New California Standards Go into Effect July 1st
July 01, 2014 —
Beverley BevenFlorez-CDJ STAFFGarret Murai on his California Construction Law Blog reminded readers that the California Building Energy Efficiency Standards and the New Listing Law Requirements goes into effect on July 1st of this year.
According to Murai, the new “California Building Energy Efficiency Standards include: (1) the 2013 California Energy Code, Part 6, (2) the 2013 California Administrative Code, Chapter 10, Part 1 and (3) the energy provisions of the 2013 CALGreen, Part II, Title, 25, of the California Code of Regulations.”
Furthermore, Murai pointed out that “Assemby Bill 44, which amended the Subletting and Subcontracting Fair Practices Act, also known as the Listing Law, was signed into law,” which requires prime contractors "to disclose the contractors license numbers of subcontractors performing work in excess of 0.5% of the prime contractor’s total bid or, in the case of bids for the construction of streets, highways, or bridges, in excess of 0.5% of the prime contractor’s total bid or $10,000, whichever is greater.”
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Colorado Senate Revives Construction Defects Reform Bill
January 04, 2018 —
BEVERLEY BEVENFLOREZ - CDJ STAFFOriginally Published by CDJ on March 1, 2017
A re-booted construction defects reform bill recently passed its first Senate committee, according to the Denver Business Journal. Next, Senate Bill 156, sponsored by Sen. Owen Hill, R-Colorado Springs, heads to the Senate floor for debate.
SB 156 “would require that condominium owners alleging construction defects take their disputes to arbitration or mediation if requested by builders,” the Denver Business Journal reported. “It also would require that homeowners be informed of the consequences of filing legal actions over purported disputes and that a majority of all owners in a condominium complex vote to proceed with legal action, rather than just a majority of homeowners association board members.”
However, it is almost identical to the failed measures that were introduced in 2014 and 2015.
Homeowners association group members and owners of defective condominiums argued against the measure, stating “that the effort would not improve the quality of building in the state, but simply would block aggrieved Coloradans from taking their complaints before a jury of their peers.”
Proponent of the bill, Tom Clark, CEO of Metro Denver Economic Development Corp., said “that Denver’s housing costs have risen since the first bill was introduced in 2013 to the sixth-most-expensive in the country – and are tops for any metro area not on a coast.”
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Florida “Property Damage” caused by an “Occurrence” and “Your Work” Exclusion
July 23, 2014 —
Scott Patterson - CD CoverageIn J.B.D. Construction, Inc. v. Mid-Continent Casualty Co., * Fed.Appx. *, 2014 WL 3377690 (11th Cir. 2014), claimant property owner Sun City contracted with insured general contractor J.B.D. for the construction of a fitness center. The fitness center was to be physically connected to an existing Sun City building. J.B.D. utilized subcontractors for some of the work. Shortly after completion, leaks developed in the fitness center’s roof, windows and doors which J.B.D. attempted to fix. After Sun City refused to make the final contract payment, J.B.D. sued Sun City for contract amounts owed. Sun City counterclaimed for the construction defects, alleged damage to the fitness center and other property. J.B.D. tendered defense of the counterclaim to its CGL insurer Mid-Continent. After Mid-Continent failed to agree to defend, J.B.D. settled with Sun City, paying Sun City $182K. Following several demands from J.B.D. for reimbursement of defense costs and the settlement amount, Mid-Continent tendered the defense costs minus a deductible. J.B.D. then sued Mid-Continent for breach of duties to defend and indemnify. On cross motions for summary judgment, the federal district trial court entered judgment for Mid-Continent, finding no duties to defend or indemnify. On appeal, the Eleventh Circuit reversed on the duty to defend while affirming on the duty to indemnify. Applying Florida law, the court first held that the defective work, including the defective installation of the fitness center’s windows, doors, and roof, did not constitute “property damage.” Thus, the costs to repair or replace the defective work did not constitute damages because of “property damage.” The court next held that, while damage to other portions of the fitness center would constitute “property damage” caused by an “occurrence,” all such “property damage” fell within the “your work” exclusion.
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Scott Patterson, CD Coverage
Colorado Senate Bill 13-052 Dies in Committee
May 10, 2013 —
David M. McLainOn April 17, 2013, the Colorado Senate Judiciary Committee voted, along party lines, to postpone indefinitely SB 52. Here is a link to the Denver Business Journal's story regarding the bill and its untimely demise: "Lawmakers kill lawsuit limits on condo defects."
