Connecticut District Court to Review Proposed Class Action in Defective Concrete Suit
July 13, 2017 —
Tiffany Casanova - Saxe Doernberger & Vita, P.C.Thousands of Connecticut homeowners have fallen victim to a defective concrete epidemic. Over the last thirty years, the foundation in many homes, particularly in the Northeast region of the state, was built with a concrete aggregate that contained the mineral pyrrhotite. When exposed to the elements, including water and air, pyrrhotite oxidizes, resulting in cracking and disintegration over time. For Connecticut homeowners, this has resulted in disaster, both financially and to the foundations of their homes.
Previously, many homeowners insurance policies provided coverage for a “collapse” caused by the “use of defective material . . . in construction, remodeling or renovation.” As the pyrrhotite epidemic became more prevalent, insurers altered the coverage afforded for a “collapse” in several ways that potentially minimized or eliminated coverage for these types of claims. Primarily, coverage for a “collapse” is now restricted to collapses that are “abrupt,” and coverage is excluded for buildings in danger of falling down or those that are still standing, even if evidence of cracking or settling is demonstrated. The insurers did not notify homeowners of the change. Thus, homeowners who renewed policies were not informed of a coverage reduction nor were they provided with a corresponding reduction in the amount of premium.
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Tiffany Casanova, Saxe Doernberger & Vita, P.C.Ms. Casanova may be contacted at
tlc@sdvlaw.com
What to Know Before Building a Guesthouse
September 17, 2014 —
Cynthia Flash – BloombergThose tiny, often very cute homes that people are adding on their properties seem to be popping up everywhere these days. The tiny buildings can provide extra rental income, offer a less-expensive housing option or provide a home for a relative.
Accessory dwelling units, or ADUs, are second dwelling units created on a lot with an existing house or attached house. They’re often referred to as mother-in-law apartments, granny flats or studio apartments. As a homeowner, what are the legal issues to consider before building an ADU of your own?
Different cities, different rules
First off, different cities have different rules. Before plotting the space for your new tiny house, check with your city’s planning and zoning department to determine what those rules are. You can start online at accessorydwellings.org for a list of regulations by state and city.
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Cynthia Flash, Bloomberg
Be Strategic When Suing a Manufacturer Under a Warranty with an Arbitration Provision
October 02, 2023 —
David Adelstein - Florida Construction Legal UpdatesI’ve said this before, and I’ll say it again: arbitration is a creature of contract. If you don’t want to arbitrate, don’t agree to an arbitration provision as the means to resolve your dispute. Now, with that said, there are times you may not have a choice. An arbitration provision in a warranty from a manufacturer of a product is an example. If you are procuring the product, you are agreeing to the terms of the express warranty. Manufacturers are not negotiating their product warranty on a case-by-case basis considering they are not typically the ones selling the product directly to the end user. This does not mean that is a bad thing. It just means if you elect to sue the manufacturer directly for an alleged product defect or under the terms of the warranty, you should read the warranty and consider the strategic aspect that suing the manufacturer will have on your case.
In SICIS North America, Inc. v Sadie’s Hideaway, LLC, 48 Fla.L.Weekly D1581c (Fla. 1st DCA 2023), an owner elected to sue a tile manufacturer, a general contractor, the architect, and a window and door company. One of the arguments the owner raised was that exterior tiles installed were defective. The tiles were procured by the general contractor. The owner sued the general contractor under various theories and sued the tile manufacturer for breaches of warranty and negligence. The general contractor asserted a crossclaim for indemnification against the tile manufacturer. The tile manufacturer moved to compel the owner’s claim and the general contractor’s crossclaim to arbitration since there was an arbitration provision in the warranty documents and the general contractor’s indemnification claim arose from that transaction. The trial court denied the motion to compel arbitration. On appeal, the appellate court reversed:
First, because [the owner] was suing [the tile manufacturer] based upon the written warranty, it was bound by the arbitration provision contained in [the general contractor’s] agreement with [the tile manufacturer]. As the Florida Supreme Court has explained, “[W]hen a plaintiff sues under a contract to which the plaintiff is not a party . . . we will ordinarily enforce an arbitration clause contained in that contract, absent some other valid defense. . . .” . [The owner] had no valid defense against arbitration, a fact which it apparently realized when it voluntarily dismissed its express warranty claim after the notice of appeal and initial brief were filed.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
The “Program Accessibility” Exception for Public Entities Under the ADA
September 10, 2014 —
Garret Murai – California Construction Law BlogPublic owners, as well as private owners and tenants of commercial and retail properties, are at risk of lawsuits brought under the Americans with Disabilities Act of 1990 (“ADA”) and related state law alleging that their facilities are not accessible by those with disabilities.
A common misperception among private owners and tenants is that facilities constructed before the ADA went into effect in 1992 are exempt or “grandfathered” from the ADA’s requirements. Not so. At least generally. If, however, you are a public entity, there is such an exception. Lucky you.
Under the ADA, public facilities constructed prior to January 26, 1992 need not be “accessible to and usable by individuals with disabilities” so long as a public entity’s “service[s], program[s] and activit[ies], when viewed in [their] entirety, [are] readily accessible to and usable by individuals with disabilities.” Known as “program accessibility,” the exception has left many public entities scratching their heads as to what they can and must do.
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Garret Murai, Kronick Moskovitz Tiedemann & GirardMr. Murai may be contacted at
gmurai@kmtg.com
Subcontractors Eye 2022 with Guarded Optimism
October 11, 2021 —
Louise Poirier - Engineering News-RecordWhile work continues to be plentiful for specialty contractors across the five-state region of Arkansas, Louisiana, Mississippi, Oklahoma and Texas, concerns remain for how the project landscape will continue to evolve as the impacts of the COVID-19 pandemic continue to weigh on the world.
