Denver Officials Clamor for State Construction Defect Law
August 20, 2014 —
Beverley BevenFlorez-CDJ STAFFThe 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.”
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Mortgage Interest Rates Increase on Newly Built Homes
April 30, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to the National Association of Home Builders’ (NAHB) Eye on Housing, while the Federal Housing Financing Agency (FHFA) reported a decrease in mortgage interest rates for existing homes, there was an increase in mortgage rates on newly built homes: “The average contract interest rate on conventional mortgages used to purchase newly built homes actually increased in March, from 3.91 to 4.21 percent, reversing an anomalous drop to under 4 percent that occurred in February.”
“The average price and loan size on conventional mortgages used to purchase newly built homes also reversed previous month declines in March,” reported Eye on Housing. “The average price increased 5.4 percent to $427,200—the second highest number on record.”
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Business Interruption Insurance Coverage Act of 2020: Yet Another Reason to Promptly Notify Insurers of COVID-19 Losses
May 25, 2020 —
James Hultz - Newmeyer DillionBusiness interruption coverage stemming from the COVID-19 pandemic is a matter of intense debate. The number of policyholder lawsuits continues to rise sharply and an increasing number of state legislatures are considering laws to specifically address such coverage.
Now, additional proposed legislation at the federal level could completely and definitively resolve the debate in favor of coverage for policyholders.
The Business Interruption Insurance Coverage Act of 2020
On April 14, Congress introduced the Business Interruption Insurance Coverage Act of 2020 (the “Act”) which, if passed, would require insurance companies to cover business interruption losses due to “viral pandemics, forced closures of businesses, mandatory evacuations, and public safety power shut-offs.” The bill further states:
Any exclusion in a contract for business interruption insurance that is in force on the date of the enactment of this Act shall be void to the extent that it excludes losses specified . . . .
The draft legislation also specifies that it preempts state approval of any contrary exclusion and renders such approval “void to the extent that it excludes losses specified.”
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James Hultz, Newmeyer DillionMr. Hultz may be contacted at
james.hultz@ndlf.com
NYT Points to Foreign Minister and Carlos Slim for Collapse of Mexico City Metro
July 11, 2021 —
Amy Stillman - BloombergThe collapse last month of a section of a Mexico City metro line that killed 26 people was likely due to poor construction by Mexican tycoon Carlos Slim’s Grupo Carso while foreign minister Marcelo Ebrard was mayor, according to a New York Times investigation.
Problems were identified in the original construction by Slim’s company Carso Infrastructure and Construction, and the collapse was probably caused by bad welding of the steel studs that served as linchpins of the structure, the report revealed. The job may have been rushed because Ebrard sought to open the subway before his mayoral term ended in 2012, the Times said.
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Amy Stillman, Bloomberg
Recent Supreme Court Decision Could Have Substantial Impact on Builders
January 23, 2023 —
Cassidy Ingram - Ahlers Cressman & SleightOn October 27, 2022, the Washington State Supreme Court issued a decision which could have a substantial impact on the enforceability of contract clauses that require litigation to be commenced within a stated period of time from project completion. In Tadych v. Noble Ridge Construction, Inc.,the Supreme Court held that the contractual one-year statute of limitations for bringing claims against the contractor was substantively unconscionable and reversed the Court of Appeals.
In Tadych, plaintiff owners (the Tadychs) contracted with defendant contractor (Noble Ridge Construction, Inc., or NRC) for the construction of a custom home in 2012. The contract included a one-year claim limitations clause that required claims to be raised within a one year period from project completion and that any claims not raised during the one-year period would be waived. In December 2013, as the project neared completion, the Tadychs met with NRC to identify any outstanding project issues. The Tadychs noted several, including rainwater pools at the landing at the bottom of the stairs and several nicks and cracks on the stucco exterior walls.
