El Paso Increases Surety Bond Requirement on Contractors
April 25, 2011 —
Beverley BevenFlorez CDJ STAFFThe city of El Paso has recently increased surety bonds required of contractors from $10,000 to $50,000, according to the El Paso Times. Proponents of the increase believe it was necessary to protect homeowners from fly-by-night builders, while opponents argue that the increase will have an adverse effect on an industry in that is already suffering due to the economic slowdown.
Arguments for and against the increase have been flooding the blogosphere with their views. Christian Dorobantescu on the Small Business Entrepreneur Blog claims that “only about 15% of the city’s 2,500 contractors had been able to secure a higher bond to remain eligible for work after the new requirements were announced.” However, insurance companies have a different take. “From a surety broker standpoint, most contractors will be able qualify for the bond; some will just have to pay higher premium rates to obtain it,” a recent post on the Surety1 blog argues.
While the increased bond may help homeowners deal with construction defect claims, it is not clear what effect it will have on builders in El Paso.
Read more from the El Paso Times…
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Sarah P. Long Expands Insurance Coverage Team at Payne & Fears
March 19, 2024 —
Payne & Fears LLPSarah P. Long has joined Payne & Fears LLP as a Partner in the firm’s Insurance Coverage and Litigation Group. Sarah has represented clients in all aspects of insurance coverage and litigation and also focus on construction defect claims and litigation.
Before joining Payne & Fears, Sarah was a partner at Koeller, Nebeker, Carlson, Haluck, LLP, where she represented many of the nation’s builders in construction defect actions and bad faith insurance coverage disputes for 17 years.
Known for her dependability, efficiency, and creative problem-solving, Sarah always strives to secure the best results for her clients in the most efficient manner.
“We are excited to welcome Sarah to P&F as we continue to expand and add depth to our Insurance Litigation Group. I have known Sarah in a professional and personal capacity for more than 16 years. She is well respected by clients and peers in the legal profession. She is a bright, efficient, and innovative attorney and a wonderful person,” said Sarah Odia, the group’s co-chair.
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Payne & Fears LLP
Condominium Association Wins $5 Million Judgment against Developer
July 31, 2013 —
CDJ STAFFBelgravia Condominium Association, a group of condo owners in Philadelphia, Pennsylvania, have secured a $5.05 million judgment against the contractor who converted their 1902 building into condominiums. The suit alleged that the developers and engineers failed to disclose structural problems to the condominium buyers.
One issue at hand was the maintenance of the building’s façade which has historic status. Repairs to the façade alone are expected to require $2 million. Ronald Williams, the lawyer for the association, noted that the iron canopy at the entrance had begun to break away and fall even before the condominium association came into being.
The decision isn’t yet final, as the developer has an opportunity to appeal.
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Inspired by Filipino Design, an Apartment Building Looks Homeward
May 22, 2023 —
Sarah Holder - BloombergAusterity and efficiency aren’t the first words that come to mind when you see the angled sawtooth bays of Tahanan Supportive Housing, or catch a glimpse of a rainbow through its lobby. But the dramatic exterior and joyful interior of this San Francisco building are both products of their constraints.
When David Baker Architects was approached to design the six-story development, the goal was aggressive: Produce 145 units of permanent supportive housing at under $400,000 a unit, and have the operation up and running in less than three years. The firm accepted the challenge, and by 2022, Tanahan was fully leased to residents, all of whom are San Franciscans who have struggled with chronic homelessness.
In a city where affordable units typically cost $600,000 to $700,000 each to construct, keeping in budget and meeting the deadline meant turning to the modular building company Factory OS. It also meant keeping variation at a minimum. The studios are identical, like Lego blocks; instead of being mirrored across a hallway, they’re just rotated 180 degrees. But nothing else about the building feels utilitarian.
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Sarah Holder, Bloomberg
Confidence Among U.S. Homebuilders Little Changed in January
January 28, 2015 —
Bloomberg News(Bloomberg) -- Confidence among U.S. homebuilders hovered in January close to a nine-year high, indicating the residential real estate market is poised to expand this year.
While the National Association of Home Builders/Wells Fargo builder sentiment gauge fell to 57 this month from 58 in December, readings greater than 50 mean more respondents report good market conditions, according to figures issued from the Washington-based group Tuesday. The median forecast in a Bloomberg survey called for 58.
