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DIRECTORY AND CAPABILITIES

The 2024 Colorado Legislative Session Promises to be a Busy One for the Construction Industry and its Insurers

January 16, 2024 — David M. McLain – Colorado Construction Litigation
January 10th marked the first day of the 2024 Colorado legislative session. After the pomp and circumstance of opening day, a total of eighty-six bills were introduced. Among them, two impact the construction and insurance industries. First, House Bill 24-1008 would make general contractors and their subcontractors, which are direct employers of an employee, jointly and severally liable for all debts owed based on wage claims or investigations. Essentially, if HB 24-1008 were to become law, general contractors would become the guarantors of wage payments to their subcontractors’ employees. The second bill, House Bill 24-1083, would require the Colorado Division of Insurance to conduct a study of construction liability insurance for construction professionals in Colorado and would require that, 14 days prior to closing the sale of a new residence, the seller provide the purchaser and the county clerk and recorder’s office certain information regarding the insurance coverage for the home. In a year when the legislature should be focusing on construction defect reform and affordable housing for Coloradoans, these first two bills will likely drive up the cost of new construction. House Bill 20-1008, sponsored by Representatives Duran and Froelich, Brown, deGruy Kennedy, Epps, Garcia, Hamrick, Hernandez, Joseph, Lieder, Lindstedt, Mabrey, Mauro, Ricks, Rutinel, Story, Velasco, and Vigil and Senators Danielson and Jaquez Lewis, Exum, Gonzales, Kolker, Marchman, and Sullivan, has been assigned to the House Committee on Business Affairs & Labor but has not yet been scheduled for a hearing. The bill summary states: For wage claims brought by individuals working in the construction industry, the bill:

• Requires that a subcontractor that receives a written demand for payment forward a copy of the written demand for payment to the general contractor within 3 business days after receipt;

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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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Another Las Vegas Tower at the Center of Construction Defect Claims

November 07, 2012 — CDJ STAFF
Accusations are coming from both sides over construction defects at a Las Vegas tower, only this time, it’s not the Harmon Towers, it’s Hilton Grand Vacations, which is part of the Planet Hollywood Resort. The project was originally dubbed PH Towers Westgate, and it was developed by Westgate Resorts, which is suing the contractor, Tutor-Saliba for $10 million over late completion and construction defects. Among the defects Westgate is claiming are cracked floor tiles in the valet lobby and cracks and delamination of the pool deck. Tutor-Saliba argues that the failure of the valet lobby floor is due to Westgate specifying only 1/16th inch-wide grouting, instead of the specified ¼ inch, and Westgate’s refusal to allow expansion joints on the pool deck has lead to problems there. Westgate’s attorney, Robert Schumacher, attributes the problems to “shoddy construction practices.” According to the article in the Las Vegas Review Journal, plans were only 60 percent complete when construction began, leading to “thousands of change orders.” Despite not meeting an August completion deadline, Tutor-Saliba is claiming it is owed a $1.5 million bonus nevertheless. Read the court decision
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Can an App Renovate a Neighborhood?

August 10, 2021 — Patrick Sisson - Bloomberg
On a sleepy stretch of West Jefferson Boulevard not far from downtown Los Angeles, cars typically speed past blocks of old warehouses and blank retail facades for destinations elsewhere. But slow down, hit the sidewalk and peek into and around a few buildings, and you’ll see the telltale signs of renovation: sandblasted walls, new windows, work crews and exposed wood beams. In an expansive brick building that once housed a child-care center before reverting to a warehouse, an inside-out renovation for a future food hall has stripped the wooden ceiling down to gorgeous bow trusses, sunlight filtering through the gaps and lighting up a floor of dirt filled with tracks from heavy machinery. This string of commercial development, 20 buildings in total, isn’t a typical project, nor does it rely on traditional sources of financing. A clue can be found on the white and orange signs above a handful of buildings between La Brea Avenue and Crenshaw Boulevard, beckoning potential tenants to call Fundrise for leasing opportunities for built-to-suit office/retail. Read the court decision
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Reprinted courtesy of Patrick Sisson, Bloomberg

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The Colorado Supreme Court affirms Woodbridge II’s “Adverse Use” Distinction

