Homeowners Sue Over Sinkholes, Use Cash for Other Things
January 06, 2012 —
CDJ STAFFQuoting one homeowner as saying that his house “can fall in the ground for all I care, I made my money,” the Tampa Bay Times looks at the issue of sinkhole claims in Florida. Homeowners “have paid off mortgages, put in pools, replaced roofs, or otherwise used money from sinkhole claims to do something besides fix sinkhole damage.
It’s been tough for insurance companies. Citizens Property Insurance took in $32 million in premiums for sinkhole coverage in 2010, but paid out $245 million in sinkhole claims. The Tampa Bay Times notes that some of those claims come from settling problems caused by their repairs, including one settlement of $350,000 for repairs to a house worth $39,000.
One couple, after receiving $217,000 from Citizens, sold the house to a company that bought unrepaired sinkhole homes for $190,000. The home has been sold since and remains unrepaired.
Sometimes the preferred solution by the insurance company isn’t the cheapest either. One couple was informed that Citizens was going to spend $150,000 to have the hole filled with grout. After they settled with the insurance company, they fixed the problem by installing steel piers, at a cost of about $45,000.
Read the full story…
Read the court decisionRead the full story...Reprinted courtesy of
#6 CDJ Topic: Construction Defect Legislative Developments
December 30, 2015 —
Beverley BevenFlorez-CDJ STAFFRichard H. Glucksman,
Jon A. Turigliatto, and
David A. Napper of
Chapman Glucksman Dean Roeb & Barger discussed Right to Repair developments occurring in Nevada, Arizona, Florida, and Colorado in their article, “Right to Repair Reform: Revisions and Proposals to State’s ‘Right to Repair Statutes.”
Read the full story...
Texas also had changes that affected construction defect claims, as covered by
David H. Fisk of
Coleman & Logan PC: “Before filing a lawsuit or initiating an arbitration proceeding pertaining to a construction defect, a condominium association in Texas with eight or more units must now comply with the newly added Section 82.119 to Chapter 82 of the Texas Property Code. This is in addition to compliance with the Texas Residential Construction Liability Act (RCLA) and any preconditions included in the condominium association’s declarations.”
Read the full story...
Read the court decisionRead the full story...Reprinted courtesy of
Wow! A Mechanic’s Lien Bill That Helps Subcontractors and Suppliers
March 05, 2015 —
Christopher G. Hill – Construction Law MusingsYou know how I’ve stated on many occasions that the contract is king here in Virginia? You know how that included contractual provisions waiving mechanic’s lien rights for subcontractors and suppliers? You know how I thought that the General Assembly would not do anything to make mechanic’s liens in Virginia easier to prosecute?
Well, it seems, at least for waivers of mechanic’s lien rights by subcontractors and suppliers (more about general contractors later) I was wrong. This General Assembly session, the Senate introduced a bill, that has now passed both houses as of February 25, 2015, that adds language to Virginia Code Section 43-3 that effectively nullifies any contractual waiver of lien rights prior to any work having been performed by any tier of construction company aside from general contractors.
Read the court decisionRead the full story...Reprinted courtesy of
Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
New Hampshire Applies Crete/Sutton Doctrine to Bar Subrogation Against College Dormitory Residents
May 17, 2021 —
Kyle Rice - The Subrogation SpecialistPursuant to the Sutton Doctrine, first announced in Sutton v. Jondahl, 532 P.2d 478 (Okla. Ct. App. 1975), some jurisdictions consider a tenant a coinsured of its landlord absent an express agreement to the contrary. In Ro v. Factory Mut. Ins. Co., No. 2019-0620, 2021 N.H. LEXIS 34 (Mar. 10, 2021), the Supreme Court of New Hampshire held that the Sutton Doctrine, adopted by New Hampshire in Cambridge Mut. Fire Ins. Co. v. Crete, 846 A.2d 521 (N.H. 2004), extends to resident students in a college dormitory. Thus, absent specific language to the contrary, a student is an implied coinsured under the fire insurance policy issued for his or her dormitory.
In 2016, two students at Dartmouth College, Daniel Ro and Sebastian Lim, set up a charcoal grill on a platform outside of a fourth-floor window in the Morton Hall dormitory. The grill started a fire on the platform that ultimately spread to the roof of the dormitory. During fire suppression efforts, all four floors of the dormitory sustained significant water damage. Following the loss, the building’s insurer, Factory Mutual Insurance Company (Insurer), paid $4,544,313.55 to the Trustees of Dartmouth College for the damages.
Read the court decisionRead the full story...Reprinted courtesy of
Kyle Rice, White and WilliamsMr. Rice may be contacted at
ricek@whiteandwilliams.com
California’s Right To Repair Act Is The Sole Remedy For Damages For Construction Defects In New Residential Construction
March 14, 2018 —
Mark Johnson – Real Estate Litigation Blog The California Supreme Court ruled in
McMillin Albany LLC et al. v. The Superior Court of Kern County, (1/18/2018) 4 cal. 5th 241, that California’s Right to Repair Act, California Civil Code sections 895 et seq. (“Act”) is the sole remedy for construction defect claims for economic loss and property damages regarding new residential construction. The Act establishes a pre-litigation dispute resolution process that must be followed before filing a construction defect action for new residential construction purchased after January 1, 2003. The Act provides a builder with the right to attempt to repair construction defects before litigation is filed.
