Mortgage Battle Flares as U.K. Homebuying Loses Allure
January 28, 2015 —
Neil Callanan and Richard Partington – BloombergU.K. banks, which spent six years repairing their balance sheets after the 2008 property crash, want to advance more credit to homebuyers. Borrowers aren’t as enthusiastic.
Cheap funding costs and low default rates have made homebuyers attractive to lenders in recent years, boosting returns for companies such as Nationwide Building Society and Lloyds Banking Group Plc. (LLOY) Now, with demand for property cooling, they’re having to fight harder for business. Interest rates on the most popular mortgages fell to record lows in December, according to the Bank of England.
Mr. Callanan may be contacted at ncallanan@bloomberg.net; Mr. Partington may be contacted at rpartington@bloomberg.net
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Neil Callanan and Richard Partington, Bloomberg
Fire Raging North of Los Angeles Is Getting Fuel From Dry Winds
June 17, 2024 —
Brian K Sullivan - BloombergA wildfire raging north of Los Angeles has sent smoke billowing south and forced more than 1,000 people to evacuate — and with dry winds raking the hills, the blaze is poised to intensify.
A red flag fire warning has been raised in the area around the Post Fire, which is forecast to be whipped with winds reaching at least 20 miles (32 kilometers) per hour, according to the California Department of Forestry and Fire Protection, commonly called Cal Fire. The flames, which have burned more than 14,000 acres (5,700 hectares), are only about 8% contained and the smoke has prompted air quality alerts in parts of Los Angeles County and Ventura County.
“Crews are working to establish perimeter fire lines around the fire’s edges,” Cal Fire said in a report. “Aircraft are being utilized to halt the fire’s forward progress but are facing challenges due to limited visibility.”
Along with the Post Fire, crews are battling 10 other blazes throughout the state that flared up over the weekend in an ominous start to wildfire season. While California had heavy snow and rain this past winter, that doesn’t mean a respite from fires. The moisture that kept drought away allowed for grasses and brush to grow, meaning more wildfire fuel as California enters its driest months.
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Brian K Sullivan, Bloomberg
Risk Management for Condominium Conversions
July 31, 2013 —
David McLain, Higgings, Hopkins, McLain & Roswell, LLCOne of the bright spots in the Colorado construction industry over the last few years has been the construction of for-rent apartments. It seems as though apartments are going up everywhere you look along the Front Range. As market forces change, it will be interesting to see whether these units will remain apartments or whether they will be converted into for-sale condominiums or townhouses. One of the risk management strategies we have recently discussed with our general contractor clients who have been asked to build apartments is to ensure that the project remains a for-rent apartment project through the applicable statute of repose, conservatively assumed to be eight years. Unfortunately this is not always feasible, usually because the owner and/or lender are not interested in encumbering the property for such a long period of time, and want to retain the ability to convert the project if and when market forces allow, even if that is before the running of the statute of repose. The purpose of this article is to discuss the insurance and risk management ramifications of converting a project too early.
I have recently heard from several sources in the insurance industry that there are owners and contractors who are currently building apartments with the idea that they will be held as apartments for two to three years and then converted to for-sale condominiums or townhomes. While this strategy may have great appeal from a business point of view, it has a very serious risk management downside. Apparently, these owners and contractors are operating under the mistaken belief that they will have no liability exposure to the ultimate purchasers of the converted units or to the homeowners association for construction defects. This is an incorrect belief.
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David M. McLainDavid M. McLain can be contacted at
mclain@hhmrlaw.com
Waiving The Right to Arbitrate Under Federal Law
November 08, 2021 —
David Adelstein - Florida Construction Legal UpdatesIf there is an arbitration provision in your contract that you want to enforce, you do not want to take action inconsistent with those rights as this could give rise to a waiver argument, i.e., that you waived your rights to arbitrate, particularly if the other party has been prejudiced.
Under federal policy and law, establishing waiver requires the party arguing waiver to “bear a heavy burden of proof.” U.S. f/u/b/o John Wayne Construction, G.S.A. Division, LLC v. Federal Ins. Co., 2021 WL 4526727 (M.D.Fla. 2021) quoting Stone v. E.F. Hutton & Co., 898 F.2d 1542, 1543 (11th Cir. 1990).
“To determine whether the right to arbitrate has been waived, courts apply a two part test: i) whether, “‘under the totality of the circumstances,’ the party ‘has acted inconsistently with the arbitration right’”; and ii) “whether, by doing so, that party ‘has in some way prejudiced the other party.’” Id. quoting Ivax Corp. V. B. Braun of Am., Inc., 286 F.3d 1309, 1315-16 (11th Cir. 2002). Substantial participation in litigation prior to invoking the right to arbitrate supports a party acting inconsistent with the right to arbitrate. Id. And, “‘[p]rejudice has been found in situations where the party seeking arbitration allows the opposing party to undergo the types of litigation expenses that arbitration was designed to alleviate.’” Id. quoting Morewitz v. W. of Eng. Ship Owners Mut. Prot. & Indem. Ass’n (Luxembourg), 62 F.3d 1356, 1366 (11th Cir. 1995).
