I. Table Of Contents
II. A General Overview
A. Prelitigation Considerations
1. Categorizing The Case
2. The "Chapter 40 Process"
3. Surveying Owners And Residents
4. Hiring The Right Construction Defect Law Firm
5. Retention Of Consultants
6. Impact Of Litigation
B. Factors To Consider In Pursuit Of Litigation
1. HOA Document Review
2. Reserve Studies
3. Attorney'sFees
4. Cash Flow/Funding Considerations
5. Is There Insurance?
6. Third Party Claims
7. Indemnity Agreements
C. Causes Of Action - What Can You Sue For?
1. Three Theories Of Liability
2. Strict Liability - The Best
Claim
3. Breach Of Implied Warranty
4. Negligence
5. Other Causes Of Action
III. A Closer Look
A. How Many Homes Have Construction Defects
B. What Is A Construction Defect?
1. Constructional Defect Defined
2. Problems Constituting A Construction Defect
3. Courts Recognize Two Primary Categories Of Defects
C. Development Of Applicable Law
1. Caveat Emptor: Buyer Beware
2. Modern Law
D. The Board Of Directors Responsibilities
1. Board Of Directors Authority And Obligation
2. Standing To Sue
3. Fiduciary Duty Of Repair And Maintenance
4. Corporate Duties
5. Developer'sRepresentation On The Board
E. Property Manager Responsibilities
1. Property Managers Are Employed
Or Contracted By The BOD
2. Standards Of Care
3. Managersand HOAs Protected
4. Indemnification Considerations
F. HOA Financing For Litigation
1. Funding Sources
2. Authority
3. Reserve Funds
4. HOA Loans
G. General Counsel Responsibilities
1. What General Counsel Should Do
2. What General Counsel Should
Not Do
H. Government Liability - What About City Inspectors?
1.Clark County Inspection Department
2.NRS§41.033
3.NRS§41.035
4.NRS§41.032
5.Case Law
6.NRS§40.140
IV. Time Limits
A. Statues Of Repose/Limitations
B. Patent Vs. Latent Defects
1. Quick Check
2. Patent Defects
3. Latent Defects
4. Two Year Extension
5. Date Of Discovery
C. Practical Considerations Regarding These Statutes
D. Tolling: Stopping Time From Running
1. Discovery Rule
2. NRS 40.695
V. The Chapter 40 Process: Litigation Procedures Under
NRS 40.600-695
A. Definitions
1. Legal Definitions
2. Construction Defect Definitions
B. Notice To Builder
1. Notice In A Complex Matter
2. Offers To Repair
3. Duties Of The Builder And Claimant
C. Offer By Builder
1. Offer Of Settlement
2. Timeline
D. Agreement For Repurchase
E. Mediation
1. Mediation Requirements
2. Appointment Of Special Masters
F. Damages
G. Tolling
H. Trial Setting Preference
I. Disclosure Of Homeowner Warranties And Insurance
J. New: Actions Against Design Professionals
VI. Experts
A. Battle Of The Experts
B. Agreements Between HOA Attorneys And Experts
C. List Of Consultants Typically Retained
1. Architects
2. Soils Engineer
3. Structural Engineers
4. Civil Engineer
5. Landscape Architect
6. Mechanical Engineer
7. Electrical Engineer
8. Cost Estimator
9. Specialty Consultants
D. Locating The Right Expert
1. Construction Defect Attorneys
2. Professional Associations
3. Other Organizations
4. Publications
E. Objectives For An Investigation
1. Identification
2. Causes
3. Examination
4. Recommendations
F. Stages Of Investigation
1. Site Inspection
2. Survey
3. Spot Check Verification
4. Consultant'sPreliminary Report
5. Repair Cost Estimates
6. Mediation Conferences
7. Trial
G. Expert File Index
VII. Damages And Defenses
A. Damages (NRS§40.655)
1. Cost Of Repair/Diminution In Value
2. Costs To Investigate
3. Relocation Costs
4. Punitive Exemplary Damage
5. Temporary Repair Costs
6. Attorney'sFees
7. Interest
B. Defenses A Developer May Raise
1. Statutes Of Limitations
2. Failure To Mitigate (NRS §40 640)
3. Damage Awards
VIII. Alternatives To Litigation Mediation
A. Alternative Dispute Resolution (ADR) Methods
1. ADR
2. Most Common Types Of ADR
3. Mediation
B. Mediation Opportunities
1. Accelerated Resolution
2. Future Relations
C. Direct Benefits Of Mediation
1. Not A Sum Zero Approach
2. Lower Cost
3. Not Binding
4. Burden On Emotions
5. Settlement Likely
D. Drawbacks To Mediation
1. Attorney's Fees
2. Litigation Possible
3. Exploitation
4. No Clear-Cut Winner
5. No Public Records
E. Mediation Agreements
1. The Agreement To Mediate
2. Selection Of The Mediator
F. Mediating Construction Defect Actions
1. Construction Defect Cases
2. The Mediator's Primary Goal
3. Spoliation Of Evidence
4. The Mediator's Most Important
Role
5. The Mediator As A Discovery Referee
6. Recommendations For Settlement
IX. Addendum
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© Copyright 2008 The Miller Law Firm. All rights Reserved.
If you experience problems or have questions, contact us at Info@ConstructionDefects.com.
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