Luxury Home Sales are on the Rise
February 04, 2014 —
Beverley BevenFlorez-CDJ STAFFThe New York Times reports that the sale of luxury homes is on the rise: “Yet despite the bursting of the housing bubble, the ensuing recession and the slow recovery, buyers have not abandoned luxury homes. It turns out that they just took a break. In July 2013, sales of homes costing more than $1 million were up 46.6 percent from the previous July.”
“The housing market is being driven by the move-up buyer, the luxury buyer,” Brad Hunter, chief economist and director of consulting at Metrostudy told the New York Times. “And those who have strong incomes, secure jobs, their stock portfolio is doing well — they are able to buy whatever they want. And what they are buying is larger houses.”
Toll Brothers design director, Tim Gehman, said that “the homes that sell best today are those with the biggest kitchens and most expansive master suites — much as they were before the recession,” according to the New York Times.
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Mediation in the Zero Sum World of Construction
September 26, 2022 —
Christopher G. Hill - Construction Law MusingsConstruction is a zero sum game. What do I mean by that? I mean that even where you, a construction professional with a great construction lawyer, have reviewed and edited a subcontract presented to you or provided a well-drafted contract to the other party that contains an attorney fees provision, every dollar that you spend on litigation is a dollar less of profit.
Couple the fact that no construction company can or should bid or negotiate work with an eye toward litigation (aside from having a well written contract that will be enforced to the letter here in Virginia). Particularly on “low bid” type projects, contractors and subcontractors cannot “pad” their bids to take into account the possibility of attorney fees, arbitration, or litigation. Furthermore, the loss of productivity when your “back office” personnel are tied up dealing with discovery, phone calls, and other incidents of litigation that do nothing but rehash a bad project and increase the expense sap money from the bottom line. While the possibility of a judgment including attorney fees may soften this blow, you are still out the cash.
All of this said, if you are in commercial construction for any significant period of time disputes will arise and I have discussed the process in some detail at other places here at Construction Law Musings. As a construction litigator, I am fully aware of this fact of life. Efficient management of these disputes is key, particularly when they escalate to the point where some form of outside “help” (read arbitrator or judge) is necessary.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Climate Change a Factor in 'Unprecedented' South Asia Floods
July 18, 2022 —
The Associated Press (Aniruddha Ghosal & Al-Emrun Garjon) - BloombergSylhet, Bangladesh (AP) -- Scientists say climate change is a factor behind the erratic and early rains that triggered unprecedented floods in Bangladesh and northeastern India, killing dozens and making lives miserable for millions of others.
Although the region is no stranger to flooding, it typically takes place later in the year when monsoon rains are well underway.
This year's torrential rainfall lashed the area as early as March. It may take much longer to determine the extent to which climate change played a role in the floods, but scientists say that it has made the monsoon — a seasonable change in weather usually associated with strong rains — more variable over the past decades. This means that much of the rain expected to fall in a year is arriving in a space of weeks.
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Bloomberg
Improper Means Exception and Tortious Interference Claims
August 14, 2023 —
David Adelstein - Florida Construction Legal UpdatesLast week, I discussed a case (
here) that involved a federal district court (trial court) denying a motion to dismiss on a negligent supervision claim.
In this same case, the plaintiff, a subcontractor/fabricator, also sued the defendants–parent company of a prime contractor and two entities the prime contractor hired to inspect the subcontractor’s fabricated units–for tortious interference of the subcontractor’s contract with the prime contractor. The defendants moved to dismiss this tortious interference claim which gave rise to another interesting discussion by the trial court relating to the burden to plead and prove tortious interference claims. This discussion is worthy to remember the next time you not only want to plead a tortious interference claim, but want to be in a position to put on evidence to prove the claim at trial.
