Landlords Beware: Subordination Agreements
May 03, 2017 —
Kevin J. Parker - Snell & Wilmer Real Estate Litigation BlogIn the recent Arizona Court of Appeals case Earle Investments, LLC v. Southern Desert Medical Center Partners, 762 Ariz. Adv. Rep. 12 (2017), the Court of Appeals addressed the question of the scope of a subordination agreement signed by the property owner (Lessor/Landlord) at the request of the Lessee/Tenant and Lessee/Tenant’s Lender. In general, by subordination, Party No. 1 with a higher/better lien priority agrees to allow Party No. 2 (usually a lender providing construction funds for the overall betterment of the property) to get a lien position in front of Party No. 1. Party No. 1 presumably believes the switch of lien position in return for someone else paying for the property improvements will benefit Party No. 1 in the long run by resulting in an increase in the value of Party No. 1’s position.
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Kevin J. Parker, Snell & WilmerMr. Parker may be contacted at
kparker@swlaw.com
ADA Compliance Checklist For Your Business
February 06, 2019 —
Danielle Carter - Bremer Whyte Brown & O'Meara LLPThe Americans with Disabilities Act (ADA) protects people with disabilities against discrimination in three important settings:
1. Employment (ADA Title I)
2. Government Services and Public Transportation (ADA Title II)
3. Commercial Facilities and Places of Public Accommodation (ADA Title III)
Since business owners typically act as both employers and facility managers, they must pay careful attention to Title I and Title III of the ADA. A business owner’s ADA compliance checklist should include the following:
1. ADA Compliance Audit for Structural Accessibility. The ADA and its accompanying regulations set forth detailed legal standards and requirements for accessible design, which specify, for example, the minimum width of doors to conference rooms, the maximum height of public drinking fountains, and the maximum thickness of hallway carpeting. Many older buildings were built without features that accommodate people with disabilities, such that the ADA may require improvements to be made to existing facilities.
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Danielle Carter, Bremer Whyte Brown & O'Meara LLPMs. Carter may be contacted at
info@bremerwhyte.com
Notes from the Nordic Smart Building Convention
June 29, 2017 —
Aarni Heiskanen - AEC BusinessThe first Nordic Smart Building Convention took place in Helsinki on June 14 and 15, 2017. It was an inspiring event with great keynotes, tech talks, and an exhibition of smart building products and services.
The event was organized by HUB13, a leading co-working space provider in Finland. I had met with the producer of the convention, Sjoerd Postema, when he was planning the event. He asked for my ideas on possible topics and presenters. Later, he invited me to host a workshop and a roundtable at the convention.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
info@aepartners.fi
U.K. to Set Out Plan for Fire-Risk Apartment Cladding Crisis
March 01, 2021 —
Emily Ashton & Olivia Konotey-Ahulu - BloombergThe U.K. government will set out its plans for stripping cladding from potentially unsafe apartment blocks, more than three years after a fire at London’s Grenfell Tower killed 72 people.
Reports suggest Housing Secretary Robert Jenrick will set out a package of measures amounting to billions of pounds when he makes a statement to the House of Commons on Wednesday.
Ministers announced a 1.6 billion pound ($2.2 billion) “safety fund” to remove dangerous cladding last year but Jenrick is expected to announce additional support on top of this. The price for the repairs could be as high as 15 billion pounds, according to a parliamentary committee last June.
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Emily Ashton, Bloomberg and
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Construction Litigation Roundup: “That’s Not How I Read It”
June 05, 2023 —
Daniel Lund III - LexologyA general contractor seeking to litigate with its subcontractor concerning a construction project in Indiana found itself fighting in court against assertions by the sub that arbitration of the dispute was required.
The GC was already in litigation in federal court with the project owner. The GC filed a third-party demand against the sub, which was met with a motion to stay and to compel arbitration.
At the crux of the sub’s argument was this clause in its subcontract: “Subcontractor agrees that the dispute resolution provisions of the Prime Contract between [GC] and Owner, if any, are incorporated by reference as part of this Subcontract so as to be binding as to disputes between Subcontractor and [GC] that involve, in whole or in part, questions of fact and/or law that are common to any dispute between [GC] and Owner or others similarly bound to such dispute resolution procedures... ."
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
Owners and Contractors are Liable for Injuries Caused by their Independent Contractors under the “Peculiar Risk Doctrine”
October 15, 2024 —
William L. Porter - Porter Law GroupMany contractors and owners believe that if they hire an independent contractor to perform work and that independent contractor causes injury to others during the performance of that work, then it is the independent contractor alone who will be liable for those injuries. In most circumstances, this is correct. The owner or the contractor will not be held liable for injuries caused by his or her independent contractor. However, this is not always the case.
Under the “Peculiar Risk Doctrine” and California cases interpreting the doctrine, a contractor or owner who hires an independent contractor to do work which is considered to be “inherently dangerous work” can be still be held directly liable for damages when that independent contractor causes injury to others by negligently performing the work.
Such liability can generally be imposed on the one hiring the independent contractor under either of two branches of the peculiar risk doctrine. First, where a person hires an independent contractor to do inherently dangerous work, but fails to provide in the contract or in some other manner that special precautions must be taken to avert the peculiar risk of injury related to that work, then the one hiring the independent contractor can be held liable for injuries to others caused by the independent contractor’s negligence. (Restatement Second of Torts Section 413). For example, in Mackey v. Campbell Construction Co. 101 Cal. App. 3d 774, 162 Cal. Rptr. 64 (1980), Western Electric Company, the owner of the project, was found liable for the personal injuries of a subcontractor’s employee because Western’s representatives were on the job at all times, had doubts about the safety of scaffolding being used on the project, yet failed to require use of precautions that could have been taken to avoid injury.
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William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com
New Jersey Supreme Court Ruled Condo Association Can’t Reset Clock on Construction Defect Claim
September 20, 2017 —
David Suggs – Bert L. Howe & Associates, Inc.The New Jersey Law Journal reported that New Jersey Supreme Court “justices reversed an Appellate Division ruling that found three suits filed against contractors by the Palisades at Fort Lee Condominium Association on various dates in March and April 2009 and September 2010 were within the six-year limit because the association received notice of construction defects in the building in an engineer's report issued in June 2007.”
The justices stated that the statute of limitations is not reset when property changes hands: "An owner of a building cannot convey greater property rights to a purchaser than the owner possessed. If the building's owner knew or reasonably should have known of construction defects at the time of the sale of the property, the purchaser takes title subject to the original owner's right—and any limitation on that right—to file a claim against the architect and contractors."
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Taking Service Network Planning to the Next Level
July 22, 2019 —
Aarni Heiskanen - AEC BusinessCities and municipalities are basically systems for delivering services for the benefit of their citizens. An experimental project demonstrated how improving the flow of data between these services could save a lot of time and taxpayer money.
Emilia Rönkkö is an architect who worked for the Finnish city of Kuopio. Besides that, she is a Docent of Urban Planning at the University of Oulu.
“In Kuopio, my job included doing architectural programming for public investments and service network reviews. More specifically, surveys about Growth and Learning Services that were focused on daycares and schools,” Rönkkö explains. “Typically, a service network review with manual data collection procedures takes place every three to five years. I and other functionaries involved in the process wondered if there might be a better, more efficient way to do the reviews.”
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi