Let it Shine: California Mandates Rooftop Solar for New Residential Construction
May 16, 2018 —
Garret Murai - California Construction Law BlogCalifornia. Birthplace of the Frisbee, skateboard, television, canned tuna and (yup) fortune cookies has added another first to the list: California has become the first state in the nation to mandate the use of solar panels for new residential construction.
On May 9, 2018, the California Energy Commission (CEC) unanimously approved the state’s 2019 Building Energy Efficiency Standards. The 2019 Energy Efficiency Standards update the California Building Standards Codes found at Title 24 of the California Code of Regulations which are updated every three years. The 2019 Energy Efficiency Standards go into effect on January 1, 2020.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Treasure Island Sues Beach Trail Designer over Concrete Defects
September 10, 2014 —
Beverley BevenFlorez-CDJ STAFFThe city of Treasure Island, Florida “has filed a lawsuit against Graham Landscape Design of St. Petersburg and Coastal Technology Corp. of Vero Beach for failing to properly design the 1-mile trail along the city's beachfront, which has hundreds of cracks in its concrete surface,” reported the Tampa Bay Times.
"The city has been unable to resolve the construction defects of the Central Beach Trail outside of the litigation process," City Attorney Maura Kiefer said to the Tampa Bay Times.
Cracks allegedly began appearing on the $1.2 million dollar trail soon after the project was concluded (March 2013). Treasure Island “submitted a performance bond claim and notified insurance companies representing Graham Landscape of the problem.”
Consultants hired by Phil Graham IV, the owner of the design company, determined that the cracking was caused by “a combination of problems in the design, construction and composition of materials.”
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General Contractor’s Ability to Supplement Subcontractor Per Subcontract
July 10, 2018 —
David Adelstein - Florida Construction Legal UpdatesAs a subcontractor, you need to appreciate that the subcontract you (more than likely) sign is going to have you bear risk associated with furnishing manpower to maintain the prime contractor’s schedule and progress. A subcontractor can factor some of this risk into the lump sum amount it agrees to in the subcontract. But, from the general/prime contractor’s perspective, it is very important that this risk is borne by the subcontractor because there is no such thing as a schedule written in stone. The baseline schedule, whether attached to the subcontract or not, will change. Activities will be re-sequenced. Activities will be added. Activities will overlap. Activity start dates and finish dates will change. It is the nature of construction. As a subcontractor, you know all of this because it is the same no matter the project. Schedules are never written in stone — they change on a regular basis.
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dadelstein@gmail.com
Deductibles Limited to Number of Suits Filed Against Insured, Not Number of Actual Plaintiffs
December 08, 2016 —
Tred R. Eyerly – Insurance Law HawaiiThe court limited the number of deductibles to the counterclaims filed against the insured, not the more than 600 plaintiffs who were parties to the three underlying lawsuits. Probuilders Spec. Ins. Co. v. Yarbrough Plastering, 2016 U.S. Dist. LEXIS 134959 (E.D. Calif. Sept. 29, 2016).
Yarbrough entered into contracts with Lenox Homes to provide stucco and drywall services in the homes Lenox would build. Each contract required Yarbrough to indemnify Lenox for any claims resulting from property damage arising out of the performance of the contract.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Approaches in the Absence of a Differing Site Conditions Clause
April 10, 2019 —
Parker A. Lewton - Smith CurrieA contractor who has encountered unforeseen conditions will typically rely on the contract’s differing site conditions clause as a means to recovery. Most construction contracts address those issues directly. In ConsensusDocs Standard Agreement and General Conditions between Owner and Constructor, the starting point is § 3.16.2. But what if the contract does not contain a differing site conditions clause? Or, what if the contract does contain such a clause, but the contractor failed to provide adequate notice or satisfy other conditions or requirements of the contract? When reliance on a differing site conditions clause is impractical, a contractor still may seek recovery in certain instances under one or more of the following legal theories: misrepresentation; fraud; duty to disclose; breach of implied warranty; and mutual mistake.
Misrepresentation
Misrepresentation occurs when an owner “misleads a contractor by a negligently untrue representation of fact[.]” John Massman Contracting Co. v. United States, 23 Cl. Ct. 24, 31 (1991) (citing Morrison–Knudsen Co. v. United States, 170 Ct. Cl. 712, 718–19, 345 F.2d 535, 539 (1965)). A contractor may be able to recover extra costs incurred, under a theory of misrepresentation, if it can show that (1) the owner made an erroneous representation, (2) the erroneous representation went to a material fact, (3) the contractor honestly and reasonably relied on that representation, and (4) the contractor’s reliance on the erroneous representation was to the contractor’s detriment. See T. Brown Constructors, Inc. v. Pena, 132 F.3d 724, 728–29 (Fed. Cir. 1997). These four requirements can be satisfied, for example, through the use of deposition testimony detailing the owner’s representations and the contractor’s reliance thereon. See, e.g., C & H Commercial Contractors, Inc. v. United States, 35 Fed. Cl. 246, 256–57 (1996).