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Louise Poirier, Engineering News-Record
Ms. Poirier may be contacted at poirierl@enr.com
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The Brexit Effect on the Construction Industry
June 30, 2016 —
Beverley BevenFlorez-CDJ STAFFNow that the United Kingdom (UK) has voted to leave the European Union (EU)—commonly known as ‘Brexit’—much discussion has arisen on how it will affect the construction industry both in the UK and globally.
Brexit could impact the U.S. housing market in various ways, some negative and some positive. For instance, the mortgage refinancing industry is poised to receive a “glut of applications due to low interest rates,” Construction Dive reported. It’s also possible that the U.S. will receive an influx of foreign investors who may perceive the UK as being too isolationist, making the U.S. seem “more open to global business,” according to the Detroit Free Press. They also pointed out that the vote has already impacted the U.S. housing market, since it is most likely the reason the Federal Reserve decided against raising interest rates in June.
Furthermore, Construction Dive presented two different views of how home buying may be effected. On the one hand, investors who lost money in the stock market may be less inclined or able to purchase property at this time. But on the other hand, if Brexit causes home prices to decline, it may “be a relief to those homebuyers finding it difficult to come up with a down payment, particularly first-timers who are facing limited starter-home inventory in addition to steep price tags.”
Barron’s does not seem to believe that the stock market decline due to Brexit will affect the U.S. building industry. The publication maintained their “relatively favorable view of the home builders” industry for the following reasons: “1) Healthy demand trends seen in our monthly survey of real-estate agents; 2) 100% U.S. exposure and tailwinds from lower mortgage rates; and 3) Generally undemanding valuations. However, we are somewhat balanced by: 1) Rates have already been favorable, limiting incremental buyer urgency; 2) Risk that continued market volatility or broader economic fallout could hurt housing fundamentals; and 3) Industry gross margins face pressure from rising land and labor costs. We forecast accelerating order growth through the fourth quarter, driven by community count growth and easier second-half comps, and think improving trends would be a positive catalyst.”
Less positive are the predictions for the UK construction industry. CNBC reported that migrant workers currently make up twelve percent of the UK construction force, and Brexit could cause the labor shortage to worsen. According to Global Construction, Brian Berry, Chief Executive of the Federation of Master Builders agreed that the industry needs migrant workers, however, he also stated that the UK needs to begin investing in their own “home-grown talent” through increasing apprenticeships.
Another prediction is that infrastructure projects may be adversely effected. For instance, the Independent reported that an anonymous source alleged that international investors have already begun to delay future infrastructure projects in the UK due to the uncertainty of the UK and the EU parting terms negotiation. Current projects may also be in jeopardy, according to the source, since the projects are often contingent upon existing shipping trade rules—if smaller ships can no longer go straight into Europe, it could be enough to halt these projects.
According to the Architects’ Journal, projects will stop—and they have evidence that one already has been halted: “Within minutes of the Brexit news, Daniel Minsky, who works with a boutique investment and development agency in London, was told that a proposed land deal had been pulled. The buyer withdrew at 7.05am this morning because they felt the residential value ‘was too risky.’”
The Architects’ Journal also predicted that environmentally friendly projects may decline since many of the green initiatives were governed by the EU under the Energy Performance in Buildings Directive. However, James Shackleton of Eversheds LLP disagreed with the assessment. Shackleton believes that Brexit may not result in less regulation, giving the following examples: “The Construction Design and Management Regulations 2015 which essentially enact EU Directive 1992/57/EEC and require certain minimum health and safety requirements in design and construction, are unlikely to be swept away.” Furthermore, the “Energy Performance of Buildings (Certificates and Inspections) (England and Wales) Regulations 2007 enacting EU Directive 2002/91/EC requiring Energy Performance Certificates for buildings is unlikely to be repealed,” Shackleton claimed.
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Time is Money. Unless You’re an Insurance Company
December 02, 2015 —
Garret Murai – California Construction Law BlogBenjamin Franklin may never have been President but he’s better known than most of them. Not least of all for his pithy quotes on a wide range of subjects:
On personal finance – “A penny saved is a penny earned.”
On education – “Tell me and I forget, teach me and I remember, involve me and I learn.”
On getting real – “In this world nothing can be said to be certain, except death and taxes.”
On guests – “Guests, like fish, begin to smell after three days.”
On lawyers – “A countryman between two lawyers is like a fish between two cats.”
On beer – “In wine there is wisdom, in beer there is freedom, in water there is bacteria.”
But if you were to pick one theme that seems to recur the most in Franklin’s quotes, it would be productivity:
“Time is money.”
“By failing to prepare, you are preparing to fail.”
“Never leave that till tomorrow which you can do today.”
“Early to bed and early to rise, makes a man happy, wealthy and wise.”
But, as the next case, Grebow v. Mercury Insurance Company, Case No. B261172, California Court of Appeals for the Second District (October 21, 2015), illustrates, sometimes the most efficient way of doing things may not necessarily be the most financially prudent way of doing things.
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Mr. Murai may be contacted at gmurai@wendel.com
Nashville Stadium Bond Deal Tests Future of Spectator Sports
December 14, 2020 — Amanda Albright & Danielle Moran - Bloomberg
America’s country-music capital is making a bet on the world’s most popular sport.
A Nashville, Tennessee agency is selling $225 million of bonds to finance the construction of a 30,000-seat Major League Soccer stadium in Music City, anticipating it could be a boon once spectator sports emerge from the pandemic. Local officials have faith that it will: the Metropolitan Government of Nashville and Davidson County agreed to step in if revenue from the stadium isn’t enough to cover the debt payments, insulating bondholders from risk.
Reprinted courtesy of Amanda Albright, Bloomberg and Danielle Moran, Bloomberg
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