“Under Florida law, the elements of a tortious-interference-with-contract claim are: ‘(1) the existence of a contract, (2) the defendant’s knowledge of the contract, (3) the defendant’s intentional procurement of the contract’s breach, (4) absence of any justification or privilege, and (5) damages resulting from the breach.’” Bautech USA, Inc. v. Resolve Equipment, 2023 WL 4186395 (S.D.Fla. 2023) (citation omitted).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Denver Airport's Renovator Uncovers Potential Snag
March 04, 2019 —
Nadine M. Post - Engineering News-RecordThe renovation of the Great Hall of Denver International Airport’s iconic Jeppesen Terminal, roofed by a series of peaked tensile tents that echo the nearby mountains, has hit a bump. Routine but limited concrete testing of the nearly quarter-century-old terminal’s elevated floor slab, to determine whether the floor could support crane loads, shows the compressive strength of the concrete in certain sections is lower than was specified for the original project, more than 25 years ago.
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Nadine M. Post, ENRMs. Post may be contacted at
postn@enr.com
The Road to Rio 2016: Zika, Super Bacteria, and Construction Delays. Sounds Like Everything is Going as Planned
July 28, 2016 —
Garret Murai – California Construction Law BlogAthletes began to arrive at the Olympic Village in Rio de Janeiro on Sunday in anticipation of the 2016 Summer Olympics which begin on August 5th.
Perhaps the most closely watched event, however, has already begun; and it has no medals. And that is whether Brazil can successfully pull off the Olympics at all.
For a city known for its Carnival the months leading up to the Olympics have been just as crazy and chaotic as the days leading up to Mardi Gras. There’s the Zika virus, the discovery of a “super” bacteria, the impeachment of its President, and Brazil’s worst recession in 100 years. And that’s just a partial list.
And then, of course, there’s the construction.
Cities bidding to host the Olympics often cite revenue from tourism and long-term capital improvements which will benefit its populace long after the games have ended as economic justification for hosting the Olympics. However, the cost to host the Olympics is often underestimated and Rio is no exception, running an estimated $6 billion over budget.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
ICE Said to Seek Mortgage Role Through Talks With Data Service
August 06, 2014 —
Matthew Leising, Jesse Hamilton and Jody Shenn – BloombergIntercontinental Exchange Inc. (ICE), best known for energy trading and its control of the New York Stock Exchange, is engaged in negotiations that would give it a foothold in the $9.4 trillion U.S. mortgage market.
ICE is in early stage talks to form a partnership with Mortgage Electronic Registration Systems Inc., which documents the ownership and resale of about half of U.S. home loans, according to a person familiar with the matter, who asked to not be identified because the discussions are private.
The Atlanta-based exchange owner has been gauging demand for derivatives that enable investors to bet on defaults by U.S. homeowners, Bloomberg News reported in May. ICE, which earns most of its revenue by owning one of the world’s largest derivatives markets, has recently expanded into new businesses such as equity trading with its 2013 purchase of NYSE Euronext and the administration of interest-rate benchmarks.
Mr. Leising may be contacted at mleising@bloomberg.net; Mr. Hamilton may be contacted at jhamilton33@bloomberg.net; Ms. Shenn may be contacted at jshenn@bloomberg.net
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Matthew Leising, Jesse Hamilton and Jody Shenn, Bloomberg
Fire Consultants Cannot Base Opinions on Speculation
May 20, 2019 —
Christopher Konzelmann - The Subrogation StrategistLarsen v. 401 Main St. Inc., 302 Neb. 454 (2019), involved a fire originating in the basement of the Quart House Pub (Pub) in Plattsmouth, Nebraska that spread to and damaged Plattsmouth Chiropractic Center, Inc., a neighboring business. Fire investigators could not enter the building because the structure was unsafe and demolished. The chiropractic center nevertheless sued the Pub alleging that its failure to maintain and replace basement mechanical equipment caused ignition.
To prove its claim, the plaintiff retained a mechanical engineer who reviewed documents and concluded that the fire “originated from a failure of one of the items of mechanical equipment located in the area of the [basement] boiler.” Importantly, however, the consultant could not determine the root cause of the fire, could not eliminate the possibility that the fire originated in a compressor, and could not rule out the building’s electrical service as the ignition source because it was outside his area of expertise. The consultant nevertheless found that the fire most likely would not have occurred if the Pub had regularly serviced and replaced the equipment when needed.
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Christopher Konzelmann, White and Williams LLPMr. Konzelmann may be contacted at
konzelmannc@whiteandwilliams.com