Cambridge Massachusetts Building Expert Directory

South Carolina Homeowners May Finally Get Class Action for Stucco Defects

December 04, 2013 — CDJ STAFF
Last year, Judge J. Michael Baxley approved a class action lawsuit over stucco problems in Sun City Hilton Head. The lawyers from S.C. State Plastering have already settled with about 140 defendants in that community, and they are trying to prevent the plaintiff’s lawyers from communicating with other residents. In June, a judge dismissed S.C. State Plastering’s request to block this communication, but the company has appealed. The South Carolina Supreme Court has heard the case regarding the notices and has yet to rule. The Chief Justice has recused herself, stating that she has a connection to the case, although she has not elaborated. Many homeowners have waited to repair their homes, hoping to receive compensation. Pulte Homes, the builder of the project, has also repaired some homes. It is not clear if those homeowners are eligible for the class action lawsuit. Read the court decision
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Legislative Update – The CSLB’s Study Under SB465

March 22, 2018 — John Castro - Construction Law Blog
Following the tragic Berkeley balcony collapse in 2015, the Legislature enacted California Senate Bill 465 which commissioned the Contractors State License Board (“CSLB” or “Board”) to perform a study regarding the efficacy of having contractors report settlements to the Board. In December 2017 the CSLB released their findings in a report. The ultimate conclusion of the report is to recommend to the Legislature that the ability of the CSLB to protect the public “would be enhanced by regulations requiring licensees to report judgments, arbitration awards, or settlement payments of construction defect claims for rental residential units.” Senator Jerry Hill authored SB465, and his office is presently now drafting legislation on settlement reporting based in part on this study. The most troubling concern about the study is transparency. The report references nine exhibits, all of which have been withheld from publication under purposes of confidentiality. Therefore, much of the CSLB’s study must be taken at face value because much of the data they rely on to formulate their conclusions cannot be independently verified. One of the factors that the CSLB undertook in its study was to determine criteria for when a settlement was “nuisance value,” and therefore less important for reporting purposes. The CSLB acknowledged there was no industry-wide definition for “nuisance value,” whether it be in the insurance industry, construction industry, or otherwise. Insurer survey respondents reached a general consensus on aspects of what can constitute a “nuisance value” settlement, including the amount of the settlement and the size of the case. However, the response rate to the insurer survey was only 3.3 percent. In general, the concern with using settlement amount and size of the case as indicative factors is the fact that a large settlement size, for instance, may still constitute a “nuisance value” settlement. One example would be a large settlement figure in a case involving hundreds of homes in multiple subdivisions. Read the court decision
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Reprinted courtesy of John Castro, Gordon Rees Scully Mansukhani LLP
Mr. Castro may be contacted at jcastro@grsm.com

Contractor Prevailing Against Subcontractor On Common Law Indemnity Claim

June 29, 2020 — David Adelstein - Florida Construction Legal Updates
Common law indemnity is not an easy claim to prove as the one seeking common law indemnity MUST be without fault: Indemnity is a right which inures to one who discharges a duty owed by him, but which, as between himself and another, should have been discharged by the other and is allowable only where the whole fault is in the one against whom indemnity is sought. It shifts the entire loss from one who, although without active negligence or fault, has been obligated to pay, because of some vicarious, constructive, derivative, or technical liability, to another who should bear the costs because it was the latter’s wrongdoing for which the former is held liable. Brother’s Painting & Pressure Cleaning Corp. v. Curry-Dixon Construction, LLC, 45 Fla. L. Weekly D259b (Fla. 3d DCA 2020) quoting Houdaille Industries, Inc. v. Edwards, 374 So.2d 490, 492-93 (Fla. 1979). Not only must the one seeking common law indemnity be without fault, but there also needs to be a special relationship between the parties (indemnitee and common law indemnitor) for common law indemnification to exist. Brother’s Painting & Pressure Cleaning Corp., supra (citation omitted). A special relationship has been found to exist between a general contractor and its subcontractors. Id. at n.2. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Massive Danish Hospital Project Avoids Fire Protection Failures with Imerso Construction AI

December 23, 2023 — Aarni Heiskanen - AEC Business
Ensuring regulatory compliance of firewall constructions is getting a high-tech boost. Over the past 16 months, the construction team responsible for the iconic new Nyt Hospital Nordsjælland near Copenhagen used Imerso construction AI technology to achieve remarkable results. By using Imerso, the team enhanced work productivity while preventing costs and delays worth €5.2 million during the construction of the superstructure. Inspired by this success, the team led by Project Manager Anders Kaas has since been eager to explore the potential of the technology in other areas. The opportunity arose to address a topic that has traditionally posed significant challenges and expenses in numerous construction projects – ensuring regulatory compliance of fire barriers and firewall constructions. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