Hence the heavy burden for a party to support to prove waiver– establishing both substantial participation in litigation that is inconsistent with the right to arbitrate AND prejudice.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Pennsylvania Federal Court Addresses Recurring Asbestos Coverage Issues
March 04, 2019 —
Craig O’Neill & Laura Rossi - Complex Insurance Coverage ReporterIn a pair of recent asbestos coverage decisions, a Pennsylvania federal court issued rulings addressing expedited funding orders, number of “occurrences,” and the applicability of aggregate limits under the Fourth Circuit’s Wallace & Gale approach.
Zurn Industries, LLC v. Allstate Insurance Company, 2018 U.S. Dist. LEXIS 197481 (W.D. Pa. Nov. 20, 2018)
Policyholder Zurn, a manufacturer and distributor of boilers, was named as a defendant in thousands of underlying asbestos-related bodily injury suits. After its primary insurers claimed exhaustion, Zurn moved on an expedited basis to require two of its excess insurers to each assume fifty percent of its defense and indemnity costs until they reached a permanent cost-sharing agreement. In denying Zurn’s expedited request for interim funding, the court held that the record was insufficient “in the opening stages of litigation, before discovery has occurred” to determine whether the underlying coverage had been properly exhausted but left the door open for Zurn to refile its motion on a more developed record.
Reprinted courtesy of
Craig O’Neill, White and Williams LLP and
Laura Rossi, White and Williams LLP
Mr. Levine may be contacted at oneillc@whiteandwilliams.com
Ms. Rossi may be contacted at rossil@whiteandwilliams.com
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An Upward Trend in Commercial Construction?
March 28, 2012 —
Melissa Brumback, Construction Law in North CarolinaYear-end economic indicators demonstrate that private commercial construction may be increasing in 2012, primarily as demand grows for new projects built in the United States.
According to an article in Businessweek, the Architecture Billings Index held at 52 in December, indicating a modest expansion in the market. The American Institute of Architects said that the commercial and industrial component of the number climbed to 54.1 in December, the highest in 10 months.
The monthly survey of U.S.-based architecture firms is one of the main indicators of nonresidential construction, and these numbers suggest that modest improvement may be on the horizon.
The information is confirmed by data from the Census Bureau that shows that spending on lodging, office, commercial and manufacturing buildings grew 8.2 percent in November to $9.2 billion from a year ago. These types of commercial and industrial projects are historically canaries in the mine and are usually the first part of the industry to improve as the economy expands.
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Reprinted courtesy of Melissa Dewey Brumback of Ragsdale Liggett PLLC. Ms. Brumback can be contacted at mbrumback@rl-law.com.
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Skilled Labor Shortage Implications for Construction Companies
July 15, 2019 —
Tony James & Keith Maciejewski - Construction ExecutiveThe construction industry is facing one of the most significant labor shortages it has ever seen. This labor shortage has far-reaching implications for worker safety and construction quality—both of which could adversely impact a company’s bottom line if investments are not made to address the issue.
What’s causing the labor gap?
There are two underlying trends driving this phenomenon:
- More experienced workers have either not returned to the industry after the Great Recession or are now retiring as they’ve concluded their careers.
- The construction industry has long struggled to attract new, younger workers to the industry, and this problem has only worsened as the broader economy boomed. As a result, construction firms must compete with other industries, such as health care, technology and engineering, for young talent.
Reprinted courtesy of
Tony James & Keith Maciejewski, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Policy Renewals: Has Your Insurer Been Naughty or Nice?
December 26, 2022 —
Latosha M. Ellis & Jae Lynn Huckaba - Hunton insurance Recovery BlogA review of insurance policies at renewal should be on every business’s annual task list—and it should be checked twice! Just as your business grows and evolves every year, so should your insurance program. Together with staying proactive and preparing for renewal months before the policy expiration, there are a number of best practices to put your business in the best position to maximize insurance recovery, including shopping around, evaluating changes to your business, engaging the appropriate stakeholders, and performing a policy audit with a coverage attorney.
Shop Around
An early start to the renewal process allows for thorough decision-making and more time to engage in negotiations with the insurer. Even if the preference is to stay with the existing insurer, shopping around creates some buying power within the negotiation process.
Evaluate Operational or Business Practice Changes
Risk control and mitigation have a direct impact on your premiums and availability of coverage. Assess any changes in the business’s exposure to risk and make any necessary insurance coverage adjustments.
Reprinted courtesy of
Latosha M. Ellis, Hunton Andrews Kurth and
Jae Lynn Huckaba, Hunton Andrews Kurth
Ms. Ellis may be contacted at lellis@HuntonAK.com
Ms. Huckaba may be contacted at jhuckaba@HuntonAK.com
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