The Jersey Shore gets Beach Prisms Designed to Reduce Erosion
January 22, 2014 —
Beverley BevenFlorez-CDJ STAFFThirty-five beach prisms manufactured by Smith-Midland Corporation have been installed along the Jersey shore in Ocean Gate, New Jersey. According to the Wall Street Journal, “The prisms protect homes, prevent erosion, and reduce impacts from natural disasters like Hurricane Sandy.” They “are made with a built-in parabolic curve that scatters waves away as spray instead of allowing them to crash up onto the vulnerable shoreline.”
Ocean Gate’s Mayor Paul J. Kennedy stated, "We've been losing beach year after year with the Nor'easters we get. So we came up with an idea that hopefully will work,” The Wall Street Journal reported.
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Subcontractors Found Liable to Reimburse Insurer Defense Costs in Equitable Subrogation Action
August 03, 2020 —
Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLPIn Pulte Home Corp. v. CBR Electric, Inc. (No. E068353, filed 6/10/20), a California appeals court reversed the denial of an equitable subrogation claim for reimbursement of defense costs from contractually obligated subcontractors to a defending insurer, finding that all of the elements for equitable subrogation were met, and the equities tipped in favor of the insurer.
After defending the general contractor, Pulte, in two construction defect actions as an additional insured on a subcontractor’s policy, St. Paul sought reimbursement of defense costs solely on an equitable subrogation theory against six subcontractors that had worked on the underlying construction projects, and whose subcontracts required them to defend Pulte in suits related to their work. After a bench trial, the trial court denied St. Paul’s claim, concluding that St. Paul had not demonstrated that it was fair to shift all of the defense costs to the subcontractors because their failure to defend Pulte had not caused the homeowners to bring the construction defect actions.
The appeals court reversed, holding that the trial court misconstrued the law governing equitable subrogation. Because the relevant facts were not in dispute, the appeals court reviewed the case de novo and found that the trial court committed error in its denial of reimbursement for the defense fees. The appeals court found two errors: First, the trial court incorrectly concluded that equitable subrogation requires shifting of the entire loss. Second, the trial court applied a faulty causation analysis – that because the non-defending subcontractors had not caused the homeowners to sue Pulte, thereby necessitating a defense, St. Paul could not meet the elements of equitable subrogation.
Reprinted courtesy of
Christopher Kendrick, Haight Brown & Bonesteel LLP and
Valerie A. Moore, Haight Brown & Bonesteel LLP
Mr. Kendrick may be contacted at ckendrick@hbblaw.com
Ms. Moore may be contacted at vmoore@hbblaw.com
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SCOTUS Opens Up Federal Courts to Land Owners
July 15, 2019 —
Wally Zimolong - Supplemental ConditionsFor nearly 36 years, the United States Supreme Court’s decision in Williamson County Regional Planning Commission v. Hamilton Bank of Johnson City, 473 U.S. 172, 105 S.Ct. 3108, 87 L.Ed.2d 126 (1985) severely frustrated, if not all but foreclosed, a property owner’s right to bring a claim in federal court based on a regulatory taking. Under the Fifth Amendment, a property owner whose land has been “taken” by the government is entitled to just compensation. There are two types of takings direct or “inverse” or regulatory takings. A direct taking is where the government declares that it needs your land for public use and offers to pay you compensation. You might disagree with the amount offered – and that often is the case. But, a mechanism exists whereby a neutral third party – a condemnation board – will arrive at the compensation that is owed. On the other hand, an inverse condemnation or regulatory taking occurs when the government takes some action that restricts the use of the land in such a way as to severely impact it beneficial economic use. For example, if you own a strip of commercial property and intend to develop it and then the municipality comes along and suddenly changes the zoning classification of the parcel such that you can no longer develop it in a beneficial way, then you might have a regulatory takings case.
Under the Court’s Williamson County decision, property owners falling within the later category were required to exhaust state remedies before proceeding to federal court under a claim that their Fifth Amendment rights were violated. The problem with this is that, as the Supreme Court explained, it creates a Catch-22. If property owners exhaust their state remedies and the state remedies result in an unfavorable outcome, the federal court is powerless to overturn that decision under the doctrines of res judicata and the full faith and credit clause of the Constitution.
