California Attempts to Tackle Housing Affordability Crisis
December 22, 2019 —
Garret Murai - California Construction Law BlogIt’s a bit too early yet for our 2020 Construction Law Update but here’s a preview of some of the new laws taking effect next year. Earlier this month, Governor Gavin Newsom signed a slate of 18 bills to boost housing production in an effort to tackle the state’s housing affordability crisis.
First, a bit of background.
California currently ranks 49th among the states in housing units per resident. Experts say that the state needs to double its current rate of housing production of 85,000 unit per year just to keep up with population growth and four times the current rate to reduce housing costs. Anecdotally, here in the San Francisco Bay Area, the median rent for a one-bedroom apartments in San Francisco is currently $3,690 per month or $44,280 per year. However, as of May 2018, according to the U.S. Bureau of Statistics, the annual mean wage of a teller is just $32,840, for farmworkers $34,700, and for teachers $48,250. And that’s before taxes. Let that sink in for a moment.
The result is one in five Californians live in poverty, the highest rate in the nation, when factoring in the cost of living.
Read the court decisionRead the full story...Reprinted courtesy of
Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Engineer at Flint Negligence Trial Details Government Water Errors
April 04, 2022 —
Richard Korman & Jeff Yoders - Engineering News-RecordWarren Green, vice president and chief engineer of Lockwood, Andrews & Newnam, an engineering consultant to Flint, Mich. during its disastrous water crisis of 2014 and 2015, testified in federal court last week that city officials forged ahead to switch its source of drinking water without adequate water softening or testing after one municipal manager assured him that the more extensive testing would be done.
Reprinted courtesy of
Richard Korman, Engineering News-Record and
Jeff Yoders, Engineering News-Record
Mr. Korman may be contacted at kormanr@enr.com
Mr. Yoders may be contacted at yodersj@enr.com
Read the full story... Read the court decisionRead the full story...Reprinted courtesy of
When OSHA Cites You
April 22, 2024 —
Michael Metz-Topodas - Construction ExecutiveWith the strong bonds that form among construction project teams, workers looking out for each other helps keep safety foremost in everyone’s mind. But sometimes, even the very best intentions alone can’t prevent an occasional misstep—a forgotten hard hat, a sagging rope line—which can and often does result in an OSHA citation. These regulatory reminders can bring unfortunate consequences: penalties, higher insurance premiums, potential worker injury claims, loss of bidding eligibility, loss of reputation and even public embarrassment, because citations are published on OSHA’s website.
Due to citations’ adverse effects, contractors have incentives to minimize them. They can do this by asserting available defenses, because a citation is only an alleged violation, not a confirmed one. But making defenses available begins well before a citation is issued, well before OSHA arrives to a construction site and well before a violation even occurs. Instead, contractors’ ongoing safety programs should incorporate the necessary measures to preserve OSHA citation defenses in three key areas: lack of employee exposure, lack of employer knowledge and impossibility.
EMPLOYEE EXPOSURE
To sustain a citation against an employer, OSHA must not only identify an applicable standard that the company violated but also show that the violation exposed employees to hazards and risk of injury. Absent evidence of actual exposure, OSHA often makes this showing by asserting that performing job functions necessarily exposes employees to the cited hazard.
Reprinted courtesy of
Michael Metz-Topodas, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the court decisionRead the full story...Reprinted courtesy of
Mr. Metz-Topodas may be contacted at
michael.metz-topodas@saul.com
White Collar Overtime Regulations Temporarily Blocked
November 23, 2016 —
George Morrison – White and Williams LLPOn November 22, 2016, a Texas federal court issued a preliminary injunction that temporarily blocks the U.S. Department of Labor (DOL) from implementing and enforcing its revised white collar overtime regulations nationwide. The regulations were to take effect on December 1, 2016. For background on the DOL's Final Rule, see our alert, DOL Issues Final Rule Amending Overtime Exemptions Under FLSA.
The decision was issued in a consolidated set of cases brought by 21 states and several business organizations. The cases challenge the changes to 29 C.F.R. Part 541, which defines the standards for evaluating whether employees are exempt executive, administrative, and/or professional employees. Under the current regulations, the minimum salary requirement for these exemptions is $455 per week. Under the revised regulations, the minimum salary would more than double to $913 per week. The Texas court found that the plaintiffs’ challenge to the final regulations has a substantial likelihood of success and that the plaintiffs have shown that they would be irreparably harmed if the rule was not enjoined.
Read the court decisionRead the full story...Reprinted courtesy of
George Morrison, White and Williams LLPMr. Morrison may be contacted at
morrisong@whiteandwilliams.com
One to Watch: Case Takes on Economic Loss Rule and Professional Duties
June 28, 2011 —
Douglas Reiser, Builders Council BlogAccording to the Supreme Court of Washington Blog, The Supreme Court heard oral argument in Jackowski v. Hawkins Poe on Thursday, June 16, 2011. The court’s synopsis of the case can be found on the Washington State Court website.
