Consider Arbitration Provision in Homebuilder’s Warranty and Purchase-and-Sale Agreement
November 18, 2024 —
David Adelstein - Florida Construction Legal UpdatesWhen you enter into a contract with a homebuilder, particularly a tract homebuilder, please consider two things when it comes to dispute resolution: (1) your purchase-and-sale agreement likely contains an arbitration provision, and (2) your limited warranty agreement you get in connection with closing likely also reinforces the arbitration provision, especially with warranty claims governed by the limited warranty agreement. This dispute resolution is important because it means the homebuilder wants disputes resolved through the arbitration process and NOT through the litigation process (where the nature of disputes and allegations are public).
Look, there are pros and cons with arbitration, no different than litigation. Arbitrating a dispute is not necessarily a bad thing, and with certain disputes, ideal. There is no right to appeal in arbitration, but the dispute should resolve itself quicker than litigation, and you’ll have more control over the decision maker, i.e., the arbitrator.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Philadelphia Voters to Consider Best Value Bid Procurment
May 10, 2017 —
Wally Zimolong - Supplemental ConditionsMy friend and colleague,
Chris McCabe, recently
published an opinion piece on Philly.com concerning the May 16 ballot question that asks Philadelphia voters to approve a change in the way Philadelphia awards public contracts.
Currently, Philadelphia, like all municipalities in Pennsylvania, uses an objective lowest responsible bidder standard in the award of public contracts. Under this approach, public contracts must be awarded to a bidder that responds to all of the criteria of the request for bids and offers the lowest price. Under this traditional approach the award of public contracts is completely transparent.
The May 16 ballot initiative seeks to change this. If approved, Philadelphia could award public contracts using a host of subjective factors. What those factors would be are unknown because the policies are not yet written.
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Wally Zimolong, Zimolong LLCMr. Zimolong may be contacted at
wally@zimolonglaw.com
Toll Brothers Climbs After Builder Reports Higher Sales
February 26, 2015 —
John Gittelsohn – Bloomberg(Bloomberg) -- Toll Brothers Inc., the largest U.S. luxury-home builder, rose the most in a year after the company reported a higher-than-expected quarterly profit and said it sold more properties at higher prices.
Net income for the three months through January was $81.3 million, or 44 cents a share, compared with $45.6 million, or 25 cents, a year earlier, the Horsham, Pennsylvania-based builder said in a statement Tuesday. The average of 14 estimates was for 28 cents a share, according to data compiled by Bloomberg.
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John Gittelsohn, BloombergMr. Gittelsohn may be contacted at
johngitt@bloomberg.net
Developer Transition - Maryland Condominiums
June 21, 2017 —
Nicholas D. Cowie - Maryland Condo Construction Defect Law BlogINTRODUCTION
“Developer transition” is the process by which the governance of a condominium association is transferred from developer to unit owner control. This article provides a brief overview of the legal requirements that govern the developer transition process for Maryland condominiums. This article also as well as a “transition checklist” for transitioning unit owner-controlled boards of directors.
PERIOD OF DEVELOPER CONTROL
A developer initially controls an association because it owns all unsold units in the newly created condominium community. As such, the developer has the controlling votes associated with majority ownership and can appoint its own employees as the initial members of the board of directors and thereby control how the condominium association conducts its affairs. This is referred to as the “period of developer control,” during which the developer makes all decisions on behalf of the association.
The developer also creates an association’s governing documents, allowing it to dictate, subject to applicable law, the procedures and time periods under which control over the association’s board of directors will eventually be transferred to the homeowners.
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Nicholas D. Cowie, Cowie & Mott, P.A.Mr. Cowie may be contacted at
ndc@cowiemott.com
“Unwinnable”: Newark Trial Team Obtains Unanimous “No Cause” Verdict in Challenging Matter on Behalf of NYC Mutual Housing Association
May 15, 2023 —
Lewis BrisboisNewark, N.J. (May 8, 2023) – Newark Partner Afsha Noran and New Jersey Managing Partner Colin P. Hackett recently obtained a “no cause” verdict on behalf of multi-unit apartment owners and managers, notwithstanding that the trial judge initially deemed the matter an “unwinnable case” for the defense.
In this matter, Lewis Brisbois represented a large New York City mutual housing association that owned and managed a single multi-unit apartment building in Paterson, New Jersey. The plaintiffs – a mother and her two children – alleged that the housing association failed to maintain the property, which led to defective conditions and mold throughout their apartment. They further contended that the mold caused multiple pulmonary, nasal, and skin injuries. Despite
the shortage of trial judges in New Jersey, this case proceeded to trial, with the plaintiffs’ significant six-figure demand in place.
