Cambridge Massachusetts Building Expert Directory

Home-Rentals Wall Street Made Say Grow or Go: Real Estate

July 23, 2014 — Heather Perlberg and John Gittelsohn – Bloomberg
Alexander Philips joined the rush to buy foreclosed U.S. homes four years ago, spending $40 million on houses in California and Nevada to operate as rentals. Now his firm, Twinrock Partners LLC, is getting ready to sell. “We didn’t want to be the last one standing when the music stopped,” Philips, 38, said in a telephone interview. “We view this as a trade, not as a business.” The U.S. home-rental industry, transformed over the past two years by Wall Street-backed companies that were built on the rubble of the housing crash, is poised to be reshaped again as landlords like Philips get out. Corporate owners with limited capital or deadlines to repay investors are now selling houses in bulk, or one by one, after a 26 percent surge in prices from a March 2012 low. For bigger firms, swallowing smaller competitors is among the best opportunities for growth as they shift their focus to managing scattered properties. Ms. Perlberg may be contacted at hperlberg@bloomberg.net; Mr. Gittelsohn may be contacted at johngitt@bloomberg.net Read the court decision
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Reprinted courtesy of Heather Perlberg and John Gittelsohn, Bloomberg

Florida’s Construction Defect Statute of Repose

August 24, 2017 — David Suggs – Bert L. Howe & Associates, Inc.
Butler Weihmuller of Katz Craig LLP discussed Florida’s 10-year statute of repose law: “Under § 95.11(3)(c), the action must commence within 10 years after the date of actual possession by the owner, the date of the issuance of a certificate of occupancy, the date of abandonment of construction if not completed, or the date of completion or termination of the contract between the professional engineer, registered architect, or licensed contractor and his or her employer, whichever date is latest.” However, Weihmuller explains that parties may disagree on the specific date For instance, in Busch v. Lennar Homes, LLC, Florida’s 5th DCA recently “reversed a trial court’s dismissal of a homeowner’s construction defect claim that was filed just beyond 10 years after the closing date on the property.” The previous decision had been based on the notion that the contract had been completed upon the date of closing. The 5th DCA declared that “a contract is not completed until both sides of a contract have been performed” and “pointed to the ‘inspection and punch-list clause’ of the contract.” The clause indicated that “[a]ny remaining items that Seller has agreed to correct will be corrected by Seller at Seller’s sole cost and expense prior to closing or at Seller’s option within a reasonable time after closing.” Since not all punch-list items had been completed prior to closing, the 5th DCA held that the contract had not been completed at closing, and therefore the statute of repose did not begin until the punch-items had been accomplished. Read the court decision
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Arguing Cardinal Change is Different than Proving Cardinal Change

April 05, 2021 — David Adelstein - Florida Construction Legal Updates
The cardinal change doctrine has become a popular doctrine for a contractor to argue under but remains an extremely difficult doctrine to support and prove. Arguing cardinal change is one thing. Proving cardinal change is entirely different. As shown below, this is a doctrine with its origins under federal government contract law with arguments extending outside of the federal government contract arena. For this reason, the cases referenced below are not federal government contract law cases, but are cases where the cardinal change doctrine has been argued (even though these cases cite to federal government contract law cases). A party argues cardinal change to demonstrate that the other party (generally, the owner) materially breached the contract based on the cardinal change. In reality, a party argues cardinal change because they have cost overruns they are looking to recover and this doctrine may give them an argument to do so. But it is important to recognize the distinction between raising it as an argument and the expectation that this (difficult doctrine to prove) will carry the day. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Construction Litigation Roundup: “You Left Out a Key Ingredient!”

September 12, 2023 — Daniel Lund III - Lexology
“Baking is as much of a science as it is an art. It’s important to take the time to understand what you’re doing and why. Skipping steps can make or break your cupcakes, and there are a lot of things that can go wrong when baking from scratch.” And so it is with construction contract drafting. Defendants on a Miller Act claim filed by a second-tier subcontractor in federal court in Pensacola, Florida, sought to have the case transferred to Virginia, based upon a forum selection clause in the first-tier subcontract. Read the court decision
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Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

California Governor Signs SB 496 Amending California’s Anti-Indemnity Statute

June 05, 2017 — William S. Bennett - Saxe Doernberger & Vita, P.C.
The bill amends Cal. Civ. Code § 2782.8 as it applies to indemnity agreements with design professionals. The pre-existing § 2782.8 prohibited public agencies from requiring indemnity from design professionals for anything other than claims arising out of, pertaining to, or relating to the negligence, recklessness, or willful misconduct of the design professional. Under the newly passed bill, the indemnity restrictions imposed on public agencies when contracting with design professionals will now apply to all parties contracting with design professionals for professional services (effective Jan. 1, 2018). These restrictions also apply to a party contractually imposing a defense obligation on the design professional. The revised statute specifically identifies architects, landscape architects, professional engineers, and professional land surveyors as included within the meaning of “design professional,” however it is unclear whether that is the extent of the phrase’s meaning. Read the court decision
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Reprinted courtesy of William S. Bennett, Saxe Doernberger & Vita, P.C.
Mr. Bennett may be contacted at wsb@sdvlaw.com

New York Court Rules on Architect's Duty Under Contract and Tort Principles

November 05, 2014 — Beverley BevenFlorez-CDJ STAFF
According to Traub Lieberman Straus & Shrewsberry LLP's blog, in a recent case, "which involved a five story expansion/conversion of an existing one story commercial building located in Brooklyn, New York," the architect was retained with obligations among five construction phases. Later, the condominium board alleged that construction defects existed and filed suit against contractors, engineers, and the architect. The Court granted the Architect's motion to dismiss the complaint, holding "that the allegations of negligence under the circumstances were based on construction defects and 'as such, sound in breach of contract rather than tort.' This was so, even though plaintiff alleged 'breach of a duty of care,' a traditional tort liability concept. The Court dismissed the breach of contract claim as well, holding that a 'successor in interest' argument should not be permitted to erode the firmly established privity requirement for an architect’s contract-based liability." Read the court decision
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Spreading Cracks On FIU Bridge Failed to Alarm Project Team

May 20, 2019 — Scott Judy & Richard Korman - Engineering News-Record
On the morning of last year’s Florida International University pedestrian bridge collapse, when the engineer of record assured project team members that there were no safety risks related to cracks propagating across a part of the unusual single-truss structure, other project team members voiced mild concern, but no alarm. In hindsight, considering that the bridge had no inherent structural redundancy as it sat, incomplete, straddling a busy highway—and would suffer a sudden, catastrophic and deadly collapse just hours later—the team’s lack of urgency remains puzzling, say engineering experts contacted by ENR for comment. Reprinted courtesy of Scott Judy, ENR and Richard Korman, ENR Mr. Judy may be contacted at mailto:judys@enr.com Mr. Korman may be contacted at kormanr@enr.com Read the court decision
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Record Home Sales in Sydney Add to Bubble Fear

March 05, 2015 — Michael Heath – Bloomberg
Sydneysiders wanting to sell their homes have never had it easier. The proportion of successful house auctions in Australia's largest city was above 80% at the weekend for the fourth week in a row. That is the longest stretch on record and highlights the potential consequences of a projected interest-rate cut. Governor Glenn Stevens's effort to revive business investment with cheap finance is adding fuel to the country's biggest property market. Home sellers may get a further boost, with 18 of 29 economists forecasting a 25-basis-point cash rate reduction on Tuesday. Read the court decision
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Reprinted courtesy of Michael Heath, Bloomberg

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