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Denver Officials Clamor for State Construction Defect Law

August 20, 2014 — Beverley BevenFlorez-CDJ STAFF
The Denver Business Journal reported that a construction defects law to encourage more condo development in Colorado was discussed during the Denver Metro Chamber of Commerce’s annual State of the City event. Colorado Senator Jessie Ulibarri in attendance stated that the construction defect bill that he had sponsored earlier this year was defeated partly due to timing, and he plans on introducing a new bill early 2015. Denver Mayor Michael Hancock spoke in favor of such a bill, alleging that nearly all developers avoid building multifamily units for fear of potential litigation. “We are being hamstrung by this law in the state of Colorado.” However, the Denver Business Journal reported that those who favor status quo, including homeowners association industry groups and attorneys, claim that “changing the law will open the door to poor work on the part of developers and builders, leaving condo buyers holding the bag for repairs when something goes wrong in their home.” Read the court decision
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The Hidden Dangers of Construction Defect Litigation

March 28, 2012 — David M. McLain, Colorado Construction Litigation

David M. McLain, writing at Colorado Construction Litigation, has an interesting blog post republishing his article in Common Interests magazine, the monthly periodical of the Rocky Mountain Chapter of the Community Associations Institute. In his article, he touches on a number of pitfalls in construction defect litigation, including the potential conflicts of interests facing HOAs. He also considers the problems homeowners can face, including both “strong-arm tactics” taken by attorneys to compel homeowners to join the lawsuit, or situations in which the interests of the HOA do not match those of the homeowners. He writes:

There is also a conflict of interest with individual owners who attempt to opt out of the case. This can lead to shocking strong-arm tactics on the part of plaintiffs’ attorneys. In one instance, a plaintiffs’ attorney sent a letter to an individual homeowner that stated that as a 1/58th owner of the common elements, if he refused to go along with the suit, and there was ultimately a finding in favor of the HOA which was in any way limited by his refusal to participate, he would be personally liable for 1/58th of the HOA’s total damages. In another instance, a different plaintiffs’ attorney sent a letter to a homeowner who wanted the builder to perform warranty repairs, informing the owner that if he let the builder perform any repairs, the attorney would bill the HOA according to the fee agreement entered by the HOA board (without knowledge or consent of non-board members) and that the HOA would assess the homeowner for that expense. These are just two examples of conflicts which may arise between the HOA board and individual homeowners when the HOA pursues CD cases.

Another example of a conflict which will arise as a result of CD litigation occurs post-settlement. When an HOA settles for less than 100% of the amount necessary to fund all repairs outlined by its experts, plus attorneys’ fees and litigation costs, there will obviously be a shortfall in the amount necessary to fix the development. The HOA board must then choose to impose a special assessment to cover the shortfall or to make some, but not all, of the repairs outlined by its experts. In choosing the latter, the conflict arises with respect to which homes get fixed and which do not. In this situation, the HOA board has acted as the attorney-in-fact for the individual owners by bringing claims on their behalf, and has compromised those claims without their knowledge or consent.

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Reprinted courtesy of David M. McLain of Higgins, Hopkins, McClain & Roswell, LLC. Mr. McClain can be contacted at mclain@hhmrlaw.com.

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Another Colorado District Court Refuses to Apply HB 10-1394 Retroactively

October 28, 2011 —

In Martinez v. Mike Wells Construction Company, 09CV227, Teller County District Court Judge Edward S. Colt refused to apply C.R.S. § 13-20-808 retroactively to provide coverage for the underlying construction defect allegations. According to the recitation of facts in Judge Colt’s March 2011 order, Martinez contracted with Mike Wells Construction to serve as the general contractor for the construction of a home. At that time, Mike Wells Construction was insured through ProBuilders Specialty Insurance Company, RRG. Disputes arose between Martinez and Mike Wells Construction, resulting in Martinez ordering it off of the project in mid-November 2007 and terminating its right to work there by letter dated November 28, 2007.

Mike Wells, the owner of the corporation, subsequently died. Martinez sued Mike Wells Construction in July 2009 for breach of contract and various claims relating to alleged defecting workmanship. Martinez provided notice of the suit to the special administrator of the probate estate. No answer having been filed, the court entered a default judgment against Mike Wells Construction and Martinez sought to garnish Mike Wells Construction’s ProBuilders insurance policy.

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Reprinted courtesy of Higgins, Hopkins, McLain & Roswell, LLC. Mr. McClain can be contacted at mclain@hhmrlaw.com

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Are You a Construction Lienor?

