How the Parking Garage Conquered the City
January 09, 2023 —
Andrew Zaleski - BloombergUncertainty overcame owners of several Manhattan parking garages in September. A plan to implement congestion pricing — charging drivers to enter a zone south of 60th Street — could lead to more transit usage by commuters, and thus the closure of some parking garages, The City reported. Parking options have already been on the wane in the largest US city: The NYC Department of Consumer Affairs and Worker Protection counted more than 2,200 licenses for garages and lots in 2015, a number that fell to 1,899 by 2021.
For most urban residents, if not outer-borough drivers, that decline is reason to cheer. The parking garage — a big, concrete-gray box for cars — is a notorious bane of urban vitality.
City after city, desperate to lure suburbanites downtown to work or shop, bulldozed prime real estate to build these structures in the postwar era, turning central business districts into vehicle-storage voids that sapped streets of pedestrian energy and hollowed out neighborhoods. Building codes that mandated a certain number of parking spaces have kept new garages coming: In suburbs, exurbs and towns across the US, you will find these facilities, squatting beside shopping centers and stadiums, airports and office parks, planned communities and amusement parks.
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Andrew Zaleski, Bloomberg
Former UN General Assembly President Charged in Bribe Scheme
October 21, 2015 —
Patricia Hurtado & Greg Farrell – BloombergA former president of the United Nations General Assembly and a billionaire Macau developer were accused of taking part in a four-year corruption scheme that included bribes to help fund a campaign for the post at the organization in exchange for the promotion of Chinese businesses.
John Ashe, president of the UN General Assembly from September 2013 to September 2014, accepted more than $1 million in payoffs from developer Ng Lap Seng and an associate to help persuade the international body to build a multibillion-dollar conference center in Macau and promote Chinese businesses, including a bank, in Antigua, according to the U.S.
The new charges, announced Tuesday, relate to an earlier case against Ng, 68, who has a personal net worth of about $1.8 billion. He’s been held in a federal jail in Manhattan since he was arrested Sept. 19, accused of bringing $4.5 million into the country and lying about its purpose to U.S. authorities.
Reprinted courtesy of
Patricia Hurtado, Bloomberg and
Greg Farrell, Bloomberg
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The Little Ice Age and Delay Claims
January 24, 2018 —
Wally Zimolong - Supplemental ConditionsMuch of the Eastern United States is just now emerging from a historic two week cold snap. In much of the Northeast and Mid-Atlantic, the temperature stayed below freezing for 15 days straight. Cities recorded the lowest temperatures in a quarter century. Winter Storm Grayson reeked havoc along the Eastern Coast bringing snow to places like Charleston and a crippling blizzard to Boston.
The record cold snap also impacted the construction industry. Delivery delays, the inability to apply weather sensitive applications (like cast in place concrete), and the unavailability of labor are just a few things that extreme weather can cause on a construction project. If they happen at the wrong time, delays can destroy project schedules and make previous delays even worse. Delays cost money and can mean the difference between a profitable project from both the owner and contractors perspective.
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Wally Zimolong, Zimolong LLCMr. Zimolong may be contacted at
wally@zimolonglaw.com
Insured’s Bad Faith Insurance Claim Evaporates Before its Eyes
August 03, 2020 —
Garret Murai - California Construction Law BlogSometimes it’s right there before your eyes. Then, poof, it’s gone. This was the experience of one insured, who brought a bad faith insurance denial claim against his insurer thinking that the facts were in his favor, only to discover they were not.
The 501 E .51st Street Case
The Water Main Break and AGI’s Report
The owner of a 10-unit apartment building built in 1963, 501 East 51st Street, Long Beach-10 LLC (just rolls off the tongue doesn’t it?), filed a bad faith action against its insurer Kookmin Best Insurance Co., Ltd., after it denied 501 East’s insurance tender following a water main break that caused the building’s foundation to subside.
The water main break occurred sometimes between December 31, 2015 and January 2, 2016 next to the southwest side of the building. 501 East tendered its insurance claim to Kookmin on March 8, 2016, and in April 2016, presented a report prepared by American Geotechnical, Inc. (“AGI”) concerning damage to the building. According to the report prepared by AGI, AGI conducted a “limited geotechnical investigation” to “evaluate site conditions relating to the reported building distress following a waterline breach near the south end of the building.” The scope of AGI’s investigation was limited to “observation, photo documentation of the site conditions, [and[ floor-level survey of the interior of the first level units.” AGI’s investigation did not involve any subsurface investigation or soil testing.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Hurricane Laura: Implications for Insurers in Louisiana
October 19, 2020 —
Jennifer Michel & Tabitha Durbin - Lewis BrisboisJust two days before the 15th Anniversary of Hurricane Katrina, Category 4 Hurricane Laura made landfall near Cameron, Louisiana. Although the “unsurvivable” 20-foot storm surge, which had been predicted ahead of the storm, thankfully was significantly less, the impact of Laura on the Southwest Coast of Louisiana and Southeast Coast of Texas and its neighboring parishes and counties, most notably Cameron Parish, was quite severe. Lake Charles, Louisiana suffered widespread flooding and sustained catastrophic wind damage. Although the storm moved quickly, it retained its strength longer than expected such that even areas well inland sustained considerable damage. Preliminary estimates for insured losses from storm surge, flooding, and winds range from $8 to $12 billion for residential and commercial properties. Insurers providing residential or commercial property insurance in Louisiana should keep the following statutory claims handling requirements in mind.
