Holding Developers Liable for Defective Buildings Under the Minnesota Common Interest Ownership Act

Event Description

Deadline to Register: November 16, 2016

In August of 2016, the Court of Appeals issued a published opinion in the case of 650 North Main Association vs. Frauenshuh, Inc., in which the court considered for the first time the limits of developer liability for defective buildings under the Minnesota Common Interest Ownership Act (MCIOA).  In the case, 650 North Main Association, a condominium homeowner's association, sued the developer of the condominium, Frauenshuh, and the general contractor, Kraus-Anderson, for defects in the condominium that had permitted water intrusion and caused significant damage to the building.  The Association argued that the developer was liable for defects in the condominium under MCIOA provision Minn. Stat. Sec. 515B.4-113(b), which states that developers ("declarants") impliedly warrant the common interest community buildings that they develop against defects.  In a special verdict, the jury concluded that there were defects and they had caused damage, but that the developer was not liable for them.  Upon motion, the district court issued a partial JMOL, concluding that the developer was liable for defects in design, but not defects in construction.  On cross-appeal, the Court of Appeals, after a detailed review of the statutory history, reversed the district court in part, concluding that JMOL was warranted on the construction defects as well, because the developer was liable for all the defects.  The lengthy opinion addressed several key construction law questions, including outlining the requirements for developer liability under MCIOA, the liability of developers for architectural defects, qualifications for expert witnesses in construction cases, jury errors of law in implied warranty cases, attorneys' fees in implied warranty cases, and whether preparatory construction expert witness fees could be recovered as part of "costs" under MCIOA.  The Association's attorney for the appeal, Hannah Stein, will discuss the opinion, the case's current status, and what the opinion means for Minnesota construction law going forward.

Registration and lunch will begin at 11:45 a.m.


Hannah Stein | Attorney for Levin Law Group LLP

CLE Credits:

1.0 Standard CLE Credit Applied For | Event Code: 231590 


Section Member: $10 
MSBA Member not in the section: $25
Non-Member:  $30
Law Students:  FREE
Join the Construction Law Section and attend for FREE: $28.00 (must call to register) 

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Friday, November 18, 2016

12:15 PM to 1:15 PM

Presidents Room / Minnesota State Bar Association Minneapolis, MN United States