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DIRECTORY AND CAPABILITIES

Construction Law: Unexpected, Fascinating, Bizarre

April 25, 2012 — CDJ STAFF

Guy Randles offers an amusing set of odd construction law cases in the Daily Journal of Commerce, which he describes as “the unexpected, the fascinating and even the bizarre.” He noted that in one case “a whistleblower claimed he was terminated for reporting to the owner that the contractor’s painters had not applied the required coating thickness.” The whistleblower was the project manager and “was responsible for ensuring the proper coating thickness.”



A less amusing case was that of an architect who was arrested for manslaughter. Gerard Baker “told investigators that the considered the fireplaces to be merely decorative.” Randles notes that “the mansion’s fireplaces were built of wood framing and lined with combustible drywall.” Further, a “gas fireplace even vented into the house’s interior.” Building officials called the house “a death trap.” According to the LA police chief this may be the only case in which building defects lead to a manslaughter charge.



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No Interlocutory Appeals of "Garden-Variety" Contract Disputes

March 12, 2015 — Jesse Howard Witt – Acerbic Witt
Colorado’s new procedure for interlocutory appeals has its limits. In the recent decision of Rich v. Ball Ranch Partnership, ___ P.3d ___, 2014 COA 6 (2015), the Colorado Court of Appeals held that Appellate Rule 4.2 does not permit interlocutory review of questions of law in “garden-variety” or “run-of-the-mill” contract disputes. This resolves a subtle question that has been lingering since Colorado first created the interlocutory appeal process four years ago. Prior to 2011, Colorado did not permit civil litigants to seek appellate review prior to final judgment, except in a small handful of situations. As I discussed in an article at the time, this changed with the passage of C.R.S. § 13-4-102.1 and the adoption of Rule 4.2, which granted the court of appeals discretion to permit the immediate appeal of certain district court orders. These provisions allowed parties to seek interlocutory review of orders before the conclusion of a case if a district court could certify that (1) immediate review might promote a more orderly disposition or establish a final disposition of the litigation, and (2) the order involved a controlling and unresolved question of law. The rule was patterned after 28 U.S.C. § 1292(b), which provides similar relief in the federal courts. Read the court decision
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Reprinted courtesy of Jesse Howard Witt, The Witt Law Firm
Mr. Witt welcomes comments at www.acerbicwitt.com

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Dallas Condo Project to Expand

November 20, 2013 — CDJ STAFF
Cooper & Stebbins has announced that they are building additional units at Southlake Town Square. One set of additions will expand the Garden District Brownstones, which were built in 2006. There will additionally be a five-story building to be called The Residences. Southlake Town Square is a mixed-use development, combining retail and residences. Read the court decision
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Sales Pickup Shows Healing U.S. Real Estate Market

June 26, 2014 — Shobhana Chandra – Bloomberg
Americans snapped up previously owned homes in May in the biggest monthly sales gain in almost three years, a sign the residential real estate market is regaining its footing after a stumble early in the year. Purchases climbed 4.9 percent, the biggest increase since August 2011, to a 4.89 million annualized rate, figures from the National Association of Realtors showed today in Washington. The level was the strongest since October. The report also showed price appreciation is slowing as more homes become available. A more balanced market, including a wider selection of properties, smaller price gains and still-low borrowing costs, may encourage more Americans to buy as employment strengthens. Improving demand will probably spur a pickup in construction, and builders such as Hovnanian Enterprises Inc. (HOV) are optimistic. Read the court decision
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Reprinted courtesy of Shobhana Chandra, Bloomberg
Ms. Chandra may be contacted at schandra1@bloomberg.net

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Follow Up on Continental Western v. Shay Construction

March 28, 2012 — Brady Iandiorio, Higgins, Hopkins, McLain & Roswell, LLC

Writing in Construction Law Colorado, Brady Iandiorio revisits the case Continental Western v. Shay Construction. He promises to continue to follow cases dealing with Colorado HB 10-1394.



Recently the Court ruled on two Motions to Reconsider filed by Defendants Milender White and Shay Construction.



