‘The Ground Just Gave Out’: How a Storm’s Fury Ravaged Asheville
October 07, 2024 —
Michael Smith, Devon Pendleton, Claire Ballentine & Michael Sasso - BloombergEric Becker was at his vacation home in western North Carolina, in a community bordering the Pisgah National Forest and Blue Ridge Parkway, when the rain began to pour.
Becker, co-founder of the private wealth management firm Cresset, lives in Florida for most of the year. He had lived through a hurricane — but nothing like what he saw during Helene.
“Mud was liquefying around tree bases. You could see the root systems,” said Becker, who first began visiting the Asheville area 20 years ago and was smitten by its natural scenery, excellent food and lively arts and music scene. “The ground just gave out.”
Becker is part of a wave of affluent homebuyers who have flocked to the southern Appalachian region. Transplants from wealth managers and retirees to artists and young outdoors enthusiasts have helped create a real estate goldrush in cities including Asheville, where home prices have climbed 69% in the past five years.
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Michael Smith, Bloomberg,
Devon Pendleton, Bloomberg,
Claire Ballentine, Bloomberg and
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Wisconsin Court of Appeals Holds Economic Loss Doctrine Applies to Damage to Other Property If It Was a Foreseeable Result of Disappointed Contractual Expectations
January 15, 2019 —
Gus Sara - The Subrogation StrategistIn Kmart Corp. v. Herzog Roofing, Inc., 2018 Wisc. App. Lexis 842, the Court of Appeals of Wisconsin considered whether the economic loss doctrine barred the plaintiff’s negligence claims against the defendant roofer for damages resulting from the collapse of a roof. The Court of Appeals held that, while some of the plaintiff’s property damages were unrelated to the scope of the contract, the economic loss doctrine still applied to those damages because they were a foreseeable result of the defendant’s breach of the contract. This case establishes that in Wisconsin, the economic loss doctrine bars tort claims for damage to property unrelated to the contract if those damages were a reasonably foreseeable risk of disappointed expectations of the contract.
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Gus Sara, White and Williams LLPMr. Sara may be contacted at
sarag@whiteandwilliams.com
2025 Construction Law Update
January 07, 2025 —
Garret Murai - California Construction Law BlogIt’s that time of year again.
The second half of the 2023-2024 legislative session saw the introduction of 2,124 bills, of which, 1418 were signed into law. Among the bills signed by the governor impacting contractors is an increase in the small work licensing exemption for $500 to $1,000, the licensing of Indian tribes by the CSLB, and a number of project-specific bills, as is typical, related to project-specific alternative project delivery methods.
Wishing you and yours a great 2025!
Licensing
AB 2622 – Increases the small work licensing exemption from $500 to $1,000 provided that the work: (1) does not require a building permit; and (2) does not involve the employment of others to perform or assist in the work.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Review your Additional Insured Endorsement
March 26, 2014 —
Beverley BevenFlorez-CDJ STAFFIn his blog, Construction Contractor Advisor, Craig Martin explained the importance of reviewing your additional insured endorsement. Martin pointed out that in Mississippi, the “Fifth Circuit Court of Appeals recently ruled in Woodward, LLC v. Acceptance Indemnity Insurance Company, that a general contractor, named as an additional insured, did not have coverage for claims that a subcontractor performed faulty work.” The problem “was the language in the additional insured endorsement, which provided coverage for ongoing operations, not completed operations.”
While Martin admitted that the case applies to Mississippi, he concluded that “the issue Midwestern readers should consider is the court’s conclusion that non-conformance with the plans, in essence a construction defect claim, arises from completed operations.”
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Corps of Engineers to Prepare EIS for Permit to Construct Power Lines Over Historic James River
May 01, 2019 —
Anthony B. Cavender - Gravel2GavelOn March 1, the U.S. Court of Appeals for the District of Columbia decided National Parks Conservation Assoc. v. Todd T. Simonite, Lieutenant General, et al. The case involves an application to the U.S. Army Corps of Engineers (Corps) for a construction permit to build electric power lines over the “historic James River, from whose waters Captain John Smith explored the New World.”
