Sioux City Building Owners Sue Architect over Renovation Costs
December 04, 2013 —
CDJ STAFFAccording to the architects, it should have cost a few hundred thousand dollars to strengthen the floors of Sioux City’s Badgerow Building. Instead, the upgrades cost somewhere between $3 and $5 million, which Mako One, the builder’s owners, said would have dissuaded them from starting had they known. Mako is suing M Plus Architects, for this and for its recommendation that the building’s windows be changed. That change ran foul of historic preservation guidelines, and the windows will have to be replaced.
M Plus is, in return, suing Mako One over $150,000 in unpaid bills. Meanwhile, a data center is moving in on the fourth floor.
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Eastern District of Pennsylvania Confirms Carrier Owes No Duty to Defend Against Claims for Faulty Workmanship
April 05, 2021 —
Anthony L. Miscioscia & Marianne Bradley - White and Williams LLPOn March 17, 2021, the Eastern District of Pennsylvania issued its decision in Estate Chimney & Fireplace v. IFG Companies & Burlington Insurance Company, 2021 U.S. Dist. LEXIS 50360 (E.D. Pa. March 17, 2021), finding that an insurance carrier had no duty to defend its insured where the allegations in the underlying litigation involved claims of faulty workmanship.
Estates Chimney & Fireplace, LLC (Estates Chimney) had performed inspections and replaced chase covers for a number of chimneys in a condominium complex. Chase covers are pieces of metal, which are placed over chimneys in order to keep out environmental elements. Several condominium owners sued Estates Chimney, alleging that Estates Chimney had improperly installed, then improperly replaced, their chimney caps, which caused their chimneys to cease working properly. As a result, the underlying plaintiffs allegedly incurred costs to repair or replace the chimney caps and chimneys.
Estates Chimney sought coverage from its carrier, who denied coverage based upon its determination that the claims in the underlying lawsuits arose out of faulty workmanship, which did not result in damage to the property of a third party. Estates Chimney filed a declaratory judgment action, seeking a declaration that it was entitled to coverage under the policy. Both parties moved for summary judgment, and the Eastern District ruled in favor of the carrier.
Reprinted courtesy of
Anthony L. Miscioscia, White and Williams LLP and
Marianne Bradley, White and Williams LLP
Mr. Miscioscia may be contacted at misciosciaa@whiteandwilliams.com
Ms. Bradley may be contacted at bradleym@whiteandwilliams.com
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Assignment Endorsement Requiring Consent of All Insureds, Additional Insureds and Mortgagees Struck Down in Florida
January 24, 2018 —
Tred Eyerly – Insurance Law HawaiiSecurity First Insurance Company's endorsement restricting the ability of policyholders to assign post-loss benefits was struck down by the Florida District Court of Appeal. Security First Ins. Co. v. Florida Office of Ins. Regulation, 2017 Fla. App. LEXIS 18083 (Fla. Ct. App. Dec. 1, 2017).
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Tred Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Pennsylvania Federal Court Finds No Coverage For Hacking Claim Under E&O Policy
July 25, 2022 —
Celestine Montague & Paul A. Briganti - White and Williams LLPOn June 9, 2022, the U.S. District Court for the Eastern District of Pennsylvania held, on summary judgment, that an insured was not entitled to coverage under a Professional Errors and Omissions (E&O) policy for loss allegedly resulting from a hacking incident. See Construction Fin. Admin. Servs., Inc. v. Federal Ins. Co., No. 19-0020, 2022 U.S. Dist. LEXIS 103042 (E.D. Pa. June 9, 2022). Applying North Carolina and Pennsylvania law, the court reasoned that: (1) coverage was barred by the policy’s unauthorized computer access, or “breach,” exclusions; and (2) the insured violated a condition in the policy that required the insurer’s consent to settlements and the violation prejudiced the insurer.
