Housing Starts Surge 23% in Comeback for Canadian Builders
July 15, 2019 —
Theophilos Argitis - BloombergCanadian housing starts unexpectedly surged in April, in another sign of recovery for the nation’s battered real estate market.
Builders started work on an annualized 235,460 units last month, the highest level in 10 months and up 23 percent from 191,981 units in March, the Canada Mortgage and Housing Corp. reported Wednesday. The gain was driven by new multi-unit construction in Toronto and Vancouver.
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Theophilos Argitis, Bloomberg
Can a Receiver Prime and Strip Liens Against Real Property?
September 20, 2021 —
Ben Reeves - Snell & Wilmer Real Estate Litigation BlogCourts overseeing receivers generally enjoy broad discretion in directing and approving a receiver’s proposed actions. But does that authority extend to a receiver not only granting a super-priority lien ahead of existing liens, but also selling the real property free and clear of all liens? In County of Sonoma v. Quail, 56 Cal.App.5th 657 (Ct. App. 2020), the California Court of Appeals answered that question in the affirmative.
Quail involved a 47,480 square-foot lot with two houses, a few garages, several outbuildings, and numerous trailers surrounded by a veritable junk yard. Despite many of these structures being uninhabitable, unsanitary, and dangerous, multiple families resided on the lot. Although Sonoma County (the “County”) ordered the owner to remediate the property several times, he failed and refused to do so. After several years of these violations going unabated, the County ultimately sought and obtained the appointment of a receiver over the real property.
To obtain funds necessary to repair the property, the receiver asked the court for permission to borrow money through the issuance of a receivership certificate to be secured by a super-priority lien—i.e., a lien ahead of all other liens—against the real property. Although the trial court initially declined to prime existing liens, when the receiver could find no one to lend money (since the land lacked equity), the trial court relented and approved a super-priority lien despite the senior secured lender’s objection (the “lender”).
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Ben Reeves, Snell & WilmerMr. Reeves may be contacted at
breeves@swlaw.com
Claims for Breach of Express Indemnity Clauses Subject to 10-Year Statute of Limitations
October 08, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to Thomas G. Cronin of Gordon & Rees LLP (published in Association of Corporate Counsel), “[i]n 15th Place Condominium Association v. South Campus Development Team LLC, the Appellate Court for the First District of Illinois held that a claim for breach of an express indemnity clause within a construction agreement was subject to the 10-year statute of limitations for written contracts instead of the four-year statute of limitations for construction claims.”
In 2008, the condo association sued the developer alleging “it had discovered latent design and construction defects in the condominium towers. In 2011, the developer filed a third-party complaint against the general contractor alleging breach of express indemnity.”
While the general contractor prevailed in the first trial, the appellate court reversed the decision, “concluding that the nature of the developer’s express indemnity claim against the general contractor related to the failure to indemnify rather than to a construction-related activity.”
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Colorado Supreme Court Issues Decisions on Statute of Limitations for Statutory Bad Faith Claims and the Implied Waiver of Attorney-Client Privilege
July 11, 2018 —
Jennifer Arnett-Roehrich - Gordon & Rees Insurance Coverage Law BlogThe Colorado Supreme Court has been busy the past two weeks, issuing a couple rulings that should be of interest to the insurance industry:
Statute of Limitations for Bad Faith Statute: In Rooftop Restoration, Inc. v. American Family Mutual Insurance Co., 2018 CO 44 (May 29, 2018), the Colorado Supreme Court held that the one-year statute of limitations that applies to penalties, does not apply to claims brought under C.R.S. 10-3-1116, Colorado’s statutory cause of action for unreasonable delay or denial of benefits. Section 10-3-1116 provides that a first-party claimant whose claim for payment of benefits has been unreasonably delayed or denied may seek to recover attorney fees, costs, and two times the covered benefit, in addition to the covered benefit. A separate Colorado statute, CRS 13-80-103(1)(d) provides a one-year statute of limitations for “any penalty or forfeiture of any penal statutes.” To arrive at the conclusion that the double damages available under section 10-3-1116 is not a penalty, the Court looked at yet another statutory provision, governing accrual of causes of action for penalties, which provides that a penalty cause of action accrues when “the determination of overpayment or delinquency . . . is no longer subject to appeal.” The Court stated that because a cause of action under 10-3-1116 “never leads to a determination of overpayment or delinquency . . . the claim would never accrue, and the statute of limitations would be rendered meaningless.” Para. 15. Presumably, the default two-year statute of limitations, provided by CRS 13-80-102(1)(i), will now be found to apply to causes of action seeking damages for undue delay or denial of insurance benefits.
