CAMBRIDGE MASSACHUSETTS BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Update – Property Owner’s Defense Goes up in Smoke in Careless Smoking Case

September 21, 2020 — Michael J. Ciamaichelo - The Subrogation Strategist
Property owners owe a duty of reasonable care to avoid causing harm to neighboring properties. In Steamfitters Local Union No. 602 v. Erie Ins. Exch., 2020 Md. LEXIS 347 (July 27, 2020) (Steamfitters Local), a matter originally discussed in a June 2019 blog post, the Court of Appeals of Maryland affirmed that, where the property owner knows or should have known that people are habitually discarding hundreds of cigarette butts into a mulch bed along the boundary of the neighboring property, the property owner owes a duty to its neighbors to prevent the risk of fire. As discussed in Steamfitters Local, a fire originated in a strip of mulch at property owned by the Steamfitters Local Union No. 602 (Union) and caused damage to neighboring properties. The fire occurred when an unknown person discarded a cigarette butt into the mulch. Following the fire, investigators found hundreds of cigarette butts in the mulch where the fire originated. A representative for the Union acknowledged that there were more butts in the mulch “than there should have been” and that, “[i]n the right situation,” a carelessly discarded cigarette could cause a fire. The Union, however, had no rules or signs to prohibit or regulate smoking at the property, where apprentices would often gather prior to class. The insurance companies for the damaged neighbors filed subrogation actions alleging that the Union, as the property owner, failed to use reasonable care to prevent a foreseeable fire. A jury found in favor of the subrogating insurers and the defendants appealed. Read the court decision
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Reprinted courtesy of Michael J. Ciamaichelo, White and Williams LLP
Mr. Ciamaichelo may be contacted at ciamaichelom@whiteandwilliams.com

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Court of Appeal Holds Only “Named Insureds” May Sue for Bad Faith Under California FAIR Plan Policy

May 10, 2021 — Valerie A. Moore & Kathleen E.M. Moriarty - Haight Brown & Bonesteel LLP
In Wexler v. California Fair Plan Association (No. 303100, filed 4/14/21), Brooke Wexler’s parents insured their residence, which was located in a mountainous high-fire risk area, with a California FAIR Plan Association owner-occupied dwelling policy. The policy only listed Wexler’s parents and did not name Wexler, their adult child, under the policy’s “Insured Name” section. The FAIR Plan expressly disclaimed coverage for “unnamed people,” referred to by the court as the “no-coverage-for-unnamed-persons clause.” FAIR Plan was created by the Legislature in 1968 and is a joint reinsurance association created to give homeowners in high risk areas access to basic property insurance and is a self-described “insurer of last resort.” Reprinted courtesy of Valerie A. Moore, Haight Brown & Bonesteel LLP and Kathleen E.M. Moriarty, Haight Brown & Bonesteel LLP Ms. Moore may be contacted at vmoore@hbblaw.com Ms. Moriarty may be contacted at kemoriarty@hbblaw.com Read the court decision
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Insurer’s Consent Not Needed for Settlement

October 14, 2013 — CDJ STAFF
The Texas Supreme Court has concluded in Lennar Corp. v. Markel Am. Ins. Co. that “the costs incurred by a builder to locate and repair damage caused by the builder’s defective product are covered under its general liability insurance policy.” Hunton & Williams have issued a Client Alert discussing the case. For the background of the case, Lennar built about 800 homes using EIFS. The EIFS trapped water and the homes suffered from rot, structural damage, mold, mildew, and termites. Lennar fixed all the homes so built, avoiding litigation. Lennar “notifed its insurers of the defects and invited its insurers to participate in the proactive remediation program.” A lower court had agreed with Markel, one of Lennar’s insurers, that the losses were not “caused by property damage,” and that Lennar should not have made “voluntary payments without Markel’s consent.” The Texas Supreme Court granted review, rejecting Markel’s argument and affirming the jury’s finding. According to Hunton & Williams, the implications of the Texas Lennar decision is that it “confirms that all insurers with policy in effect at the time of property damage are responsible for all sums for which the policyholder is liable.” Read the court decision
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NEW DEFECT WARRANTY LAWS – Now Applicable to Condominiums and HOAs transitioning from Developer to Homeowner Control. Is Your Community Aware of its Rights Under the New Laws?

