Stucco Contractor Trying to Limit Communication in Construction Defect Case
November 13, 2013 —
CDJ STAFFSouth Carolina State Plastering claimed in the South Carolina Court of Appeals that communication between attorneys and residents of a retirement community could undermine the judgment in the case. Residents of Sun City had filed a class action lawsuit over problems with stucco in the community.
Phillip Segul, the plaintiffs’ attorney, noted that plasterer was “directly communicating with the class members and getting them to sign opt-outs and releases of their claims,” although this was something that Everett Kendall, the plasterer’s attorney denied.
The lawsuit has been grinding along for six years. Some residents fear they won’t outlive the construction defect lawsuit.
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Torrey Pines Court Receives Funding for Renovation
August 06, 2014 —
Beverley BevenFlorez-CDJ STAFFSan Diego Source reported that “CIT Real Estate Finance provided…$60 million…to refinance existing debt and fund the renovations at Torrey Pines Court,” a five-building Class A office campus located in La Jolla, California. The 206,128 square foot complex, which resides on 9.24 acres, is adjacent to the Torrey Pines Golf Course. CIT has funded the project in partnership with Rockwood Capital and The Muller Company.
"We are excited to begin renovations that will complete our repositioning of Torrey Pines Court with state-of-the-art office space and amenities,” David Streicher, Partner at Rockwood Capital, stated according to a press release in the Wall Street Journal. “We expect that the renovations, coupled with the project's picturesque setting, will solidify Torrey Pines Court's position as the preferred office destination in the submarket. We thank CIT for working with us to create a sound financing package that will take this project to the next level."
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White and Williams Defeats Policyholder’s Attempt to Invalidate Asbestos Exclusions
January 28, 2014 —
White and Williams LLPWhite and Williams attorneys scored a significant victory for the insurance industry on January 15, 2014, when a federal jury of four men and four women rejected a policyholder’s novel efforts to invalidate asbestos exclusions contained in insurance policies issued between February 1, 1979 and August 1, 1985.
In General Refractories Co. v. First State Ins. Co., Civil Action No. 04-CV-3509 (E.D. Pa.), General Refractories Company contended that asbestos exclusions in insurance policies issued by various insurance companies in the late 1970s and 1980s had not been submitted to the Pennsylvania Department of Insurance for approval prior to use and, therefore, were unenforceable. Holding a failure to obtain approval, by itself, would not be sufficient to render the exclusions unenforceable, the Honorable Edmund Ludwig sent the matter to trial to determine whether the Pennsylvania Insurance Commissioner implemented a policy that was uniformly executed by the Insurance Department to disapprove all asbestos exclusions between February 1, 1979 and August 1, 1985, such that the exclusions violated a “dominant public policy.”
Reprinted courtesy of Gregory LoCasale, White and Williams LLP
and
Patricia Santelle , White and Williams LLP
Ms. Santelle may be contacted at santellep@whiteandwilliams.com and Mr. LoCasale may be contacted at locasaleg@whiteandwilliams.com.
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Florida Supreme Court: Notice of Right to Repair is a CGL “Suit,” SDV Amicus Brief Supports Decision
January 10, 2018 —
Gregory Podolak & Brian Clifford - SD&V Case AlertConstruction policyholders in Florida have been given substantial ammunition to compel general liability insurers to provide a defense against pre-suit accusations of defective work. Florida is one of approximately thirty (30) states that require property owners to serve contractors with notice and an opportunity to repair construction defects before filing suit. Only a few states have addressed whether a CGL policy should provide a defense for similar processes. Altman Contractors, Inc. v. Crum & Forster Specialty Ins. Co., decided late in December by the Florida Supreme Court, acknowledged that the 558 process is a “suit,” thus impeding insurers from refusing a defense during this notice period.
Section 558.004(1), Florida Statutes (2012) requires a property owner alleging construction defects to serve a written notice to repair on the contractor before filing an action in court. Altman Contractors built a condominium in Broward County, Florida. In 2012, the condominium owners alleged defects in accordance with Section 558. Altman demanded that its general liability carrier, Crum & Forster, defend and indemnify it against the 558 notices. Crum & Forster denied coverage, claiming that 558 notices are not a “suit” as defined by the policy.
Reprinted courtesy of
Gregory Podolak, Saxe Doernberger & Vita, P.C. and
Brian Clifford, Saxe Doernberger & Vita, P.C.
