David M. McLain named Law Week Colorado’s 2015 Barrister’s Best Construction Defects Lawyer for Defendants
September 17, 2015 —
Sheri Roswell – Colorado Construction LitigationIt is my sincere pleasure to announce Law Week Colorado named my friend and partner, Dave McLain, as the 2015 Barrister’s Best Construction Defects Lawyer for Defendants. Law Week Colorado’s summary of David’s accomplishments includes the following recognition:
David McLain has set himself apart in the heated area of construction defects litigation as a founding member of his firm and as a member of several associations that serve developers. As one of the most connected and most vocal members of this area of law, we certainly know whom to go to when the construction defects issue inevitably bubbles up again.
I can say with pride and certainty, that there is no one more deserving of such recognition in the legal and construction community than David. I have had the honor of working side by side with David since he began practicing law. Together, fourteen years ago, we founded Higgins, Hopkins, McLain & Roswell, LLC with a vision of serving the construction industry at the highest level. Our firm’s Mission Statement states that “HHMR exists to embody and exemplify the principles of service and stewardship. In everything we do, we focus on serving our clients selflessly and to the best of our ability.” David lives our values each and every day.
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Sheri Roswell, Higgins, Hopkins, McLain & Roswell, LLCMs. Roswell may be contacted at
roswell@hhmrlaw.com
Contingent Business Interruption Claim Denied
April 08, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe insured's claim for contingent business interruption ("CBI") coverage was denied in Millennium Inorganic Chemicals Ltd. v. Nat. Union Fire Ins. Co. of Pittsburgh Pa., 2014 U.S. App. LEXIS 3096 (4th Cir. Feb. 20, 2014).
Millenium processed titanium dioxide, a compound used for its white pigmentation, at its plant in Western Australia. Millennium purchased natural gas to process the titanium dioxide from Alinta Sales Pty Ltd., a natural gas supplier. Alinta purchased gas from Apache Corporation. Once Apache processed the natural gas, it was injected into a pipeline. The gas from Apache's facility was commingled with that obtained from other producers, resulting in a mix of gas in a single pipeline.
Alinta had sole ownership of the gas once it entered the pipeline. Under Alinta's contract with Millennium, title to the gas passed to Millenium only at the time of delivery, i.e., when the gas left the pipeline and was delivered to Millennium's facility through a separate delivery line. Millennium had no contract or business relationship with Apache, and the contract it had with Alinta made no reference to Apache.
An explosion occurred at Apache's facility causing its natural gas production to cease. As a result, Millennium's gas supply was curtailed, and it was force to shut down its operations for a number of months.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.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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Hunton Insurance Practice Again Scores “Tier 1” National Ranking in US News Best Law Firm Rankings
December 05, 2022 —
Hunton Insurance Recovery BlogOn November 3, 2022, US News announced its
annual law firm rankings, where Hunton Andrews Kurth LLP garnered the highest (Tier 1) ranking among national insurance law practices. Hunton’s insurance team also received Tier 1 honors for “Insurance Law” in three regions (Washington, DC, Atlanta and San Francisco) and Tier 2 honors for “Litigation – Insurance” in Washington, DC. US News ranks law firms in tiers from 1 (highest) to 3 (lowest) based on quantitative data that speaks to general demographic and background information on the practice group, attorneys and other data that speaks to the strengths of a law firm’s practice, as well as qualitative client feedback about:
- the practice group’s expertise,
- responsiveness,
- understanding of a business and its needs,
- cost-effectiveness,
- civility, and
- whether the client would refer another client to the firm.
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Hunton Andrews Kurth LLP
Unintended Consequences of New Building Products and Services
April 19, 2022 —
David S. Jaffe – National Association of Home BuildersAs home builders throughout the United States are grappling with building material price surges, and shortages or delays for certain orders, many are exploring alternatives products to complete or start projects. For example, according to a recent article, some builders are constructing homes from natural materials such as rammed earth, adobe brick, and volcanic rock. In addition to being readily available on site there may be heating and cooling benefits due to the natural insulation provided by these materials. The article cautions, however, that using these alternative materials may come with added challenges such as higher costs due to a need for skilled labor, delays by home inspectors who may be unfamiliar with the techniques and methods of construction, and energy consultants who might have difficulty calculating the value of homes with these materials. See Home Builders Are Turning to Natural Materials to Get Around Supply Chain Problems; There are advantages to buying homes made with natural materials, but expect to pay a premium, Alanna Schubach, Mansion Global (March 25, 2022).
Another caution, not addressed in the article, however, but one that should be heeded by builders considering alternative materials, is the unintended consequences that might result from using alternative products, whether they are natural products or any others. The long-term effects of material use should not be ignored.
For instance, it has been reported that earthen materials are known to contain numerous organic substances and can also harbor mold. It was not too long ago that mold was a high liability issue for builders and property owners. Similarly, the use of rapidly renewable materials - products that can be produced naturally and quickly from nature - is a key component of green building. They are also cellulose or carbohydrate-based products and as such are typically optimal food sources for mold in the presence of moisture.
