2018 Construction Outlook: Mature Expansion, Deceleration in Some Sectors, Continued Growth in Others
January 24, 2018 —
Garret Murai – California Construction Law BlogU.S. construction starts are expected to increase 3 percent to $765 billion in 2018 according to
Dodge Data & Analytics in its 2018 Dodge Construction Outlook. But we may be approaching the end of a construction boom, at least in certain industry segments.
The construction industry as a whole is in a “mature stage of expansion,” indicates Robert Murray, Chief Economist for Dodge Data & Analytics. “After rising 11% to 13% per year from 2012 through 2015, total construction starts advanced a more subdued 5% in 2015. An important question entering 2017 was whether the construction industry had the potential for further expansion,” explained Murray.
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Garret Murai, Wendel, Rosen, Black, Dean, LLP Mr. Murai may be contacted at
gmurai@wendel.com
Colorado SB 15-177 UPDATE: Senate Business, Labor, & Technology Committee Refers Construction Defect Reform Bill to Full Senate
April 01, 2015 —
Derek J. Lindenschmidt – Higgins, Hopkins, McLain & Roswell, LLCOn March 18th, following a lengthy hearing with testimony and questioning for and against Senate Bill 15-177, the Senate Business, Labor & Technology Committee voted 6 to 2 to refer the bill, with new amendments, to the full Senate.
While the main points of the bill remain strongly intact (check here for Senate Bill 177’s particulars), bill sponsors Senators Scheffler and Ulibarri offered four amendments, designed to bring additional compromise and clarity to the bill. The committee ultimately adopted these amendments, described below.
Amendment 16 removed a prior prohibition in the bill that would have prevented attorneys from assisting in the preparation of the notice required to be provided to all homeowners before the commencement of a construction defect claim. Amendment 19 complemented 16 by providing further clarification regarding the contents and specificities required in said notice, including a disclosure of projected attorneys’ fees, costs, duration, and financial impact of pursuing construction defect claims. Amendment 17 permitted homeowners to approve the pursuit of construction defect claims through written consent. Lastly, Amendment 18 provided clarification regarding the bill’s requirement that mediators and arbitrators be selected and approved through mutual agreement of the parties.
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Derek J. Lindenschmidt, Higgins, Hopkins, McLain & Roswell, LLCMr. Lindenschmidt may be contacted at
lindenschmidt@hhmrlaw.com
District Court denies Carpenters Union Motion to Dismiss RICO case- What it Means
March 16, 2017 —
Wally Zimolong – Supplemental ConditionsIn a case that has been widely discussed on this blog, a United States federal district court Judge denied the Philadelphia Carpenters’ Union’s motion to dismiss a federal RICO case filed against it by the Pennsylvania Convention Center. Judge Nitza I. Quiñones Alejandro issued the ruling on the Union’s motion.
Unfortunately, Judge Quinoses Alejandro did not issue an opinion to go along with her order. This is a bit unusual. Federal Judges routinely issue opinions (if only in footnote form) even on motion dealing with procedural issues. like discovery disputes. The lack of an opinion prevents us from knowing the Judge’s rationale for denying the motion. Therefore, the order lack precedental value for subsequent cases. However, I do not believe the order is any less significant. Potential plaintiffs now know that a federal RICO case against a union can survive a motion to dismiss. Moreover, the attorneys for the Convention Center have provided potential plaintiffs a road map for doing so. As I have stated before, the fact pattern in the Convention case is hardly unique and the tactics the Carpenters used in that case are de ri·gueur.
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Wally Zimolong, Zimolong LLCMr. Zimolong may be contacted at
wally@zimolonglaw.com
Virginia Families Hope to Sue over Chinese Drywall
October 10, 2013 —
CDJ STAFFAlthough Virginia isn't in the Fifth Circuit of the U.S. Court of Appeals, some Virginia homeowners ended up with a case there. And now the court has to decide whether Taishan Gypsum Co. Ltd. can be sued in American courts for defects in its products. The case made its way to Louisiana after the courts consolidated cases from across the country. If the court decides that the homeowners can’t sue, they could appeal to the Supreme Court, although that’s likely a longshot. Or, the homeowners could sue in the Chinese courts, also not likely.
