. Brenner, Chair and Shareholder of Stark & Stark?s Construction Litigation Group. This series will discuss what happens when your transition negotiations with your developer sponsor breakdown, and you are forced to commence with litigation...

Statute of Repose

Posted on August 27, 2007
On June 26, 2007, the Supreme Court of New Jersey held that the statute of repose begins to run on the date upon which the contractor or design professional has completed his or her portion of the work, In Daidone v. Nuterick Bulkheading, et al., Docket No...

When Transition Negotiations Breakdown - Part 6

Posted on August 15, 2007
This is part six of a seven part series by Donald B. Brenner, Chair and Shareholder of Stark & Stark?s Construction Litigation Group. This series will discuss what happens when your transition negotiations with your developer sponsor breakdown, and you are forced to commence with litigation...