Alert: AAA Construction Industry Rules Update
June 07, 2021 —
Christopher G. Hill - Construction Law MusingsThe American Arbitration Association has made some needed updates to their Construction Industry Arbitration and Mediation Rules, effective July 1, 2015. Among the changes listed at their website are:
- A mediation step for all cases with claims of $100,000 or more (subject to the ability of any party to opt out).
- Consolidation and joinder time frames and filing requirements to streamline these increasingly involved issues in construction arbitrations.
- New preliminary hearing rules to provide more structure and organization to get the arbitration process on the right track from the beginning.
- Information exchange measures to give arbitrators a greater degree of control to limit the exchange of information, including electronic documents.
- Availability of emergency measures of protection in contracts that have been entered into on or after July 1, 2015.
- Enforcement power of the arbitrator to issue orders to parties that refuse to comply with the Rules or the arbitrator’s orders.
- Permissibility of dispositive motions to dispose of all or part of a claim or to narrow the issue in a claim.
Read the court decisionRead the full story...Reprinted courtesy of
The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
City Drops Impact Fees to Encourage Commercial Development
November 08, 2013 —
CDJ STAFFThe Orvido, Florida city council wants to encourage commercial development, and they’re willing to do it by discouraging residential development. The impact fees for commercial buildings have dropped sharply, the Orlando Sentinel notes that for a 50,000 square-foot office building, the city is reducing the impact fee from $2,890 to $1,575, a drop of $1,313, nearly half.
Meanwhile, the impact fee for single-family homes has seen an increase of seven percent, going from $3,195 to $3.433. The city is clear about its reasons. “We’re very heavy on the residential side. We want to have more high-paying jobs come into the city,” said Keith Britton, a member of the council.
Read the court decisionRead the full story...Reprinted courtesy of
“Slow and Steady Doesn’t Always Win the Race” – Applicability of a Statute of Repose on Indemnity/Contribution Claims in New Hampshire
November 24, 2019 —
Rahul Gogineni - The Subrogation StrategistIn Rankin v. South Street Downtown Holdings, Inc., 2019 N.H. LEXIS 165, the Supreme Court of New Hampshire considered, pursuant to a question transferred by the trial court, whether RSA 508:4-b, the statute of repose for improvements to real property, applies to indemnity and contribution claims. The court concluded that based upon the plain reading of the statute, it applies to indemnity and contribution claims. As noted by the court, a holding to the contrary would violate the intent of a statute of repose, which is to establish a time limit for when a party is exposed to liability.
In Rankin, after falling and injuring himself while leaving a building, John Rankin and his wife brought an action against the property owner, South Street Downtown Holding, Inc. (South Street) in 2017. South Street subsequently filed a third-party complaint against multiple parties including an architectural company, Wagner Hodgson, Inc. (Wagner), who was involved in a renovation project at the property. The project was substantially complete in 2009. Wagner responded by moving to dismiss the action, arguing that South Street’s indemnification and contribution claims were barred by the applicable statute of repose.
RSA 508:4-b specifically states,
Except as otherwise provided in this section, all actions to recover damages for injury to property, injury to the person, wrongful death or economic loss arising out of any deficiency in the creation of an improvement to real property, including without limitation the design, labor, materials, engineering, planning, surveying, construction, observation, supervision or inspection of that improvement, shall be brought within 8 years from the date of substantial completion of the improvement, and not thereafter. (Emphasis added).
Read the court decisionRead the full story...Reprinted courtesy of
Rahul Gogineni, White and Williams LLPMr. Gogineni may be contacted at
goginenir@whiteandwilliams.com
No Coverage For Construction Defects Under Alabama Law
September 14, 2017 —
Tred R. Eyerly - Insurance Law HawaiiThe federal district court found there was no coverage for alleged defects caused by the insured homebuilder. Canal Indem. Co. v. Carbin, 2017 U.S. Dist. LEXIS 126662 (N.D. Ala. Aug. 10, 2017).
Carbin Construction filed suit against Aaron and Sherry Ford, asserting mechanic's and materialman's liens, and seeking sums allegedly due for work performed under a construction contract. The Fords filed a counterclaim, alleging that over a year had passed since Carbin was to complete construction, and that Carbin refused to do any further work on the house until he was paid an additional $11,771.43. The Fords further contended that Carbin had walked off the job after receiving 96.6 percent of the money owed under the contract although only 88 percent of the construction work had been completed. Carbin tendered the counterclaim to Canal. Canal then filed suit seeking a declaration that it had no duty to defend.
