Hilary Soaks California With Flooding Rain and Snarls Flights
August 21, 2023 —
Brian K. Sullivan & Brian Wingfield - BloombergThe remnants of Tropical Storm Hilary pummeled California with record rains on Monday, disrupting flights but sparing its largest cities from widespread destruction.
Across the region, “the ongoing and historic amount of rainfall is expected to cause life-threatening to locally catastrophic” floods, along with landslides and mudslides, the National Hurricane Center said in a notice early Monday.
The storm, now a post-tropical cyclone, has weakened since coming ashore in California late Sunday. As of early Monday, it had maximum sustained winds of about 35 miles (56 kilometers) per hour and is forecast to move across Nevada and dissipate on Monday.
Hilary, a rare storm to hit the Southwest, could bring a year’s worth of rain to parts of a region famous for its usually balmy weather. Heavy rain and flash flooding have already disrupted transportation, and officials warned residents to stay off the roads. In the last 10 years, flooding from rainfall has caused the most deaths from hurricanes and tropical storms in the US.
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Bloomberg
Denver’s Mayor Addresses Housing and Modifying Construction Defect Law
July 16, 2014 —
Beverley BevenFlorez-CDJ STAFFDuring his State of the City Address, Mayor Michael Hancock discussed housing, specifically calling “on the state legislature to modify a construction defects law,” according to KWGN news.
“…it is my sincere hope that the 2015 State Legislature will recognize the chilling effect the construction defects law has on the for sale condo market,” Hancock stated, as reported in The Denver Post. “I encourage lawmakers to modify the law so that we can experience the full potential of housing in metro Denver.”
Hancock also claimed that though the population has increased, the “housing stock has not kept pace,” according to KWGN. “This gap is exacerbated by rising home prices, which are good news for homeowners and our local economy, but a challenge for many residents and families.”
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North Miami Beach Rejects as Incomplete 2nd Engineering Inspection Report From Evacuated Condo
July 25, 2021 —
Richard Korman - Engineering News-RecordNorth Miami Beach has rejected a new engineering inspection report provided by the Crestview Towers condominium association, keeping about 300 evacuated residents from returning to their apartments and raising new questions about engineering inspection reports in the aftermath of the Champlain Towers South collapse.
Reprinted courtesy of
Richard Korman, Engineering News-Record
Mr. Korman may be contacted at kormanr@enr.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
Claims Litigated Under Government Claims Act Must “Fairly Reflect” Factual Claims Made in Underlying Government Claim
November 27, 2023 —
Garret Murai - California Construction Law BlogUnlike horseshoes and hand grenades, close sometimes isn’t close enough.
In the next case, Hernandez v. City of Stockton, 90 Cal.App.5th 1222 (2023), the Third District Court of appeal found that a pedestrian who sued a public entity for personal injuries caused by an “uplifted sidewalk” was barred from pursuing his claim when it was revealed that he had in fact injured himself by falling into a hole left by an “empty tree well” (i.e., a tree well that did not contain a tree”). According to the Court, the pedestrian’s claim was barred because the factual basis for recovery asserted in his complaint was not “fairly reflected” in his government claim.
The Hernandez Case
In April 2018, pedestrian Manual Sanchez Hernandez injured himself while walking on a public sidewalk in Stockton, California. He submitted a government claim with the City of Stockton claiming that his injuries, which included injuries to his knee, hands and back, was caused by a dangerous condition on public property. In his government claim, Hernandez alleged that he tripped on an “uplifted sidewalk” at or near 230 E. Charter Way in Stockton, California and that his injuries were due because the City “negligently and recklessly designed, maintained and operated the subject property so as to cause [his] injuries.”
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
UK Construction Defect Suit Lost over One Word
October 16, 2013 —
CDJ STAFFIn the UK, be careful what you tell your insurer; the Court of Appeal has upheld the legality of basis clauses. As Paul Lewis and Janetta Gibbs of Herbert Smith Freehills LLP explain, “a basis clause is a provision set out in the proposal form or in the insurance contract itself, to the effect that all or any of the answers to the questions in the proposal shall form the basis of the contract of insurance.” The catch, as they point out, is that “should any of those answers — whether material to the risk or not — prove to be untrue, the insurer may repudiate the policy and treat itself as never having been on risk.” There is a move in the UK to abolish the use of basis clauses in business insurance, but currently they are still legal.