More than 300 homes in Virginia are affected by fumes from the Chinese-made drywall, but only seven residents in the town of Hampton Roads are at the heart of the current case. They were chosen as representative of the entire group. Those seven have been collectively awarded $2.6 million, but the drywall manufacturer is appealing the judgement. If Taishan is victorious, then the damages already awarded will be overturned and there won’t be an option for the others.
The drywall emitted gases which corroded metals in the homes. One couple, Steve and Liz Heischober went through seven air conditioning coils in three years, along with problems with corrosion of appliances and electrical systems. If the current suit succeeds, the Heischobers, and the other, will be compensated for their damages, including the costs of repair and relocation. If Taishan loses, they could be responsible for about $1 billion.
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Lost Rental Income not a Construction Defect
November 27, 2013 —
CDJ STAFFA judge in Colorado has ruled that although the homeowner’s policy excluded construction defects from coverage, lost rental income and the cost of deck repair involved in fixing a defective drainage system were.
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Contractual Setoff and Application When Performance Bond Buys Out of its Exposure
July 02, 2024 —
David Adelstein - Florida Construction Legal UpdatesThe theory of “setoff” is an important theory in construction disputes. Florida’s Fourth District Court of Appeal recently provided worthy discussion on contractual setoffs:
Setoffs in contract claims are governed by [Florida Statute] section 46.015(2), which provides that if a plaintiff has released “any person in partial satisfaction of the damages sued for, the court shall [setoff] this amount from the amount of any judgment to which the plaintiff would be otherwise entitled at the time of rendering judgment.” The setoff statute intends to prohibit plaintiffs from getting double recoveries.
A setoff requires that settling and non-settling parties be jointly and severally liable. The settled damages must also be the same damages for which the setoff is sought; stated differently, a setoff is not proper where the trial damages to be setoff are separate and distinct from the settled damages.
Close Construction, LLC v. City of Riviera Beach Utility Special District, 49 Fla.L.Weekly D1184d (Fla. 4th DCA 2024) (internal citations omitted).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Ahead of the Storm: Preparing for Irma
September 07, 2017 —
Stephen H. Reisman – Peckar & Abramson, P.C.While Hurricane Irma boils in the Atlantic and seems to be aiming towards Florida, storm preparations are well underway. As contractors are busy organizing efforts to secure their job sites, we at Peckar & Abramson offer some quick reminders that may prove helpful when the dust finally settles:
- Review your contracts, particularly the force majeure provisions, and be sure to comply with applicable notice requirements.
- Even if not expressly required at this point in time, consider providing written notice to project owners that their projects are being prepared for a potential hurricane or tropical storm and that productivity and the progress of the work will be affected, with the actual time and cost impact to be determined after the event.
- Consult your hurricane plan (which is often a contract exhibit) and confirm compliance with all specified safety, security and protection measures.
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Stephen H. Reisman, Peckar & Abramson, P.C.Mr. Reisman may be contacted at
sreisman@pecklaw.com
Quick Note: Insurer’s Denial of Coverage Waives Right to Enforce Post-Loss Policy Conditions
November 02, 2017 —
David Adelstein - Florida Construction Legal UpdatesThere is ostensibly a big difference between an insurance carrier DENYING coverage and simply asking for additional information, as permitted under the post-loss conditions of a property (first-party) insurance policy, right? Typically, the answer is yes and there is a big difference. If an insured refuses to comply with post-loss conditions under their insurance policy, they are shooting themselves in the foot (in most cases) by giving the insurer an out when it comes to coverage. If an insurance carrier denies coverage, however, the insurance carrier cannot then require its insured to comply with post-loss conditions in the property insurance policy.
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
Dadelstein@gmail.com