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Bloomberg News
Don’t Ignore the Dispute Resolution Provisions in Your Construction Contract
June 05, 2023 —
David Adelstein - Florida Construction Legal UpdatesDon’t ignore dispute resolution provisions in a construction contract. Sometimes, you may want to. But dispute resolution provisions should be one of the first provisions you look to when a dispute arises recognizing these provisions will be raised if you fail to comply. Not only will they be raised, but the presumption is they will be enforced. This is the situation that was raised in Seminole County, Florida v. APM Construction Corp., 2023 WL 3555356 (Fla. 5th DCA 2023).
Here, a contractor was terminated for cause by Seminole County. The contractor then filed suit against the County. The County moved to dismiss the lawsuit because the contractor failed to comply with contractual presuit administrative procedures in the contract prior to filing a lawsuit. While the trial court denied the County’s motion to dismiss, the appellate court granted the County’s petition for writ of certiorari quashing the trial court’s order denying the motion to dismiss. For purposes of granting the writ of certiorari, the appellate court held irreparable harm existed because “certiorari jurisdiction is properly exercised when a trial court permits a party to litigate when there is a contractual or legal obligation to first administrative proceed.” Seminole County, supra, at *2.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Professional Liability Alert: California Appellate Courts In Conflict Regarding Statute of Limitations for Malicious Prosecution Suits Against Attorneys
April 28, 2014 —
David W. Evans & Stephen J. Squillario – Haight Brown & Bonesteel LLPIn conflict with an earlier decision by a different division within the same District, and with a prior decision of another District which followed the earlier case, Division Three of the Second Appellate District has concluded, contrary to established precedent, that the general two-year limitations period set forth in Code of Civil Procedure section 335.1 (“Section 335.1”) applies to malicious prosecution claims against attorneys, rather than the specific one-year statute of limitations for claims against attorneys codified in Code of Civil Procedure section 340.6 (“Section 340.6”).
In Roger Cleveland Golf Co., Inc. v. Krane & Smith, APC (filed April 15, 2014, Case No. B237424, consolidated with Case No. B239375), Roger Cleveland Golf Co., Inc. (“Cleveland Golf”), filed a malicious prosecution action against Krane & Smith (“the Attorneys”), who had unsuccessfully prosecuted the underlying breach of contract matter for their client against Cleveland Golf. In that action, on April 26, 2010, the trial court entered its order granting a motion for nonsuit and dismissing the complaint in favor of Cleveland Golf. On May 24, 2011, or approximately 13 months after the trial court had dismissed the underlying complaint, Cleveland Golf commenced a malicious prosecution action against the Attorneys. In the interim, the Attorneys initiated an appeal of the underlying judgment, which was eventually dismissed approximately seven months later. In response to the complaint, the Attorneys filed a special motion to strike, commonly referred to as an anti-SLAPP motion, which included the argument that the malicious prosecution claim was time-barred under the one-year limitations period of Section 340.6. The trial court granted the Attorneys’ motion based on the statute of limitations (and Cleveland Golf’s failure to demonstrate a probability of success on the merits) and dismissed the case. Cleveland Golf’s appeal followed.
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David W. Evans, Haight Brown & Bonesteel LLP and
Stephen J. Squillario, Haight Brown & Bonesteel LLP
Mr. Evans may be contacted at devans@hbblaw.com, Mr. Squillario may be contacted at ssquillario@hbblaw.com
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Overview of New Mexico Construction Law
June 25, 2019 —
Walter F. Crowson - Snell & Wilmer Under Construction BlogWe’ve seen an uptick in out-of-state companies working on construction projects in New Mexico. The following is an overview of some of the nuances of New Mexico construction law about which companies may want to be aware.
Construction Contract Issues
Limitation of Liability Clauses are usually Enforceable, but Anti-Indemnity Clauses Are Not
New Mexico courts have enforced limitation of liability clauses included in construction contracts. See Fort Knox Self Storage, Inc. v. W. Techs., Inc., 140 N.M. 233, 237 (N.M. Ct. App 2006). New Mexico law recognizes the difference between contracts that insulate a party from any and all liability and those that simply limit liability. Fort Knox Self Storage, Inc., 140 N.M. 233 at 237. An exculpatory clause immunizes a party from liability, whereas a limitation of liability clause merely curtails liability. Id. A limitation of liability clause has been held not to violate New Mexico public policy because the party “still bears substantial responsibility for its actions.” Id.; see also Cowan v. D'Angelico, 2010 WL 11493789, *6 (D. N.M. Apr. 26, 2010).
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Walker F. Crowson, Snell & WilmerMr. Crowson may be contacted at
wcrowson@swlaw.com