Mr. Podolak may be contacted at gdp@sdvlaw.com
Mr. Clifford may be contacted at bjc@sdvlaw.com
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Unpredictable Opinion Regarding Construction Lien (Reinstatement??)
January 17, 2023 —
David Adelstein - Florida Construction Legal UpdatesHere comes the discussion of an appeal I was intimately involved in dealing with a construction lien. See Suntech Plumbing and Mechanical Corp. v. Bella Isla, LLC, 2022 WL 14672765 (Fla. 3d DCA 2022). Unfortunately, it was a losing result on my end but not a losing result to the issue at-hand. You should ask what in the world does this mean. I will tell you.
Here is the fact pattern. A subcontractor files a construction lien foreclosure lawsuit against an owner for unpaid contract balance. In the same lawsuit, the subcontractor sues the general contractor for breach of contract and unjust enrichment associated with an approximate three-year delay on a construction project. The project was scheduled to be completed in 2019. It was not. The project was pushed into COVID and into 2022. (The subcontractor did not sue the general contractor for amounts subject to the lien foreclosure claim.) The general contractor, assuming the defense of the owner, moved to stay the lawsuit pending the outcome of arbitration based on an arbitration provision in the subcontract. The subcontractor did not dispute the arbitration provision, but argued that arbitration provision should not extend to the owner that was (a) not bound by the subcontract, (b) would not be a party to the arbitration, and (c) the amounts pled against the general contractor did not include the amounts subject of the lien foreclosure lawsuit. At a minimum, the lawsuit should be stayed, not dismissed. Nevertheless, the trial court dismissed the entire lawsuit in an order that states that it is a final order with language that the lien may be “reinstated” after the outcome of the arbitration (that the owner is not a party to).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Instant Hotel Tower, But Is It Safe?
March 28, 2012 —
CDJ STAFFBroad Sustainable Building has leapfrogged in China’s construction boom by building a thirty-story hotel in just fifteen days in the city of Changsha. According to an article in the Los Angeles Times, most of the building was prefabricated, but most prefabricated buildings require a longer time for assembly. Broad claimed that it cut no corners on safety. However, Zhang Li, a Beijing architect, told the Times that “incredible speed also means incredible risk.”
At the completion date, the interior was still partially finished. Some rooms were furnished, while others weren’t quite so ready. The hotel will be used to house clients who are visiting Broad and some of its employees.
Broad called their process “the most profound innovation in human history” and predicted that soon a third of new buildings worldwide would be constructed this way. The company anticipates using the same process to build taller buildings, with hopes of eventually constructing a 150-story building.
China is currently undergoing a building boom which Zhang attributed to a desire to catch up to the developed world. As a result of this boom, he noted that building inspections are often skipped in China to speed up building.
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Are Construction Defect Laws a Factor in Millennials Home Buying Decisions?
March 12, 2015 —
Beverley BevenFlorez-CDJ STAFFKimberly A. O’Hagan of Otten Johnson Robinson Neff + Ragonnetti PC discussed Millennials in Denver, Colorado, and how their desire to buy may cause them to leave the area due to a lack of affordable housing.
O’Hagan describes various possible reasons for the lack of affordable housing: “Some cite the inability to qualify for financing and low demand as the reasons for the decreased number of condominium projects. Others, including Denver’s Mayor Hancock, credit the chill on condominium construction to Colorado’s construction defect laws, which they say have resulted in increased insurance costs that make condominium development economically infeasible.”
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Millennium’s Englander Buys $71.3 Million Manhattan Co-Op
September 03, 2014 —
Oshrat Carmiel – BloombergIsrael Englander, the founder and chief executive officer of hedge-fund firm Millennium Management LLC, bought a duplex apartment on New York’s Park Avenue for $71.3 million, a record price for a Manhattan co-op.
The seller was the government of France, New York City property records filed on Aug. 30 show. The six-bedroom unit at 740 Park Ave. was listed for $48 million in April, according to real estate website StreetEasy.com.
The Park Avenue tower, completed in 1931 and designed by Rosario Candela and Arthur Loomis Harmon, has been home to John D. Rockefeller Jr. and Jacqueline Kennedy Onassis, according to StreetEasy. Its 31 units include duplexes and triplexes of as much as 20,000 square feet (1,900 square meters). The 18-room co-op bought by Englander includes a private elevator, 35-foot (10.6-meter) marble gallery and five fireplaces, said the listing by John Burger of Brown Harris Stevens.
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Oshrat Carmiel, BloombergMs. Carmiel may be contacted at
ocarmiel1@bloomberg.net