This came up in a construction defect case covering latent defects in a public housing project. The contract between the owner, Genesis Housing Association Limited, and the contractor, Time and Tide (Bedford) Ltd, required TT Bedford to indemnify Genesis if it became insolvent. In the contract with the insurer, representatives of Bedford and Genesis referred to the contractor as “TT Construction.”
While the courts concluded that Bedford and Genesis were not guilty of misrepresentation or intent to defraud, they did note that neither party thought the firm’s name was “TT Construction.” Therefore, over the failure to name the builder correctly, the court found that the insurance contract was invalid.
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2021 Real Estate Trends: New Year, New Reality—A Day of Reckoning for Borrowers and Tenants
February 08, 2021 —
Robert J. Grados & Adam Weaver - Gravel2Gavel Construction & Real Estate Law BlogOn the one-year anniversary of China’s Wuhan lockdown, COVID-19 has become a part of everyday life and as we enter the new year, real estate borrowers and lenders alike will need to understand this new normal and face the reality that is fast approaching. In 2020, as the COVID-19 pandemic swept across the United States, many state and local governments instituted eviction moratoria and other protections for real estate tenants and borrowers. These protections created a window of opportunity for tenants and borrowers to negotiate reasonable solutions with their respective landlords and lenders regarding rent and debt payments amid the COVID-19 pandemic. This temporary period of restricted remedies also allowed courts to analyze legal arguments on how the COVID-19 pandemic impacts the real estate industry.
However, with court rulings forthcoming and many of these eviction protections set to expire in 2021, landlords and tenants as well as borrowers and lenders will be forced to have discussions regarding the realities of their industry and their ability to pay their respective rents and mortgages amid the ongoing COVID-19 crisis. Throughout 2020, lenders and landlords were forced to accommodate workout negotiations as their ability to evict or foreclose upon defaulting tenants or borrowers was prohibited. Many commercial real estate parties were able to come to agreements on what borrowers and tenants were able to pay, given the impact of the COVID-19 pandemic on their respective industries. As the legal protections are rolled back and the leverage shifts back into the hands of the lenders and landlords, we will likely see a trend of aggressive landlords and lenders and an increased number of evictions and foreclosures, especially in industries that are most vulnerable to the COVID-19 pandemic: retail and hospitality.
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Robert J. Grados, Pillsbury and
Adam Weaver, Pillsbury
Mr. Grados may be contacted at robert.grados@pillsburylaw.com
Mr. Weaver may be contacted at adam.weaver@pillsburylaw.com
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Florida “Property Damage” caused by an “Occurrence” and “Your Work” Exclusion
July 23, 2014 —
Scott Patterson - CD CoverageIn J.B.D. Construction, Inc. v. Mid-Continent Casualty Co., * Fed.Appx. *, 2014 WL 3377690 (11th Cir. 2014), claimant property owner Sun City contracted with insured general contractor J.B.D. for the construction of a fitness center. The fitness center was to be physically connected to an existing Sun City building. J.B.D. utilized subcontractors for some of the work. Shortly after completion, leaks developed in the fitness center’s roof, windows and doors which J.B.D. attempted to fix. After Sun City refused to make the final contract payment, J.B.D. sued Sun City for contract amounts owed. Sun City counterclaimed for the construction defects, alleged damage to the fitness center and other property. J.B.D. tendered defense of the counterclaim to its CGL insurer Mid-Continent. After Mid-Continent failed to agree to defend, J.B.D. settled with Sun City, paying Sun City $182K. Following several demands from J.B.D. for reimbursement of defense costs and the settlement amount, Mid-Continent tendered the defense costs minus a deductible. J.B.D. then sued Mid-Continent for breach of duties to defend and indemnify. On cross motions for summary judgment, the federal district trial court entered judgment for Mid-Continent, finding no duties to defend or indemnify. On appeal, the Eleventh Circuit reversed on the duty to defend while affirming on the duty to indemnify. Applying Florida law, the court first held that the defective work, including the defective installation of the fitness center’s windows, doors, and roof, did not constitute “property damage.” Thus, the costs to repair or replace the defective work did not constitute damages because of “property damage.” The court next held that, while damage to other portions of the fitness center would constitute “property damage” caused by an “occurrence,” all such “property damage” fell within the “your work” exclusion.
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Scott Patterson, CD Coverage