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Parker A. Lewton, Smith CurrieMr. Parker may be contacted at
palewton@smithcurrie.com
Trial Court's Award of Contractual Fees to Public Adjuster Overturned
June 03, 2019 —
Tred R. Eyerly - Insurance Law HawaiiA judgment awarding the public adjuster his compensation for work performed under contract was remanded for further proceedings by the Hawaii Intermediate Court of Appeals. Joslin v Ota Camp-Makibaka Ass'n, 2019 Haw. App. LEXIS 155 (Haw. Ct. App. April 5, 2019).
A fire destroyed the homeowners' residence on September 19, 2013. The property was subject to the bylaws of the Association of Apartment Owners of Ota Camp. The Association had a policy with Alterra Excess & Surplus Insurance Company and submitted a claim for all units damaged in the fire. The Association's adjuster came the following day to inspect the site.
Separately, Robert Joslin, public adjuster, entered a contract with the homeowners to adjust their claim in exchange for twelve-percent of any insurance proceeds obtained. Over the next several months Joslin pursued insurance proceeds from Alterra on behalf of the homeowners. On December 18, 2013, Joslin filed a complaint with the Insurance Division arguing that Alterra had failed to timely make payments on the claim.
On February 10, 2014, Alterra's third party administrator, Engle Martin & Associates, sent a check to Joslin for $231,940 made out to the Association, the homeowners and Joslin.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Construction Defect Claim Did Not Harm Homeowner, Court Rules
September 30, 2011 —
CDJ STAFFThe Minnesota Court of Appeals has ruled in Creswell v. Estate of Howe, a case in which a woman bought a home and then sued the seller’s estate, both sets of real estate agents, and the homeowner’s association over construction defects. A district court ruled against her, granting summary judgment to the other parties.
After buying a townhome “as is,” Catherine Creswell claims to have shared a thought with her agent that the homeowners association was, in the words of her agent, “trying to hide something.” Later, Creswell found that a few days before her closing, the board had discussed problems with “roofs, siding and soundproofing of the townhomes.” The court noted that “it was clear from the documents that appellant [Creswell] received that the association had known about various construction defects for many years, some of which affected [her] unit.”
Creswell initially sued the estate, the man who negotiated the sale for his mother’s estate, the real estate companies and the agents involved, the homeowners association, and four board members. Later she sued for punitive damages, dropped a claim for interference with contractual relations, and dismissed her claims against the individual board members. The court dismissed all of Creswell’s claims awarding costs to those she sued.
The appeals court has affirmed the decision of lower court, noting that Creswell “did not provide us with any argument why the district court erred in dismissing her unjust-enrichment, breach of contract, or rescission claims against the various respondents.” Nor did she provide evidence to support her claims of “breach of duty, fraud, and violation of consumer protection statutes.”
The court noted that Creswell could not sue the homeowners association over the construction defects because she “failed to prove that she was damaged by the association’s nondisclosure.” The court noted that “there are no damages in this case,” as Creswell “was never assessed for any repairs, she had not paid anything out-of-pocket for repairs, and she has presented no evidence that the value of her individual unit has declined because of the alleged undisclosed construction defects.”
The court granted the other parties motion to dismiss and denied Creswell’s motion to supplement the record. Costs were awarded to the respondents.
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New York vs. Miami: The $50 Million Penthouse Battle From Zaha Hadid
October 28, 2015 —
James Tarmy – BloombergThe Anglo-Iraqi starchitect Zaha Hadid has designed just two residential buildings in the U.S., one in New York (520 West 28th Street in the Chelsea Gallery District next to the High Line) and one in Miami (One Thousand Museum, next to PAMM and overlooking Biscayne Bay). Both have yet to be completed and both, as it happens, have penthouses priced in the region of $50 million.
Two trophy properties by a Pritzker Prize-winning architect and two almost identical price tags? (The Miami penthouse clocks in at a mere $49 million, the New York penthouse an even $50 million.) It’s practically begging for a head-to-head comparison.
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James Tarmy, Bloomberg