Chicago Developer and Trade Group Sue City Over Affordable Housing Requirements
September 03, 2015 —
Beverley BevenFlorez-CDJ STAFFThe Chicago Tribune reported that Hoyne Development and Home Builders Association of Greater Chicago are suing the city of Chicago, claiming that the “Affordable Requirements Ordinance is unconstitutional because it involves the taking of private party without ‘just compensation,’ violating the Fifth Amendment.”
Shannon Breymaier, spokeswoman for Chicago Mayor Rahm Emanuel, however, disputes the claims, and told the Chicago Tribune in an email that the city planned to “defend the ordinance vigorously.”
Read the court decisionRead the full story...Reprinted courtesy of
Canada Housing Starts Increase on Multiple-Unit Projects
October 08, 2014 —
Greg Quinn – BloombergCanadian housing starts rose 0.5 percent last month led by multiple-unit work, government figures showed.
Work started on 197,343 units at a seasonally adjusted annual pace in September, Ottawa-based Canada Mortgage & Housing Corp. said today, close to the 198,000 median forecast in a Bloomberg economist survey with 18 responses.
Multiple-unit projects such as condominiums and apartments rose 2.4 percent to 114,579 units. Single-family homes declined 2.9 percent to 62,440 units.
Canada may need tougher rules to slow gains in the housing market, the International Monetary Fund said yesterday. Much of the attention has focused on high prices and robust construction of condos in Vancouver and Toronto.
Read the court decisionRead the full story...Reprinted courtesy of
Greg Quinn, BloombergMr. Quinn may be contacted at
gquinn1@bloomberg.net
Just Because You Allege There Was an Oral Contract Doesn’t Mean You’re Off the Hook for Attorneys’ Fees if you Lose
March 28, 2022 —
Garret Murai - California Construction Law BlogThere’s certain things in life you shouldn’t mix. Like drinking and driving. Bleach and ammonia. Triple dog dares and frozen poles. And angry lawyers and litigation.
In Spahn v. Richards, Case No. A159495 (November 30, 2021), angry lawyer Jeffrey Spahn sued general contractor Dan Richards claiming that Richards orally agreed to build Spahn’s million dollar plus house for $515,000. Not only did Spahn not recover anything from Richards, he ended up owing Richards $239,171 in attorney’s fees and costs, after he denied a request for admission asking that he admit that there was no oral contract.
The Spahn Case
In 2017, Spahn filed suit against Richards for breach of oral contract, breach of implied covenant of good faith and fair dealing, and promissory estoppel. According to Spahn, he met Richards in June 2015 and the two reached an agreement whereby Richards agreed to demolish Spahn’s house for $12,500 and build a new one for $515,000. Further according to Spahn, Richards agreed to this “fixed price” “oral contract” in June 2015, and then, on July 1, 2015, Richards “confirmed and agreed that he would perform the construction project” for $515,000 and would complete construction by May 2016.
Read the court decisionRead the full story...Reprinted courtesy of
Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Collaborating or Competing with Construction Tech Startups
November 15, 2017 —
Aarni Heiskanen - AEC BusinessI recently interviewed 20 experts and thought leaders about real estate and construction technology and innovation. Many of the interviewees talked about collaboration with startups and how to make the most of it.
There’s a growing interest in construction technology. Construction tech firms have garnered $10 billion in investment funding from 2011 through early 2017, according to McKinsey & Company. AngelList, a startup and investor website, currently features over 13,000 companies with “construction” as a keyword.
Read the court decisionRead the full story...Reprinted courtesy of
Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
info@aepartners.fi
Economic Loss Rule Bars Claims Against Manufacturer
November 02, 2020 —
David Adelstein - Florida Construction Legal UpdatesThe economic loss rule lives to bar a claim against a product manufacturer in a real estate transaction. In a products liability action, there needs to be personal injury or property damage, other than to the property itself, in order to recover economic damages. Otherwise, the economic loss rule will bar the recovery of such economic losses when the economic losses deal to the product itself. This is important to keep in mind in any product liability action against a manufacturer.