Louisiana Statutory Provisions
Under Louisiana law, an insurer is expected to comply with certain statutory requirements in investigating and handling claims submitted by its insureds and third-party claimants. The majority of these requirements, and the consequences of their violation, are codified by La. R.S. 22:1892, which governs the payment and adjustment of claims, and La. R.S. 22:1973, which delineates an insurer’s duty of good faith. Together, the statutes impose three requirements on insurers: timely initiation of loss adjustment, timely payment of claims, and a duty of good faith and fairness in the adjustment and payment of said claims.
Reprinted courtesy of
Jennifer Michel, Lewis Brisbois and
Tabitha Durbin, Lewis Brisbois
Ms. Michel may be contacted at Jenny.Michel@lewisbrisbois.com
Ms. Durbin may be contacted at Tabitha.Durbin@lewisbrisbois.com
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Quick Note: Discretion in Determining Prevailing Party for Purposes of Attorney’s Fees
January 25, 2021 —
David Adelstein - Florida Construction Legal UpdatesIn prior articles I have discussed that courts apply the significant issues test to determine the prevailing party for purposes of being entitled to attorney’s fees. A party that recovers an affirmative judgement is NOT the de facto prevailing party for purposes of an entitlement to attorney’s fees in a breach of contract action (or a construction lien foreclosure action). This was the issue in a recent appeal discussed here where the party that recovered an affirmative judgment on a breach of contract case was not deemed the prevailing party for purposes of attorney’s fees. While the party prevailed on one of its claims, it did not prevail on others, and it recovered less than half of the damages it originally sought. The appellate court, affirming the trial court, held that the trial court has discretion to determine that the party that recovered an affirmative judgement was not the prevailing party entitled to its attorney’s fees under the signifiant issues test. This was not what the party was expecting when the attorney’s fees it expended far exceeded the judgment it recovered.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Housing Bill Threatened by Rift on Help for Disadvantaged
April 09, 2014 —
Cheyenne Hopkins and Clea Benson - BloombergEfforts to overhaul the U.S. housing-finance system could hinge on how far Congress is willing to go to ensure that young, low-income and minority homebuyers can get mortgages.
A bipartisan bill drafted by Senate Banking Committee leaders Tim Johnson and Mike Crapo relies on incentives to persuade financiers to lend to groups with higher risk profiles. Consumer and civil-rights organizations are pushing instead for a mandate that those groups must be served, a concept that has become a political flash point since the housing bubble burst.
Key Democrats on the banking panel whose support is needed to pass the measure may vote against a bill that doesn’t include a mandate, especially as mortgage borrowing has dropped among blacks, Latinos and first-time buyers.
Ms. Hopkins may be contacted at chopkins19@bloomberg.net; Ms. Benson may be contacted at cbenson20@bloomberg.net
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Cheyenne Hopkins and Clea Benson, Bloomberg
KF-103 v. American Family Mutual Insurance: Tenth Circuit Upholds the “Complaint Rule”
May 12, 2016 —
Adria Robinson – Colorado Construction LitigationIn Colorado, the “complaint rule” requires insurance carriers to provide a defense to its insured when the allegations contained in the complaint allege any set of facts that may fall within an insurance policy. Some insurers have pushed back on this rule arguing that it may cause an insurer to exercise its duty to defend although the underlying facts ultimately do not fall within the policy.
In KF 103-CV, LLC v. American Family Mutual Insurance Company, 2015 WL 6517782, the Tenth Circuit of the United States Court of Appeals upheld the complaint rule. In its decision, the Tenth Circuit cited several Colorado state court rulings recognizing the courts’ intent to incentivize insurers to defend policies that may facially fall within the terms of the policy. Where there is uncertainty about coverage, the Tenth Circuit cited a Colorado Supreme Court case stating, “[t]he appropriate course of action for an insurer who believes that it is under no obligation to defend, is to provide a defense to the insured under the reservation of its rights.”
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Adria Robinson, Higgins, Hopkins, McLain & Roswell, LLCMs. Robinson may be contacted at
robinson@hhmrlaw.com