CAMBRIDGE MASSACHUSETTS BUILDING EXPERT
DIRECTORY AND CAPABILITIES

2023 Construction Outlook: Construction Starts Expected to Flatten

February 06, 2023 — Garret Murai - California Construction Law Blog
There’s a lot to worry about going into 2023 according to Dodge Data & Analytics in its 2023 Construction Industry Outlook:

• Inflation
• More oil production cuts from OPEC
• Relations between China and Taiwan
• Further escalation of the war in Ukraine

While the immediate forecast is choppy, if things stabilize in the back half of 2023, according to Dodge Data & Analytics, total construction starts in the U.S. should remain flat in 2023. While “flat” may not sound particularly optimistic, it is, when you consider that total construction starts in 2022 were up 17%. “We’re sitting at 14- to 15-year highs in the Dodge Momentum Index,” stated Richard Branch, Chief Economist at Dodge Data, “so it should provide some semblance of confidence and reassurance that developers and owners are continuing to put projects into the queue despite the fact that we’re concerned about what might happen when interest rates keep rising and the economy slows down in 2023.” Labor shortages will continue to be a big hurdle for the construction industry, according to Branch, but a bright spot is in material prices that peaked in 2021 but generally fell throughout 2022. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

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Important Insurance Alert for Out-of-State Contractors Assisting in Florida Recovery Efforts!

November 01, 2022 — Richard W. Brown & Stephanie A. Giagnorio - Saxe Doernberger & Vita
Significant portions of Florida suffered extensive damage from Hurricane Ian. Many out-of-state contractors have sent their workers to Florida to help with the cleanup and rebuilding process. SDV is sending out this important notice for all out-of-state contractors to contact their workers’ compensation brokers and insurers to ensure their out-of-state workers’ compensation policy will cover workers in Florida. The state of Florida does not recognize the “All States Endorsement” on workers’ compensation policies, and in some instances could potentially result in out-of-state contractors being without coverage in the State of Florida. As per the Florida Division of Workers’ Compensation: “Out of State Employers must notify their insurance carrier that they are working in Florida. If there is no insurance, the out-of-state employer is required to obtain a Florida Workers’ Compensation Insurance policy with a Florida approved insurance carrier which meets the requirements of Florida law and the Florida Insurance Code. This means that ‘Florida’ must be specifically listed in Section 3A of the policy (on the Information Page).” Reprinted courtesy of Richard W. Brown, Saxe Doernberger & Vita and Stephanie A. Giagnorio, Saxe Doernberger & Vita Mr. Brown may be contacted at RBrown@sdvlaw.com Ms. Giagnorio may be contacted at SGiagnorio@sdvlaw.com Read the court decision
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California Supreme Court Rules Developers can be Required to Include Affordable Housing

June 17, 2015 — Beverley BevenFlorez-CDJ STAFF
The Los Angeles Times reported that in a unanimous decision, the California Supreme court justices declared that “cities and counties” can “require developers to sell some housing at below-market rates.” Chief Justice Tani Cantil-Sakauye wrote, “It will come as no surprise to anyone familiar with California’s current housing market that the significant problems arising from a scarcity of affordable housing have not been solved over the past three decades,” as quoted in the Los Angeles Times. Los Angeles Mayor Eric Garcetti applauded the decision: “This gives Los Angeles and other local governments another possible tool to use as we tackle our affordable housing crisis.” Read the court decision
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Pancakes Decision Survives Challenge Before Hawaii Appellate Court

March 12, 2015 — Tred R. Eyerly – Insurance Law Hawaii
In 1997, the Hawaii Intermediate Court of Appeals (ICA) decided Pancakes of Hawaii, Inc. v. Pomare Prop. Corp., 85 Haw. 286, 944 P.2d 83 (Haw. Ct. App. 1997). Although not an insurance coverage case, Pancakes addressed the duty to defend in terms of a contractual indemnity obligation. Under challenge in a recent appeal before the ICA, the Court reaffirmed the holding in Pancakes. Arthur v. State of Hawaii, Dept. of Hawaiian Home Lands, 2015 Haw. App. LEXIS 109 (Haw. Ct. App. Feb. 27, 2015). The decision is long with detailed facts complicated and many indemnities running in favor of various parties. This post focuses on the decision's discussion of Pancakes. A resident, Mona Arthur, of the Kalawahine Streamside Housing Development, was killed when she apparently slipped and fell from a hillside adjacent to the project. She was on the hillside tending to her garden there. At the bottom of the hill was a two foot fence in front of a drainage ditch, where Mona allegedly hit her head. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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CA Supreme Court Finds “Consent-to-Assignment” Clauses Unenforceable After Loss Occurs During the Policy Period

