Condo-HOA Blog - Liability
Important Oregon Supreme Court Opinion on Negligent Construction
In what appears to be the final word on claims for negligent construction, the Oregon Supreme Court ruled last week that such claims must be brought within two years of "discovery." In Goodman v. Kingman Plastering, Inc. (2016), the Supreme Court effectively overruled Riverview Condo. Ass'n v. Cypress Ventures (2014), a recent (lower) Court of Appeals case that ruled that negligent construction claims needed to be brought within six years of discovery. read more
Unintended Consequences
One of the main takeaways from the Washington Supreme Court's recent decision in Bilanko v. Barclay Court is that a declaration amendment that is adopted in a manner that does not exceed its legal authority and and does not appear to be borne out of fraud or other wrongdoing cannot be challenged more than one year after it is recorded. This is welcome news to associations, which had been thrown onto unsteady legal ground after the Court's earlier decision in Club Envy v. Ridpath called into question the enforceability of rental cap amendments that were over one-year old, but had not been passed with at least 90% owner consent. read more
Court Affirms "Discovery Rule" in First-Party Insurance Claim
We have been writing quite a bit over the last couple of years about the evolving legal landscape of first-party insurance claims in the Pacific Northwest. As more community associations that are otherwise outside of the window to bring construction defect claims for property damage instead bring claims under their own historical insurance policies, courts are getting more of an opportunity to address key issues. read more
When Cooperation Becomes Evisceration
Most insurance policies contain some form of "cooperation" provision. These provisions exist in both first-party insurance policies (e.g. property policies) and third-party policies (liability policies). When an insured files a first-party claim or tenders a third-party liability claim to its insurance company, the insurance company will often ask for the insured to "cooperate." Generally speaking, the insured must acquiesce to the reasonable requests for cooperation from the insurance company. That being said, there are situations where the insured should tread lightly. read more
Buyer Beware
Many in the homebuilding industry still believe in the notion of caveat emptor or "buyer beware." Unfortunately, many home buyers aren't aware of what they are purchasing. This can be particularly true with first time buyers who are understandably anxious and excited to join the ranks of home-ownership. When it comes to new home warranties, many builders go to great lengths to disclaim limited protections that purchasers might otherwise enjoy. We often see builders offering "Express Warranties" that are more about disclaiming liability than warranting anything. We often hear that a one or two year warranty coupled with a disclaimer of any and all other liability warranty represents the "industry standard." If that truly is the industry standard then the industry is wrong. Most small electronics come with a better warranty than this. read more