Hong Kong Popping Housing Bubbles London Can’t Handle
July 30, 2014 —
Frederik Balfour – BloombergTake a look at the world’s dizzying surges in the price of housing for 12 months at the end of June: London, up 20 percent. Manhattan, 18 percent. Sydney, 15.4 percent.
Then there are Singapore and Hong Kong: down 3.7 percent and 0.6 percent.
Prompted by concerns over potential property bubbles and affordability for the middle class, the governments of the two Asian cities have been reining in home prices by imposing measures including mortgage caps, taxes on property flippers, and levies on foreign buyers as high as 15 percent.
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Frederik Balfour, BloombergMr. Balfour may be contacted at
fbalfour@bloomberg.net
The Construction Project is Late—Allocation of Delay
November 17, 2016 —
David Adelstein – Florida Construction Legal UpdatesThe construction project is late. Very late. The owner is upset and notifies the contractor that it is assessing liquidated damages. The contractor, in turn, claims that the project is late because of excusable, compensable delays and, perhaps, excusable, noncompensable delays. This is a common and unfortunate story between an owner and contractor on any late construction project. Now the fun begins regarding the allocation of the delay!
Through previous articles, I discussed that in this scenario the burden really falls on the contractor to establish that the liquidated damages were improperly assessed against it and, thus, it is entitled to additional time and/or extended general conditions as a result of excusable delays. Naturally, this requires the contractor to develop a critical path analysis (time impact analysis) allocating the impacts / delays (and the reasons for the impacts/ delays) to the project completion date. The reason the burden really falls on the contractor is because the owner’s burden is relatively easy – the project was not complete on time pursuant to the contract and any approved changed orders.
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David Adelstein, Katz, Barron, Squitero, Faust, Friedberg, English & Allen, P.A.Mr. Adelstein may be contacted at
dma@katzbarron.com
Homebuilding Down in North Dakota
October 30, 2013 —
CDJ STAFFOnly eleven new homes have been started this year in the Pierre area in North Dakota. Last year saw 35 homes built in the same area. Brad Lawrence, the Fort Pierre Director of Public Works, blamed last year’s Hurricane Sandy in New Jersey, stating that “superstorm Sandy has just devoured a tremendous amount of building projects.”
Area builders did say that some building materials went up in price after the storm, describing it as an “availability scare,” but some prices went down during the summer of 2013. Susan Ogan, of Neil Ogan Construction said that “our biggest thing is that people cannot find a lot they can afford and still say within their budget for the overall project.”
Although single-family homes aren’t being built, apartments are. “We’ve got a 24-unit apartment going in as we speak,” said Mr. Lawrence. That, some feel, may be responsible for the lack of demand for single-family homes.
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Reminder: Your MLA Notice Must Have Your License Number
November 26, 2014 —
Christopher G. Hill – Construction Law MusingsRemember a couple of years ago when the Virginia mechanic’s lien rules changed to require inclusion of a claimant’s contractor’s license number (where a license is required)? If not, then this is a reminder of that particular wrinkle in the strictly interpreted mechanic’s lien statute. This requirement applies to all mechanic’s lien memoranda and, like all parts of this crazy statute, will invalidate a lien if not met. Well, another change to the statute happened with a bit less fanfare.
The change back in 2013 that came along with the license number requirement for a lien memorandum is a change in the mechanic’s lien agent notice requirement that applies to residential construction. The basic requirement, namely that those performing residential construction must notify any mechanic’s lien agent (“MLA”) listed on a building permit within 30 days of starting work that they are on the job and could file a lien, has not changed. What the amendments to the lien statutes in 2013 added was a requirement that the notice, like a lien memorandum, must include the contractor’s or subcontractor’s license number.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Notice of Completion Determines Mechanics Lien Deadline
August 13, 2019 —
William L. Porter - Porter Law GroupThe California Mechanics Lien is one of the most valuable collection devices available to contractors, subcontractors and suppliers who are unpaid for work performed and materials supplied in relation to a California Private Works project. The mechanics lien allows the claimant to sell the property where the work was performed in order to obtain payment. The process starts with the recording of a mechanics lien in the office of the County Recorder where the property in question is located. As noted below, certain deadlines must be met.