Unfortunately, it will be at least another year before the legislature will have the ability to provide some much needed relief to the Colorado construction industry.
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David M. McLainMr. McLain can be contacted at
mclain@hhmrlaw.com
Don’t Be Lazy with Your Tenders
October 24, 2022 —
Rick Erickson - Snell & Wilmer Real Estate Litigation BlogOur clients probably spend significant time, money and effort refining and updating their contract provisions covering indemnification and the duty to defend claims arising on their projects. But they should also consider spending an appropriate and adequate amount of time, money and effort when sending notices, or “tenders,” to enforce those critical provisions. Tenders demanding defense and indemnity are strictly interpreted based on what the contract documents require. Getting tenders wrong can result in losing one of the most significant risk-shifting tools in the contract. It can also be a monumental mistake if insurance coverage for indemnification damages and defense costs are lost because of an inadequate tender.
The legal definition of “tender” is simple; it is “[a]n unconditional offer of money or performance to satisfy a debt or obligation.” Black’s Law Dictionary 1479-80 (7th ed. 1999). Whereas “tender of defense” for insurance is “the act in which one party places its defense and all costs associated with said defense with another due to a contract or other agreement … [which] transfers the obligation of the defense and possible indemnification to the party to which the tender was made.” Int’l Risk Mgmt. Inst., Glossary. Thus, when claims arise on your projects, notice by tenders of defense and indemnity will often determine dispute resolution and available insurance proceeds.
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Rick Erickson, Snell & WilmerMr. Erickson may be contacted at
rerickson@swlaw.com
HOA Group Speaking Out Against Draft of Colorado’s Construction Defects Bill
April 30, 2014 —
Beverley BevenFlorez-CDJ STAFFEd Sealover of the Denver Business Journal reported on a homeowner association group that has spoken out against the recent draft of Colorado’s Construction Defects bill. According to Sealover’s article, Senator Jessie Ulibarri claimed that the “proposed bill…would mandate that homeowners alleging that owner-occupied multi-family structures have major construction defects go through mediation or arbitration before a lawsuit can be filed.” Furthermore, the bill would require “written consent from a majority of unit owners” before the “executive board of a homeowners association files such a lawsuit.”
The bill originated due to findings that “[l]ess than 2 percent of new housing stock being built in Colorado is in the form of condos, an anomaly that developers attribute to state laws that allow condo owners to file multi-million-dollar class-action lawsuits even if only a few of them want to move forward with the legal action.”
However, Molly Foley-Healy, chairwoman of the Community Associations Institute (CLAC), spoke out against the bill: “Senator Ulibarri’s stated goal is to create more affordable housing, but this bill has nothing to do with affordable housing. Instead, it hurts the very people he said he wanted to help. It effectively blocks homeowners from holding builders responsible for their shoddy construction and leaves homeowners living in HOAs to pick up the tab for repairing the defects.”
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Europe’s Satellites Could Help Catch the Next Climate Disaster
February 15, 2021 —
Jonathan Tirone - BloombergSpain began the new year battling Storm Filomena, a once-in-a-generation weather event that blanketed Madrid in snow and paralyzed the economy. Health workers were stranded, supermarkets shut, and the army was called in. At least four people died.
“Now, consider a government or company that knew two weeks ago there was a risk that this would happen,” said Francisco Doblas-Reyes, a physicist at Barcelona’s Supercomputing Center. “Knowing the risk that a 1-in-20-year event was going to happen would have given more possibilities to prepare.”
Doblas-Reyes and his team are working on complex models that they hope can better detect the next Filomena, a job that’s become increasingly important as climate change makes weather more unpredictable — and extreme. The data collected by European satellites is at the heart of the continent’s multibillion-euro Destination Earth program seeking to develop the world’s best digital simulation of Earth.
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Jonathan Tirone, Bloomberg
10 Haight Lawyers Recognized in Best Lawyers in America© 2022 and The Best Lawyers: Ones to Watch 2022
September 20, 2021 —
Haight Brown & Bonesteel LLPThree Haight Brown & Bonesteel LLP attorneys were selected for Best Lawyers in America© 2022.
Seven Haight Brown & Bonesteel LLP attorneys were selected for Best Lawyers®: Ones to Watch 2022.
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Haight Brown & Bonesteel LLP