Los Angeles Construction Sites May Be on Fault Lines
December 30, 2013 —
CDJ STAFFCalifornia law prohibits building near or on top of earthquake fault lines, but Los Angeles County building officials may have used outdated information that misreported the location of certain faults. The Los Angeles Times reports that after their earlier articles on fault lines, the officials have started using newer maps.
According to the older maps, an apartment building under construction on Brockton Avenue in Los Angeles is 1.9 miles away from the Santa Monica fault. But a more recent map, created by the state in 2010, shows that the fault line could potentially be right under the building site.
The builders of another apartment building potentially located on the Santa Monica fault said that the city did not ask for a fault investigation. The Los Angeles Department of Building and Safety said that there was no official zone designation for the Santa Monica fault, and so did not require seismic studies.
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Caveat Emptor (“Buyer Beware!”) Exceptions
May 10, 2021 —
David Adelstein - Florida Construction Legal UpdatesThere is value to a seller when it comes to entering into an as-is transaction and stating that the seller has NOT made any representation or warranty, all such representations or warranties are disclaimed, the buyer is NOT relying on any representation of the seller, and that the buyer is relying on its own inspection of the property. This shifts the onus to the buyer to undertake the inspection or due diligence it needs to take relating to the property it wants to buy.
With respect to commercial property transactions:
The doctrine of caveat emptor, which Florida courts continue to apply, “places the duty to examine and judge the value and condition of the property solely on the buyer and protects the seller from liability for any defects.” There are, however, three exceptions to this doctrine, including: “1) where some artifice or trick has been employed to prevent the purchaser from making independent inquiry; 2) where the other party does not have equal opportunity to become apprised of the fact; and, 3) where a party undertakes to disclose facts and fails to disclose the whole truth.”
Florida Holding 4800, LLC v. Lauderhill Mall Investment, LLC, 46 Fla. L. Weekly D785b (Fla. 4th DCA 2021).
These three exceptions to caveat emptor, or the doctrine of buyer beware, are not easy to prove because it places a burden on a buyer to prove an active effort from the seller to conceal a material fact to skirt around the as-is language. Again, this is not an easy burden to prove.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Courts Favor Arbitration in Two Recent Construction Dispute Cases
November 21, 2018 —
Jason Plaza - The Subrogation StrategistRecent court decisions have signaled the courts’ proclivity to prefer arbitration over full-fledged litigation when provisions in construction contracts are called into question. While the courts recognize a party’s constitutional right to a jury trial, the courts also lean strongly towards resolving disputes via arbitration as a matter of public policy, especially if a construction contract carves out arbitration as an alternative to litigation.
In Avr Davis Raleigh v. Triangle Constr. Co., 818 S.E.2d 184 (N.C. App. 2018), the North Carolina Appeals Court reviewed the issue of whether the contracting parties selected binding arbitration as an alternative to litigation. The contract at issue was an AIA A201-2007 form document. Under the terms of the contract, the parties elected to arbitrate claims under $500,000 but to litigate claims over this amount. However, if there were several claims under $500,000 but the aggregate of all claims exceeded $500,000, then the contract implied that all claims would be arbitrated. Since the claims involved were an amalgamation of the two, the contracting parties disagreed about whether the arbitration provision would apply. The plaintiff interpreted this provision to mean litigation was mandatory when at least one claim exceeded $500,000 and that arbitration was mandatory when no single claim exceeded this amount. In contrast, the defendant interpreted this provision as meaning that when there were several claims worth less than $500,000 individually, but more than $500,000 aggregately, then all claims must be arbitrated. The trial court agreed with the plaintiff’s interpretation.
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Jason Plaza, White & Williams LLP
Chutes and Ladders...and Contracts.
November 25, 2024 —
Daniel Lund III - LexologyA contractor which designed and constructed a hydroelectric plant in Guatemala sued under the Federal Arbitration Act in federal court in Florida to overturn a project-related arbitration decision, “on the basis that the Tribunal had exceeded its powers.” That petition was denied based upon Eleventh Circuit precedent which foreclosed that challenge under the FAA for an arbitration conducted “under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards,” a.k.a., the “New York Convention.”
The U. S. 11th Circuit initially affirmed the lower court decision, but then upon an en banc rehearing reversed: holding that in a New York Convention case where the arbitration seat is in the U. S., or where United States law governs the arbitration conduct, “Chapter 1 of the FAA provides the grounds for vacatur of the arbitral award. … § 208 of the FAA provides that ‘Chapter 1 applies to actions and proceedings brought under [Chapter 2] to the extent that chapter is not in conflict with [Chapter 2] or the [New York] Convention as ratified by the United States.’ …Chapter 1 of the FAA… thus acts as a gapfiller and provides the vacatur grounds for an international arbitration award otherwise governed by Chapter 2.”
