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Questions of Fact Regarding Collapse of Basement Walls Prevent Insurer's Motion for Summary Judgment

December 19, 2018 — Tred R. Eyerly - Insurance Law Hawaii
The court denied the insurer's motion for summary judgment on whether the policy covered the collapse of basement walls based upon factual issues presented. Sirois v. USAA Cas. Ins. Co., 2018 U.S. Dist. LEXIS 158508 (D. Conn. Sept. 18, 2018). The insureds' purchased their home in 2010. In December 2015, a crack in the basement wall was noticed. It was not thought to be a serious problem. But in 2016, the insured read an article about defective concrete problems affecting homeowners in Connecticut. An inspector, Dean Soucy, was hired. He found faults and cracks in the foundation walls. Thereafter, a claim was submitted to USAA under homeowners' policies issued over the years to the insureds. USAA denied coverage. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Spreading Cracks On FIU Bridge Failed to Alarm Project Team

May 20, 2019 — Scott Judy & Richard Korman - Engineering News-Record
On the morning of last year’s Florida International University pedestrian bridge collapse, when the engineer of record assured project team members that there were no safety risks related to cracks propagating across a part of the unusual single-truss structure, other project team members voiced mild concern, but no alarm. In hindsight, considering that the bridge had no inherent structural redundancy as it sat, incomplete, straddling a busy highway—and would suffer a sudden, catastrophic and deadly collapse just hours later—the team’s lack of urgency remains puzzling, say engineering experts contacted by ENR for comment. Reprinted courtesy of Scott Judy, ENR and Richard Korman, ENR Mr. Judy may be contacted at mailto:judys@enr.com Mr. Korman may be contacted at kormanr@enr.com Read the court decision
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Repairs Commencing on Defect-Ridden House from Failed State Supreme Court Case

October 15, 2014 — Beverley BevenFlorez-CDJ STAFF
In the Windmill Harbour area of Hilton Head Island, South Carolina, Danielle Smith is repairing her home after “spending almost $25,000 on unsuccessful legal battles and two years to secure a loan,” according to the Beaufort Gazette. The contractor who custom built the home was unlicensed, and “[t]he synthetic stucco used to build the house was faulty, causing water damage throughout that will cost $500,000 and six months to repair.” Back in 2008, Smith’s case reached the state Supreme Court. The court ruled against her, reasoning “that the former owner, who had hired subcontractors to build the house, could not be held liable for the damage because he built it as a private home and had originally intended to never sell it.” Read the court decision
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Mediation Scheduled for Singer's Construction Defect Claims

February 11, 2013 — CDJ STAFF
A judge has scheduled mediation and trial over the claims of Rihanna that her Beverley Hills home suffers from construction defects. The singer claims that the previous owners, Adriana and Heather Rudomin, did not disclose construction defects which lead to flooding from water leaks in January 2010. The Rudomins did not appear at the February 7th hearing, and the judge fined them $500. They will be required to explain their absence on March 12. The mediation will begin on May 7. The trial has been scheduled for February 24, 2014, and is expected to last three weeks. Read the court decision
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Texas Supreme Court Holds that Invoking Appraisal Provision and Paying Appraisal Amount Does Not Insulate an Insurer from Damages Under the Texas Prompt Payment of Claims Act