Procedurally, the Motions to Reconsider were ruled on by the Honorable William J. Martinez, because the day after the motions were filed the action was reassigned to Judge Martinez. In the short analysis of the Motion to Reconsider, the court leaned on Judge Walker D. Miller’s ruling on the summary judgment and his analysis of the (j)(5) and (j)(6) exclusions.



As a quick refresher regarding the grant of summary judgment, Judge Miller agreed with Continental Western’s argument that the asserted claims were excluded under the “damage to property” exclusion. The policy’s exclusions state: “(j) Damage to Property . . . (5) that particular part of real property on which you or any contractors or subcontractors working directly or indirectly on your behalf are performing operations, if the ‘property damage’ arises out of those operations; or (6) that particular part of any property that must be restored, repaired or replaced because ‘your work’ was incorrectly performed on it.” Judge Miller found that both exclusions (j)(5) and (6) applied to both Shay’s allegedly defective work.

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Reprinted courtesy of Brady Iandiorio of Higgins, Hopkins, McClain & Roswell, LLC. Mr. Iandiorio can be contacted at iandiorio@hhmrlaw.com.

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#3 CDJ Topic: Underwriters of Interest Subscribing to Policy No. A15274001 v. ProBuilders Specialty Ins. Co., Case No. D066615

December 30, 2015 — Beverley BevenFlorez-CDJ STAFF
Michael R. Vellado and Nicole R. Kardassakis of Lewis Brisbois Bisgaard & Smith LLP analyzed the appeals case that “reversed the trial court’s entry of summary judgment in favor of ProBuilders Specialty Insurance Company (“ProBuilders”) and held that the ‘other insurance’ clause in the ProBuilders policy did not relieve it of its duty to participate in the defense of its insured, Pacific Trades Construction & Development, Inc. ('Pacific Trades')." Read the full story... Another discussion of the ProBuilders appeal ruling occurred on the California Construction Law Blog, written by Yas Omidi of Wendel Rosen Black & Dean LLP. Omidi explained the appeal’s court decision: “In reversing the trial court’s decision, the appellate court characterized ProBuilder’s ‘other insurance’ clause as an ‘escape clause’—i.e., a clause that attempts to have coverage, paid for with the insured’s premiums, evaporate in the presence of other insurance.” Furthermore, she noted that “California public policy disfavors such clauses.” Read the full story... Read the court decision
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‘Like a War Zone’: Malibu Fire Ravages Multimillion-Dollar Homes

December 04, 2018 — John Gittelsohn, Anousha Sakoui, & Christopher Palmeri - Bloomberg
Malibu resident Lance Schultz was jolted awake at 2 a.m. Friday with word that he needed to evacuate. With a roaring fire approaching the coastal community, he gathered his girlfriend, dog and 8-month-old son and headed to nearby Zuma Beach. He returned Sunday to survey the damage. His home was saved after his girlfriend’s 82-year-old father returned to hose down the property he had built years before. But Schultz estimates about one-fifth of the houses in the neighborhood are gone, including a mansion down the block that was on sale for $16 million. Much of the rest of the area is covered in black soot. Read the court decision
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Reprinted courtesy of John Gittelsohn, Anousha Sakoui, & Christopher Palmeri, Bloomberg

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Quick Note: Insurer Must Comply with Florida’s Claims Administration Act

September 14, 2017 — David Adelstein - Florida Construction Legal Updates
As an insured, know YOUR rights under Florida’s Claims Administration Act (Florida Statute s. 627.426). I wrote an article on this exact topic. If a third-party claim is asserted, or in the process of being asserted, against you, do yourself a favor and consult a lawyer that can assist you with preserving your insurance coverage rights. You pay liability insurance premiums for a reason so make sure you are not doing anything that could jeopardize rights under applicable insurance policies. A liability insurer must comply with the Claims Administration Act if it wants to deny coverage based on a coverage defense (e.g., the insured’s failure to cooperate with the insurer). Read the court decision
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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at Dadelstein@gmail.com

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