Overview of Construction Defect Litigation

• Introduction to Construction Defects

  • Definition: A claim arises when a building has flaws in design, materials, or workmanship leading to safety issues or damages.

  • Claimants seek compensation for harm due to defects.

• Types of Construction Defects

  • Defective Design: Errors or omissions in architectural/engineering plans (e.g., Florida condo collapse due to poor design).

  • Poor Workmanship: Defective installation that fails to meet industry standards.

  • Defective Materials: Use of substandard materials causing issues.

  • Building Code Violations: Failure to comply with relevant codes and regulations.

  • Maintenance Issues: Neglect or delayed response to problems.

• Common Examples of Defects

  • Leaky roofs and foundations

  • Cracked concrete

  • Faulty plumbing/electrical systems

  • Settling foundations/leaky roofs

• Statutes Related to Construction Defects

  • Statute of Limitations: Time limits for filing construction claims.

    • Nevada Specifics:

      • Patent defects: 6 years

      • Latent defects: 8 years

      • Known defects: 10 years

  • Legal Counsel Importance: Always consult an attorney due to complexities in statutes and changes (2015/2019 revisions).

• Duty of Care

  • Architects and contractors must perform work with reasonable skill and care.

• Insurance Coverage in Construction Defects

  • Often, contractors hold insurance which can cover claims related to defects.

  • Consult qualified attorneys for legal advice in cases of construction defects.

• Case Study: North Las Vegas Issues

  • Homeowners experiencing foundation issues due to rifting soil and cracking walls.

  • Required builders to address problems beyond temporary fixes.

  • Legal actions required to compel builders to address fundamental issues.

Litigation and Statutory Framework

• Legal Framework for Construction Defect Claims

  • Different claims have differing filing deadlines (statutes of repose/limitations).

  • Claims based on breach of contract require legal intervention.

• Importance of Proper Complaints

  • Boards cannot file class action lawsuits on behalf of homeowners.

  • Individual homeowners must engage legal help for common areas or defects impacting multiple units.

• Legal Privilege and Confidentiality

  • Confidential communications in legal proceedings are protected from forced disclosure.

  • Discussions and records related to construction defects must be handled with care.

• Association's Authority

  • Must follow processes outlined in NRS 116 for pursuing litigation or enforcing compliance.

  • Written notice to homeowners is mandatory before civil action considerations.

• Common Questions about Claims:

  • Quorum and voting requirements for actions taken by board members.

  • Financial obligations and assessments for associations must be transparent and documented.

  • Importance of surveys to gather homeowner complaints about defects in residences/community spaces.

Educational Takeaways for Future Managers

• Understand your role in advocating proper maintenance and updating practices in community management.

• Recognize the importance of being proactive in identifying potential issues before they escalate.

• Be prepared to guide homeowners through legal processes regarding construction defects.