The Corps concluded after reviewing the thousands of comments submitted to it in connection with this application, and after considering the views of several government agencies and conservation groups, that an Environment Impact Statement (EIS) was not required, and that its Environmental Assessment assured the Corps that the project would not result is significant environmental impacts. The Court of Appeals has concluded that, based on this evidence, the Corps’ refusal to prepare an EIS thoroughly discussing all these points was arbitrary and capricious. The Corps has been ordered to prepare the EIS and to take special note of its obligations under the National Environmental Protection Act (NEPA), the Clean Water Act (CWA) and its obligations under the National Historic Preservation Act.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Federal Court Holds That Other Insurance Analysis Is Unnecessary If Policies Cover Different Risks
September 28, 2020 —
Craig Rokuson - Traub Lieberman Insurance Law BlogIn Greater Mutual Insurance Company v. Continental Casualty Company, 2020 WL 5370419 (S.D.N.Y. September 8, 2020), the United States District Court for the Southern District of New York had occasion to consider the “other insurance” provisions of a commercial general liability policy, issued by Greater Mutual Insurance Company (“GNY”), and a directors and officers (“D&O”) policy, issued by Continental, to the same insured. The GNY policy covered, inter alia, property damage caused by an occurrence, as well as “personal advertising injury,” defined to include “[t]he wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling or premises that a person occupies, committed by or on behalf of its owner, landlord or lessor.” The Continental D&O policy covered claims for wrongful acts, including “wrongful entry or eviction, or other invasion of the right to private occupancy. . . .” Unlike the GNY policy, however, the Continental policy expressly excluded coverage for damage to tangible property.
In the underlying action, the plaintiffs alleged that the insured engaged in construction work to fix a leak from a terrace on the seventeenth floor. In doing so, the insured accessed the plaintiffs’ roof terrace. The plaintiffs alleged that the construction workers installed and stored construction materials on the roof terrace, making the plaintiffs unable to access the terrace. Plaintiffs also alleged that their deck furniture may have suffered damage, and that the workers had a “direct line of sight” into their unit, resulting in the plaintiffs having to leave their unit frequently. Causes of action were for property damage, constructive eviction, partial constructive eviction, and invasion of privacy.
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Craig Rokuson, Traub LiebermanMr. Rokuson may be contacted at
crokuson@tlsslaw.com
UK Court Rules Against Bechtel in High-Speed Rail Contract Dispute
March 29, 2021 —
Peter Reina - Engineering News-RecordThe U.K. subsidiary of Bechtel Inc. has lost its legal challenge against the owner of the U.K. London-Birmingham high-speed railroad project, HS2, over its failed bid for a roughly $140-million Construction Partner (CP) contract in early 2019.
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Peter Reina, Engineering News-Record
Mr. Reina may be contacted at reina@btinternet.com
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When Is a Project Delay Material and Actionable?
January 11, 2022 —
Rick Erickson - Snell & Wilmer Real Estate Litigation BlogWelcome to 2022! This year, the construction industry will undoubtedly reflect on the last two years as unprecedented times plagued by construction project delays. The COVID-19 pandemic contributed to suspension of work and closure of construction projects worldwide in 2020. The end of 2021 brought additional delays caused by an inexplicable clog in the supply chain of construction materials. The combined impact of these events on project milestones and completion deadlines led our clients to ask, with unusual and particular urgency, who is liable for such delays and how do contracting parties lessen the consequences from such unexpected and uncontrollable delays.
Granted that project delays are nothing new or unusual. They were common enough before inflation caused shipping complications and pandemic decimated the construction labor force. All delays, whatever the source, variably cause loss to all players on a construction project. But not all delays matter when it comes to claims and remedies available to the contracting parties in dispute resolution, where the determinative focus is on material delays impacting the entire project and on delays the claimant can credibly prove.
Most, if not all, jurisdictions interpret actionable delays from the contract documents for the project. The contract is definitely where you should start before pursuing any delay remedies. Delay remedies may be a time extension only, or a time extension plus your additional general conditions. Some delay remedies may be barred by the contract’s express terms and may be enforced adversely by the courts when such contract terms are indisputable. See Quinn Constr. v. Skanska USA Bldg., Inc., 730 F. Supp. 2d 401, 411 (D.C. Pa. 2010) (enforcing the subcontractor’s contractual waiver of claims for delay and disruption damages). On the other hand, delay damages that are expressly allowed by the contract—like overtime necessitated by the delays—are usually actionable and recoverable. Id. However, not only the contract terms, but applicable law, may affect the outcome.
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Rick Erickson, Snell & WilmerMr. Erickson may be contacted at
rerickson@swlaw.com