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Jennifer Arnett-Roehrich, Gordon & Rees Scully MansukhaniMs. Arnett-Roehrich may be contacted at
jarnett-roehrich@grsm.com
Denver Council Committee Approves Construction Defects Ordinance
October 28, 2015 —
Beverley BevenFlorez-CDJ STAFFAccording to The Denver Post, the Denver City Council panel advanced a proposed construction defects ordinance proposal 5-0. While “Mayor Michael Hancock and development and business interests…say protections for homeowners have depressed construction” others, such as “homeowner groups[,] have opposed the proposal vocally.”
The Denver Post reported that under the ordinance, “a project could not be called defective in a civil action if it was built and maintained in conformance to the building code. Building code violations could be cited in a lawsuit only if they could be linked to actual damage or injury. And it would take the consent of a majority of condo unit owners to initiate a defects lawsuit.”
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Coping with Labor & Install Issues in Green Building
October 08, 2014 —
Beverley BevenFlorez-CDJ STAFFBuilder reported on the problem that builders have with using green techniques—finding skilled laborers and subs. “If a green product is not installed correctly it most likely won’t do its job,” building scientist Carl Seville said to Builder.
Austin Trautman of Vali Homes told Builder that the biggest problem he had with his first net-zero prototype house was the HVAC work. “It’s actually a simpler system with straightforward installation, but they just couldn’t figure it out.”
Cliff Majersik, executive director of the Institute for Market Transformation, said that teaching subs the new techniques is worthwhile: “Once you know how to do it, an energy-efficient house can even be less expensive to build.”
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Is the Construction Industry Actually a Technology Hotbed?
August 19, 2024 —
Andrew Silver - Construction ExecutiveTechnology has always been a driving force behind progress, and the construction industry is no exception. Over the years, technological advancements have revolutionized the way companies design, plan and build structures, leading to increased efficiency, safety and sustainability. From virtual-reality simulations to drones and 3D printing, technology has transformed every aspect of the construction process. However, the construction trades still lag behind other sectors in adoption of digital technologies. With a lack of skilled labor continuing to be an impediment to growth and profitability in the construction industry, technological developments could have significant implications for successful adopters.
Already, the industry is seeing a huge difference in valuation between traditional engineering and construction firms and construction software companies. As labor shortages continue to hinder growth in the industry, consolidation is likely, as is the probability that companies with the greatest tech capabilities will be the most highly valued. There are several areas of technology that are of the greatest interest in the current marketplace.
BIM
Building information modeling with computer-aided design software now allows architects and engineers to create detailed and accurate 3D models of buildings and infrastructure projects, integrating data about every aspect of the building, from materials and costs to energy efficiency and maintenance schedules. These models not only help in visualizing the final product; they also enable better communication and collaboration among project stakeholders.
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Andrew Silver, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Wildfire Insurance Coverage Series, Part 4: Coverage for Supply Chain Related Losses
July 18, 2022 —
Scott P. DeVries & Yosef Itkin - Hunton Insurance Recovery BlogBusiness loss is not limited to fire or smoke damage to its own property – it often arises from damage to the supply chain. In this post in the Blog’s Wildfire Insurance Coverage Series, we look at what coverage may exist when wildfire damages an entity’s supply chain.
In many instances, while the insured property does not sustain fire or smoke damage, wildfires can wreak havoc on the business supply chain. For some, contingent business interruption coverage may be a solution. Contingent business interruption insurance extends coverage for the loss of prospective earnings because of an interruption in the insured’s supply chain that is caused by damage to property that the insured neither owns nor operates.[1] Typically, the property covered is of a supplier or customer. For example, in 2000, Ericsson Telecom A.B., a mobile phone manufacturer, presented a substantial contingent business interruption claim based on a fire that damaged a Royal Philips Electronics semiconductor plant. Royal Philips supplied critical components for Ericsson’s mobile phones. The fire caused Royal Philips to close its plant, halting Ericsson’s phone production for six weeks, resulting in substantial losses.
Reprinted courtesy of
Scott P. DeVries, Hunton Andrews Kurth and
Yosef Itkin, Hunton Andrews Kurth
Mr. DeVries may be contacted at sdevries@HuntonAK.com
Mr. Itkin may be contacted at yitkin@HuntonAK.com
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