August 26, 2015 — Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLP
In Fluor Corporation v. Superior Court (No. S205889; filed 8/20/15), the California Supreme Court overruled its earlier decision in Henkel Corp. v. Hartford Accident & Indemnity Co. (2003) 29 Cal.4th 934, holding that notwithstanding the presence of a consent-to-assignment clause in a liability policy, Insurance Code section 520 bars an insurer from refusing to honor the insured’s assignment of coverage after a loss has taken place during the policy period. In Henkel, the Supreme Court limited the ability of corporate successors to obtain coverage under predecessors’ policies on a contract theory. The Henkel Court held that where a successor corporation contractually assumed liabilities of the predecessor corporation, the insurance benefits would not automatically follow. The Henkel Court ruled that if the predecessor company’s policy contains a consent-to-assignment clause, any assignment of insurance policy benefits to a successor corporation required the insurer’s consent. The Court said that policy benefits are not transferable choses in action unless at the time of corporate transfer they could be reduced to a monetary sum certain. The Court reasoned that historic product or environmental liabilities might not even be known to the predecessor at that time, much less reduced to a sum certain, so coverage for such risks could not be considered a transferable chose in action. Thus, where the liability was inchoate at the time of the corporate transaction, the Henkel Court said that coverage would not necessarily follow because the insurer’s duties had not yet attached. Reprinted courtesy of Christopher Kendrick, Haight Brown & Bonesteel LLP and Valerie A. Moore, Haight Brown & Bonesteel LLP Mr. Kendrick may be contacted at ckendrick@hbblaw.com; Ms. Moore may be contacted at vmoore@hbblaw.com Read the court decision
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World's Longest Suspension Bridge Takes Shape in Turkey

November 29, 2021 — Aileen Cho - Engineering News-Record
It was a long-standing dream—not only of Ersin Arıoğlu, but of a nation. Could a suspension bridge someday cross the Dardanelles Strait in Turkey and provide another link between Europe and Asia? “To build a highway suspension bridge over the Çanakkale Strait has been on the agenda of the Turkish Ministry of Public Works for the last 20 years,” Arıoğlu, co-founder of contractor Yapi Merkezi, wrote in a technical paper. That was in 1994. Reprinted courtesy of Aileen Cho, Engineering News-Record Ms. Cho may be contacted at choa@enr.com Read the full story... Read the court decision
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Texas and Georgia Are Paying the Price for Sprawl

March 15, 2021 — Conor Sen - Bloomberg
Cities in the Sun Belt South have been needing a more modern development model for a while. That's created tensions, both economically and politically, that have only accelerated during the past year's pandemic. My colleague Noah Smith wrote a column about this specific to Texas, but it's broader than any one state and it's useful to think about how we got to this point and why these issues are relevant in 2021 in a way they weren't a generation ago. There's an institutional reluctance to pivot away from the Sun Belt model defined by low taxes and cheap land because of how successful it was for key constituencies for decades. Coming out of World War II, there was a scramble nationwide to build more housing in response to soldiers coming home from war and pent-up demand for family formation. The combination of the automobile as the nation's now-dominant form of transportation and the passage of the Federal Highway Act of 1956 made building out the suburbs of less-populated southern states an irresistible growth model for politicians and economic development interests alike. If it required tax breaks and fewer regulations to lure jobs and people from northern states to accelerate the process, so be it. Read the court decision
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Reprinted courtesy of Conor Sen, Bloomberg
Mr. Sen may be contacted at csen9@bloomberg.net

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Where Breach of Contract and Tortious Interference Collide

January 11, 2022 — Christopher G. Hill - Construction Law Musings
Claims for breach of contract are numerous in the construction law world. Without these claims we construction attorneys would have a hard time keeping the doors open. A 2021 case examined a different sort of claim that could arise (though, “spoiler alert” did not in this case) during the course of a construction project. That type of claim is one for tortious interference with business expectancy. In Clark Nexsen, Inc. et. al v. Rebkee, the U. S. District Court for the Eastern District of Virginia gave a great explanation of the law of this type of claim in analyzing the following basic facts: In 2018, Clark Nexsen, Inc. (“Clark”) and MEB General Contractors, Inc. (“MEB”) responded to Henrico County’s (“Henrico”) Request for Proposals (“RFP”) for the design and construction of a sport and convocation center (the “Project”). Henrico initially shortlisted Clark and MEB as a “design-build” team for the Project, but later restarted the search, issuing a second RFP. Clark and MEB submitted a second “design-build” proposal, but Henrico selected Rebkee Co. (“Rebkee”) for certain development aspects of the Project. MEB also submitted proposals to Rebkee, and Rebkee selected MEB as the design-builder for the Project. MEB, at Rebkee’s request, solicited proposals from three design firms and ultimately selected Clark as its design partner. From December 2019 to May 2020, Clark and MEB served as the design-build team to assist Rebkee in developing the Project. In connection therewith, Clark developed proprietary designs, technical drawings, and, with MEB, several cost estimates. In February 2020, MEB submitted a $294,334.50 Pay Application to Rebkee for engineering, design, and Project development work. Rebkee never paid MEB. Henrico paid MEB $50,000.00 as partial payment for MEB’s and Clark’s work. MEB then learned that Rebkee was using Clark’s drawings to solicit design and construction proposals from other companies. On July 23, 2020, Rebkee told MEB that Henrico directed it to cancel the design-build arrangement with MEB and Clark and pursue a different planning method. MEB and Clark sued and Rebkee for, among other claims, tortious interference with a business expectancy. Rebkee moved to dismiss the tortious interference claim. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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