Cambridge Massachusetts Building Expert Directory

Arbitrator May Use Own Discretion in Consolidating Construction Defect Cases

September 01, 2011 — CDJ STAFF

The Mississippi Court of Appeals has ruled in the case of Harry Baker Smith Architects II, PLLC v. Sea Breeze I, LLC. Sea Breeze contracted with Harry Baker Smith Architects II, PLLC (HBSA) to design a condominium complex, which would be built by Roy Anderson Corporation. All parties agreed to arbitration.

Subsequently, Sea Breeze alleged defects and sought arbitration against the architectural firm and started a separate arbitration proceeding against the contractor. The special arbitrator appointed by the American Arbitrators Association determined that it would be proper to consolidate the two actions “since they arose from a common question of fact or law.” HBSA filed in chancery court seeking injunctive relief and a reversal of the decision. Sea Breeze and Roy Anderson filed a motion to compel the consolidated arbitration.

The court noted that the special arbitrator “established that the contract between Sea Breeze and Roy Anderson expressly allowed for consolidation of the two cases.” Further, the arbitrator “concluded that HBSA expressly agreed to consolidation by written consent through its 2008 letter, through which it insisted upon Roy Anderson’s involvement ‘in any mediation and/or arbitration.’”

The court concluded that the chancery court “did not have the power to fulfill HBSA’s request.” The court affirmed the chancery court’s judgment.

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Colorado Federal Court Confirms Consequetial Property Damage, But Finds No Coverage for Subcontractor

November 01, 2022 — Tred R. Eyerly - Insurance Law Hawaii
A recommended decision from the Magistrate Judge of the Federal District Court for the District of Colorado found there was no coverage for the subcontractor's faulty workmanship, but recognized that Colorado finds consequential damages to be property damage. Indian Harbor Ins. Co. v. Houston Cas. Co., 2022 U.S. Dist. LEXIS 117857 (D. Colo. July 5, 2022). The insured, Tripp Construction, was a subcontrator for contructing balconies at an apartment complex. The owner complained that Tripp failed to properly install balconies. The defective installation of certain balcony components damaged other, non-defective components. The general contractor had an OCIP policy issued by Houston Casualty Company (HCC). The general contractor also had a Subcontractor Default policy issued by Indian Harbor. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Harmon Tower Demolition on Hold

December 11, 2013 — CDJ STAFF
CityCenter has raised a scenario out of a blockbuster movie in which an earthquake causes the tower to fall onto the Cosmopolitan or the Crystals mall, leading to lawsuits, investigations, and “plummeting stock prices.” But that didn’t sway Clark County District Judge Elizabeth Gonzales from putting a hold on the demolition of the tower. FM Global, CityCenter’s insurer, has requested more time to examine the building’s problems in order to determine how to act on CityCenter’s claim of total loss. Tutor Perini, the company that built the tower, agrees with the delay, since any monies from FM Global would reduce Tutor Perini’s liability. If FM Global denies the claim, the price for the builder would go up, should they fail at trial. That trial is now scheduled for April. Read the court decision
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Warren Renews Criticism of Private Equity’s Role in Housing

February 01, 2022 — Akayla Gardner - Bloomberg
Senator Elizabeth Warren is doubling down on her criticism of private equity’s involvement in the U.S. housing market as the nation grapples with an affordable-housing shortage. In letters sent Thursday, the Massachusetts Democrat asked housing firms Progress Residential LLC, Invitation Homes Inc. and American Homes 4 Rent about recent rent hikes, plans to acquire more properties and the number of evictions in recent years. Warren and other Democrats have scrutinized Wall Street’s role in the housing market since the 2008 financial crisis. During the pandemic, lawmakers have been on high alert for violations of eviction moratoriums and unfair treatment as Americans struggled financially to stay on their feet. Warren also expressed concern about automated homebuying practices, which allow companies to buy up properties using algorithms. Bloomberg reported that last year Zillow offloaded thousands of homes to institutional investors. Read the court decision
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Reprinted courtesy of Akayla Gardner, Bloomberg

How Pennsylvania’s Supreme Court Decision Affects Coverage of Faulty Workmanship Claims

