Updated 3/13/20: Coronavirus is Here: What Does That Mean for Your Project and Your Business?
March 16, 2020 —
Alexander Gorelik, Joshua E. Holt, Brian N. Krulick, Shoshana E. Rothman, A. Michelle West, & Brian S. Wood - Smith CurrieThe outbreak of COVID-19 (“coronavirus”) has wreaked a considerable human toll of death, physical suffering, fear, and anxiety internationally. Much of the fear and anxiety results from a lack of information or a full understanding about the spread of the disease, protection against infection, and treatment. At Smith, Currie & Hancock, we urge our clients, friends, and colleagues to take seriously, but calmly and prudently, the threat of this disease to protect yourselves, your loved ones, and your businesses. The first step in that process is to inform yourselves with reliable information. Toward that end, we direct your attention to the Centers for Disease Control and Prevention’s Coronavirus Disease 2019 website: https://www.cdc.gov/coronavirus/2019-ncov/index.html
In addition to the human toll, coronavirus has caused substantial disruptions to economies worldwide. In that regard, the adage “a picture is worth a thousand words,” is particularly foreboding. Satellite images taken by the U.S. National Aeronautics and Space Administration (NASA) of China at the outset of the coronavirus outbreak and approximately a month later show a dramatic decline in air pollution, signifying and illustrating a sharp decline in industrial activity and transportation caused by the disease.
Reprinted courtesy of Smith Currie attorneys
Alexander Gorelik,
Joshua E. Holt,
Brian N. Krulick,
Shoshana E. Rothman,
A. Michelle West, and
Brian S. Wood
Mr. Gorelik may be contacted at agorelik@smithcurrie.com
Mr. Holt may be contacted at jeholt@smithcurrie.com
Mr. Brian may be contacted at bnkrulick@smithcurrie.com
Ms. Shoshana may be contacted at serothman@smithcurrie.com
Ms. West may be contacted at amwest@smithcurrie.com
Mr. Wood may be contacted at bswood@smithcurrie.com
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Subcontractor Exception to Your Work Exclusion Paves the Way for Coverage
April 03, 2013 —
CDJ STAFFIn a brief opinion, the Second Circuit vacated the district court's denial of coverage for construction defects. Scottsdale Ins. Co. v. R.I. Pools Inc., 2013 U.S. App. LEXIS 5680 (2nd Cir. March 21, 2013).
The insured, R.I. Pools, employed outside companies to supply concrete and to shoot the concrete into the ground. During the summer of 2006, it obtained its concrete from one subcontractor and used another to shoot the concrete. In 2009, nineteen customers of R.I. Pools from 2006 complained damage to their pools, including cracking, flaking, and deteriorating concrete.
Scottsdale sought a declaratory judgment against R.I. Pools that it had no obligations under the policy to defend or indemnify for claims related to cracks in the pools.
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Tred EyerlyTred Eyerly can be contacted at
te@hawaiilawyer.com
New Home Construction Booming in Texas
October 24, 2022 —
Jason Daniel Feld & Ron Raydon - Kahana FeldWith the rapid relocation trends of families moving to Texas, it was reported that new residential construction permits in Texas grew to a total value in excess of $2 billion and over 7,500 new construction permits in September 2022 alone. D.R. Horton lead the way with 1,139 new permits, while Lennar Homes clocked 696 new permits. Other leading homebuilders including KB Homes (239 permits) and Pulte Homes (253 permits) remained active heading into the 4th Quarter of 2022. The following is a breakdown of new permits and average home values in the 4 largest cities in Texas (Houston, Dallas, Austin and San Antonio) for September 2022:
Houston
Last month, there were approximately 340 home builders with new permits on record in the Houston area, and the following ranked as the top five total new permits:
| Builder | Total Permits | Average Value |
|---|
| 1-D.R. Horton |
483 |
$ 129,812.00 |
| 2-Camillo Properties |
190 |
$ 147,790.00 |
| 3-Lennar Homes |
188 |
$ 195,503.00 |
| 4-Meritage Homes |
124 |
$ 248,597.00 |
| 5-Wan Pacific Real Estate Development |
117 |
$ 165,044.00 |
Dallas
In Dallas, there were more than 290 contractors with new residential construction activity on record with HBW last month, and the following ranked as the top five for total new permits:
| Builder | Total Permits | Average Value |
|---|
| 1-D.R. Horton |
555 |
$ 179,430.00 |
| 2-Lennar Homes |
232 |
$ 202,318.00 |
| 3-Trophy Signature Homes |
111 |
$ 274,016.00 |
| 4-Bloomfield Homes |
97 |
$ 405,235.00 |
| 5-Meritage Homes |
92 |
$ 267,425.00 |
Austin
Last month, there were nearly 125 home builders with new construction activity on record in the Austin area, and the following ranked as the top five for total new permits for the one-month period:
| Builder | Total Permits | Average Value |
|---|
| 1-Lennar Homes |
150 |
$ 154,390.00 |
| 2-KB Homes |
147 |
$ 253,606.00 |
| 3-D.R. Horton |
99 |
$ 200,416.00 |
| 4-Taylor Morrison Homes |
79 |
$ 365,183.00 |
| 5-David Weekley Homes |
64 |
$ 436,978.00 |
San Antonio
In San Antonio, there were nearly 120 contractors with new residential construction activity on record last month, and the following ranked as the top five for total new permits:
| Builder | Total Permits | Average Value |
|---|
| 1-Lennar Homes |
126 |
$ 174,315.00 |
| 2-KB Homes |
55 |
$ 254,109.00 |
| 3-Pulte Homes |
52 |
$ 241,012.00 |
| 4-M/I Homes |
51 |
$ 237,283.00 |
| 5-LGI Homes |
30 |
$ 202,760.00 |
The residential construction boom is Texas does not appear to be slowing down anytime soon. With new corporations relocating corporate offices to the Lone Star State each year, we expect this trend to continue for the foreseeable future. And with increased home production, we will closely monitor the increase in construction related litigation over the next five to ten years.
