Former Sponsor of the Lenox Facing Suit in Supreme Court
January 13, 2014 —
Melissa Zaya-CDJ STAFFLewis Futterman, former sponsor of the Lenox condominium in Harlem, New York, is being sued by the condo board for alleged “building code violations, construction defects, and fraud” according to New York Curbed. The residents claim that Futterman filed for bankruptcy in 2010 to avoid paying for repairs. The Lenox condo board filed suit in the New York Supreme Court last December 31st.
The Lenox’s condo board claims that the building has “fundamental structural flaws, a defective roof and pervasive leakage,” reports Rowley Amato of New York Curbed. The board also claims the original offering plans were not the same as the units purchased by residents in 2006. Residents paid an estimated two hundred and sixty thousand to repair defects within the condominium, and they are pursuing a minimum of four million in damages.
Katherine Clarke of The Real Deal stated that Futterman would only “say that the issue was between the residents and the construction company which built the project.”
Read the full story at New York Curbed...
Read the full story at The Real Deal...
Read the court decisionRead the full story...Reprinted courtesy of
Express Warranty Trumping Spearin’s Implied Warranty
March 06, 2022 —
David Adelstein - Florida Construction Legal UpdatesBe mindful of that express warranty provision in your contract. It could result in an outcome that you did not consider or factor when submitting your proposal or agreeing to your contract amount.
An express warranty could have the effect of eviscerating the argument that you performed your scope of work pursuant to the plans and specifications. In other words, the applicability of the Spearin doctrine could be rendered moot based on express warranty language in your contract that is fully within your control because you do not have to agree to that language.
Under the Spearin doctrine:
[W]hen a ‘contractor is bound to build according to plans and specifications prepared by the owner, the contractor will not be responsible for the consequences of defects in the plans and specification.’ Spearin and its progeny set forth a default rule of fundamental fairness that when a general contractor requires a subcontractor to follow certain plans and specifications, the general contractor impliedly warrants that those plans and specifications are ‘free from design defects.’ Put simply, Spearin protects subcontractors from liability for simply following the general contractor’s direction and requirements.
However, the implied warranty set forth in Spearin and its progeny may be overcome by express agreement. Where a general contractor and subcontractor expressly agree to allocate the risk of a defective product to the subcontractor, that express agreement must prevail over Spearin’s implied warranty.
Lighting Retrofit International, LLC v. Consellation NewEnergy, Inc., 2022 WL 541156 (D. Md. 2022) (internal citations omitted).
Read the court decisionRead the full story...Reprinted courtesy of
David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Are You a Construction Lienor?
November 15, 2017 —
David Adelstein - Florida Construction Legal UpdatesWhen it comes to construction lien rights, not everyone that touches the project is a proper lienor. Forget about timely serving a Notice to Owner or recording a claim of lien, if you are not a proper lienor, it does not matter if you properly perfected your lien rights. If you are not a proper lienor, you have NO lien rights under the law!
Florida Statue s. 713.01(18) defines a lienor as follows:
(18) “Lienor” means a person who is:
(a) A contractor;
(b) A subcontractor;
(c) A sub-subcontractor;
(d) A laborer;
(e) A materialman who contracts with the owner, a contractor, a subcontractor, or a sub-subcontractor; or
(f) A professional lienor under s. 713.03;
and who has a lien or prospective lien upon real property under this part, and includes his or her successor in interest. No other person may have a lien under this part.
Read the court decisionRead the full story...Reprinted courtesy of
David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
Dadelstein@gmail.com
Mendocino Hospital Nearing Completion
December 04, 2013 —
CDJ STAFFThe Frank R. Howard Memorial Hospital is well underway on its plans to move to a larger facility. The new building in Willits, California, will be more than twice the size of the old building at 74,000 square feet. Construction has reached the halfway point after just over three months of construction. Despite that, plans are to put the facility into use in January 2015.
The general contractor for the project is HBE Corporation. Rick Bockmann, HBE’s chief executive officer, said that the hospital was “on schedule and on budget.”
Read the court decisionRead the full story...Reprinted courtesy of
Manhattan Bargain: Condos for Less Than $3 Million
February 05, 2015 —
Oshrat Carmiel and Heather Perlberg – BloombergWhen Related Cos. began selling condominiums at one of its former rental buildings last month, 50 people showed up in the first two days for an only-in-Manhattan bargain: almost all the homes cost less than $3 million.
