Panel Declares Colorado Construction Defect Laws Reason for Lack of Multifamily Developments
January 22, 2014 —
Beverley BevenFlorez-CDJ STAFFDennis Huspeni writing for the Denver Business Journal provided reactions from panelists at a ULI Colorado event on January 9th at the Embassy Suites Denver – Downtown/Convention Center hotel regarding a report on “Emerging Trends in Real Estate.” According to Huspeni’s article, panelists discussed “the lack of for-sale multifamily development and attributed it to Colorado’s construction defect laws.”
John Beeble, chairman and CEO of Saunders Construction, one of the panelists, said that Saunders does not build condos because of Denver’s construction defect laws: “We’ve been in business for 42 years and never been sued for construction defects,” Beeble said, according to the Denver Business Journal. “But the odds are close to 100 percent that we’d be in court defending ourselves if we did condos.”
Jeff Hawks, principal at ARA Colorado, claimed, “Colorado has some of the worst construction defect laws in the country. It’s stupid to try and build a condo development until that changes,” as reported by the Denver Business Journal.
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Court Agrees to Stay Coverage Matter While Underlying State Action is Pending
October 29, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe federal district court granted the insured's motion to stay the coverage action while the construction defect case was pending in state court. Auto Owners Ins. Co. v. Essex Homes Southeast, Inc., 2014 U.S. Dist. LEXIS 133120 (D. S.C., Sept. 23, 2014).
The homeowners sued Essex Homes in state court for construction defects in a home built and sold to them by Essex Homes. The suit sought damages for property damage based on negligence, breach of implied warranty, and breach of express warranties arising out of the alleged construction defects. The complaint alleged that a water leak in the house caused water damage and resulted in mold growth that was not discovered for several years.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Lithium for Batteries from Geothermal Brine
July 08, 2024 —
Robert A. James, Sidney L. Fowler & Clarence H. Tolliver - Gravel2Gavel Construction & Real Estate Law BlogIf all goes as planned, solar, wind and other clean energy technologies will help us abandon carbon emissions for good. But many green power sources perform their best only when nature cooperates, so an important (and sometimes overlooked) component of the energy transition is the ability to store electricity for a rainy or calm day. Lithium is the ingredient of choice for electric vehicle batteries, solar panels and grid elements. As these innovations ramp up, lithium demand is expected to soar by 90% over the next two decades, driving a surge in production efforts. Some experts predict a deficit in the mineral by as soon as 2025.
Predominant mining and extraction processes can be detrimental to the surrounding air, soil and water, in contrast to the environmentally friendly intentions of the lithium applications. But another type of renewable energy may be able to provide a solution. Hydrothermal brine, a high-saline water mixture found deep within the Earth’s crust, contains lithium-rich deposits that have leached from heated rocks into underground water. Geothermal power players employing hydrothermal brine are spearheading plans to extract the valuable resource in a cleaner and more sustainable manner.
Reprinted courtesy of
Robert A. James, Pillsbury,
Sidney L. Fowler, Pillsbury and
Clarence H. Tolliver, Pillsbury
Mr. James may be contacted at rob.james@pillsburylaw.com
Mr. Fowler may be contacted at sidney.fowler@pillsburylaw.com
Mr. Tolliver may be contacted at clarence.tolliver@pillsburylaw.com
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Insurers' Communications Through Brokers Not Privileged
April 20, 2016 —
Tred R. Eyerly – Insurance Law HawaiiThe court granted the insured's motion to compel documents withheld for privilege by the insurers. Certain Underwriters at Lloyd's v. Amtrack, 2016 U.S. Dist. LEXIS 27041(E.D. N.Y. Feb. 19, 2016).
Plaintiffs were insurers who did business in the London Insurance Market and who issued one or more liability policies issued to Amtrak. Amtrak demanded coverage under the policies for alleged environmental contamination and/or asbestos exposure. Coverage was denied and the insurers filed for a declaratory judgment.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
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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Los Angeles Delays ‘Mansion Tax’ Spending Amid Legal Fight
April 25, 2023 —
Laura Curtis - BloombergLos Angeles plans to hold off spending most of the money collected from a voter-approved “mansion tax” until legal challenges against the initiative are resolved.
Mayor Karen Bass revealed in her 2023-24 budget plans that the city intends to allocate just $150 million of the funds raised by Proposition ULA, a ballot initiative that took effect this month to fund the construction of more affordable housing.
The decision will prevent the city from taking a loss if a lawsuit succeeds in reversing the tax, according to budget documents released this week. The city anticipates it would qualify for $150 million in federal reimbursements to make up the amount.
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Laura Curtis, Bloomberg
White and Williams Announces the Election of Five Lawyers to the Partnership and the Promotion of Five Associates to Counsel
February 16, 2016 —
White and Williams LLPWhite and Williams is proud to announce that Meredith Bieber, Eric Hermanson, Timothy Martin, Brian Tetro and Debra Weinrich have been elected to the partnership. The firm has also promoted Alan Charkey, Michael DiFebbo, William Doerler, Justin Fortescue and Stephen Milewski from associate to counsel.
The newly elected partners and promoted counsel represent the wide array of practices that White and Williams offers its clients, including construction, finance, healthcare, insurance coverage, product liability, real estate, reinsurance, and subrogation. These accomplished lawyers have earned this elevation based on their contributions to the firm and their practices.
“We are delighted to elect these five lawyers to the partnership and promote five exceptional associates to counsel. Those included in these promotions represent the breadth of services and the deep bench that we have to offer at White and Williams,” said Patti Santelle, Managing Partner of the firm. “The election of our new partners and promotion of our new counsel is a reflection of their success and dedication as well as the continued health of the firm.”
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White and Williams LLP
Key Economic & Geopolitical Themes To Monitor In 2024
January 16, 2024 —
Global Insights Center Staff - The HartfordSlowing US Economic Growth and Flattening Interest Rates
Growth in the first half of 2023 averaged approximately 2.0%, driven mainly by private sector investments outside of the residential housing sector, government spending, and strong consumer demand. In 2024, The Hartford’s Global Insights Center is expecting investments and government spending to continue and may support growth in the year. However, consumer health may start to weaken due to elevated leverage, higher interest rates, and sticky inflation.
Since the Federal Reserve began to increase interest rates, consumer activity and household finances have not been tremendously affected. However, as revolving interest rates (credit card loans) continue to reset that may change, especially since household savings rates fell below pre-pandemic levels and may affect consumer demand.
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Global Insights Center Staff, The Hartford