March 31, 2014 — Beverley BevenFlorez-CDJ STAFF
Darin J. McMullen of the firm Anderson Kill explained how a recent opinion by the Pennsylvania Supreme Court allows “Pennsylvania policyholders” to “more confidently challenge insurance companies’ denials of faulty workmanship claims.” The decision in Indalex Inc. v. National Union Fire Ins. Co. of Pittsburgh, PA, 2013 Pa. Super 311 (Dec. 3, 2013) “reverses a nearly decade-long trend of Pennsylvania decisions narrowing the scope of insurance coverage for construction and defect-related claims under commercial general liability insurance policies,” according to McMullen. “Equally important, the Indalex ruling dealt a blow to the insurance industry’s continual efforts to win overbroad expansion of the rulings in Kvaerner Metals Div. of Kvaerner U.S., Inc. v. Commercial Union Ins. Co., Millers Capital Ins. Co. v. Gambone Bros. Dev. Co., and Erie Ins. Exchange v. Abbott Furnace Co., which found that claims of faulty workmanship in some circumstances may not constitute coverage-triggering ‘occurrences.’” Read the court decision
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Update Regarding McMillin Albany LLC v. Super Ct.

April 28, 2016 — Richard H. Glucksman and David A. Napper – Chapman Glucksman Dean Roeb & Barger In Focus
The construction industry continues to await the California Supreme Court's highly anticipated decision regarding McMillin Albany LLC v. Super Ct. 2015 F069370 (Cal.App.5 Dist.). The Supreme Court will attempt to resolve the conflict presented by the Fourth Appellate District Court's holding in Liberty Mut. Ins. Co. v. Brookfield Crystal Cove LLC (2013) 219 Cal.App.4th 98 and rejection of the same by the Fifth Appellate District Court in McMillin Albany. The issue is whether the Right to Repair Act (SB800) is the exclusive remedy for all defect claims arising out of new residential construction sold on or after January 1, 2013. CGDRB has been closely monitoring the progress of the case and understands that the real parties in interest have submitted their opening brief on the merits. The Court granted Petitioners a further and final extension to file the answer brief on the merits. The answer deadline is Monday April 25, 2016. Stay tuned. Reprinted courtesy of Richard H. Glucksman, Chapman Glucksman Dean Roeb & Barger and David A. Napper, Chapman Glucksman Dean Roeb & Barger Mr. Glucksman may be contacted at rglucksman@cgdrblaw.com Mr. Napper may be contacted at dnapper@cgdrblaw.com Read the court decision
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Florida SB 2022-736: Construction Defect Claims

February 07, 2022 — Kelly A. Johnson - Saxe Doernberger & Vita, P.C.
*Special thank you to SDV Law Clerk Iliriana Fteja for contributing to this article. A new bill (SB 2022-736) was recently introduced to the Florida Senate. The proposed amendments to the statutes of limitations and repose could significantly impact construction defect claims by effectively creating additional exposure to contractors and insurance carriers. The proposed bill requires all actions founded on the design, planning, or construction of an improvement to real property to be commenced within four years after the time to commence an action begins. Under the proposed amendment, the time to commence an action runs from the date of actual possession by the owner, the date of the issuance of a certificate of occupancy, the date of abandonment of construction if not completed, or the date of completion of the contract or termination of the contract between the professional engineer, registered architect, or licensed contractor and their employer. This provision would effectively alter the time to commence an action to whichever triggering event is earliest instead of the latest triggering event per the previous statute. Read the court decision
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Reprinted courtesy of Kelly A. Johnson, Saxe Doernberger & Vita, P.C.
Ms. Johnson may be contacted at KJohnson@sdvlaw.com

Real Estate & Construction News Roundup (6/4/24) – New CRE Litmus Tests, Tech Integration in Real Estate and a Jump in Investor Home Purchases

July 02, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, big bank exposure to CRE lending grows, concerns for the construction industry abound, U.S. hotel securitized loans come due, and more!

At some of the world’s biggest banks, loans to commercial real estate face new litmus tests that promise to shape the sector’s access to financing. (Frances Schwartzkopff and Gautam Naik, Bloomberg)
Big banks’ exposure to CRE lending grows by about 40% when indirect lending to REITs is added. (Todd Gillespiev, Bloomberg)
Cybersecurity threats, cost overruns, high interest rates, labor shortages and an economic downturn dominate the concerns of the construction industry. (Sebastian Obando, Construction Dive)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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