The
McMillin ruling resolved a split among two court of appeal decisions regarding the scope of the Act:
Liberty Mutual Insurance Company v. Brookfield Crystal Cove LLC (2013) 219 Cal.App.4th 98 and
Burch v. Superior Court [(2014) 223 Cal.App.4th 1411. Those cases held that the Act is not the exclusive remedy for construction defect lawsuits that allege property damage arising from new residential construction. Therefore owners of new residential construction where construction defects had caused property damage were not required to proceed under the Act and instead could proceed with common law claims.
McMillilin removes that option.
Read the court decisionRead the full story...Reprinted courtesy of
Mark Johnson, Snell & WilmerMr. Johnson may be contacted at
majohnson@swlaw.com
Federal Subcontractor Who Failed to Follow FAR Regulations Finds That “Fair” and “Just” are Not Synonymous
April 22, 2019 —
Garret Murai - California Construction Law BlogInscribed over the doors of the U.S. Supreme Court are the words “Equal Justice Under Law.” It’s a reminder that judicial decisions should be just. That doesn’t necessarily mean fair.
In Aspic Engineering and Construction Company v. ECC Centcom Constructors, LLC, U.S. Court of Appeals for the 9th Circuit, Case No. 17-16510 (January 28, 2019), the 9th Circuit overturned an arbitration decision in favor of a local Afghani subcontractor seeking termination costs after it was terminated for convenience by a U.S.-based general contractor. This, despite the arbitrator’s finding that the subcontract was “clearly drafted to give every advantage to” the general contractor, that the local Afghani subcontractor’s “experience with government contracting [was] not nearly as extensive as that of” the general contractor, and “that the normal business practices and customs of subcontractors in Afghanistan were more ‘primitive’ than those of U.S. subcontractors experienced with U.S. Government work.”
Aspic Engineering and Construction
Local Afghani subcontractor Aspic Engineering and Construction Company was awarded two subcontracts by ECC Centcom Constructors the general contractor on two projects in Afghanistan overseen by the United States Army Corps of Engineers. The first subcontract involved construction of various buildings in the Badghis province of Afghanistan . The second subcontract involved the construction various buildings Sheberghan province of Afghanistan . Both subcontracts included clauses from the Federal Acquisition Regulation (FAR), which were incorporated by reference, and included flow-down provisions obligating Aspic to ECC in the same manner that ECC was obligated to the U.S. government.
Read the court decisionRead the full story...Reprinted courtesy of
Garret Murai, Wendel RosenMr. Murai may be contacted at
gmurai@wendel.com
Los Angeles Could Be Devastated by the Next Big Earthquake
October 15, 2013 —
CDJ STAFFA group of scientists have made a list of about 1,500 concrete buildings in Los Angeles which could potentially collapse in an earthquake. They have offered to make the list available to Los Angeles officials, although the city has yet to take them up on the offer. In response, a group of Times reporters combed through records to identify which buildings were of the sort most likely to collapse in an earthquake. The group found more than 1,000 concrete buildings built before 1976 when Los Angeles increased the requirements for steel rebar.
Experts estimate that in a major earthquake, five percent of these buildings could collapse, which for Los Angeles would mean about 50 buildings. Many of these buildings could be seismically retrofitted, but the article notes that a retrofit starts with a $100,000 structural study. Carol Schatz of the Central City Association notes that the cost of retrofitting “would be greater than the value of the building.”
Read the court decisionRead the full story...Reprinted courtesy of
Why Employees Are Taking Ownership of Their Architecture Firms
January 22, 2024 —
Kriston Capps - BloombergThe architecture firm BNIM has always been a leader on sustainable design. In the late 1980s, principal emeritus Bob Berkebile was one of the first architects to push the industry to take the idea of green buildings seriously. Then-President Bill Clinton even recruited him to lead a climate-minded restoration of the White House. Berkebile and his Kansas City, Missouri–based firm — he’s the “B” in BNIM, alongside Tom Nelson, David Immenschuh and Steve McDowell — received top honors from the American Institute of Architects in 2011, among many other accolades.
Now the firm behind such projects as the US Embassy expansion in Kampala, Uganda, and a proposed South Loop park to deck over a highway in downtown Kansas City hopes to stand out in another way. In October, BNIM announced its transition to an employee stock ownership plan, or ESOP. The firm is one of a handful in the industry to recently embrace the employee-ownership model, following similar moves in 2021 by SHoP Architects and Zaha Hadid Architects.
Read the court decisionRead the full story...Reprinted courtesy of
Kriston Capps, Bloomberg