MBlock Investors, LLC v. Bovis Lend Lease, Inc.
MBlock, an entity formed by the lender to take title to a defective project by deed in lieu of foreclosure, sued the general contractor for negligent construction and building code violations; the contractor raised a prior close-out release signed by the original developer. The Third DCA held MBlock was the developer's 'successor' and in privity, so the release bound it, but reversed summary judgment because the release only covered claims 'known' as of the effective date and an expert affidavit created a fact issue whether the defects were latent and unknown.
Key facts
- MBlock Investors, LLC, an entity formed by a lender to take title to a defective construction project by deed in lieu of foreclosure, sued general contractor Bovis Lend Lease, Inc. for negligent construction and building code violations.
- The original developer had signed a close-out release with the contractor that included 'successors and assigns' language and referenced known issues as of the effective date.
- +2 more key facts with a free trial
Why it matters
This opinion gives construction and commercial litigators a two-sided tool: it confirms that successors who take over all of a predecessor's property rights are bound by broad 'successors and assigns' releases (privity… — full analysis with a trial
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