CAMBRIDGE MASSACHUSETTS BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Texas Supreme Court Rules That Subsequent Purchaser of Home Is Bound by Original Homeowner’s Arbitration Agreement With Builder

May 29, 2023 — Kim Altsuler - Peckar & Abramson, P.C.
In a new opinion Lennar Homes of Texas Land and Construction, Ltd., et al. v. Kara Whiteley, Cause No. 21-0783, 66 Tex. Sup. Ct. J. 8740, issued May 12, 2023, the Texas Supreme Court partially reversed two lower court decisions and held that an arbitration provision contained in the original homeowner’s contract with the builder was binding on a subsequent homeowner. In the decision, the court found that Kara Whiteley—the second owner of the home in Galveston, Texas—was bound to arbitrate her construction defect claims with Lennar by virtue of the doctrine of “direct-benefits estoppel.” The rationale was based on the fact that Whitely was seeking benefits emanating from Lennar’s contract with the original homeowner. The residence in question was first purchased from Lennar in May 2014. Whiteley purchased the home in July 2015. The original contract documents included several arbitration provisions—one in the Purchase and Sale Agreement, one in the Limited Warranty issued by Lennar, and one in the general warranty deed. Whiteley sued Lennar in Galveston County District Court alleging mold growth and other defects at the property. Lennar moved for arbitration and its motion was granted. The parties arbitrated the case and Lennar received an award in its favor. Lennar then moved the District Court to confirm the arbitration award, and Whiteley filed a cross-motion to vacate the award, arguing that Lennar’s original motion to compel arbitration should not have been granted. The District Court agreed with Whiteley, vacating the arbitration award. Lennar appealed. The Court of Appeals affirmed the District Court’s vacatur, and Lennar appealed to the Texas Supreme Court. Read the court decision
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Reprinted courtesy of Kim Altsuler - Peckar & Abramson, P.C.
Ms. Altsuler may be contacted at kaltsuler@pecklaw.com

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Home Prices in 20 U.S. Cities Kept Climbing in January

April 06, 2016 — Victoria Stilwell – Bloomberg
Home values in 20 U.S. cities kept climbing in January, a sign the limited supply of available properties may push prices out of reach for some buyers. The S&P/Case-Shiller index of property values increased 5.7 percent from January 2015, following a 5.6 percent gain in the year ended in December, the group said Tuesday in New York. That matched the median projection of 26 economists surveyed by Bloomberg. Nationally, prices rose 5.4 percent year-over-year. Home values that are rising more quickly than incomes could pose a problem for the housing recovery, as they put purchases out of reach for first-time and low-income buyers. A wider selection of available homes will be needed to help keep price increases in an accessible range. Read the court decision
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Reprinted courtesy of Victoria Stilwell, Bloomberg

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Insurer’s Optional Appeals Process Does Not Toll Statute of Limitations Following Unequivocal Written Denial

September 22, 2016 — Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLP
In Vishva Dev, M.D., Inc. v. Blue Shield of Cal. (No. B270094, filed 8/31/16), a California appeals court confirmed that the unequivocal denial of a claim, in whole or in part, commences the running of the statute of limitations for suit on the claim, notwithstanding the insurer’s offer to reconsider on new or additional evidence. Reprinted courtesy of Christopher Kendrick, Haight Brown & Bonesteel LLP and Valerie A. Moore, Haight Brown & Bonesteel LLP Mr. Kendrick may be contacted at ckendrick@hbblaw.com Ms. Moore may be contacted at vmoore@hbblaw.com Read the court decision
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Designing the Process to Deliver Zero-Carbon Construction – Computational Design in Practice

January 04, 2023 — Peter Debney - AEC Business
Computational Design is generating increasing interest in the construction industry as well as a certain amount of confusion. It is not parametric design; instead it takes parametric design to the next level. It is a set of methods that will define how we design structures over the next decades. With Computational Design, you don’t design the building; you design the automated process to find the best building design. Why use Computational Design? Computational Design is enabling us to create buildings that are far more efficient than we can manage using more traditional methods. Some architects are indeed using it to produce novel building forms, but its great advantage is in helping us towards efficient, zero-carbon construction. Read the court decision
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Reprinted courtesy of Peter Debney, AEC Business

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CGL Coverage Dispute Regarding the (J)(6) And (J)(7) Property Damage Exclusions

April 18, 2023 — David Adelstein - Florida Construction Legal Updates
A new insurance coverage opinion dealing with a commercial general liability’s (CGL) duty to defend involved exclusions commonly known as the (j)(6) and (j)(7) property damage exclusions (and in certain policies known as the (j)(5) and (j)(6) exclusions). These are the exclusions that apply during ongoing operations. Exclusion (l), or the “your work” exclusion, applies post-completion, i.e., it is an exclusion for “property damage” to “your work” included in the “products-completed operations hazard.” Exclusions (j)(6) and (j)(7) in the policy at-issue exclude coverage for property damage to:

(j)(6) That particular part of real property on which any insured or any contractors or subcontractors working directly or indirectly on your behalf are performing operations, if the “property damage” arises out of those operations; (j)(7) That particular part of any property that must be restored, repaired or replaced because “your work” was incorrectly performed on it.

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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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Legal Fallout Begins Over Delayed Edmonton Bridges

June 22, 2016 — Scott Van Voorhis - Engineering News-Record
The project teams for Edmonton’s two problem bridge-replacement projects have put most of their woes behind them—if trips to civil court and possible late-completion penalties are excluded. Read the court decision
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Reprinted courtesy of Scott Van Voorhis, Engineering News-Record
ENR may be contacted with questions or comments at ENR.com@bnpmedia.com

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California’s High Speed Rail Project. Are We Done With the Drama?

October 22, 2014 — Garret Murai – California Construction Law Blog
Proponents of California’s high-speed rail project cleared a major hurdle this past week when the California Supreme Court declined to review a California Court of Appeals ruling which held that the state’s funding plan did not violate Proposition 1A, the voter-approved initiative passed in 2008, which provided initial funding for the project. For those like me who have been following the fits and starts of California’s high-speed rail project, it may be hard to remember how it all got started, and how we got to where we are. California's High-Speed Rail Project California’s high-speed rail project involves the construction of a high-speed passenger rail system running from Northern California to Southern California. The $68 billion system, expected to begin operation in 2029, will initially run from San Francisco to the Los Angeles basin in under 3 hours with train speeds capable of over 200 miles per hour. The system will eventually extend from Sacramento to San Diego covering a distance of approximately 800 miles with up to 24 stations. Read the court decision
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Reprinted courtesy of Garret Murai, Kronick Moskovitz Tiedemann & Girard
Mr. Murai may be contacted at gmurai@kmtg.com

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Soldiers Turn Brickies as U.K. Homebuilders Seek Workers

May 20, 2015 — Neil Callanan – Bloomberg
After 21 years in the British Army that included tours of duty in Afghanistan and Iraq, Ross Wilson was offered a buyout. Britain’s shortage of construction workers allowed him to trade desert sand for muddy building sites in the north of England. Wilson, 38, is working as an apprentice bricklayer for homebuilder Persimmon Plc, which will train more than 300 former soldiers this year because of the country’s shortage of skilled workers. The government formed after next month’s national election will have to urgently address the lack of new homes, according to the Royal Institution of Chartered Surveyors. Persimmon’s Combat to Construction program is the latest effort by the industry to increase output as the shortage sends asking prices to record highs. Read the court decision
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Reprinted courtesy of Neil Callanan, Bloomberg

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