December 20, 2021 — Luke Mecklenburg - Snell & Wilmer Real Estate Litigation Blog
Last year, I posted regarding the Colorado Court of Appeals’ decision in Woodbridge II, which concluded that the “adverse use” element for prescriptive easement claims only requires the claimant to “show a nonpermissive or otherwise unauthorized use of property that interfered with the owner’s property interests.” Viento Blanco, LLC, 2020 COA 34 (Woodbridge II), ¶ 2. Thus, Woodbridge II concluded, the claimants acknowledgement or recognition of an owner’s title alone is insufficient to defeat “adverse use” in the prescriptive easement context. Id. That decision was up for review by the Colorado Supreme Court at the time of my prior post. It has now been affirmed, thereby settling an arguable appellate decision split created by Woodbridge II. See Lo Viento Blanco, LLC v. Woodbridge Condo. Ass’n, Inc., 2021 CO 56 (“Woodbridge”). “Like the division below, and for much the same reasons,” the Colorado Supreme Court affirmed in Woodbridge “that under Colorado law, a claimant’s acknowledgement or recognition of the owner’s title during the claimant’s asserted prescriptive period does not interrupt the prescriptive use or undermine the claimant’s adverse use.” Woodbridge, ¶ 2. Writing for a unanimous court, Justice Gabriel’s opinion agreed with the Court of Appeals’ reasoning “that although Woodbridge recognized that it did not hold title, no evidence indicated that it had acted in subordination to the owner’s title.” Id. ¶ at 13. The Court further agreed with Woodbridge II’srejection of Lo Viento’s “permissive use” argument because “the permission offered … was conditional and Woodbridge never agreed to any of the conditions set forth therein.” Id. On that basis, Woodbridge confirmed that “a claimant seeking to establish a prescriptive easement need not show that it asserted exclusive ownership of the property during the prescriptive period,” but only “that its use was without permission or otherwise unauthorized and that it interfered with the owner’s property interests.” Id. at ¶ 23. Read the court decision
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Reprinted courtesy of Luke Mecklenburg, Snell & Wilmer
Mr. Mecklenburg may be contacted at lmecklenburg@swlaw.com

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May Heat Wave Deaths Prompt New Cooling Rules in Chicago

July 25, 2022 — The Associated Press (Don Babwin) - Bloomberg
Chicago (AP) -- A month after three women were found dead inside their stifling hot apartments at a Chicago senior housing facility, the City Council on Wednesday passed new cooling requirements for residential buildings. Under the rules approved by the Council's Zoning Committee on Tuesday and the full Council on Wednesday, any new construction of senior facilities and larger residential buildings must include permanent air conditioning, giving them the same requirements already in place for nursing homes. Any time the heat index climbs above 80 degrees, those buildings must run their air conditioning systems. Existing housing for older people can use portable cooling and dehumidification until May 2024, when they will be required to have permanent equipment installed. Read the court decision
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Reprinted courtesy of Bloomberg

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Court Grants Partial Summary Judgment on Conversion Claim Against Insurer

February 01, 2023 — Tred R. Eyerly - Insurance Law Hawaii
Although the court was incredulous that the parties were disputing the possession of a gate opener allegedly damaged in a lightning strike, it granted the insured's motion for partial summary judgment finding the insurer had converted the gate opener. Privratsky v. Liberty Mut. Fire Ins Co., 2022 U.S. Dist. LEXIS 196002 (D. Haw. Oct. 27, 2022). (Full disclosure, our office is co-counsel for the insured). Mr. Privratsky alleged his home on Maui was struck by lightning which caused an electrical surge. The home and personal property were damaged. The alleged cost of repair work at one point was as much as $325,000. A claim was submitted under a homeowner's policy issued by Liberty Mutual. Liberty paid for only some of the damage. Privratsky filed suit alleging three causes of action for: (1) declaratory judgment that the losses were covered by the policy issued by Liberty; (2) bad faith; and (3) conversion of personal property, namely, the damaged gate operator. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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Designing a Fair Standard of Care in Design Agreements

February 21, 2022 — ConsensusDocs
One of the concerns faced by construction companies is now design liability. Design liability concerns are not limited to just design-build projects. It is a hot-button issue for builders because the line between an architect’s responsibility to create sufficient design documents and a builder’s responsibility to execute the means, methods, and techniques is increasingly blurry. Problems arise when owners, design professionals, and builders point fingers, rather than truly collaborate, and communicate. While construction technologies used to assemble complex systems within buildings are increasingly sophisticated, such sophistication is unfortunately not matched with increased information sharing and effective communication. Another reason for growing design liability is unclear and inadequate specifications. Too often projects rush as well as shortchange design budgets. And some projects use hybrid prescriptive and performance specifications. This hybrid approach often confuses and obfuscates rather than clarifies design requirements. Read the court decision
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Reprinted courtesy of ConsensusDocs

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Contractor Sues Yelp Reviewer for Defamation

February 05, 2014 — Beverley BevenFlorez-CDJ STAFF
Contractor Christopher Dietz sued Jane Perez, a Virginia homeowner who “wrote a pair of scathing reviews of his services” on Yelp, according to Yahoo Finance. Dietz sued for “defamation and” sought “$750,000 in damages.” The Fairfax, Virginia jury did find the reviews to be defamatory, but they also “found that Dietz had defamed her as well when he responded to her negative reviews with accusations of his own.” The jury decided that “neither deserved to recoup damages.” Read the court decision
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