Landmark Towers Association, Inc. v. UMB Bank, N.A. or: One Bad Apple Spoils the Whole Bunch
May 12, 2016 —
Jean Meyer - Colorado Construction LitigationOn April 21, 2016, the Colorado Court of Appeals issued an opinion that immediately drew the ire of the greater real estate development industry and those concerned about affordable housing in a state in the midst of unprecedented soaring rent and housing prices. The Landmark Towers Assn., Inc. v. UMB Bank, N.A., 2016 COA 61, decision is the result of protracted litigation arising out of construction and sale of the ill-fated European Village (“Village”) residential community. For a thorough summary of the origins of the development and the unfortunate story of the man behind the curtain, review the Denver Post’s article titled “Zachary Davidson, Denver Landmark developer, and his fall from grace.” (http://www.denverpost.com/ci_22656011/fall-from-grace-zach-davidson-landmark denver)
Despite the unique facts and circumstances relating to the questionable dealings by the developer, Mr. Zachary Davidson, the decision now stands to turn the Colorado real estate development business on its head. Specifically, a group of condominium owners, who did not live in the Village, learned that their properties had been included in a special district, the Marin Metropolitan District (“District”), to finance the Village. Prior to their purchase, Mr. Davidson failed to disclose to the condominium owners that they would be responsible for financing the Village’s development through previously issued bonds by the District to be paid for through their property taxes. Understandably frustrated by this discovery the condominium owners, through the Landmark Towers Association, Inc. (“Landmark HOA”), investigated the origin of these unforeseen property taxes.
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Jean Meyer, Higgins, Hopkins, McLain & Roswell, LLCMr. Meyer may be contacted at
meyer@hhmrlaw.com
Alleging and Proving a Florida Deceptive and Unfair Trade Practices Act (FDUTPA) Claim
December 13, 2021 —
David Adelstein - Florida Construction Legal UpdatesWhen it comes to construction disputes, a Florida Deceptive and Unfair Trade Practices Act (known by its acronym “FDUTPA”) claim is not commonly asserted. A FDUTPA claim is a statutory claim under Florida Statute s. 501.201 en seq. This claim is NOT easy to prove, particularly in the construction context. Sometimes, a party will assert a FDUTPA claim to create a basis for attorney’s fees; however, that basis cuts BOTH ways, i.e., you can be liable for fees if you fail to prove the FDUTPA claim. In a construction dispute, a FDUTPA claim is one that really should be pled with caution after a party understands and fully considers what it MUST prove including the all-important consideration of how actual damages are determined under FDUTPA, which requires an actual loss. Nevertheless, it is good to know what you need to prove to support a FDUTPA claim in case you believe you have facts that can support a FDUTPA claim and actual damages under FDUTPA (known as benefit-of-the-bargain damages).
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David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com
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Connecticut Answers Critical Questions Regarding Scope of Collapse Coverage in Homeowners Policies in Insurers’ Favor
February 10, 2020 —
Kevin Sullivan - Traub LiebermanNationwide, homeowners’ insurers routinely face foundation wall collapse claims. But in Connecticut, where at least 30,000 homes are believed to have been constructed in the 1980s and 1990s with defective concrete, the scope of homeowners insurance for collapse claims has been a closely watched issue. In Jemiola v. Hartford Casualty Insurance Co., 2019 WL 5955904 (Conn. Nov. 12, 2019), the Supreme Court of Connecticut held that a collapse coverage grant requiring “an abrupt falling down or caving in of a building… with the result that the building… cannot be occupied for its intended purpose” is unambiguous and enforceable.
In Jemiola, the insured homeowner purchased her home in 1986 and insured it continuously with the same insurer. In 2006, the homeowner noticed cracking in a basement wall, and was informed that the cracking likely resulted from defective concrete used in the construction of the home. The homeowner made a claim under her policy’s collapse coverage, which the insurer denied because the cracking did not compromise the structural integrity of the foundation walls. In the resulting lawsuit, the insured’s expert opined that the defective concrete substantially impaired the foundation walls’ structural integrity, but that this impairment did not commence until 2006 when the homeowner first noticed the cracking. Accordingly, the court analyzed coverage under the collapse coverage grant in effect in 2006, which defined collapse to mean “an abrupt falling down or caving in of a building… with the result that the building… cannot be occupied for its intended purpose.”
