Colorado Construction Defect Action Reform: HB 17-1279 Approved by Colorado Legislature; Governor’s Approval Imminent
June 05, 2017 —
Erik G. Nielsen - Snell & Wilmer Legal AlertColorado developers frequently cite Colorado’s Construction Defect Action Reform Act (CDARA) as an obstacle to building new condominiums in the state. Developers contend that the law makes it too easy for condo boards to sue developers for workmanship issues, however trivial. As a result, Colorado has seen significant growth in the development of rental apartments, while development of new, for-sale, multi-unit housing, has declined in the state. In 10 years, new condo development in Colorado dropped from 20 percent to just 3 percent of total new-housing starts. Recognizing this issue, Governor Hickenlooper and the Colorado Legislature have taken an interest in reforming CDARA by, among other things, making it more difficult for condo boards and associations to sue construction professionals. Well on its way to becoming law, HB 17-1279 does exactly that.
After the enactment of HB 17-1279, the executive boards of homeowners’ associations (HOA) in common interest communities will have to satisfy three broad elements before bringing suit against a construction professional on behalf of the community’s individual unit owners.
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Erik G. Nielsen, Snell & WilmerMr. Nielsen may be contacted at
egnielsen@swlaw.com
ALERT: COVID-19 / Coronavirus-Related Ransomware and Phishing Attacks
April 13, 2020 —
Christopher E. Ballod & Sean B. Hoar - Digital Insights Lewis Brisbois' Data Privacy & Cybersecurity BlogAs with other events that attract societal attention – whether it be an international sporting event like the Olympics or a natural disaster like the Australian bush fires - criminals often utilize the events to exploit consumers’ fears and, in turn, compromise the cybersecurity of businesses nationwide. With the advent of the Coronavirus, criminals have begun to take advantage of what consumers expect to receive via email to conduct phishing attacks. Criminals are also expected to take advantage of millions of vulnerable remote connections from employee home networks to their corporate networks.
According to Proofpoint Inc., a cybersecurity firm, the use of sophisticated Coronavirus-related “phishing” strategies has been on the rise since January, with new malicious email campaigns surfacing each day. These emails, which appear to come from legitimate organizations, contain content such as advice on combatting the Coronavirus, phony invoices for purchases of face masks and medical supplies, advertisements for products that allegedly treat the illness, and phony alerts from the World Health Organization (WHO) or Centers for Disease Control and Prevention (CDC). When the email recipients open these messages, they unknowingly release malware, which allows the attacker to gain access to their personal information and to compromise the security of their employers’ networks.
The recent emergence of Coronavirus-related “phishing” schemes demonstrates that businesses must remain vigilant. Employees and their employers are particularly vulnerable now, in light of the novel nature of the Coronavirus, the paucity of information concerning the illness, and the rapid and significant manner in which it is spreading. Individuals are thirsty for information and advice, and are eager to take any action necessary to protect themselves and their families.
Reprinted courtesy of
Christopher E. Ballod, Lewis Brisbois and
Sean B. Hoar, Lewis Brisbois
Mr. Ballod may be contacted at Christopher.Ballod@lewisbrisbois.com
Mr. Hoar may be contacted at Sean.Hoar@lewisbrisbois.com
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Alabama Court Upholds Late Notice Disclaimer
August 20, 2018 —
Brian Margolies - TLSS Insurance Law BlogIn its recent decision in Evanston Ins. Co. v. Yeager Painting, LLC, 2018 U.S. Dist. LEXIS 130316 (N.D. Ala. Aug. 3, 2018), the United States District Court for the Northern District of Alabama had occasion to consider an insured’s reporting obligations under a general liability policy.
Evanston’s insured, Yeager, was hired to sandblast water tanks, and in turn, subcontracted out the work to a third party. On May 19, 2012, an employee of the subcontractor was severely injured in connection with a work-site accident. It is not entirely clear when Yeager provided notice of occurrence to Evanston, although Evanston advised by letter dated January 30, 2013 that it would be further investigating the matter subject to a reservation of rights. Evanston subsequently denied coverage by letter dated April 10, 2013, the disclaimer based on a subcontractor exclusion on the policy. Notably, Evanston’s letter advised that Yeager should immediately contact Evanston if any facts changed or if it had any additional information concerning the matter.
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Brian Margolies, Traub Lieberman Straus & Shrewsberry LLPMr. Margolies may be contacted at
bmargolies@tlsslaw.com
Supreme Court of Oregon Affirms Decision in Abraham v. T. Henry Construction, et al.
April 20, 2011 —
Beverley BevenFlorez CDJ STAFFAfter reviewing the decision in Abraham v. T. Henry Construction, et al., the Oregon Supreme Court affirmed that a tort claim for property damage arising from construction defects may exist even when the homeowner and the builder are in a contractual relationship.
When the case was initially filed, the plaintiffs alleged breach of contract and negligence. The defendants moved for summary judgment arguing that one, the claim was barred by the six-year statute of limitations and two, no special relationship (such as one between a doctor and patient) existed. The court agreed with the defendants. However, the Court of Appeals while affirming the trial court’s decision on breach of contract reversed the decision on negligence. The Court of Appeals stated that an administrative or statute rule could establish a standard of care independent from the contract.
