Condo Board May Be Negligent for not Filing Construction Defect Suit in a Timely Fashion
December 09, 2011 —
CDJ STAFFThe Maryland Court of Special Appeals has ruled that condominium association boards have a duty to “properly pursue any claims,” overturning the decision of a lower court that said that it had no legal duty to file suit. Tom Schild, writing at Marylandcondominiumlaw.net, writes about Greenstein v. Avalon Courts Six Condominium, Inc.
In this case, the condominium board waited six years after residents complained about water intrusion problems before suing the developer. The court ruled that the suit could not be filed, as the statute of limitations was only three years. After residents were assessed for the repairs, homeowners sued the board, arguing that their delay lead to the need for the special assessment.
After overturning the decision, the Court of Special Appeals has asked the trial court to review the negligence claim.
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APROPLAN and GenieBelt Merge, Creating “LetsBuild” – the Build Phase End-to-End Digital Platform
March 18, 2019 —
Aarni Heiskanen - AEC BusinessResponding to a rising need to deliver an all-in-one solution, supporting on-site planning, progress communication, snagging, drawings and checklists, GenieBelt and APROPLAN have decided to merge to form LetsBuild – the European leader in delivering an end-to-end solution to the global construction industry.
For the past five years, GenieBelt CEO Klaus Nyengaard and APROPLAN CEO Thomas Goubau have met on a regular basis to discuss developments in the construction technology sector and how to increase efficiency and minimise rework, miscommunication, and errors.
“We share the vision that ‘simple to use’-products will bring immense value to the construction sector. When we met in October 2018, we concluded that the way to realize this vision was to unite our companies to create a broader product and cover more needs in the market,” says LetsBuild CEO Klaus Nyengaard.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
The New “White Collar” Exemption Regulations
August 19, 2015 —
Craig Martin – Construction Contractor AdvisorThis summer the Department of Labor’s Wage and Hour Division issued proposed changes to the white-collar overtime regulations under the Fair Labor Standards Act (FLSA). The white collar exemptions include the executive, administrative, professional, outside sales and computer employee exemptions. The focus of the proposed regulations is to increase the salary level required to qualify for the exemption from $23,660 per year to $50,440 per year. The DOL predicts this will cause employers to change the exempt status of nearly 5 million workers who are currently exempt from overtime requirements to non-exempt status – requiring the payment of overtime.
Current Regulations
Under today’s regulations, the white collar exemption applies to employees who are paid at least $455 per week ($23,660 per year) and who customarily and regularly perform any one or more of the exempt duties or responsibilities of an executive, administrative or professional employee.
Proposed Changes
The most significant change is the sizeable increase in the minimum salary requirements for the exemptions. The proposed regulations more than double the current minimum salary of $455 per week to $921. This corresponds to the 40th percentile of weekly earnings projected for the first quarter of 2016, based on the Bureau of Labor Statistics. The DOL also proposes annual adjustments to the minimum salary requirements.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
Class Action Certification by Association for “Matters of Common Interest”
August 24, 2020 —
David Adelstein - Florida Construction Legal UpdatesAssociations have authority to pursue as a class, on behalf of all of their respective members, lawsuits “concerning members of common interest to the members.” Fla. R. Civ. P. 1.221. This includes, but is not limited to, the common property or the areas in which the association is responsible. But, what about matters or elements for which the association is not responsible or does not own? For example, issues or damages relative to a specific unit or owner that are prevalent throughout?
The Third District Court of Appeal addressed this question in Allied Tube and Conduit Corp. v. Latitude on the River Condominium Association, Inc., 45 Fla. L. Weekly D1518a (Fla. 3d DCA 2020) when in affirmed a class certification by a condominium association relating to the removal and replacement of the condominium building’s defective fire sprinkler system. In affirming the class certification by the condominium association, the Third District maintained:
Rule 1.221 expressly authorizes condominium associations to “institute, maintain, settle, or appeal actions or hearings in its name on behalf of all association members concerning matters of common interest to the members.” “[A]s to controversies affecting the matters of common interest . . ., the condominium association, without more, should be construed to represent the class composed of its members as a matter of law.” “[T]he common interest provision of the rule has been interpreted to permit a class action by the association for a construction defect located physically within a unit, rather than in the common elements, if the defect is prevalent throughout the building.” We, therefore, cannot say the trial court abused its discretion in finding that damages resulting from the replacement of the fire-sprinkler system throughout the building were a matter of common interest for purposes of certification at this stage of the litigation.