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Kevin Sullivan, Traub LiebermanMr. Sullivan may be contacted at
ksullivan@tlsslaw.com
When is Construction Put to Its “Intended Use”?
July 31, 2013 —
Brady Iandiorio, Higgins, Hopkins, McLain & Roswell, LLCDefining words and phrases in the law can be a tricky proposition. In everyday life one would presume to know what the phrase “intended use” would mean, but when it comes to litigation, oftentimes the definitions become much more nuanced.
On March 12, 2013, in the Bituminous Cas. Corp. v. Hartford Cas. Ins. Co. v. Canal Ins. Co., WL 950800 (D. Colo. 2013) case, Senior District Court Judge Wiley Y. Daniel denied Third-Party Defendant Canal Insurance Company’s (“Canal”) motion to dismiss Third-Party Plaintiff Hartford Casualty Insurance Company’s (“Hartford”) third-party complaint. The case arose out of a liability insurance coverage dispute related to an underlying construction defect lawsuit. In the construction defect suit, a plaintiff homeowner’s association brought a suit against a developer and a general contractor (“GC”) among others. While the underlying action was settled, a dispute remained between Bituminous Casualty Corporation, which insured the GC, and Hartford, which insured the developer.
Hartford asserted third-party claims against Canal seeking a declaration of Canal’s obligations and contribution in the event Hartford owed any defense or indemnity obligations to the GC. Hartford’s claims are based on the premise that Canal owed a duty to defend and/or indemnify the GC in the underlying action.
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Brady IandiorioBrady Iandiorio can be contacted at
Iandiorio@hhmrlaw.com
Edison Utility Accused of Igniting LA Fire in Lawsuits
January 21, 2025 —
Jef Feeley, Mark Chediak & Malathi Nayak - BloombergEdison International Inc.’s southern California utility faces lawsuits blaming the energy provider’s equipment for igniting one of the wildfires still raging in the second-largest US metropolis.
The first of several suits filed Monday was brought on behalf of a group of homeowners, renters, business owners and others with properties destroyed by the deadly Eaton Fire in the Pasadena area. The complaints allege that Southern California Edison power lines were the cause of the blaze that leveled the community of Altadena. The initial suits are expected to be followed by thousands more legal claims.
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Jef Feeley, Bloomberg,
Mark Chediak, Bloomberg and
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Home-Sales Fall in 2014 Has U.S. Waiting for 2015: Economy
January 28, 2015 —
Bloomberg News(Bloomberg) -- A three-year winning streak for sales of previously owned homes in the U.S. ended in 2014 as some investors stepped out of the market and first-time buyers failed to fill the void.
Purchases totaled 4.93 million last year, down 3.1 percent from the 5.09 million houses sold in 2013, figures from the National Association of Realtors showed Friday in Washington.
The share of American homebuyers making their first purchase dropped in 2014 to its lowest level in almost three decades, according to the Realtors group. At the same time, employment gains, growing consumer confidence, mortgage rates at historically low levels and government efforts to lower purchasing costs probably will help bolster demand in 2015.
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Bloomberg News
Risk Spotter Searches Internal Data Lakes For Loaded Words
October 11, 2017 —
Tom Sawyer - Engineering News-RecordA tech start-up recently announced that it has been granted seven U.S. patents for a system that applies a “deep learning” algorithm to examine corporate e-mail databases and flag those with message fields or attachments containing language that might increase risk for a company involved in a federal discrimination lawsuit.
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Tom Sawyer, ENRMr. Sawyer may be contacted at
sawyert@enr.com
Crane Firm Pulled Off NYC Projects Following Multiple Incidents
October 07, 2019 —
Jeff Rubenstone - Engineering News-RecordFollowing a partial crane collapse at a site on Manhattan’s Lower East Side and a fatality in April on a jobsite in lower Manhattan, the New York City Dept. of Buildings announced on Aug. 12 that it is suspending United Crane & Rigging’s work on 21 construction sites across the city.
Jeff Rubenstone, Engineering News-Record
Mr. Rubenstone may be contacted at rubenstonej@enr.com
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