February 07, 2014 — Nicholas D. Cowie – Maryland Condo Construction Defect Law Blog
All condominium associations and homeowners associations (“HOAs”) created in Maryland 0n or after October 1, 2010 are subject to new laws pertaining to statutory warranties for construction defects in workmanship and materials. Most associations that have recently transitioned, or that are about to transition, from developer to homeowner control were created on after October 1, 2010. It is now time for these Associations to become familiar with the new laws to ensure they protect and preserve their warranty rights. Below is an Article I wrote regarding these new laws, which I helped create. See Blog Post: “Maryland Construction Defect Lawyers Enforcing Warranty Claims for Condominiums.” Too often our firm is contacted by condominium associations who never knew what there warranty and other legal rights were until it was too late to seek developer repairs and reimbursement for construction defects. There is no reason for community associations to remain uniformed. Read the court decision
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Reprinted courtesy of Nicholas D. Cowie, Maryland Condo Construction Defect Law Blog
Mr. Cowie may be contacted at ndc@cowiemott.com

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Real Estate & Construction News Round-Up (06/29/22)

July 11, 2022 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
Housing market activity is on the downtick, the Partnership for Global Infrastructure and Investment launches, the SEC proposes a climate rule that signals a new era for real estate, and more.

• The U.S. and other members of the G-7 including Canada, Germany, and Japan launched the Partnership for Global Infrastructure and Investment, which aims to raise $600 billion for global infrastructure projects. (Su-Lin Tan, CNBC)
• Housing market activity decreases rapidly, with mortgage rates spiking to the highest levels since 2009. (Andrea Riquier, Forbes Advisor)
• Industrial real estate developers increase the amount of cold-storage warehouses being built in the U.S., betting on pandemic-driven changes in the way consumers buy groceries and meals are here to stay. (Liz Young, The Wall Street Journal)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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Florida Governor Signs Construction Defect Amendments into Law

September 17, 2015 — Beverley BevenFlorez-CDJ STAFF
According to Jeffrey Gilbert and Anaysa Gallardo Stutzman of Cozen O’Connor, Rick Scott, governor of Florida, signed HB 87 into law, which “amends the notice and opportunity to cure provisions of Chapter 558, Florida’s Construction Defect Statute.” The amendments go into effect October first. HB 87 requires “property owners to provide concrete details of the alleged defects.” Gilbert and Stutzman claimed, “Overall, these amendments seek to further the intended public policy purpose of Chapter 558, which is to provide an alternative dispute resolution mechanism and result in fewer lawsuits and lower litigation costs incurred by parties involved in construction defect matters.” Read the court decision
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Bel Air Mansion Construction Draws Community Backlash

December 17, 2015 — Beverley BevenFlorez-CDJ STAFF
According to the New York Times, a Bel Air hillside mansion in Los Angeles has outraged neighbors who refer to the unfinished, 30,000 square foot and almost 70 feet high building as “the Starship Enterprise.” Despite legal violations such as tearing down the original structure without the city’s permission, the height being twice the legal limit, and digging into the hillside though the site is an “earthquake-induced landslide area,” the case has not progressed much in four years because the actual owner is a shell company. The New York Times summarized the issues at 901 Strada Vecchia as follows: “After the unapproved teardown and leveling of the hillside, the construction team did ask permission to grade the hill but used a survey that made it appear that workers had not already removed significant loads of dirt. Then they joined two buildings that were supposed to be separate and built so high that they drastically violated the city’s height limit.” Read the court decision
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The ARC and The Covenants

May 30, 2018 — Christopher G. Hill - Construction Law Musings
For this week’s Guest Post Friday here at Musings, we welcome back Mike Collignon. Mike is a co-founder of the Green Builder Coalition. The Green Builder® Coalition amplifies the voice of green builders and professionals to drive advocacy and education for more sustainable building practices. As we start to see signs of a housing recovery, slow as it may be, I feel the industry is in a great position. All the effort put in by so many to improve our energy codes, green building programs & rating systems will finally be able to bear fruit. We can start to build homes that are much more environmentally responsible. Sure, we can have a lengthy debate about implementation and adoption rates, but you’ve got to walk before you can run. Unfortunately, I can see that progress getting shackled by an unexpected impediment: the architectural review committee (ARC; sometimes called “architectural committee” or “architectural control authority”) and the covenants of a homeowners’ association. Read the court decision
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Reprinted courtesy of Christopher G. Hill, The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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