Allied Tube and Conduit Corp, supra (internal citations omitted).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Traub Lieberman Partners Dana Rice and Jason Taylor Obtain Summary Judgment For Insurance Carrier Client in Missouri Federal Court Coverage Action
April 19, 2022 —
Dana A. Rice & Jason Taylor - Traub LiebermanTraub Lieberman Partners Dana Rice and Jason Taylor were recently successful in obtaining summary judgment for a national insurance carrier client in a federal court declaratory judgment action pending in Missouri. The underlying lawsuit involved two wrongful death actions brought against an insured responsible for performing demolition work on a freight elevator shaft as part of a larger demolition project. The two decedents were operating a motorized wire rope pulley inside the shaft when the system failed, causing the work basket occupied by the decedents to fall and resulting in fatal injuries to the workers. Two state court actions followed against the general contractor on the project, the insured, and various other product suppliers and manufacturers of the freight elevator equipment.
The firm’s client issued commercial general liability insurance policy, which included an “Injury to Employees, Contractors, Volunteers and Other Workers” exclusion that precluded coverage for bodily injury to a broad variety of workers. As respects the insured, the underlying plaintiffs alleged that the decedent-workers were “employed by” the insured, such that the carrier argued the “Injury to Workers” exclusion barred coverage. The carrier filed a declaratory judgment action in the U.S. District Court for the Eastern District of Missouri seeking a declaration that the insurer had no duty to defend or indemnify its insured for the underlying state court actions under the exclusion, and moved for judgment on the pleadings. The carrier also claimed a related “Contractors and Subcontractors” exclusion barred coverage.
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Dana A. Rice, Traub Lieberman and
Jason Taylor, Traub Lieberman
Mr. Rice may be contacted at drice@tlsslaw.com
Mr. Taylor may be contacted at jtaylor@tlsslaw.com
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Colorado Federal Court Confirms Consequetial Property Damage, But Finds No Coverage for Subcontractor
November 01, 2022 —
Tred R. Eyerly - Insurance Law HawaiiA recommended decision from the Magistrate Judge of the Federal District Court for the District of Colorado found there was no coverage for the subcontractor's faulty workmanship, but recognized that Colorado finds consequential damages to be property damage. Indian Harbor Ins. Co. v. Houston Cas. Co., 2022 U.S. Dist. LEXIS 117857 (D. Colo. July 5, 2022).
The insured, Tripp Construction, was a subcontrator for contructing balconies at an apartment complex. The owner complained that Tripp failed to properly install balconies. The defective installation of certain balcony components damaged other, non-defective components.
The general contractor had an OCIP policy issued by Houston Casualty Company (HCC). The general contractor also had a Subcontractor Default policy issued by Indian Harbor.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Georgia Court of Appeals Holds That Insurer Must Defend Oil Company Against Entire Lawsuit
October 07, 2019 —
Lawrence J. Bracken II, Michael S. Levine & Alexander D. Russo - Hunton Andrews KurthThe Georgia Court of Appeals recently affirmed a grant of summary judgment in favor of Mountain Express Oil Company on its breach of contract claim against liability insurer, Southern Trust Insurance Company. Empire Petroleum brought claims against Mountain Express for breach of contract, injunctive relief, and libel or slander, among others. Mountain Express sought a defense to that lawsuit under its insurance policy with Southern Trust. Southern Trust contended that the insurance policy did not cover Empire’s non-libel/slander claims, and therefore reimbursed Mountain Express for only a portion of its attorneys’ fees. After the Empire lawsuit settled, Mountain Express sued Southern Trust for breach of contract and bad faith for failing to pay the remaining defense costs, contending that Southern Trust had a duty to defend the entire lawsuit.
The Georgia Court of Appeals affirmed the trial court’s grant of summary judgment to Mountain Express on its breach of contract claim. Citing policy language stating that “[the insurer] will have the right and duty to defend the insured against any ‘suit’ seeking those damages,” the court held that Southern Trust was obligated to defend the entire lawsuit. Specifically, in reaching that conclusion, the court noted that by agreeing to defend any “suit,” not any “claim,” Southern Trust obligated itself to defend the entire lawsuit if any claim could be covered under the policy. Accordingly, Southern Trust breached the policy when it only agreed to defend some of the claims against its insured.
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Lawrence J. Bracken II, Hunton Andrews Kurth,
Michael S. Levine, Hunton Andrews Kurth and Alexander D. Russo, Hunton Andrews Kurth
Mr. Bracken may be contacted at lbracken@HuntonAK.com
Mr. Levine may be contacted at mlevine@HuntonAK.com
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Builder Exposes 7 Myths regarding Millennials and Housing
January 12, 2015 —
Beverley BevenFlorez-CDJ STAFFBuilder Magazine discussed seven myths regarding Generation Y and housing, and stated whether it was fact or fiction. First, they answered whether “Millennials Carry Historically High Student Debt Levels,” (True), and second they concluded it was true that “Millenials Can’t Afford Down Payment at Today’s Standards.” However, Builder was split on whether “Millennials Will Pay a Premium for Green and Tech Features.”
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