In short, two home purchasers brought a lawsuit against the home’s sellers, the sellers’ agent and the purchasers’ own agent, alleging claims of fraud, fraudulent concealment, negligent misrepresentation and breach of common law and statutory duties. The trial court dismissed the buyers’ claims on the basis of the economic loss doctrine and Division II reversed, opining that the ELR does not apply to professional duties. The Supreme Court will now look at applying the Independent Duty Doctrine established last year, and whether professional duties (those of the real estate agents) should be reviewed under a different light.
Read the full story…
Reprinted courtesy of Douglas Reiser of Reiser Legal LLC. Mr. Reiser can be contacted at info@reiserlegal.com
Read the court decisionRead the full story...Reprinted courtesy of
Collapse Claim Fails Due To Defectively Designed Roof and Deck
May 28, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe insured's claim for collapse of his roof and deck failed due to defective design and other exclusions under the policy. Dudar v. State Farm & Cas. Co., 2024 U.S. Dist. LEXIS 52706 (N.D. Ga. Feb. 6, 2024).
The insured submitted a claim to State Farm for damage to the roof ("Roof Claim"). State Farm's adjuster placed a ladder on the deck to access the roof and a portion of the deck collapsed. The insured then reported a claim to State Farm for damage to the deck ("Deck Claim"). The claims were denied and suit was filed.
The roof had leaked on several occasions prior to submission of the Roof Claim. On February 25, 2022, the insured discovered that a branch had cut a hole in the tarp, causing water to leak into the home. The insured performed repairs on the roof. On March 8, 2022, a storm caused more water to seep through the tarp into the ceilings and walls. Thereafter, the Roof Claim was submitted.
The damage from the leaking roof and the deck collapse were caused by rotting. The rotting, in turn, was caused by a combination of defective building design and resulting water damage from rain and storms over the years. The roof and deck were constructed to provide mutual support to one another. The roof did not contain an adequate slope, which caused water to seep down into the walls and flooring rather than to flow downward and away from the property. Over time, penetrating water caused portions of the roof, the floor, and the supporting wall between the roof and deck to rot.
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
General Contractor/Developer May Not Rely on the Homeowner Protection Act to Avoid a Waiver of Consequential Damages in an AIA Contract
August 04, 2011 —
Higgins, Hopkins, McLain & Roswell, LLCRecently, in Caribou Ridge Homes, LLC v. Zero Energy, LLC, et al., Case No. 10CV1094, Boulder County District Court Judge Ingrid S. Bakke entered a ruling and order on the Plaintiff’s Motion for Determination of Question of Law Pursuant to C.R.C.P. 56(h) on Issue of Damages. The Order found that the Plaintiff was not a homeowner intended to be protected by the Homeowner Protection Act (the “HPA”) and thus could not pursue its claims for consequential damages against Defendant.
By way of background, on June 18, 2008, Plaintiff Caribou Ridge Homes, LLC (“Caribou”) entered into a Standard Form Agreement Between Owner and Contractor AIA Document A114-2001 (the “Contract”) with Defendant Zero Energy, LLC (“Zero Energy”). Plaintiff hired Zero Energy to serve as a general contractor for the construction of a single-family home in the Caribou Ridge subdivision in Nederland, Colorado. A provision in the contract contained a mutual waiver of consequential damages (“Waiver”).
Read the full story…
Reprinted courtesy Higgins, Hopkins, McLain & Roswell, LLC
Read the court decisionRead the full story...Reprinted courtesy of
Surviving the Construction Law Backlog: Nontraditional Approaches to Resolution
June 07, 2021 —
Jeffrey Kozek - Construction ExecutiveAcross the construction industry, COVID-19’s impact has caused a range of problems for contractors and projects—prolonged or intermittent work shutdowns, supply chain delays, pricing increases on materials and funding shortfalls. It has also led to court closures. The legal backlog for claims and disputes means that owners and contractors are facing the option of waiting until the courts are functioning the way they were previously or utilizing alternative approaches to resolution to keep projects and businesses running.
Though courts across the country reopened to some extent in the latter half of 2020, many state and federal facilities were shut down or working with a limited capability for weeks or months. The closures not only froze the progress of numerous disputes already underway, but caused new schedule, cost and COVID-19-related claims to also be held up in the same backlog that is slowly being addressed under current restricted operations. New safety measures to reduce viral transmission, including reduced usage of courtrooms, restrictions on personnel and increased cleaning and sanitizing measures, have limited the number of cases courts can handle on a daily basis and lengthened legal timelines in ways many parties had not anticipated and cannot afford.
Reprinted courtesy of
Jeffrey Kozek, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the court decisionRead the full story...Reprinted courtesy of