Contractors: Beware the Subordination Clause
October 15, 2014 —
Garret Murai – California Construction Law BlogA bit of mechanics lien trivia.
What is the only state in the United States in which mechanics liens are a constitutional right?
If you answered California, ding, ding.
Article XIV of the California Constitution states:
Mechanics, persons furnishing materials, artisans, and laborers of every class, shall have a lien upon the property upon which they have bestowed labor or furnished material for the value of such labor done and materials furnished; and the Legislature shall provide, by law, for the speedy and efficient enforcement of such liens.
But how does that constitutional right stand up against contractual rights? Not so well it seems.
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Garret Murai, Kronick Moskovitz Tiedemann & GirardMr. Murai may be contacted at
gmurai@kmtg.com
Mitsui Fudosan Said to Consider Rebuilding Tilted Apartments
October 28, 2015 —
Katsuyo Kuwako – BloombergMitsui Fudosan Co., Japan’s biggest developer, is considering rebuilding an apartment complex in Yokohama after one of the four buildings started to tilt, according to a person familiar with the situation.
Kiyotaka Fujibayashi, president and chief executive officer of Mitsui Fudosan Residential Co., on Thursday explained the plans to residents, according to the person, who asked not to be named because the information is private. Another option the company is studying is buying back the apartments from the residents at a price higher than what they had paid, the person said. The project was sold in 2006.
Mitsui Fudosan is the latest developer to come under scrutiny for defects at residential projects in the Tokyo area. Mitsubishi Estate Co., Japan’s biggest developer by market value, said last year it would rebuild a residential complex in the upscale Aoyama neighborhood after finding faults. Also last year, Sekisui House Ltd. said it would reconstruct a residential complex that was being built by Taisei Corp. after finding some columns were missing reinforcing metals.
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Katsuyo Kuwako, Bloomberg
US Moves to Come Clean on PFAS in Drinking Water
September 18, 2023 —
Pam McFarland, Debra K. Rubin & Mary B. Powers - Engineering News-RecordCongress has allocated billions of dollars to address contamination caused by the ubiquitous class of “forever” chemicals known as PFAS—with billions more also earmarked in recent legal settlements with manufacturers—but drinking water managers, construction sector experts and other stakeholders say the true cost of cleanup could be much higher.
Reprinted courtesy of
Pam McFarland, Engineering News-Record,
Debra K. Rubin, Engineering News-Record and
Mary B. Powers, Engineering News-Record
Ms. McFarland may be contacted at mcfarlandp@enr.com
Ms. Rubin may be contacted at rubind@enr.com
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“Source of Duty,” Tort, and Contract, Oh My!
September 06, 2023 —
Christopher G. Hill - Construction Law MusingsHere at Construction Law Musings, I have discussed the general rule in Virginia that
tort and contract do not mix. I have also discussed a
few narrow exceptions. A Virginia Supreme Court case from October of 2019 lays out both sides of this issue in one glorious opinion.
In
Tingler v. Graystone Homes, Inc., a summary of the facts and lawsuit(s) are as follows: Water leaks developed after the home was built. Graystone’s post-construction efforts to repair the leaks and remediate mold were unsuccessful. The Tinglers and their children abandoned the home after developing mold-related medical problems. The Tinglers and their children sued Graystone in tort for personal injury, property damage, and economic loss. In other litigation that will not be discussed in this post, but that is described in the opinion linked above, Belle Meade sued Graystone in contract for property damage and economic losses. George and Crystal Tingler filed a separate complaint alleging the same contract claims.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
MTA Debarment Update
December 02, 2019 —
Steven M. Charney, Gregory H. Chertoff & Paul Monte - Peckar & Abramson, P.C.Alliance for Fair and Equitable Contracting Today, Inc., a nonprofit formed by five trade associations, including the GCA, the BTEA and the NY Building Congress, has sued the Metropolitan Transportation Authority over rules that debar contractors for delays and cost overruns on MTA projects without regard to the reasons for the delays and cost overruns.
As described in our prior client alert (see
here), the current rules automatically debar firms that are determined to have gone over the MTA approved contract price or time by more than 10%. The rules do not consider mitigating circumstances. Delays and cost overruns are often caused by unforeseen conditions, design errors and omissions, and changes requested by the MTA. The MTA’s rules could lead contractors to absorb additional costs they shouldn’t be responsible for rather than face the risk of being debarred. As argued in Alliance’s action, “Debarment is the death penalty for a public works contractor, and not just in New York. A debarment by the MTA could result in debarment nationwide, given that public and private contractors throughout the country commonly inquire about bidders’ debarment history when considering project bids. The Debarment Statute and MTA Regulations thus effectively export an unreasonable law not only throughout New York State, but to all other states as well.”
