U.S. Construction Spending Rose in 2017 by Least in Six Years
February 07, 2018 —
Scott Lanman – BloombergEven with solid U.S. economic growth, construction spending rose in 2017 by the least in six years, as nonresidential building slowed and outlays by governments declined.
The value of construction put in place increased 3.8 percent to $1.23 trillion last year, according to Commerce Department figures released Thursday in Washington. That’s the smallest gain since a 2.6 percent drop in 2011. Spending for December was up 0.7 percent from the previous month, exceeding the median estimate of economists for a 0.4 percent increase.
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Scott Lanman, Bloomberg
Insurer's Motion for Summary Judgment on Faulty Workmanship Denied
June 04, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe court found that the insurer failed to meet its burden on summary judgment seeking a judgment that faulty workmanship precluded coverge. Auto-Owners Ins., Co. v. AAA Discount Homes, LLC, 2024 U.S. Dist. LEXIS 48463 (S.D. Ga. March 19, 2024).
Heather Way sued AAA Discount Homes, LLC and Delta Transport & Management, Inc. for manufacturing defects found in a manufactured home which was delivered and assembled by Delta. Way had contracted with AAA for the construction, delivery, assembly, setting, tie down with brick underpinning steps and construction of front and back porches. AAA, assisted by Delta, delivered the home and assembled it, including raising the roof, over the course of a few days.
Subsequently, Way discovered extensive water damage and mold in the home. Way alleged that AAA and its subcontractors made careless, unsafe, and unsuccessful attempts at removing the old and repairing the water damage. The presence of chemicals in the home made it uninhabitable. Way alleged the home was improperly assembled by Delta and its negligence resulted in damages.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Congratulations to Partners Nicole Whyte, Keith Bremer, Vik Nagpal, and Devin Gifford, and Associates Shelly Mosallaei and Melissa Youngpeter on Their Inclusion in 2024 Best Lawyers in America!
October 24, 2023 —
Bremer Whyte Brown & O’Meara, LLPBremer Whyte Brown & O’Meara, LLP is proud to announce Partners
Nicole Whyte,
Keith Bremer, and
Vik Nagpal have been selected by their peers for inclusion in the 2024 Edition of The Best Lawyers in America, and Partner
Devin Gifford, and Associates
Shelly Mosallaei and
Melissa Youngpeter, are included in the Fourth Edition of Best Lawyers: Ones to Watch. Each person is being recognized for their diligent work in the areas of Family Law, Construction, and Real Estate Litigation.
Best Lawyers is 100% based on peer evaluations and is the most respected peer-review publication in the history of the legal profession. Acknowledgment in both The Best Lawyers in America and Best Lawyers: Ones to Watch edition is widely regarded by both clients and legal professionals as a significant honor, bestowed on a lawyer by his or her peers.
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Bremer Whyte Brown & O’Meara, LLP
Insurer’s Motion for Summary Judgment Based on Earth Movement Exclusion Denied
October 28, 2011 —
Tred R. Eyerly - Insurance Law HawaiiAfter carefully dissecting the earth movement exclusion, the court denied the insurer’s motion for summary judgment. High Street Lofts Condominium Assoc., Inc. v. Am. Family Mut. Ins. Co., 2011 U.S. Dist. LEXIS 109043 (D. Colo. Sept. 26, 2011).
The City of Boulder performed road repair work near High Street’s property, some of which involved the use of a vibrating compactor to compact and set the roadbed. High Street noticed damage to its building, such as cracks in walls, sloping of floors and separations of porches from the building itself. High Street contacted the City of Boulder, who forwarded the complaint to its contractor, Concrete Express, Inc.
High Street also filed a claim with its business insurer, American Family, who denied the claim. American Family relied on an opinion letter by High Street’s engineer. The letter indicated that the damage was the result of "soil consolidation/settlement," in response to the construction activities. Based on this letter American Family concluded the claim was excluded under the policy’s earth movement exclusion.
High Street sued American Family, who moved for summary judgment.
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com
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A Look at Business and Professions Code Section 7031
July 09, 2014 —
Beverley BevenFlorez-CDJ STAFFGarret Murai, on his California Construction Law Blog, stated that California’s Business and Professions Code Section 7031 has often been described as draconian, harsh, and unjust—but still enforceable. The section does two things: first, it “prohibits unlicensed or improperly licensed contractors from suing to recover compensation for construction work requiring a license,” and second, it “permits property owners to sue such contractors for disgorgement of all compensation paid for such work.”