The insured, Construction Financial Administration Services, Inc. (CFAS), was a third-party fund administrator for construction contractors. In April 2018, the CFAS received email requests from what it believed to be one of its clients, SWF Constructors (SWF), to disburse $1.3 million from an SWF account to a foreign company. CFAS authorized the payments, despite not having received a copy of any executed agreement between SWF and the foreign company. After the funds were disbursed, SWF advised that it had not authorized or requested the payments to the foreign company. In response, CFAS placed approximately $1.2 million of recovered and borrowed funds into the SWF disbursement account. SWF then sent a letter advising CFAS that the requests from the foreign company did not include documentation required under the contract between SWF and CFAS. It was later determined that the emails had been initiated by a fraudster who had gained unauthorized access to the sender’s email account.
Reprinted courtesy of
Celestine Montague, White and Williams LLP and
Paul A. Briganti, White and Williams LLP
Ms. Montague may be contacted at montaguec@whiteandwilliams.com
Mr. Briganti may be contacted at brigantip@whiteandwilliams.com
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Massachusetts Supreme Judicial Court Strikes a Deathblow to Substantial Factor Causation in Most Cases; Is Asbestos Litigation Next?
March 22, 2021 —
Christian J. Singewald, Rochelle Gumapac & Timothy J. Keough - White and Williams LLPIn Doull v. Foster, the Massachusetts Supreme Judicial Court (SJC) addressed the proper causation standard in a medical malpractice case. In reaching this issue, the SJC reached far beyond the medical malpractice case before it. The SJC concluded that the substantial factor test for causation, which had been regularly employed in the Commonwealth for decades, was “unnecessarily confusing.” In doing so, the SJC effectively ended the use of the substantial factor test in all negligence cases going forward, except in toxic tort litigation. However, the SJC openly questioned its usefulness in toxic tort litigation and all but welcomed a direct challenge to its use there.
Reprinted courtesy of
Christian J. Singewald, White and Williams LLP,
Rochelle Gumapac, White and Williams LLP and
Timothy J. Keough, White and Williams LLP
Mr. Singewald may be contacted at singewaldc@whiteandwilliams.com
Ms. Gumapac may be contacted at gumapacr@whiteandwilliams.com
Mr. Keough may be contacted at keought@whiteandwilliams.com
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Huh? Action on Construction Lien “Relates Back” Despite Notice of Contest of Lien
May 01, 2023 —
David Adelstein - Florida Construction Legal UpdatesNot every case law you read makes sense. This sentiment goes to the uncertainty and grey area of certain legal issues. It is, what you call, “the nature of the beast.” You will read cases that make you say “HUH?!?” This is why you want to work with construction counsel to discuss procedures and pros / cons relative to construction liens.
An example of a case that makes you say “HUH” can be found in Woolems, Inc. v. Catalina Capstone Creations, Inc., 2023 WL 2777506 (Fla. 3d DCA 2023) dealing with a construction lien foreclosure dispute.
Here, a contractor filed a lawsuit against a subcontractor with a summons to show cause why the subcontractor’s construction lien should not be discharged. This is a specific complaint filed under
Florida Statute s. 713.21(4). This statute requires the lienor to essentially foreclose on its construction lien within 20 days after it was served with a “show cause” summons. The subcontractor filed its answer and counterclaim but did NOT assert a claim to foreclose its construction lien.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
New Households Moving to Apartments
December 20, 2012 —
CDJ STAFFThe New York Times reports that multifamily construction—apartment buildings—is leading the recovery in construction. Construction of single-family homes is only a third of the way up from its fall from its earlier heights, while multifamily construction has recovered two-thirds of its peak. Young adults are moving out of their parents’ homes, but instead of buying homes, they’re renting apartments.
Houston is adding thousands of new units, leading to a fear of overbuilding. Rents have been rising, but as the supply of apartment units rises, higher rents may be unsustainable. However, during the recession, young adults did not move out of their parents’ homes, leading to about two million doubled-up households. David Crowe, the chief economist of the National Association of Home Builders, noted that “all of the net addition to households since 2004 has been in rentals.”
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Real Estate & Construction News Roundup (4/17/24) – Travel & Tourism Reach All-Time High, President Biden Emphasizes Housing in SOTU Address, and State Transportation Projects Under Scrutiny
May 13, 2024 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, Airbnb advocates for new short-term rental rules, the U.S. Supreme Court rules on hefty development fees, loan losses becomes a greater issue for banks, and more!
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Pillsbury's Construction & Real Estate Law Team