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
Massachusetts Court Holds Statute of Repose Bars Certain Asbestos-Related Construction Claims
April 17, 2019 —
Timothy J. Keough & Rochelle Gumapac - White and Williams LLPIn Stearns v. Metropolitan Life Insurance Company, the Massachusetts Supreme Judicial Court (SJC) addressed whether the six-year statute of repose for improvements to real property applies to long-tail tort claims, such as those caused by exposure to asbestos. Reasoning that the language of § 2B is clear, unambiguous and unequivocal, the SJC held that Mass. Gen. Laws. c. 260 § 2B does in fact bar all tort claims arising out of a deficiency or neglect in the design, planning, construction or general administration of an improvement to real property filed after the expiration of the six-year repose period. Additionally, the court affirmed that the time limitations imposed by the statute of repose may not be tolled for any reason six years after either the opening of the improvement for use or the owner taking possession of the improvement for occupation upon substantial completion, whichever may occur first.
Reprinted courtesy of
Timothy J. Keough, White and Williams LLP and
Rochelle Gumapac, White and Williams LLP
Mr. Keough may be contacted at keought@whiteandwilliams.com
Ms. Gumapac may be contacted at gumapacr@whiteandwilliams.com
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Is a Violation of a COVID-19 Order the Basis For Civil Liability?
April 20, 2020 —
Robert Devine, James Burger & Douglas Weck - White and WilliamsThinking about ignoring your state or local COVID-19 shutdown orders? Think again. Social-distance measures may create a new source of liability for businesses operating during the COVID-19 pandemic. Infection-based litigation is normally limited to businesses operating in the healthcare sector. But, social-distancing measures to stop the spread of infection may expand that litigation to other sectors.
State and local governments across the country are taking extraordinary measures to combat the spread of COVID-19, a novel coronavirus that can cause life-threatening respiratory illness. Those measures encourage and even mandate “social distance” between people to limit physical transmission of the virus.
Hard-hit states like New York, New Jersey, Pennsylvania and California have been aggressive in their responses, shuttering businesses, confining people to their homes, and requiring people to stay six feet apart. Common mandates include: quarantines, business and school closures, stay-home orders, curfews, travel restrictions, occupancy limits and physical-distance mandates, among other things.
Reprinted courtesy of White and Williams attorneys
Robert Devine,
James Burger and
Douglas Weck
Mr. Devine may be contacted at deviner@whiteandwilliams.com
Mr. Burger may be contacted at burgerj@whiteandwilliams.com
Mr. Weck may be contacted at weckd@whiteandwilliams.com
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Cable-Free Elevators Will Soar to New Heights, and Move Sideways
January 14, 2015 —
Belinda Lanks – BloombergI live in one of the few buildings in New York that still has a manual elevator. When I ask the operator on the morning shift how he's doing, his well-oiled response is "up and down." For the last 160 years, elevators have travelled a predictably vertical path. That will soon change when the German manufacturer ThyssenKrupp introduces the first fleet of cable-free cars that can also move sideways.
The system, dubbed MULTI, will allow multiple cabs to motor along a single, looping shaft. The cars move by magnetic levitation (the same technology behind some high-speed trains), rather than being pulled by the heavy steel ropes that limit how high skyscrapers can stretch. With MULTI, architects will be able to build spindly towers on small plots formerly deemed untenable for high-rises.
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Belinda Lanks, BloombergMs. Lanks may be contacted at
blanks@bloomberg.net
Serial ADA Lawsuits Targeting Small Business Owners
February 04, 2014 —
Beverley BevenFlorez-CDJ STAFFJennifer Wadsworth reports in the San Jose Inside that small business owners in the South Bay area of California have been targeted for ADA Compliance lawsuits. Specifically, John Ho, “a wheelchair-bound paraplegic from the Southern California town of Rosemead” has hit close to “80 businesses in San Jose and more throughout South Bay” with ADA complaints. Another resident, Cecil Shaw has also “filed hundreds of lawsuits in federal court through a San Jose-based law firm alleging similar violations.”
According to Wadsworth, these lawsuits have “become a multimillion-dollar industry.” Communities are often hit with “a hundred or more” lawsuits at a time: “Law firms team up with disabled clients to inspect businesses for compliance issues, and then sue in droves, expecting half or more defendants to settle out of court.”
Niccandro Barrita, owner of one of four La Victoria Mexican Restaurants in South Bay, lost an ADA lawsuit. “I thought because when the building was remodeled in 1996 and the city waived the lift requirement that I was in the clear. But that wasn’t the case,” he told San Jose Inside. Barrita claims to have paid $900,000 in attorney fees. His advice to other owners is to be proactive: “Don’t rely on someone to point out a deficiency to you. Find out for yourself if you’re compliant.”
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