To avoid mold, it is important to understand the relationship between construction materials and their susceptibility to mold in the presence of moisture. “Buildings will never be designed, built, maintained, or utilized perfectly; and weather and natural disasters cannot be predicted. The one thing we can have complete control over, the materials within the building, should be selected wisely.” See Mold Susceptibility of Rapidly Renewable Building Materials Used in Wall Construction, AM Cooper, Master's thesis, Texas A&M University (2007) (Samples of wool, cork, straw, and cotton-- rapidly renewable materials used as exterior wall insulation products--were exposed to different moisture amounts in an encapsulated environment, representing the environment within a wall cavity when exposed to water from pipes, leaks, condensation and absorption, or from initial construction. The samples were monitored over time for mold growth).
Mold-related issues are just one example of the potential for unintended consequences from the use of alternative materials. Carefully reviewing building material choices in advance may help eliminate non-conforming building materials, returns and possibly disputes. NAHB has developed a guide,
Assessing Building Materials, for builders who may not have their own review process for gathering information from manufacturers and distributors when considering the selection of new building materials.
The guide is intended to arm members with the most important factor when evaluating new materials or products: information. Use the guide to step through the information collection process to make an informed decision on deploying new products or materials. The guide is not intended to be exhaustive or all-inclusive, but it will help builders ask the right questions and seek the most relevant information.
Copyright © 2022 by the National Association of Home Builders of the United States. All rights reserved.
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David S. Jaffe, NAHBMr. Jaffe may be contacted at
DJaffe@nahb.org
Developers Celebrate Arizona’s Opportunity Zones
May 24, 2018 —
Patrick J. Paul - Snell & Wilmer Real Estate Litigation BlogPresident Trump’s Tax Cuts and Jobs Act passed by Congress in December included a new community development program designed to promote investment in low income urban and rural communities. These “Opportunity Zones” provide that every Governor may nominate up to 25% of qualifying low-income Census tracts for consideration in the program which provides substantial reductions on capital gains taxes with the greatest benefits to those holding their investments for a period of at least 10 years.
States were required by March 21st to submit nominations or request a 30 day extension to subsequently submit. The Treasury Department in turn has 30 days from the date of submission to designate the nominated zones. On April 9, 2018, the Treasury Department and the IRS formally dedicated opportunity zones in 18 states including Arizona. The Department will make future designations as submissions by the states that have requested an extension are received and certified.
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Patrick J. Paul, Snell & WilmerMr. Paul may be contacted at
ppaul@swlaw.com
Montrose III: Appeals Court Rejects “Elective Vertical Stacking,” but Declines to Find “Universal Horizontal Exhaustion” Absent Proof of Policy Wordings
September 14, 2017 —
Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLPIn Montrose Chemical Corp. v. Superior Court (No. B272387; filed 8/31/17) (Montrose III), a California appeals court found that excess insurance is not triggered for continuous and progressive losses until there has been horizontal exhaustion of underlying insurance, but there is no “universal horizontal exhaustion” because the order or sequence in which excess policies may be accessed depends on the specific policy wording at issue.
The coverage lawsuit was initiated by Montrose in 1990, when it was named in environmental actions for continuous and progressive property damage emanating from its Torrance chemical plant since the 1960s. Montrose had varying levels of insurance coverage throughout, but the total limits and attachment points of differing levels of excess coverage in any given year had changed from year-to-year. The coverage action was stayed in 2006 due to concern of prejudice to the underlying defense, but the stay was lifted in 2014 with Montrose entering a consent decree in the CERCLA action.
Reprinted courtesy of
Christopher Kendrick, Haight Brown & Bonesteel LLP and
Valerie A. Moore, Haight Brown & Bonesteel LLP
Mr. Kendrick may be contacted at ckendrick@hbblaw.com
Ms. Moore may be contacted at vmoore@hbblaw.com
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Settlement Reached in California Animal Shelter Construction Defect Case
May 13, 2014 —
Beverley BevenFlorez-CDJ STAFFA construction defect case involving an animal shelter in Healdsburg, California has settled after two years of litigation, according to The Press Democrat. The $3.5 million, 7,500-square foot building had been “built largely with a behest from the estate of the late vintner Rodney Strong and his wife, Charlotte.” However, “shortly before the facility could be completed in late 2011, general contractor Syd Kelly went bankrupt. Unpaid sub-contractors filed liens for payment against the Healdsburg Animal Shelter, which in turn alleged construction and design defects in the building.”
The Press Democrat reported that “[t]he most visible signs of problems were cracks in the cement foundation.” Robert Wilkie, the Healdsburg Animal Shelter board’s secretary-treasurer, stated that the shelter is “perfectly structurally viable and a rather attractive building” and that “the defects that make it not usable today can be mitigated in a variety of different ways.”
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