Carnegie Park, a 1980s-era rental property, was renovated as a condo building where one-bedroom apartments with 690 square feet (64 square meters) start at $765,000. The average price for all units is about $1,300 per square foot -- roughly 30 percent less than the average for a newly built Manhattan condo sold in the fourth quarter, according to appraiser Miller Samuel Inc.
Reprinted courtesy of
Oshrat Carmiel, Bloomberg LLP and
Heather Perlberg, Bloomberg LLP Read the court decisionRead the full story...Reprinted courtesy of
US Court Questions 102-Mile Transmission Project Over River Crossing
February 07, 2022 —
Mary B. Powers - Engineering News-RecordA federal judge will decide in February whether to stop construction of a $492-million Iowa-to-Wisconsin transmission line, after issuing an opinion in mid-January “declaring” that federal rules preclude the 102-mile Cardinal-Hickory Creek project from crossing the 261-mile Upper Mississippi River National Wildlife and Fish Refuge by right-of-way or land transfer.
Reprinted courtesy of
Mary B. Powers, Engineering News-Record
ENR may be contacted at enr@enr.com
Read the full story... Read the court decisionRead the full story...Reprinted courtesy of
Performance Bond Primer: Need to Knows and Need to Dos
February 01, 2022 —
Rafael Boza - Gravel2Gavel Construction & Real Estate Law BlogIf you are a construction contractor, you deal with performance bonds as part of your business and daily work. They are necessary for almost every project you are participating or will participate in, and, along with other sister bonds, constitute a basic tool to be able to work in construction. However, how much do you really know about this tool? Who in your organization knows how to use it? Are you relying on your insurance broker to procure the bonds? Can your broker competently review the terms of the bond? Are you, as a contractor, relying on the surety to explain and determine what you need for the project—a fox guarding the hen house?
To understand how a performance bond works and how to effectively tailor it to your needs, we need to understand the basics. What is a performance bond? Who are the parties to a performance bond? What does performance bond not do? What should be covered under a performance bond? How does a performance bond fit in a company’s overall risk management processes? A clear understanding of these and other basic topics will facilitate operations and reduce the risk of claims.
Read the court decisionRead the full story...Reprinted courtesy of
Rafael Boza, PillsburyMr. Boza may be contacted at
rafael.boza@pillsburylaw.com
Federal District Court Finds Coverage Barred Because of Lack of Allegations of Damage During the Policy Period and Because of Late Notice
December 29, 2020 —
Robert Dennison - Traub LiebermanIn American Bankers Ins. Co. of Florida v. National Fire Ins. Co. of Hartford, 2020 WL 5630017 (Sept. 21, 2020), the Northern District of California of the United States District Court had occasion to consider whether allegations in an underlying complaint triggered a duty to defend and a late notice defense to coverage.
The underlying actions were a suit against the City of Walnut Creek for damages from flooding allegedly caused by the City’s failure to develop and maintain its storm drains.The City settled the cases then sued its liability insurers who issued its coverage in the period 1968 to 1986 for indemnification of the amounts spent to defend and settle the cases.The published decision involved three Travelers’ policies issued to the City between 1968 and 1976, as to which Travelers sought summary judgment as to the lack of coverage in its policies.
The district court first found that the definition of an “occurrence” in the policies, in one policy “an event or a continuous or repeated exposure to conditions which causes injury to person or damage to property during the policy period” and in the other two “an accident, including injurious exposure to conditions, which results during the period this policy is in effect, in bodily injury or property damage,” fell within the rule of Montrose Chemical Corp. v. Admiral Ins. Co. (1995) 10 Cal.4th 645, that injury or damage during the policy period must occur in order for the policy to be triggered.The court agreed with Travelers that while there were allegations of flooding for many years, the only claims/allegations of property damage were for the period 2000 and later.Therefore the property damage coverage in the policies was never triggered.
Read the court decisionRead the full story...Reprinted courtesy of
Robert Dennison, Traub LiebermanMr. Dennison may be contacted at
rdennison@tlsslaw.com