Maybe California Actually Does Have Enough Water
September 06, 2021 —
Francis Wilkinson - BloombergIt’s hard to know how much to panic over California’s dwindling water supplies. The state has never really had enough water, after all, yet lawns in Beverly Hills somehow remain perpetually green. Earlier this month, however, came a sign that life might soon be getting more uncomfortable for more Californians.
On Aug. 3, the State Water Resources Control Board voted 5 to 0 to issue an “emergency curtailment” order for the Sacramento-San Joaquin Delta watershed. Last week the order was submitted to the state’s Office of Administrative Law, which is likely to approve it.
The watershed covers about 40% of the state, stretching roughly from Fresno to Oregon, and is California’s largest source of surface water. About 5,700 holders of water rights, largely in agriculture and business, will be affected by the reduction in water access. Although many farms have already drawn most of the water they need for the season, the board’s move was a sign that ancestral water rights won’t be a guarantee of actual water if drought persists.
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Francis Wilkinson, Bloomberg
Don’t Get Caught Holding the Bag: Hold the State Liable When General Contractor Fails to Pay on a Public Project.
January 31, 2018 —
Sean Minahan – Construction Contract AdvisorAccording to a quick Google search the term
“holding the bag” comes from the mid eighteenth century and means be left with the onus of what was originally another’s responsibility. Nobody wants to be left holding the bag. But that is the situation our client (subcontractor) found themselves in when upon completion of a public project the general contractor went out of business before paying the remaining amount due and owing to our client.
Under Nebraska law, liens are not allowed against public projects. Instead the subcontractor is to make a claim on the payment and performance bond secured by the general contractor at the start of the project. In our case, the general contractor never secured a bond on which to make a claim; consequently, leaving our client holding the bag.
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Sean Minaham, Lamson, Dugan and Murrary, LLPMr. Minahan may be contacted at
sminahan@ldmlaw.com
Are Millennials Finally Moving Out On Their Own?
July 16, 2014 —
Beverley BevenFlorez-CDJ STAFFBrad Hunter of Big Builder reported that there is “some evidence that young people who had moved in with their parents or relatives are now finding the means and the motivation to move out and get their own place.”
According to the 2013 Current Population Survey (as quoted by Big Builder), there was “a drop in the percentage of twenty-somethings living with parents. This was the first decline since 2005, back when the speculative foundations of the housing market started to crumble.” However, a study by the Harvard Joint Center on Housing found that “2.1 million more people between in their 20's lived with their parents than would have typically been the case based on normal headship rates.” This demonstrates that demand for housing should increase as this group gets older and decides to break out on their own.
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Florida Law: Interplay of SIR and the Made-Whole Doctrine
March 12, 2015 —
Beverley BevenFlorez-CDJ STAFFAmanda Baggett of Roger Towers explained the nuances of self-insured retention or “SIR,” which “typically refers to a dollar amount stated in a liability policy that the insured must satisfy before the insurer is required to defend or indemnify a claim.” Baggett stated that most of the time, the SIR is satisfied by the insurer paying the initial defense costs up to the SIR. However, “the Florida Supreme Court has held that an insured may satisfy the SIR using funds received from a third party. Intervest Construction of Jax, Inc. v. General Fidelity Ins. Co., 133 So. 3d 494 (Fla. 2014).”
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Employee or Independent Contractor? New Administrator’s Interpretation Issued by Department of Labor Provides Guidance
August 04, 2015 —
Tanya Salgado – White and Williams LLPThe question of whether a worker should be classified as an independent contractor or an employee is fraught with confusion and misunderstanding for many businesses. Compounding the problem is the fact that there are a number of different tests used to determine employee status, which vary by jurisdiction and by the particular law in question. For example, the Internal Revenue Service uses the common law rules which focus on the degree of control and independence exercised by the worker. In contrast, the United States Department of Labor uses the “economic realities” test which focuses on whether the worker is economically dependent on the employer.
In an effort to help combat the confusion over proper worker classification, the United States Department of Labor (DOL) has issued a new Administrator’s Interpretation that provides a detailed explanation of the test used by the DOL to determine if a worker has been misclassified as an independent contractor. The DOL enforces the Fair Labor Standards Act (FLSA), which mandates that employees (but not independent contractors) be paid minimum wage and overtime. When a business misclassifies non-exempt workers as independent contractors, and those workers are not paid the minimum hourly wage for their labor, or are not paid overtime when they work more than 40 hours in a workweek, this violates the FLSA.
