Building on Promises: Under New York Ruling, Extended Warranties Go Further

March 2, 2026 Building on Promises: Under New York Ruling, Extended Warranties Go Further Daniel Towns, Kevin Wallace Troutman Pepper Locke + Follow x Following x Following - Unfollow Contact LinkedIn Facebook X Send Embed To embed, copy and paste the code into your website or blog: INTRODUCTION Latent construction defects can surface years after construction ends. Every defect is different, but they all raise the same question: who is responsible? This is a simple question with no simple answer, and warranty disputes can lead to huge losses for owners and contractors alike: owners are forced to pursue warranty claims and risk incurring costs of correction that should have been covered, while contractors bear the risk of “call back” repair work for which they may not be responsible. Both parties have multiple tools at their disposal to clarify their obligations and allocate responsibilities, but many (if not most) construction contracts fail to achieve the appropriate balancing of the risks each party should properly take on. The following analysis focuses on a 2021 New York case, HTRF Ventures, LLC v. Permasteelisa N. Am. Corp., 190 A.D.3d 603 (1st Dept 2021), which has had notable impacts on the negotiation of guarantees and warranties against defective work and materials. The article begins with the background of the case, then examines the Permasteelisa holding and its significance in light of the traditional warranty language used in the construction industry. Permast...