The Oregon Supreme Court gave an example of cases where a tort claim could exist when a contract is present: “If an individual and a contractor enter into a contract to build a house, which provides that the contractor will install only copper pipe, but the contractor installs PVC pipe instead (assuming both kinds of pipe comply with the building code and the use of either would be consistent with the standard of care expected of contractors), that failure would be a breach of contract only. […] If the failure to install the copper pipe caused a reduction in the value of the house, the plaintiff would be able to recover that amount in an action for breach of contract. […] On the other hand, if the contractor installed the PVC pipe in a defective manner and those pipes therefore leaked, causing property damage to the house, the homeowner would have claims in both contract and tort. […] In those circumstances, the obligation to install copper instead of PVC pipe is purely contractual; the manner of installing the pipe, however, implicates both contract and tort because of the foreseeable risk of property damage that can result from improperly installed pipes.”
Read the court’s decision…
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Read the Property Insurance Policy to be Sure You are Complying with Post Loss Obligations
January 04, 2021 —
David Adelstein - Florida Construction Legal UpdatesI have discussed this before in prior postings, but it is worth repeating. It is imperative for an insured to comply with post loss obligations in a property insurance policy. Not doing so gives the insurer the argument that its insured forfeited coverage under the policy. Naturally, this is never what an insured wants as this is contrary to submitting an insurance claim to begin with. To avoid this situation, an insured should consult with counsel and read the policy including endorsements issued to the policy to be sure that post loss obligations are complied with and, if they are not, there is a basis supported by case law.
In a recent case, Goldberg v. Universal Property and Casualty Ins. Co., 45 Fla. L. Weekly D2118b (Fla. 4th DCA 2020), the property insurance policy for hurricanes and windstorms contained the following through an endorsement issued to the policy:
You must give notice of a claim, a supplemental claim, or reopened claim for loss or damage caused by the peril of windstorm or hurricane, with us in accordance with the terms of this policy and within three years after the hurricane first made landfall or the windstorm caused the covered damage. For purposes of this Section, the term “supplemental claim” or “reopened claim” means any additional claim for recovery from us for losses from the same hurricane or windstorm which we have previously adjusted pursuant to the initial claim. . . .
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Bremer Whyte Sets New Precedent in Palos Verdes Landslide Litigation
August 26, 2024 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPIn what is believed to be a groundbreaking new precedent, Bremer Whyte Brown & O’Meara’s Los Angeles litigation team has obtained a landmark ruling on behalf of residents in the “Portuguese Bend” neighborhood of Palos Verdes, California. Congratulations to Partner
Michael D’Andrea and Senior Associate Shelly Mosallaei in receiving this result for our clients.
Plaintiff, a real estate developer, sued a number of local residents and property owners, including our client, alleging that their failure to address landslides and geological disturbances around Plaintiff’s property constituted a legal trespass and nuisance. Plaintiff alleged that its plans to develop multiple lots in Palos Verdes was thwarted because Defendant’s soil and land encroached onto Plaintiff’s property. Plaintiff’s suit against multiple residents created an uproar in the community regarding who was ultimately responsible (if anyone) for natural soils movement that has plagued this neighborhood for years.
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Dolores Montoya, Bremer Whyte Brown & O'Meara LLP
More Charges Anticipated in Las Vegas HOA Scam
February 28, 2013 —
CDJ STAFFWith almost forty people already charged in the conspiracy to take over Las Vegas homeowners associations in order to profit from construction defect claims, more charges are likely to come, according to an article in the Las Vegas Review Journal. The article also notes that the trial against Leon Benzer will involve millions of pages of documents. It is alleged that Benzer found straw purchasers for condominiums in order to control homeowner boards. Benzer’s firm, Silver Lining Construction, would then receive contracts to repair construction defects.
The Justice Department will be seeking restitution for the victims, which may total $25 million. Four individuals with connections to the conspiracy have died since investigations began. At least three of these deaths were suicides, and included Nancy Quon, who with Benzer are thought to be the main figures in the scam.
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Building a Strong ESG Program Can Fuel Growth and Reduce Company Risk
June 19, 2023 —
The Hartford Staff - The Hartford InsightsCompanies are addressing today’s evolving ESG (Environmental, Social and Governance) issues like they never have before. From climate change to diversity, equity and inclusion, these topics are at the forefront of discussion for businesses, with many seeking to understand stakeholder concerns and implement strategies to improve their ESG efforts.
Stakeholders – consumers, investors and employees alike – have recently become more vocal and united in their demand for sustainable corporate behavior. In fact, 83% of consumers think companies should be actively working on Environmental, Social and Governance (ESG) program best practices and 86% of employees prefer to support or work for companies that care about the same issues they do.1 In turn, companies are addressing these issues like they never have before, in recognition of their importance as indicators of long-term value.
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The Hartford Staff, The Hartford Insights