November 15, 2017 — David Adelstein - Florida Construction Legal Updates
When it comes to construction lien rights, not everyone that touches the project is a proper lienor. Forget about timely serving a Notice to Owner or recording a claim of lien, if you are not a proper lienor, it does not matter if you properly perfected your lien rights. If you are not a proper lienor, you have NO lien rights under the law! Florida Statue s. 713.01(18) defines a lienor as follows: (18) “Lienor” means a person who is: (a) A contractor; (b) A subcontractor; (c) A sub-subcontractor; (d) A laborer; (e) A materialman who contracts with the owner, a contractor, a subcontractor, or a sub-subcontractor; or (f) A professional lienor under s. 713.03; and who has a lien or prospective lien upon real property under this part, and includes his or her successor in interest. No other person may have a lien under this part. Read the court decision
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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at Dadelstein@gmail.com

ADP Says Payrolls at Companies in U.S. Increase 200,000

October 02, 2015 — Sho Chandra – Bloomberg
Companies stepped up hiring in September, indicating the U.S. job market is standing firm in the face of weaker global demand, according to a private report based on payrolls. A 200,000 increase in employment followed a revised 186,000 rise in the prior month, figures from the ADP Research Institute showed Wednesday. The median projection of economists surveyed by Bloomberg called for an advance of 190,000. The additions to company headcounts are consistent with resilient demand in the U.S. even as some industries face challenges of weaker overseas sales. Labor Department data on Friday are projected to show payroll gains accelerated this month compared with August. “The U.S. job machine continues to produce jobs at a strong and consistent pace,” Mark Zandi, chief economist at Moody’s Analytics Inc. in West Chester, Pennsylvania, said in a statement. Moody’s produces the figures with ADP. “Despite job losses in the energy and manufacturing industries, the economy is creating close to 200,000 jobs per month. At this pace, full employment is fast approaching.” Estimates in the Bloomberg survey ranged from gains of 120,000 to 215,000 after a previously reported August advance of 190,000. Goods Producers Goods-producing industries, which include manufacturers and builders, increased headcounts by 12,000, the ADP report showed. Hiring in construction climbed by 35,000, almost twice the 18,000 gain a month earlier. Factories cut 15,000 jobs in September, which was the biggest decline since December 2010. Payrolls at service providers increased by 188,000. Read the court decision
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Reprinted courtesy of Sho Chandra, Bloomberg

CalOSHA Updates its FAQ on its COVID-19 Emergency Temporary Regulations

March 22, 2021 — Garret Murai - California Construction Law Blog
As we reported in early December, CalOSHA adopted emergency temporary regulations requiring, among other things, that employers implement a written COVID-19 prevention program, that notice be given by employers to employees in the event of potential COVID-19 exposure, and that employers continue to pay employees who have been exposed to COVID-19 even if the employee has no paid time off available. In conjunction with the emergency temporary regulations, CalOSHA posted a FAQ on the emergency regulations. On February 26, 2021, CalOSHA updated its FAQ. Among other things, the updated FAQ updates the following sections of the FAQ:

Scope of Coverage: Clarifies that the emergency regulations apply even to workplaces with only one employee but that it does not apply to employees working remotely.

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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

When a Construction Lender Steps into the Shoes of the Developer, the Door is Open for Claims by the General Contractor

February 18, 2015 — Kevin Brodehl – California Construction Law Blog
Thank you to my partner Garret Murai for giving me the opportunity to post again on his excellent California Construction Law Blog. I am the author/editor of the Money and Dirt Blog, where I focus on issues relating to real estate investment, development, and secured lending. On the Money and Dirt Blog, I recently posted an article on an interesting new secured lending opinion from the California Court of Appeal (Fourth District in Riverside), California Bank & Trust v. Del Ponti. That blog post focused on guaranty liability, and the court’s holding that there are limits to the defenses that a guarantor can lawfully waive. But that same decision also highlights valuable lessons regarding the relationship between construction lenders and general contractors in distressed projects, which I’ll cover here. In short, the court held that when a construction lender “steps into the shoes” of the developer to manage a distressed project, the lender might open the door to liability to the general contractor under theories of breach of contract and promissory estoppel. Read the court decision
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Reprinted courtesy of Kevin Brodehl, Wendel Rosen Black & Dean LLP
Mr. Bordehl may be contacted at kbrodehl@wendel.com

North Carolina, Tennessee Prepare to Start Repairing Helene-damaged Interstates

October 07, 2024 — Derek Lacey - Engineering News-Record
Damage from Hurricane Helene to interstates between North Carolina and Tennessee includes washed-out roads and bridges, landslides and extensive flooding—creating a long list of repair work needed for state transportation agencies as they prepare to rebuilding critical highways across the Appalachian Mountains. Reprinted courtesy of Derek Lacey, Engineering News-Record Mr. Lacey may be contacted at laceyd@enr.com Read the full story... Read the court decision
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