In a recent case, 2711 Hollywood Beach Condominium Assoc’n, Inc., v. TRG Holiday, Ltd., 45 Fla. L. Weekly D2179a (Fla. 3d DCA 2020), a condominium association purchased the condominium from the developer. Subsequently, it noticed leaks with the fire suppression system in the condominium and sued multiple parties for damages for repairs due to the leaks and the replacement of the fire suppression system. One of the parties sued in negligence and strict liability was a manufacturer of pipe fittings used in the fire suppression system. The manufacturer moved for summary judgment based on the economic loss rule and relying on the 1993 Florida Supreme Court opinion in Casa Clara Condominium Assoc’n v. Charley Toppino & Sons, Inc., 620 So.2d 1244 (Fla. 1993), holding “the economic loss rule limited a defendant’s tort liability for allegedly defective products to injuries caused to persons or damage caused to property other than the defective product itself.” 2711 Hollywood Beach Conominium Assoc’n, supra. The trial court agreed with the manufacturer and granted summary judgment. On appeal, the Third District affirmed based on the economic loss rule:
The Association bargained for, purchased and received a building; [the manufactuer’s] fittings were only a component of the FSS [fire suppression system], incorporated into the building. Applying the rule set forth in Casa Clara, the Association purchased a completed building from the developer. [The manufactuer’s] fittings were “an integral part of the finished product and, thus, did not injure ‘other’ property.” Injury to the building itself is not injury to “other” property because the product purchased by the Association was the building. See Casa Clara, 620 So. 2d at 1247. The economic loss rule therefore bars the Association’s recovery as to [the manufacturer] to the extent that it sought damages to replace the FSS [fire suppression system] and repair damage to the building.
2711 Hollywood Beach Conominium Assoc’n, supra (internal citations omitted).
Read the court decisionRead the full story...Reprinted courtesy of
David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Hawaii Federal District Court Again Rejects Coverage for Faulty Workmanship
January 13, 2017 —
Tred R. Eyerly - Insurance Law HawaiiThe federal district court for the District of Hawaii continued its longstanding pattern of finding no coverage for claims based upon construction defects. Am. Auto. Ins. Co. v. Haw. Nut & Bolt, 2016 U.S. Dist. LEXIS 174243 (D. Haw. Dec. 16, 2016).
Safeway filed a complaint against Hawaii Nut & Bolt (HNB). The complaint involved issues pertaining to the construction of the roof deck at a Safeway store. HNB was a subcontractor hired to supply a coating system on the roof of the store to make it waterproof. The product was manufactured by VersaFlex. After the store opened, there were water leaks from the roof. This disrupted business operations and caused damage to Safeway's business and reputation. HNB tendered the claims to its CGL carrier, Fireman's Fund Insurance Corporation (FFIC). FFIC defended the underlying lawsuit for six years under a reservation of rights.
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Cracked Girders Trigger Scrutiny of Salesforce Transit Center's Entire Structure
November 21, 2018 —
Nadine M. Post - Engineering News-RecordNov. 15, 2018 Update:
After calling on Nov. 8 for a “complete structural evaluation” of San Francisco's 1.2-million-sq-ft SalesForce Transit Center, following the discovery on Sept. 25 of significant, mid-span cracks in the bottom flanges of twin parallel girders spanning 80 ft over Fremont Street, the Transbay Joint Powers Authority now says the problems with girders are localized.
Read the court decisionRead the full story...Reprinted courtesy of
Nadine M. Post, ENRMs. Post may be contacted at
postn@enr.com
Turkey to Start Building 200,000 Homes in March, Erdogan Says
February 20, 2023 —
Taylan Bilgic - BloombergPresident Recep Tayyip Erdogan has announced that Turkey will begin constructing almost 200,000 homes as early as March in areas devastated by twin earthquakes that hit the southeast of the country two weeks ago.
Erdogan emphasized the severity of the earthquake’s impact, drawing parallels to historical events that wreaked havoc in Anatolia, the heartland of modern Turkey. “With faith, courage and patience, we have resisted numerous political and social upheavals for centuries, such as the Crusades and the Mongol invasions,” he said.
The construction of 199,739 new homes will begin in 11 provinces, including the hardest-hit Hatay and Kahramanmaras, Erdogan said. The death toll from the earthquakes has risen to 41,156 while over 114,000 people have been rescued from the rubble.
Read the court decisionRead the full story...Reprinted courtesy of
Taylan Bilgic, Bloomberg