Over the course of the four-day trial, the plaintiffs presented five witnesses: the plaintiff mother, the plaintiff 18-year-old child, the liability expert, and two medical experts. The client chose not to retain either liability or damages experts to counter those of the plaintiffs. As such, Lewis Brisbois’ trial team was left to defend the matter with an opening statement, a cross-examination of the plaintiffs and their experts, the testimony of the client’s property manager, and a closing argument.
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Lewis Brisbois
Tennessee Looks to Define Improvements to Real Property
January 27, 2020 —
Lian Skaf - The Subrogation StrategistFor subrogation practitioners dealing with an installation-based statute of repose, knowing what is an improvement to real property is the first battle in what can, but does not have to be, a long fight. Like many other states, Tennessee’s statute of repose bars claims based on improvements to real property. Tennessee’s statute of repose runs four years after substantial completion of the improvement. See Tennessee Code Ann. § 28-3-202. In the case of Maddox v. Olshan Found. Repair & Waterproofing Co. of Nashville, L.P., E A, 2019 Tenn.App. LEXIS 464, 2019 WL 4464816, the Court of Appeals of Tennessee examined whether or not the work done by the defendant, Olshan Foundation Repair & Waterproofing Co. of Nashville, L.P., E.A. (Olshan) — which addressed bowing walls, cracks in the foundation and walls and water intrusion — qualified as improvements to real property for the purposes of the statute of repose. The court held that the work by Olshan essentially amounted to repairs, and did not qualify as improvements to real property.
In Maddox, the plaintiff, Rachel Maddox (Maddox), noticed cracking in her home in 2005 and hired Olshan to assess the issue and conduct necessary repairs. Olshan made several recommendations and the parties agreed on Olshan’s proposal for the price of $27,000. From their initial work in 2005 until late 2011, Olshan visited the property several times to address ongoing structural issues with the home. Eventually, eight months after Olshan told Maddox they could not fix the house and failed to return her phone calls, Maddox filed suit, alleging fraud against the company.
After a three-day bench trial, the trial court found in favor of the plaintiff for $187,000, plus $15,0000 in punitive damages. Among other holdings, the court rejected Olshan’s statute of repose defense. Olshan appealed, raising the statute of repose issue again.
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Lian Skaf, White and Williams LLPMr. Skaf may be contacted at
skafl@whiteandwilliams.com
A General Contractor’s Guide to Additional Insured Coverage
August 10, 2017 —
Gregory D. Podolak - Saxe Doernberger & Vita, P.C.LAW360.com recently surveyed attorneys to offer tips for what general contractors should – and shouldn’t – do when pursuing additional insured coverage. According to the article, “With the broad array of risks present on a typical construction site, one of a general contractor’s top options to shield itself from liability for property damage and bodily injury claims is to secure expansive “additional insured” coverage through its subcontractors.”
In the piece, Greg Podolak discussed techniques for avoiding potential gaps in coverage:
“Carriers will try to say in the additional insured endorsement that they will only be responsible to provide limits for what is required in the trade contract,” said Greg Podolak, managing partner of Saxe Doernberger & Vita PC’s southeast office. “If it turns out the trade contract requires lower limits than the policy, the insurer will likely say it only wants to be responsible for those lower limits.”
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Gregory D. Podolak, Saxe Doernberger & Vita, P.C.Mr. Podolak may be contacted at
gdp@sdvlaw.com
Carin Ramirez and David McLain recognized among the Best Lawyers in America© for 2021
March 15, 2021 —
Colorado Construction Litigation BlogHiggins, Hopkins, McLain & Roswell is pleased to announce that Carin Ramirez and David McLain were recently selected by their peers for inclusion in The Best Lawyers in America© for 2021. Carin Ramirez has been recognized for her work in insurance litigation and David McLain has been recognized for his work in construction law.
Carin Ramirez has over 11 years of experience in civil defense litigation with an emphasis on the defense of construction defect lawsuits on behalf of developers, general contractors, and other construction professionals. She also practices in the areas of personal injury defense, premises liability, environmental torts, wrongful death, negligent design, property damage, subrogation claims, contract disputes, bad faith, and commercial litigation. David McLain has over 22 years of experience and is well known for his work in the defense of the construction industry, particularly in the area of construction defect litigation. He is a member of the Executive Committee of the CLM Claims College - School of Construction, which is the premier course for insurance, industry, and legal professionals.
HHMR is highly regarded for its expertise in construction law and the litigation of construction-related claims, including the defense of large and complex construction defect matters. Our attorneys provide exceptional service to individuals, business owners, Fortune 500 companies, and the insurance industry. The firm is experienced in providing legal support throughout trials and alternative dispute resolution such as mediations and arbitrations.
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Higgins, Hopkins, McLain & Roswell