Know Your Mechanics Lien Filing Deadlines Generally
Working within deadlines is absolutely crucial to preserving mechanics lien rights under California law. The deadlines differ, depending on whether you are a ”direct” contractor, also known as “original” or “prime” contractor (one who contracts directly with the property owner) or a subcontractor or material supplier. The primary differences are that, the direct contractor is only required to serve the “Preliminary Notice” on the Construction Lender (Civil Code section 8200-8216), whereas the subcontractor and material supplier must serve not only the Construction Lender, but also the Owner and Direct Contractor (see Civil Code section 8200(e)). Another difference is that a direct contractor has a longer period of time in which to record a mechanics lien after a valid “notice of completion” or a “notice of cessation” has been recorded (Civil Code sections 8180-8190), (60 days for original contractors as compared to 30 days for subcontractors and suppliers – See Civil Code sections 8412 and 8414). A further general description of the rules is as follows:
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William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com
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.
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Kim Altsuler - Peckar & Abramson, P.C.Ms. Altsuler may be contacted at
kaltsuler@pecklaw.com
Environmental Roundup – April 2019
May 06, 2019 —
Anthony B. Cavender - Gravel2GavelBesides showers, this April brought a number of notable new environmental decisions issued by the federal courts. Before your mind turns to May and its flowers, here’s a summary:
1.
DC Circuit. On April 23, 2019, the U.S. Court of Appeals for the DC Circuit decided the case of State of New York, et al. v. EPA. In the Clean Air Act amendments of 1990, the Congress established the Northeast Ozone Transport Region, composed of the states of Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, the District of Columbia and a portion of Virginia. Recently, several of these states requested EPA to expand this region to include the “upwind states” of Illinois, Indiana, Kentucky, Michigan, North Carolina, Ohio, Tennessee, West Virginia, and the remaining portions of Virginia. Doing so would assist the “downwind” states in complying with EPA’s 2008 Ozone standard. EPA rejected this request, which was then appealed to the DC Circuit by the states of Connecticut, Delaware, Maryland, Massachusetts, New York, Pennsylvania, Rhode Island and Vermont. Because of its unique properties, ozone created by emissions in the upwind states can be transported to the downwind states, thus allegedly hampering their ability to cope with EPA ozone standards. The court agreed that EPA has the authority to expand the Northeast Transport Ozone Transport Region, but it also has the ability to exercise its reasonable discretion not to do so. In addition, the agency’s decision to rely instead on the remedies available to it in in the Clean Air Act’s “Good Neighbor” provision was reasonable and adequately justified, and the court accordingly upheld the agency’s decision. The court also noted that other remedies may be available to the downwind states, just not this one.
2.
DC Circuit. The Court also decided on April 23, 2019 the case of Air Transport Association of America v. Federal Aviation Administration. The FAA held that the payments made by the City of Portland’s airport’s utility city charges for offsite stormwater drainage and Superfund remediation was not an “impermissible diversion” of airport revenues or in violation of the “Anti-Head Tax Act,” which is codified at 49 USC Section 40116(b) and which prohibits collecting a tax on persons travelling in air commerce. Here, the charges are assessed against the airport for the use by the airport of the city’s water and sewage services. The Superfund assessment is based on the fact that the Willamette River which runs through downtown Portland could make the city a Superfund potentially responsible party, and the cty is assessing all rate payers—including the airport—a Superfund assessment. The airport is federally funded and is owned and operated by the Port of Portland, and the Port pays a combined sewer, stormwater /water bill with multiple line items including these contested items. The court notes that federal law, in particular 49 USC Section 47107(k)(2), authorizes airport revenues to be used for the operating costs of the airport receiving federal funding, and the FAA could reasonably determine that these general expenses are authorized airport “operating costs” even though the city services are provided outside the boundaries of the airport.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Plaintiff’s Mere Presence in Area Where Asbestos is Present Insufficient to Establish Bystander Exposure
October 21, 2015 —
R. Bryan Martin & Laura C. Williams – Haight Brown & Bonesteel LLPIn Schiffer v. CBS Corporation (filed 9/9/15; modified 9/30/15), the California Court of Appeal, First Appellate District, affirmed summary judgment in favor of the defendant asbestos insulation manufacturer finding plaintiffs failed to present sufficient evidence of bystander exposure.
Plaintiff James Schiffer (“Schiffer”) alleged that while working at the Ginna Gas & Electric power plant in the summer of 1969, he was exposed to asbestos-containing materials during installation of equipment and insulation manufactured by CBS Corporation’s predecessor-in-interest, Westinghouse.
After developing mesothelioma, Schiffer and his wife sued numerous entities, including CBS, which successfully moved for summary judgment on the grounds that Schiffer failed to submit evidence that he was exposed to asbestos-containing materials.
Reprinted courtesy
R. Bryan Martin, Haight Brown & Bonesteel LLP and
Laura C. Williams, Haight Brown & Bonesteel LLP
Mr. Martin may be contacted at bmartin@hbblaw.com
Ms. Williams may be contacted at lwilliams@hbblaw.com
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