The Tadychs moved into the home on April 8, 2014, and the City of Seattle Department of Planning and Development conducted its final site inspection on April 15 and approved the residence for occupancy on April 23. In January or February of 2015, the Tadychs began to notice a shift in their home. In February of 2015, the Tadychs engaged the Construction Dispute Resolution (CDR) to review NRC’s work. CDR raised concerns about the adequacy of the home’s construction and prepared a written report in March 2015 indicating several deviations from the architectural plans and building codes. The Tadychs sent this report to NRC, who assured the Tadychs that NRC’s work followed all requirements and rejected any claims that there were deviations from the plans. The Tadychs continued to notice issues with the home through October 2016.
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Cassidy Ingram, Ahlers Cressman & SleightMs. Ingram may be contacted at
cassidy.ingram@acslawyers.com
U.S. Government Bans Use of Mandatory Arbitration Agreements between Nursing Homes and Residents, Effective November 28, 2016
November 17, 2016 —
Jeffrey M. Daitz & Joseph Vento – Peckar & Abramson, P.C.On September 28, 2016, the Centers for Medicare and Medicaid Services (“CMS”), which is part of the U.S. Department of Health and Human Services, issued a new rule that bans federal funding to any nursing home that requires its residents to enter mandatory pre-dispute arbitration agreements upon admission. The rule prevents nursing homes from forcing residents to submit any disputes concerning care, payment for services, etc., to mandatory binding arbitration rather than to a court.
Mandatory arbitration agreements are frequently used in many types of industries and have been for decades. However, recent eff orts by several consumer advocate groups have sought to curtail the use of mandatory arbitration clauses in industries where the individuals who executed such agreements have little to no bargaining power. According to these groups, nursing home residents are potentially more vulnerable than most to being unwittingly bound by such agreements because of the nature of the admissions process. The new rule is set to take effect on November 28, 2016, and will only apply to agreements entered into after that date.
Reprinted courtesy of
Jeffrey M. Daitz, Peckar & Abramson, P.C. and
Joseph Vento, Peckar & Abramson, P.C.
Mr. Daitz may be contacted at jdaitz@pecklaw.com
Mr. Vento may be contacted at jvento@pecklaw.com
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Maryland Legislation Prohibits Condominium Developers from Shortening Statute of Limitations to Defeat Unit Owner Construction Defect Claims
May 16, 2018 —
Nicholas D. Cowie - Maryland Condo Construction Defect Law BlogNew Maryland legislation prevents developers from shortening the time period within which condominium associations and their unit owner members can assert claims for hidden construction defects in newly constructed condominium communities. The legislation known as HB 77 and SB 258 passed both houses of the Maryland General Assembly and was signed into law by Governor Lawrence J. Hogan on April 24, 2018 (see photo above). Nicholas D. Cowie, Esq. is the author of the legislation, which will be codified as Section 11-134.1 of the Maryland Condominium Act, effective October 1, 2018.
This article discusses how this new legislation ends the practice by which some condominium developers attempted to use condominium documents to shorten the normal statute of limitations in order to prevent condominium associations and their unit owner members from having a fair opportunity to assert their warranty and other legal claims for latent construction defects.
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Nicholas D. Cowie, Esq., Cowie & MottMr. Cowie may be contacted at
ndc@cowiemott.com
Connecticut Supreme Court Again Asked to Determine the Meaning of Collapse
August 20, 2018 —
Tred R. Eyerly - Insurance Law HawaiiFaced with a series of policies, earlier ones which did not define collapse, newer policies which did, the court determined there was a possibility of coverage under the older policies which did not define collapse. Vera v. Liberty Mut. Fire Ins. Co., 2018 U.S. Dist. LEXIS 100548 (D. Conn. June 15, 2018).
Connecticut courts have faced a rash of collapse cases as a result of cement provided to build house foundations by J.J. Mottes Concrete Co. Many basement foundations built with the concrete have shown cracking and other signs of premature deterioration.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com