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DIRECTORY AND CAPABILITIES

Hong Kong Buyers Queue for New Homes After Prices Plunge

July 09, 2014 — Michelle Yun – Bloomberg
On a Saturday morning in mid-June, thousands wait, crammed into Hong Kong’s Fortune Metropolis mall, across Victoria Harbor from the main business district, their eyes locked on large elevated screens. Cheers erupt when numbers flash, indicating the lucky ticket holders in the crowd. They have paid HK$150,000 ($19,354) to enter a lottery that prioritizes buyers of apartments at City Point, a seven-tower development that billionaire Li Ka-shing’s Cheung Kong Holdings Ltd. (1) is building. More than 5,000 homebuyer-hopefuls are vying for 442 units, or about 11 for every home that went on sale the weekend of June 14. Housing sales in Hong Kong are rising after government efforts to cool soaring prices led transactions to plunge last year to the lowest since at least 2002. A drop in mortgage rates and discounts from builders are luring back buyers of new homes after their price fell as much as 20 percent since October. Read the court decision
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Reprinted courtesy of Michelle Yun, Bloomberg
Ms. Yun may be contacted at myun11@bloomberg.net

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A New Lawsuit Might Change the Real Estate Industry Forever

December 23, 2023 — Tracy Alloway, Joe Weisenthal, and Aashna Shah - Bloomberg
Last month, a Missouri jury found that real estate brokers colluded to artificially inflate and fix their own commissions, and as a result, ordered the National Association of Realtors to pay $1.8 billion in damages. While the ruling will be appealed, with highly uncertain damages and remedies, the case is shining a light on how participants in the real estate industry get paid, and raising the question of whether homebuyers are paying too much to their brokers. So how do brokers get paid? What are their incentives? And why haven't fees for brokers gone down, even as online platforms that compete with them have proliferated. On this episode of the podcast, we speak with Andra Ghent, a finance professor at the University of Utah and a specialist in real estate who explains how the structure works currently, and how the lawsuit could ultimately change the entire business model of buying and selling homes. This transcript has been lightly edited for clarity. Reprinted courtesy of Tracy Alloway, Bloomberg, Joe Weisenthal, Bloomberg and Aashna Shah, Bloomberg Read the court decision
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Construction Contractor “Mean Tweets” Edition

June 04, 2024 — Garret Murai - California Construction Law Blog
Back in the day, if someone had a problem with you the rules of school yard jungle dictated that they had better tell it to your face or you had the right to call them out on it. That, of course, was back then. These days, with social media seemingly everywhere (e.g., Yelp, Twitter, Facebook, etc.), if someone has a problem with you they tell you . . . as well as the rest of the world . . . to your digital face. Jimmy Kimmel has even made it a “thing” with his celebrity “Mean Tweets” segments. In Paglia & Associates Construction, Inc. v. Hamilton, 98 Cal.App.5th 318 (2023), homeowner Vanessa Hamilton was sued by her contractor Paglia & Associates Construction, Inc. doing business as Protech Construction after she posted critical comments to her blog and on Yelp about work performed by Paglia at her home. The Paglia Case In or about 2016, after a tree fell on her house, Hamilton’s insurer, Safeco, recommended Paglia to perform the repairs. Paglia and Hamilton entered into a repair contract in 2016 but Paglia did not finish the work until sometime in 2017 claiming that the repair was extensive because Hamilton’s circa 1923 home was in poor condition and current building codes required extensive reconstruction. 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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Construction Safety Technologies – Videos

November 02, 2017 — Aarni Heiskanen - AEC Business
Smart hard hats, drone imaging, indoor positioning, and augmented reality are some of the technologies that can make construction sites safer. Construction remains one of the most dangerous industries. In the USA, one in ten construction workers are injured every year. According to ILO, there are at least 60,000 fatal accidents on construction sites around the world every year, one in every 10 minutes. Investments in safety will certainly pay off. Culture, behavior, and attitudes have a great impact on construction safety. Technology can help, but only if it is used properly and consistently. Here’s a collection of recent videos that explain and demonstrate how digital technology can advance construction safety. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at info@aepartners.fi

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Bill Taylor Co-Authors Chapter in Pennsylvania Construction Law Book

October 26, 2017 — William Taylor - White and Williams LLP
Bill Taylor, Co-Chair of the Construction and Surety Group, co-authored a chapter in the recently released third edition of Pennsylvania Construction Law: Getting Started, Getting Covered, Getting Paid. The book, published by the Pennsylvania Bar Institute, follows the development of a construction project through contracts, insurance and bonding, performance, claims, warranties and completion, and for troubled projects, termination. Bill's chapter focuses on surety bonds on construction projects in Pennsylvania. Read the court decision
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Reprinted courtesy of William Taylor, White and Williams LLP
Mr. Taylor may be contacted at taylorw@whiteandwilliams.com