Well, yesterday, the Court overturned Williamson County, in Knick v. Township of Scott, 588 U.S. _____ (2019). There the Court held unequivocally a “property owner has suffered a violation of his Fifth Amendment rights when the government takes his property without just compensation, and therefore may bring his claim in federal court under Section 1983 at that time.”
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Wally Zimolong, Zimolong LLCMr. Zimolong may be contacted at
wally@zimolonglaw.com
Electrical Subcontractor Sues over Termination
November 13, 2013 —
CDJ STAFFMillennium Plus, Inc. has sued the contractor for the Efrain A. Duran Water Treatment Plant Facility and Rio Grande City for failing to pay money due to them and terminating the contract. According to the lawsuit, Millennium is claiming that they are owed $161,781 for their work on the water treatment facility.
According to the city, the project’s contractor was “very unsatisfied with Millennium’s work.” Although the city disclaims any involvement, Millennium claims it was a “joint enterprise.”
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Issues of Fact Prevent Insurer's Summary Judgment Motion in Collapse Case
January 17, 2022 —
Tred R. Eyerly - Insurance Law HawaiiThe insurer's effort to dismiss the insured's collapse case by motion for summary judgment failed. Bitters v. Nationwide Gen. Ins. Co., 2021 U.S. Dist. LEXIS 228523 (E.D. Pa. Nov. 30, 2021).
The insured alleged that there was a "sudden and accidental direct physical loss" to his home caused by collapse due to hidden insect damage to the foundation. The insured came home to find the floor of a bedroom dropped down to the cement slab below. He filed a claim with Nationwide, but coverage was denied. Suit was filed and Nationwide moved for summary judgment.
The policy provided coverage for a sudden and accidental collapse caused by hidden insect damage. A building or part of a building was not considered in the state of collapse if it was standing, even if it was in danger of falling low or caving in.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Aging-in-Place Features Becoming Essential for Many Home Buyers
March 12, 2014 —
Beverley BevenFlorez-CDJ STAFFWith the rising number of Americans over the age of sixty-five, there is an “upswing” in demand of “aging-in-place home features,” according to Big Builder.
Big Builder also noted seven accessible features that homebuyers identified when surveyed by The National Association of Home Builders (NAHB). A couple of the features listed were “doorways at least three feet wide” and “non-slip floors.” The survey results were reported in What Home Buyers Really Want, released in May 2013 by the NAHB.
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Home Building Mergers and Acquisitions 2014 Predictions
March 19, 2014 —
Beverley BevenFlorez-CDJ STAFFJohn McManus, writing for Big Builder, discusses the various predictions for mergers and acquisitions in the home building field for 2014. While predictions vary between individuals, it seems to hover between 15 and 30.
McManus lists several home building seller motivations, such as a “[n]eed for cash infusion to buy and develop new lot pipeline” and “[s]uccession planning.”
Finally, McManus points out that not every merger and acquisition discussion will lead to a deal: “We've recently seen a combination or three flounder on the issue of price. This occurs partly as the home builder buyer community becomes more discriminating as to what truly fits their program, and partly as smaller builders attain options as regional and national lenders awaken and look to reenter project financing in a bigger way.”
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Transplants Send Nashville Home Market Upwards
October 10, 2013 —
CDJ STAFFHome sales and prices are up in Nashville, Tennessee, but it isn’t the locals who are responsible. “People are moving from Florida, California, Texas, Arizona. People come from New York and New Jersey and can’t believe the home values and low taxes,” said Margaret Dixon, a Tennessee realtor. And they’re moving to areas that the locals haven’t embraced. They “don’t have imaginary boundaries in their heads.”
As a result, home sales are up 22% in the third quarter with a 9% rise in prices, as compared to the same quarter last year in Davidson County, where Nashville is located. In adjacent Williamson County, sales were up even more, with a 31% increase in volume and a 12% increase in price. Smyrna, home of Nissan’s LEAF electric car, saw a 25.5% increase in sales volume.
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