September 16, 2019 — John C. Eichman & Grayson L. Linyard - Hunton Insurance Recovery Blog
In two cases decided June 28, 2019, the Texas Supreme Court held that an insurer’s invocation of a contractual appraisal provision after denying a claim does not as a matter of law insulate it from liability under the Texas Prompt Payment of Claims Act (“TPPCA”). But, on the other hand, the court also held that the insurer’s payment of the appraisal award does not as a matter of law establish its liability under the policy for purposes of TPPCA damages. In Barbara Techs. Corp. v. State Farm Lloyds, No. 17-0640, 2019 WL 2666484, at *1 (Tex. June 28, 2019), State Farm Lloyds issued property insurance to Barbara Technologies Corporation for a commercial property. A wind and hail storm damaged the property, and Barbara Tech filed a claim under the policy. State Farm denied the claim, asserting that damages were less than the $5,000 deductible. Barbara Tech filed suit against State Farm, including for violation of the TPPCA. Six months later, State Farm invoked the appraisal provision of the policy. More than a year after the suit was filed, appraisers agreed to a value of $195,345.63. State Farm then paid that amount, minus depreciation and the deductible. Barbara Tech amended its petition to include only TPPCA claims. Reprinted courtesy of John C. Eichman, Hunton Andrews Kurth and Grayson L. Linyard, Hunton Andrews Kurth Mr. Eichman may be contacted at jeichman@HuntonAK.com Mr. Linyard may be contacted at glinyard@HuntonAK.com Read the court decision
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Seller Faces Federal Charges for Lying on Real Estate Disclosure Forms

October 02, 2015 — Beverley BevenFlorez-CDJ STAFF
Homeowners Glenn and Kathryn Jasen allegedly mislead buyers Kelly Magbee and family when they checked “no” on questions regarding sinkhole activity on real estate disclosure forms, according to On Your Side News. Furthermore, “Citizens Property Insurance Co. failed to file a sinkhole certification on a Spring Hill home in 2009. The company slipped the form into county records five years later- in Sept. 2014 – after questions from 8 On Your Side.” If the insurance company had filed the sinkhole documentation, then the Magbees would have been told about the sinkhole prior to the purchase of the home. According to On Your Side News, Magbee and family moved out of the home “after a crack opened in the living room.” Read the court decision
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With VA Mechanic’s Liens Sometimes “Substantial Compliance” is Enough (but don’t count on it) [UPDATE]

October 14, 2019 — Christopher G. Hill - Construction Law Musings
Virginia mechanic’s liens are a powerful and tricky beast that in most cases require absolute precision in their preparation. However, an interesting opinion recently came out of the Virginia Supreme Court that may provide a bit of a “safe harbor” from the total form over function nature of a mechanic’s lien. In Desai, Executrix v. A.R. Design Group Inc., the Court considered a lien memorandum that had what could be described as technical flaws in the preparation of the mechanic’s lien by A. R. Design Group. The basic facts are that A. R. Design Group used the form of lien found in Va. Code Sec. 43-5 (also found as Form CC-1512 at the Virginia Judiciary website) when it recorded two lien memoranda for two pieces of property owned by a trust. Relating to one of the two properties, the memorandum failed to identify the “Owner” as the trustee of the trust. On the memoranda relating to both properties the affidavit verifying the amounts claimed did not identify the signatory as agent for A. R. Design Group, instead listing the agent as the claimant and further failed to state a date from which interest is claimed or a date on which the debt was due. Needless to say, the owner argued that each of these technical defects invalidated the memoranda and therefore they should have been released. Somewhat surprisingly the Fairfax, Virginia Circuit Court disagreed and held the liens to be valid. On appeal, the Virginia Supreme Court affirmed the lower court. The held that the failure to add the word “Trustee” after Ulka Desai’s name did not invalidate the lien because the trustee had all of the rights of ownership and furthermore that naming Desai in the memorandum served the purpose of putting third parties on notice of the lien. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Real Estate & Construction News Roundup (08/08/23) – Buy and Sell With AI, Urban Real Estate Demand and Increasing Energy Costs

September 18, 2023 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, we look at AI’s ability to buy and sell real estate, good news from the Labor Department for federally contracted construction workers, the continued promise of proptech, and more!

With economic hardships for urban commercial real estate, the suburbs may be where the next opportunities lie. (Larry Goodman, Forbes)
Being able to better meet tenant needs and alleviating the redundant, time-consuming tasks continue to drive interest in, and use of, proptech in the real estate sector. (Kerri Davis, Forbes)
Imagine using AI to determine which real estate properties to buy and sell. A former real-estate analyst has built a tool for this exact task. (Kelsey Neubauer, Business Insider)

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

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