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Tanya Salgado, White and Williams LLPMs. Salgado may be contacted at
salgadot@whiteandwilliams.com
Home Sales Topping $100 Million Smash U.S. Price Records
May 07, 2014 —
Prashant Gopal – BloombergThe U.S. trophy-home market is shattering price records this year as an increasing number of residential properties change hands for more than $100 million.
Barry Rosenstein, founder of hedge fund Jana Partners LLC, has purchased an 18-acre (7.3-hectare) beachfront property in East Hampton, New York, for $147 million, according to the New York Post. That would break the U.S. single-family price record of $120 million set last month with the sale of a Greenwich, Connecticut, waterfront estate on 51 acres. In Los Angeles, a 50,000-square-foot (4,600-square meter) home sold in February for $102 million in cash after a bidding war.
The world’s richest people are moving cash to real estate as they seek havens for their wealth. In the U.S., an improving economy and stocks at a record are bolstering confidence among the affluent. Home purchases of $2 million or more jumped 33 percent in January and February from a year earlier to the highest level for the two-month period in data going back to 1988, according to an analysis by DataQuick.
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Prashant Gopal, BloombergMr. Gopal may be contacted at
pgopal2@bloomberg.net
Manhattan Trophy Home Sellers Test Buyer Limits on Price
February 14, 2014 —
Oshrat Carmiel – BloombergBroker Alon Chadad’s client purchased a $14.3 million apartment on Manhattan’s Central Park South, then spent nine months seeking approval for plans to overhaul it. In January, the buyer changed course, listing the unit for sale at more than double what he paid just a year ago.
“He filed all the documents for renovation and he was ready to go and he decided, ‘You know what? I see opportunity in the market,’” said Chadad, co-founder of Blu Realty Group and the agent for the 6,160-square-foot (572-square-meter) condominium, which has an asking price of $29.5 million.
Luxury-apartment owners in New York are listing a record amount of properties for sale, testing the upper limits of what buyers are willing to pay even as median prices remain off their peak set almost six years ago. Sellers have taken notice of a handful of record-shattering deals, triggered by an $88 million purchase at 15 Central Park West, and demand for trophy homes by international investors seeking havens for their cash.
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Oshrat Carmiel, BloombergMs. Carmiel may be contacted at
ocarmiel1@bloomberg.net
When Is a Project Delay Material and Actionable?
January 11, 2022 —
Rick Erickson - Snell & Wilmer Real Estate Litigation BlogWelcome to 2022! This year, the construction industry will undoubtedly reflect on the last two years as unprecedented times plagued by construction project delays. The COVID-19 pandemic contributed to suspension of work and closure of construction projects worldwide in 2020. The end of 2021 brought additional delays caused by an inexplicable clog in the supply chain of construction materials. The combined impact of these events on project milestones and completion deadlines led our clients to ask, with unusual and particular urgency, who is liable for such delays and how do contracting parties lessen the consequences from such unexpected and uncontrollable delays.
Granted that project delays are nothing new or unusual. They were common enough before inflation caused shipping complications and pandemic decimated the construction labor force. All delays, whatever the source, variably cause loss to all players on a construction project. But not all delays matter when it comes to claims and remedies available to the contracting parties in dispute resolution, where the determinative focus is on material delays impacting the entire project and on delays the claimant can credibly prove.
Most, if not all, jurisdictions interpret actionable delays from the contract documents for the project. The contract is definitely where you should start before pursuing any delay remedies. Delay remedies may be a time extension only, or a time extension plus your additional general conditions. Some delay remedies may be barred by the contract’s express terms and may be enforced adversely by the courts when such contract terms are indisputable. See Quinn Constr. v. Skanska USA Bldg., Inc., 730 F. Supp. 2d 401, 411 (D.C. Pa. 2010) (enforcing the subcontractor’s contractual waiver of claims for delay and disruption damages). On the other hand, delay damages that are expressly allowed by the contract—like overtime necessitated by the delays—are usually actionable and recoverable. Id. However, not only the contract terms, but applicable law, may affect the outcome.
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Rick Erickson, Snell & WilmerMr. Erickson may be contacted at
rerickson@swlaw.com