Lakewood Introduced City Ordinance to Battle Colorado’s CD Law
September 24, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to The Denver Post, the Lakewood City Council “introduced an ordinance that would make it more difficult for homeowners associations to sue developers for construction defects and give builders more opportunity to fix problems before litigation begins.” A hearing and final vote is scheduled for October 13th.
"If there are defects, we want to get them fixed rather than dragging this through the courts for years," Lakewood Mayor Bob Murphy told The Denver Post. Murphy believes the ordinance will bring “more diverse housing options to Lakewood, especially around stations along the Regional Transportation District’s West Rail Line.” Lakewood’s City Planner Travis Parker also declared that the defects law is to blame for the lack of condos in the area.
However, some believe that “Lakewood is overstepping its bounds as a home-rule city,” according to The Denver Post. "What they're trying to do is use an ordinance to circumvent state law in order to make it impossible for homeowners to seek redress against builders for defects," Molly Foley-Healy an attorney who serves as legislative liaison for the Community Associations Institute's Legislative Action Committee told the Post. “Mayor Murphy needs to incentivize quality construction in Lakewood instead.”
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Insurer's Motion to Dismiss Business Interruption, COVID-19 Claims Under Pollution Policy Fails
January 11, 2022 —
Tred R. Eyerly - Insurance Law HawaiiThe insurer was unsuccessful in seeking to dismiss business interruption claims due to COVID-19 under a pollution policy. New York Botanical Garden v. Allied World Assur., 2021 N.Y. Misc. LEXIS 6012 (N.Y. Sup. Ct. Oct.15, 2021).
The insured was forced to cease operation after executive orders by the governor and mayor were issued in March 2020. The insured also had to reduce its in-person workforce by 100%. The insured's claim for business interruption and contingent business interruption were denied by Allied. The insured sued for a declaratory judgment.
Allied moved to dismiss, arguing that the executive orders were issued for prophylactic reasons in an effort to mitigate the spread of the virus. They were not issued solely to address the presence of COVID-19 at any non-insured owned location, but were issued broadly to limit the risk of spreading the COVID-19 virus. The insured responded that its broader pollution liability policy was not a typical civil authority policy that required the physical loss or damage to property.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Construction Bright Spot in Indianapolis
March 01, 2012 —
CDJ STAFFThe downtown Indianapolis area is the site of about 85 major building projects that are from groundbreaking to just complete. The Indianapolis Star reports that the cumulative worth of the projects is about $3 billion, a level of construction that Indianapolis has seen only once before.
About thirty of the projects are residential. The main commercial project is a $754 million hospital building. The boom in downtown Indianapolis is not matched elsewhere, with the Indianapolis Star reporting that in the rest of Central Indiana, construction has slowed.
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First Circuit: No Coverage, No Duty to Investigate Alleged Loss Prior to Policy Period
May 18, 2020 —
Eric B. Hermanson & Austin D. Moody - White and WilliamsOn April 1, 2020, the First Circuit, applying Massachusetts law, issued a potentially useful decision addressing the Montrose “known loss” language in ISO Form CGL policies. In Clarendon National Insurance Company v. Philadelphia Indemnity Insurance Company,[1] the court applied this language to allow denial of defense for claims of recurring water infiltration that began before the insurer’s policy period, and it found an insurer had no duty to investigate whether the course of property damage might have been interrupted, or whether other property damage might have occurred during the policy period, so as to trigger coverage during a later policy.
In the underlying dispute, a condominium owner (Doherty) asserted negligence claims against her association’s property management company (Lundgren) stemming from alleged water infiltration into her condominium. The complaint said leaks developed in 2004 in the roof above Doherty’s unit, and repairs were not made in a timely or appropriate manner. The following year, the complaint said, a Lundgren employee notified Doherty that the threshold leading to her condominium's deck was rotting. In February 2006, Doherty discovered a mushroom and water infiltration on the threshold and notified Lundgren. At that time, Lundgren asked its maintenance and repair contractor (CBD) to replace the rotting threshold. According to the complaint, CBD did not do this repair in a timely manner and left debris exposed in Doherty’s bedroom.
In March 2006, the complaint said, a mold testing company hired by Lundgren found hazardous mold in Doherty's unit, caused by water intrusions and chronic dampness. Lundgren’s attempts at remediation were ineffectual. In September 2008, Doherty's doctor ordered her to leave the condominium and not to return until the leaks were repaired and mold was eliminated.
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Eric B. Hermanson, White and Williams and
Austin D. Moody, White and Williams
Mr. Hermanson may be contacted at hermansone@whiteandwilliams.com
Mr. Moody may be contacted at moodya@whiteandwilliams.com
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ETF Bulls Bet Spring Will Thaw the U.S. Housing Market
April 08, 2014 —
Corinne Gretler – BloombergBuild it and they will come, if it’s not too chilly.