"Damage to Your Product" Exclusion Bars Coverage

February 02, 2017 — Tred R. Eyerly - Insurance Law Hawaii
The Arkansas Court of Appeals affirmed the denial of coverage for the insured based upon the exclusion for "damage to your product." S.E. Arnold & Co. v. Cincinnati Ins. Co., 2016 Ark. App. LEXIS 625 (Ark. Ct. App. Dec. 7, 2016). The homeowners paid the insured, S.E. Arnold & Company, over $78,000 to supply and install wood flooring in their residence. The homeowners eventually sued Arnold, alleging that the products and services as provided by Arnold had breached its contract, Arnold was negligent, and it violated applicable rules, regulations, and laws. Specifically, the homeowners alleged that the flooring as sold and installed had splinters, cupping occurred across the width of the individual pieces of flooring, and installation was in contradiction to industry standards and applicable building codes. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Look Up And Look Out: Increased Antitrust Enforcement Of Horizontal No-Poach Agreements Signals Heightened Scrutiny Of Vertical Agreements May Be Next

November 28, 2022 — John F. Finnegan, III & Dominick Weinkam - ConsensusDocs
In the current regulatory environment, it is important for contractors to remain vigilant of heightened anti-competitive enforcement in the construction and procurement spheres by the United States Department of Justice (DOJ). Such vigilance should include, among other things, regular review of applicable laws and implementation of related updates to compliance policies, as well as careful evaluation of joint venture (JV), subcontractor, and teaming agreements. Recent DOJ Activity Opens The Door To Broader Antitrust Exposure For Contractors Many contractors include exclusivity and non-compete clauses in their vertical agreements, including subcontractor agreements and certain types of JV and teaming agreements. In fact, many widely available “checklists” for drafting these agreements recommend including such provisions; however, under U.S. antitrust law, particularly as enforced by the DOJ in the last 1-2 years, exclusivity and non-compete clauses may be construed as unduly competition-restricting. Although no court has yet held that exclusivity and non-compete clauses in vertical agreements violate antitrust laws, recent aggressive enforcement activity by the DOJ with regard to horizontal no-poach agreements suggests that the investigatory headwinds may be blowing in that direction. Reprinted courtesy of John F. Finnegan, III, Watt, Tieder, Hoffar, & Fitzgerald, LLP (ConsensusDocs) and Dominick Weinkam, Watt, Tieder, Hoffar, & Fitzgerald, LLP (ConsensusDocs) Mr. Finnegan may be contacted at jfinnegan@watttieder.com Mr. Weinkam may be contacted at dweinkam@watttieder.com Read the court decision
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Why Financial Advisers Still Hate Reverse Mortgages

October 01, 2014 — Ben Steverman – Bloomberg
A reverse mortgage is a little like a car airbag. It's nice to know it's there. But if it ever has to be used, the driver’s already in trouble. New regulations are supposed to improve the unsavory reputation of reverse mortgages, which are loans against a home that don't need to be repaid until the borrower moves. "It used to be the Wild West out there, without much regulation and enormous fees," says financial planner Warren Ward. While stronger oversight is helping to end past abuses, the number of people taking out reverse mortgages is shrinking. The pace is down 24 percent from last year, government data show, and less than half its peak in 2009. One reason: Many advisers say the loans remain a last resort and can handcuff homeowners who have better options. Read the court decision
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Reprinted courtesy of Ben Steverman, Bloomberg
Mr. Steverman may be contacted at bsteverman@bloomberg.net

Absence of Property Damage During Policy Period Equates to No Coverage

April 01, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The Montana Supreme Court determined there was no coverage for the insured due to a lack of property damage during the policy period. Truck Ins. Exchange v. O'Mailia, 2015 Mont. LEXIS 54 (Mont. Feb. 17, 2015). The insured plumbing company, Lolo Plumbing & Heating, installed a water heater at Famous Dave's restaurant. At the time of installation, the insured had a CGL policy with Truck. The policy provided coverage from July 10, 2006 to November 29, 2009. On March 12, 2010, three years after the water heater was installed, a burning smaell was detected in the restaurant's mechanical room. The fire department turned off the water heater and asked that a plumber look at it. Diamond Plumbing & Heating was called and replaced the combustion air fan assembly, but did not further examine the water heater. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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