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly - Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Unit Owners Have No Standing to Sue under Condominium Association’s Policy
February 10, 2012 —
Tred R. Eyerly - Insurance Law HawaiiIf a condominium owner suffers damage caused by a leak from another unit, may it sue the insurer for the Association of Apartment Owner (AOAO) for coverage? The federal district court for Hawaii said "no" in a decision by Judge Mollway. See Peters v. Lexington Ins. Co., 2011 U.S. Dist. LEXIS 148734 (D. Haw. December 27, 2011).
Two cases were consolidated. In each case, Plaintiffs owned condominium units at the Watercrest Resort on Molokai. Water leaking from another unit damaged Plaintiffs’ units.
Watercrest Resort was insured by Lexington pursuant to a policy maintained by the AOAO. Plaintiffs filed claims with Lexington. Lexington hired an adjustor.
Unhappy with the adjustment of their claims, Plaintiffs sued Lexington and the adjustor.
Read the full story…
Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com
Read the court decisionRead the full story...Reprinted courtesy of
Connecting IoT Data to BIM
September 04, 2018 —
Aarni Heiskanen - AEC BusinessInternet of Things sensors and IoT-capable devices provide a huge amount of data from buildings. To make this data useful and usable for research, Aalto University is developing and testing a service that links IoT with building information models, BIMs.
“The idea to start an experiment on linking IoT with BIM at the Otaniemi campus originated from discussions we had within professor Martti Mäntylä’s Aalto campus IoT group. We realized that several small research projects were simultaneously testing IoT here. So we decided to create a framework for sharing information between the projects,” says Seppo Törmä, CEO of VisuaLynk.
Read the court decisionRead the full story...Reprinted courtesy of
Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Don’t Waive Your Right to Arbitrate (Unless You Want To!)
October 19, 2017 —
David Adelstein - Florida Construction Legal UpdatesDoes your construction contract require you to arbitrate (instead of litigate) disputes arising out of the contract? If so, and you want to arbitrate, you do NOT want to do anything inconsistent or adverse with your right to arbitrate. Arbitration can be waived and you do not want arbitration to be waived if you believe this is the best forum to resolve your construction dispute. For instance, actively participating in a lawsuit through the prosecution or defense of issues in the lawsuit is certainly inconsistent with your right to arbitrate. This will result in a waiver of your right to compel arbitration.
In a non-construction dispute—a dispute involving a law firm and its former partner—the law firm sued the partner. Chaikin v. Parker Waichman LLP, 42 Fla. L. Weekly D2165b (Fla. 2d DCA 2017). There was a partnership agreement that required disputes to be resolved by arbitration. The law firm sued the partner claiming he violated a previously entered employment agreement that did not require arbitration. When the partner counterclaimed, the law firm claimed that the counterclaim must be compelled to arbitration because the counterclaim arose out of the partnership agreement that required arbitration. Guess what? The trial court actually compelled the counterclaim to arbitration! Crazy! Clearly, any employment agreement and partnership agreement were intertwined such that the dispute would involve the same set of facts and any claims would have a significant relationship to the partnership agreement.
Read the court decisionRead the full story...Reprinted courtesy of
David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dadelstein@gmail.com
Manhattan Condo Resale Prices Reach Record High
September 03, 2014 —
Oshrat Carmiel – BloombergPrices for previously owned Manhattan condominiums rose to a record last month even as an increase in the supply of units eased competition among buyers.
An index of resale prices climbed 1.1 percent from June to reach the highest level in data going back to 1995, StreetEasy.com, a New York real estate website, said in a report today. The inventory of condos on the market grew 5.4 percent from a year earlier, the biggest annual gain since October 2009.
The market is still tight, with the number of available condos about 16 percent below the five-year average for Manhattan. That will continue to drive up prices, according to StreetEasy, which projects a 0.4 percent increase for August.
Read the court decisionRead the full story...Reprinted courtesy of
Oshrat Carmiel, BloombergMs. Carmiel may be contacted at
ocarmiel1@bloomberg.net