Reprinted courtesy of Saxe Doernberger & Vita, P.C. attorneys
Steven M. Charney,
Gregory H. Chertoff and
Paul Monte
Mr. Charney may be contacted at scharney@pecklaw.com
Mr. Chertoff may be contacted at gchertoff@pecklaw.com
Mr. Monte may be contacted at pmonte@pecklaw.com
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Texas Federal Court Finds Total Pollution Exclusion Does Not Foreclose a Duty to Defend Waterway Degradation Lawsuit
October 24, 2022 —
Jeremy S. Macklin - Traub Lieberman Insurance Law BlogEvanston Ins Co. v. Tex. Concrete and Sand Gravel, Inc., No. 4:20-cv-00103 (S.D. Tex. Aug. 30, 2022) is a coverage dispute over Evanston Insurance Co.’s (“Evanston”) duty to defend and indemnify Texas Concrete Sand and Gravel, Inc. (“Texas Concrete”) and Apcon Services, LLC (“Apcon”) (collectively, the “Insureds”) for their contributions to the degradation of the waterways and retention lakes built to control flooding in the Houston area. On August 3, 2022, Magistrate Judge Yvonne Y. Ho recommended that Evanston’s motion for summary judgment be denied. On August 30, 2022, District Court Judge Alfred H. Bennett adopted Judge Ho’s Memorandum and Recommendations.
In 2017, Hurricane Harvey caused significant flooding of the Houston area, which resulted in large-scale property damage. The underlying lawsuits alleged that, since 1954, Lake Houston’s waterways sustained a steady decline in capacity because of the release of materials into the waterway system. The Insureds allegedly contributed to the decline by allowing “materials and substances” (such as processed water, silt, sand, sediment, dirt, rock, and aggregate) to run off their privately controlled properties and into the Houston waterways. The reduced capacity, allegedly caused in part by the Insureds, exacerbated the flooding after Hurricane Harvey hit, increasing the damage from the hurricane.
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Jeremy S. Macklin, Traub LiebermanMr. Macklin may be contacted at
jmacklin@tlsslaw.com
Toddler Crashes through Window, Falls to his Death
January 24, 2014 —
Beverley BevenFlorez-CDJ STAFFTwo-year old Alijah Glenn fell 17 stories to his death after crashing through “a floor-to-ceiling window” at the Crystal Tower apartments in East Cleveland, Ohio, on January 13th, according to The Plain Dealer. Solandra Wallace, East Cleveland’s building and housing manager, told The Plain Dealer that “the city inspects the building whenever a complaint is filed and does not have regular inspections.” The apartment complex “was built in 1966 and would have to adhere to that era's building code standards,” according to the article.
The Plain Dealer reports that three complaints have been filed at the Crystal Tower since 2010. A resident complained in 2012 that “her apartment was falling apart, causing water damage and emitting a foul odor,” however, by the time an inspector arrived the ceiling was being fixed. In 2011, an “unspecified roof leak” turned out to be “condensation from a hot pipe.” An elevator was reported inoperable in 2010, however the claim was deemed “invalid” since the elevator worked when inspectors arrived.
The Cuyahoga County Medical Examiner ruled Glenn’s death accidental.
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Massachusetts Pulls Phased Trigger On Its Statute of Repose
December 21, 2020 —
Kyle Rice - The Subrogation SpecialistIn D’Allesandro v. Lennar Hingham Holdings, LLC, 486 Mass 150, 2020 Mass. LEXIS 721, the Supreme Judicial Court of Massachusetts answered a certified question regarding how to apply the Massachusetts statute of repose, Mass. Gen. Laws ch. 260, § 2B, in regards to phased construction projects. The court held that, in this context, the completion of each individual “improvement” to its intended use, or the substantial completion of the individual building and the taking of possession for occupancy by the owner or owners, triggers the statute of repose with respect to the common areas and limited common areas of that building. Additionally, the court held that where a particular improvement is integral to, and intended to serve, multiple buildings (or the development as a whole), the statute of repose is triggered when the discrete improvement is substantially complete and open to its intended use.
In D’Allesandro, the action arose out of the construction, marketing, sale and management of the Hewitts Landing Condominium (the Condominium) project. Ultimately, 150 units were constructed over 24 phases of construction, enclosed in 28 different buildings. Throughout construction, the project’s architect submitted declarations to the Town of Hingham swearing that the individual units were “substantially complete” and could be occupied for their intended use. The Town of Hingham then issued certificates of occupancy for the unit or building.
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Kyle Rice, White and WilliamsMr. Rice may be contacted at
ricek@whiteandwilliams.com