According to Murai, the “strict enforcement of Section 7031” is thought to ensure “that contractors meet the minimum qualifications necessary for licensure.”
Murai analyzed the case E. J. Franks Construction, Inc. v Sahota, which “carved out a limited exception to Section 7031 for contractors who form business entities and transfer their existing contractor’s license to such entities.”
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Harmon Towers Demolition Still Uncertain
January 23, 2013 —
CDJ STAFFIt would be a "gift" to MGM Resorts if they were able to tear down the Harmon Tower, according to an article in the New York Times, as analysts are cited that a hotel would "struggle during this economic downturn." Further, William Robinson, a professor of economics at the University of Nevada, Las Vegas, noted that "MGM has tried to cut back on the whole project," adding that "if you are a conspiracy theorist, you thin they are just looking for a way to get out of it." Professor Robinson thinks they would be unlikely to rebuild if allowed to tear down the building.
MGM Resorts has a different take on the matter. Alan M. Feldman, MGM's senior vice president for public affairs, told the New York Times that MGM "had a contract with Perini that we would pay them to give us a certain kind of building type — in this case a luxury hotel." Mr. Feldman contends that Perini had not "kept up their part of the bargain." Perini has stated that the fault was due to the designers and did not comment to the Times.
The claims of design and construction defects have left the building unfinished, with only twenty-six of the planned forty-nine floors constructed. Perini contends the building can still be repaired. MGM that its remediation plan is "to take the building down."
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Eighth Circuit Considers Judicial Estoppel in Hazardous Substance Release-Related Personal Injury Case
April 11, 2018 —
Anthony B. Cavender - Gravel2Gavel Construction & Real Estate Law Blog On April 5, the U.S. Court of Appeals for the Eighth Circuit decided the case of
Kirk v. Schaeffler Group USA, Inc., et al., a personal injury action commenced in the U.S. District Court for the Western District of Missouri alleging injury resulting from the release of thousands of gallons of trichloroethylene (TCE) at the FAG Bearings Corporation’s (FAG Bearings) facility in Joplin, MO. The Court of Appeals reversed the District Court’s judicial estoppel ruling on the successor liability issue and concluded that the jury’s verdict on compensatory damages stands but their general verdict requires a new trial on Plaintiff’s punitive damages claim against FAG Bearings.
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Anthony B. Cavender, Pillsbury Winthrop Shaw Pittman LLPMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Possible Real Estate and Use and Occupancy Tax Relief for Philadelphia Commercial and Industrial Property Owners
September 07, 2017 —
James Vandermark & Kevin Koscil - White and Williams LLPA recent decision by the Pennsylvania Supreme Court puts in jeopardy all of the recent real estate tax reassessments completed by the City of Philadelphia for tax year 2018 as well as appeals initiated by the School District of Philadelphia in 2016 for tax year 2017.
The City’s current practice is to certify the market values of any reassessed properties to the Board of Revision of Taxes on March 31st prior to the year that the assessment would be implemented. The City then relies on those certified values to determine the applicable tax rate when it creates its budget each summer. Accordingly, the Office of Property Assessment (OPA) submitted the values applicable for the 2018 tax year to the BRT on March 31, 2017. The City set the applicable tax rates during its summer budget sessions. However, unlike prior years, this year the City only reassessed commercial and industrial properties and excluded residential properties. The result was reported to be an increase of over $118 million in new real estate taxes.
Shortly after the City finished its budget, the Pennsylvania Supreme Court decided the case of Valley Forge Towers Apartments N, LP, et al. v. Upper Merion Area School District. The case involved a challenge by property owners to the Upper Merion School District’s practice of only appealing assessments on commercial properties. As with the recent reassessments by the City, Upper Merion was only seeking to increase the real estate tax assessments for high value commercial properties. The Pennsylvania Supreme Court found that the school district’s practice violated the Uniformity Clause in the Pennsylvania Constitution. The court reaffirmed the principle that real estate within a jurisdiction should be treated as a single class and that tax authorities are not permitted to discriminate against commercial and industrial properties in favor of residential properties for purposes of real estate taxation.
Reprinted courtesy of
James Vandermark, White and Williams LLP and
Kevin Koscil, White and Williams LLP
Mr. Vandermark may be contacted at vandermarkj@whiteandwilliams.com
Mr. Koscil may be contacted at koscilk@whiteandwilliams.com
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