The increase in market activity attracts new or inexperienced builders and tradesman, making the importance of a proactive approach to construction management all the more important. Given the labor shortages and supply chain issues. It is imperative that Texas homebuilders take extra precautions to ensure quality construction practices and oversight to minimize potential litigation.
Reprinted courtesy of Jason Daniel Feld, Kahana Feld and Ron Raydon, Kahana Feld
Mr. Feld may be contacted at jfeld@kahanafeld.com
Mr. Raydon may be contacted at rraydon@kahanafeld.com
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2021 2Q Cost Report: Industry Execs Believe Recovery Is in Full Swing
August 04, 2021 —
Jonathan Keller - Engineering News-RecordThe first six months of 2021 have seen big materials cost hikes, increasing labor shortages and uncertainty over federal action on a major infrastructure package. Despite the headwinds, ENR’s Construction Industry Confidence Index has surged up 17 points to a rating of 68—the highest single jump between quarters since the index was started in 2009. The previous record was 16 points between Q4 of 2011 and Q1 of 2012.
Reprinted courtesy of
Jonathan Keller, Engineering News-Record
Mr. Keller may be contacted at kellerj@enr.com
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Environmental Suit Against Lockheed Martin Dismissed
August 13, 2014 —
Beverley BevenFlorez-CDJ STAFFA federal judge dismissed an environmental suit against Lockheed Martin, finding that contamination levels on the plaintiffs’ Moorestown, New Jersey properties were not high enough to pose a health threat, according to the New Jersey Law Journal.
Two owners who live across the street from the plant had “sued under the Resource Conservation & Recovery Act, the Comprehensive Environmental Response, Compensation & Liability Act and various state statutes.” However, “while the suit was pending, the New Jersey Department of Environmental Protection raised the threshold for concentration levels of substances such as TCE and PCE to warrant additional testing.”
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Real Estate Trends: Looking Ahead to 2021
November 09, 2020 —
Adam Weaver - Gravel2Gavel Construction & Real Estate Law Blog2020 has been an unprecedented year, and, while there are likely more twists and turns to come before December 31, it is essential to look at how the real estate markets have changed this year and which trends are likely to continue into 2021. The COVID-19 pandemic has impacted nearly every industry, including commercial real estate, and its impact will continue to influence the market and commercial real estate long after the virus has been eradicated.
Commercial Real Estate Loan Modifications
As the United States’ economy stalled, shut down and slowly started to recover throughout 2020, many businesses were negatively impacted, and most property owners found themselves negotiating with both their lenders and tenants. As tenants were unable to pay rent, property owners were unable to service their debt, which led to a surge of loan modifications this year. This trend certainly will continue through the first half of 2021, as the economy continues to recover.
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Adam Weaver, PillsburyMr. Weaver may be contacted at
adam.weaver@pillsburylaw.com
Hawaii Court of Appeals Finds Insured AOAO Not Liable for Securing Inadequate Insurance
March 04, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe Hawaii Intermediate Court of Appeals (ICA) affirmed the trial court's finding that the insured Association of Apartment Owners (AOAO) was not liable for securing a policy with inadequate coverage. AOAO Queen Emma Gardens, et al v. Wa, 2023 Haw. App. LEXIS 400 (Haw. Ct. App. Dec. 19, 2023).
In October 2002, the Was purchased a condominium located in the Queen Emma Gardens Condominium. The AOAO's bylaws provided that it would procure and maintain insurance "to insure the Board, the Association, and each apartment owner against claims for personal injury, death, and property damage arising out of the condition of the property or activities thereon . . ." The AOAO secured a CGL policy from Insurance Association, Inc., with coverage limits for bodily injury at $1,000,000 and an umbrella policy providing an additional $5,000,000 of coverage. Each of the policies "insured each individual insurance owner of the insured condominium, but only with respect to liability arising out of the ownership, maintenance or repair of that portion of the premises which is not reserved for that unit owner's exclusive use or occupancy."
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
The Coronavirus, Zoom Meetings and Now a CCPA Class Action
April 13, 2020 —
Jeffrey M. Dennis & Heather H. Whitehead - Newmeyer DillionWith the ongoing COVID-19 (commonly referred to as the Coronavirus) pandemic and orders to “stay at home” in place across the United States, most organizations have been and continue to utilize remote arrangements. The software program known as “Zoom Meetings”, has become immensely popular as a means to facilitate meetings amongst employees, team members and other consultants rather than meeting in person.
Despite such status, Zoom Video Communications, Inc. (Zoom) has been named as a defendant in one of the first, and certainly the most high-profile, class action lawsuits to be filed in California alleging violations of the California Consumer Privacy Act of 2018 (CCPA).
The Class Action
The complaint filed alleges that Zoom did not protect the personal information of its users as it collected personal information and then shared such information to third parties, including Facebook, without adequate disclosures to users. The allegations specifically refer to Zoom’s boasting about its maintenance of users’ privacy and that they can be trusted with user data. Further, it is noted that there is no disclosure provided in the Zoom Privacy Policy that disclosed that personal information was being shared with Facebook and other third parties.
Reprinted courtesy of
Jeffrey M. Dennis, Newmeyer Dillion and
Heather H. Whitehead, Newmeyer Dillion
Mr. Dennis may be contacted at jeff.dennis@ndlf.com
Ms. Whitehead may be contacted at heather.whitehead@ndlf.com
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