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Homeowner’s Policy Excludes Coverage for Loss Caused by Chinese Drywall

November 18, 2011 — Tred R. Eyerly - Insurance Law Hawaii

Exclusions barred the homeowners from recovering for losses caused by Chinese drywall in their home. Ross v. C. Adams Const. & Design, L.L.C., 2011 La. App. LEXIS 769 (La. Ct. App., released for publication Oct. 5, 2011).

Two years after purchasing their home, the Rosses began experiencing chronic malfunctions in the heating, ventilation and air conditioning system. After discovering the presence of gypsum drywall, or "Chinese drywall", they submitted a claim to their insurer, Louisiana Citizens Property Insurance Company, for damages caused by the Chinese drywall. Louisiana Citizens denied the claim.

The Rosses sued. The trial court granted summary judgment to Louisiana Citizens based upon exclusions in the policy.

On appeal, the appellate court first agreed the Rosses had sustained a direct physical loss. The inherent qualities of the Chinese drywall created a physical loss to the home and the drywall had to be removed and replaced.

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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com

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Tennessee Court: Window Openings Too Small, Judgment Too Large

November 18, 2011 — CDJ STAFF

The Tennessee Court of Appeals has issued a ruling in the case of Dayton v. Ackerman, upholding the decision of the lower court, even as they found that the award was incorrectly computed. The Daytons purchased a house that had been designed and built by the Ackermans, who operated a construction business. The court noted that the warranty with the house promised that “for a period of 60 days, the following items will be free of defects in materials or workmanship: doors (including hardware); windows; electric switches; receptacles; and fixtures; caulking around exterior openings; pluming fixtures; and cabinet work.”

Soon, the Daytons began to experience problems with the house. Many were addressed by the Ackermans, but the Daytons continued to have problems with the windows. Neither side could specify a firm date when the Ackermans were contacted by the Daytons about the window problems. The Ackermans maintained that more than two years passed before the Daytons complained about the windows. The lower court found the Daytons more credible in this.

Initially, the Daytons included the window manufacturer in their suit, but after preliminary investigations, the Daytons dropped Martin Doors from their suit. Martin Doors concluded that the windows were improperly installed, many of them “jammed into openings that were too small for them.”

After the Daytons dismissed Martin Doors, the Ackermans sought to file a third party complaint against them. This was denied by the court, as too much time had elapsed. The Ackermans also noted that not all of the window installations were defective, however, the courts found that the Daytons ought not to have mismatched windows.

Unfortunately for the Daytons, the window repair was done incorrectly and the windows were now too small for the openings. The firm that did the repair discounted the windows and Daytons concealed the problem with plantation shutters, totalling $400 less than the original lowest estimate. However, the appeals court noted that it was here that the trial court made their computation error. Correcting this, the appeals court assessed the Ackermans $12,016.20 instead of $13,016.20.

Finally, the Ackerman’s expert was excluded as he had changed his testimony between deposition and trial. The trial reviewed the expert’s testimony and had it been admissible, it would not have changed the ruling.

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Construction Client Advisory: The Power of the Bonded Stop Notice Extends to Expended Construction Funds

February 07, 2014 — Steven M. Cvitanovic - Haight Brown & Bonesteel LLP
CFO to CEO: “I have bad news, the developer on our biggest project has run out of money.” Frightening words for sure, but contractors should not overlook the bonded stop notice in situations where the construction lender seemingly has expended all construction funds. The recent case of Brewer Corporation v. Point Center Financial, Inc. 2014 WL 346636 illustrates this point. Contractors have two options at their disposal to secure payment on private works of improvement. The first is the mechanics lien. However, construction loan trust deeds are normally recorded prior to the commencement of construction and therefore have priority over mechanics liens. Connolly Development, Inc. v. Superior Court (1976) 17 Cal.3d 803, 827. Enter the bonded stop notice. The bonded stop notice requires the lender to withhold unexpended funds and, if it fails to do so, it is personally liable to the claimant for the full amount of the claim. But the stop notice also has the power of “priority” over any assignment of construction loan funds, whether before or after a stop notice is served. Civil Code § 3166, now Civil Code § 8544. Read the court decision
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Reprinted courtesy of Steven M. Cvitanovic, Haight Brown & Bonesteel LLP
Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com

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