• Reserve Claims under the Minnesota Common Interest Ownership Act -- Has the Tail that Wags the Dog Been Docked?
  • July 15, 2010 | Author: Laura N. Maupin
  • Law Firm: Barnes & Thornburg LLP - Minneapolis Office
  • Since 1994, the Minnesota Common Interest Ownership Act (MCIOA), Minn. Stat. Ch. 515B, has provided statutory governance for planned communities such as condominium and townhouse developments. Before the housing bubble burst, there was explosive growth in the development and construction of these planned communities, and therefore a corresponding rise in residential construction defect litigation involving planned communities. Though residential construction defect litigation traditionally settles early, cheaply and with minimal discovery, planned community cases have increasingly been prolonged and complicated by the addition of the “reserve claim” against the developer / builder.