Traders have turned bullish on a security that tracks home construction companies, appliance makers and furniture retailers as spring finally ends the harsh winter.
As the SPDR S&P Homebuilders ETF (XHB) heads for its first weekly gain since February, investors are buying options betting that the rebound will keep going. The cost of bullish contracts has risen to the highest versus bearish ones in 2 ½ years. The ETF has gained 2.2 percent this week.
The exchange-traded fund of companies such as Ryland Group Inc., Whirlpool Corp. and Home Depot Inc. has rebounded 8 percent after reaching its lowest level this year on Feb. 3 as investors attribute weakness in the housing market to winter weather. Between December and February, snow covered 1.42 million square miles of the continental U.S., the 10th-largest snow cover in records going back to 1966, according to the National Climatic Data Center.
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Corinne Gretler, BloombergMs. Gretler may be contacted at
cgretler1@bloomberg.net
Scotiabank Is Cautious on Canada Housing as RBC, BMO Seek Action
April 12, 2021 —
Shelly Hagan & Erik Hertzberg - BloombergBank of Nova Scotia, Canada’s third-largest lender, waded into the burgeoning debate over whether Justin Trudeau’s government should take immediate steps to cool the nation’s hot housing market, issuing a report that cautioned against rushing to implement new constraints.
In a report released Sunday, Scotiabank’s chief economist Jean-Francois Perrault said the recent run-up in home prices nationally over the past year was in large part driven by sluggish supply that failed to keep up with higher demand -- a trend that could reverse itself as new sellers enter the market in coming weeks. If the government does decide to take action, it should target housing speculators, he said.
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Shelly Hagan, Bloomberg and
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Apprentices on Public Works Projects: Sometimes it’s Not What You Do But Who You Do the Work For That Counts
September 17, 2015 —
Garret Murai – California Construction Law BlogIf you’re a public works contractor in California you’re familiar with prevailing wages. The Prevailing Wage Law, a Depression era law designed to encourage the hiring of local labor, sets a minimum wage that employers must pay to workers on public works projects.
But because the Prevailing Wage Law sets a floor on wages it also limits the opportunity for lesser-skilled workers to gain experience. To address this, the Prevailing Wage Law permits contractors to pay apprentices a lower “apprentice wage” if the apprentice is enrolled in a state-approved apprenticeship program and requires contractors who hire workers in an “apprenticeable craft or trade” to hire a certain number of apprentices.
But are particular apprentices required to be hired depending on the type of work being performed? In Henson v. C. Overaa & Company, Case No A139966 (June 29, 2015), the California Court of Appeals for the First District held that apprentices are required to be hired based on the craft or trade of the journeymen performing work not based on the type of work being performed.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Construction May Begin with Documents, but It Shouldn’t End That Way
March 02, 2020 —
Christopher G. Hill - Construction Law MusingsFor this week’s Guest Post Friday here at Musings, we welcome back Rob Mathewson. In his role as CEO, Rob handles strategy and partnerships for Geedra in addition to overseeing technology architecture and implementation. He has spent twenty years in sales and marketing management roles with experience in industrial, consumer and construction markets. Rob believes the construction industry is ripe for innovation, based on its massive size, yet low productivity. Even with such inefficiencies, a building still rises from the ground. Rob’s goal with Geedra is to leverage technology to increase transparency and communication so that projects can be completed with less risk, effort and cost. Prior to founding Geedra, Rob was the Chief Marketing Officer for Construction Documentation Services, where he was responsible for sales, marketing and business development. He spent 15 years in the chemical distribution business, including eleven years as the Northwest Branch Manager of a $50 million distributor. Rob was the founder and CEO for On The Spot Games, a board game startup. He is currently in the midst of a streak of over 2,900 consecutive days without a bad hair day.
An avid mentor himself, his own business inspirations come from problem solvers like Dean Kamon, innovative communicators like Seth Godin, fierce competitors like Lance Armstrong and global gurus like Thomas Friedman. When he’s not creating innovations in the construction industry, his passions include bike riding, throwing the ball around with his kids, and cooking. He is an accomplished public speaker and is a past president of Emerald City Toastmasters. Rob holds a B.S. in Manufacturing Engineering from Boston University and a MBA from Seattle University.
Construction folks are a focused bunch. Once a contractor signs a deal for a project, its team will immediately get to work generating and then executing a construction document set. For the entire duration of the schedule to follow, the construction team eats, sleeps and dreams about those documents. Their monomaniacal efforts continue until a building rises up from a patch of dirt in a matter of months.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com