Attorney Writing Series on Misconceptions over Construction Defects
June 28, 2013 —
CDJ STAFFMark Wiechnik, a litigation partner at Herrick, Feinstein LLP, has started a seven-part series in which he looks at the misconceptions homeowner board members have when they’re facing construction defect lawsuits. He opens by setting the scene of unit owners “complaining of leaks, roof problems, mold and myriad of other issues”, but conflicting views on what to do about them. In his series, he looks at some of the most common mistaken assumptions and discusses how board members should respond.
Wiechnik’s first misconception examined is the claim that “we should file a homeowners warranty claim right away!” He notes that this is “rarely a good idea,” since if the building is more than two years old, the warranty will only be worthwhile if the building is near collapse. He also notes that once you file a warranty claim, “the association is precluded from ever filing a lawsuit on that issue.”
Additionally, Wiechnik points out that filing a warranty claim puts everything into the hands of an arbitrator, who gets control of the whole process and whose decision is final, whether the association is happy with the results. Further, he notes, “the program favors builders and contractors over the homeowners.”
In his second section, he looks at the fears that if the developer is bankrupt, there is no point is suing. Here he notes that the money for repairs does not come from the developer, but “from the developer’s and subcontractor’s insurance carriers.”
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Claims against Broker for Insufficient Coverage Fail
May 10, 2021 —
Tred R. Eyerly - Insurance Law HawaiiAfter a coverage dispute for damage caused by Hurricane Harvey was settled, the insured's claims against its insurance broker for providing insufficient coverage were dismissed. Hitchcock Indep. Sch. Dist. v. Arthur J. Gallagher & Co., 2021 U.S. Dist. LEXIS 57452 (S.D. Texas Feb. 26, 2021).
The School District suffered $3.5 million in property damage after Hurricane Harvey struck. Its insurers denied coverage and the School District sued. During the litigation, the School District learned that the policies contained an arbitration clause and a New York choice of law provision. Rather than pursue its claims in arbitration, the School District settled with its insurers and sued its broker for failing to obtain insurance without arbitration or choice of law provisions. The broker moved to dismiss
The School District claimed that it had to settle with the insurers for less than what it would have settled had the arbitration and choice of law provisions not been in its policies. The court found this novel theory to be based upon pure speculation
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
A Year-End Review of the Environmental Regulatory Landscape
January 11, 2022 —
Anne Idsal Austin & Joel Simon - Gravel2Gavel Construction & Real Estate Law BlogOur guest today is Anne Idsal Austin, a nationally recognized environmental lawyer who has held several high-profile federal and state regulatory roles. As a partner who recently joined Pillsbury’s environmental and natural resources practice, she provides strategic consulting and policy advice, helping clients navigate the dynamic regulatory and legal waters in an era of energy transition, decarbonization and an emphasis on ESG principles. Prior to joining Pillsbury, Anne was the Principal Deputy Assistant Administrator for the U.S. Environmental Protection Agency’s Office of Air and Radiation, known as OAR or OAR, where she had primary oversight over United States clean air policy and regulation. Prior to that, she served as the EPA regional administrator for Region 6, overseeing all federal environmental programs in Texas, Louisiana, New Mexico, Oklahoma and Arkansas. Prior to joining EPA, Anne held several positions where she shaped environmental and energy policy at the highest levels of government in the state of Texas. Welcome to our podcast, Anne.
Anne Austin: Thanks so much. It’s great to be here today, Joel.
Joel Simon: Anne, I’m really excited for this chance to speak with you because there’s so much going on at the federal environmental policy level, and it would be great to have someone really knowledgeable present this to us in an organized fashion. So with that minor task ahead of you, could you start us off with a brief overview of the environmental regulatory landscape?
Reprinted courtesy of
Anne Idsal Austin, Pillsbury and
Joel Simon, Pillsbury
Ms. Austin may be contacted at anne.austin@pillsburylaw.com
Mr. Simon may be contacted at joel.simon@pillsburylaw.com
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Luxury Homes Push City’s Building Permits Past $7.5 Million
December 30, 2013 —
CDJ STAFFThe city of Ardmore, Oklahoma is seeing a building boom with the total value of building permits issued by the city in November slightly exceeded $7.5 million, reports Ardmoreite.com. Most of that total comes from residential construction, with the bulk of it coming from just three homes. While Lance Windel Construction plans on building 46 homes, the top value of those homes will be $153,000. The total value for the homes being built by three other firms is more $6.4 million, and those contractors are building just one home each.
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Concerns Over Unstable Tappan Zee Bridge Push Back Opening of New NY Bridge's Second Span
October 02, 2018 —
The New York Daily News - Engineering News-RecordSept. 08 --Big bridge, big scissors, big problems.
A day after an elaborate ribbon-cutting ceremony, the grand opening of the second span of the new Gov. Mario M. Cuomo bridge was postponed over concerns that the remains of the "destabilized" and "dangerous" Tappan Zee Bridge could collapse.
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Engineering News-RecordENR may be contacted at
ENR.com@bnpmedia.com
Pending Home Sales in U.S. Increase Less Than Forecast
October 29, 2014 —
Michelle Jamrisko – BloombergThe number of contracts to buy existing homes rose less than forecast in September, signaling demand will probably plateau heading into the end of 2014.
The pending home sales index increased 0.3 percent after dropping 1 percent in August, the National Association of Realtors said today in Washington. The median projection in a Bloomberg survey of economists called for a 1 percent gain.
Home resales have yet to regain last year’s peak as still-tight credit and low inventories remain hurdles for the industry, which means residential real estate will make a limited contribution to the expansion. The recent drop in mortgage rates and pickup in hiring will probably help underpin demand, even as first-time buyers struggle to enter the market.
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Michelle Jamrisko, BloombergMs. Jamrisko may be contacted at
mjamrisko@bloomberg.net
Determining Occurrence for Injury Under Commercial General Liability Policy Without Applying “Trigger Theory”
July 19, 2021 —
David Adelstein - Florida Construction Legal UpdatesOftentimes an occurrence in a commercial general liability policy is defined as “an accident, including continuous or repeated exposure to substantially the same general harmful conditions.” It is this occurrence that causes the bodily injury or property damage that may be covered by the policy.
An interesting non-construction case determined an occurrence under a commercial general liability policy occurred when the negligent act occurred irrespective of the date of discovery or the date the claim was discovered or asserted. See Certain Underwriters at Lloyd’s, London Subscribing to Policy No. J046137 v. Pierson, 46 Fla.L.Weekly D1288c (Fla. 4thDCA 2021). This is interesting because the appellate court did NOT apply a “trigger theory” to first determine the occurrence’s policy period. The appellate court found it did not need to determine which “trigger theory” applied to determine the occurrence for the injury and relied on a cited case: “trigger theories are generally used in the context of deciding when damage occurred ‘in cases involving progressive damages, such as latent defects, toxic spills, and asbestosis’ because the time between the ‘injury-causing event (such as defective construction, a fuel leak, or exposure to asbestos), the injury itself, and the injury’s discovery or manifestation can be so far apart.” Pierson, supra, citing and quoting Spartan Petroleum Co. v. Federated Mut. Ins. Co., 162 F.3d 805, 808 (4th Cir. 1998).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Bertha – The Tunnel is Finished, but Her Legacy Continues
September 28, 2017 —
John P. Ahlers - Ahlers & Cressman PLLCThe Tunnel Boring Machine (“TBM”) known as “Bertha,” built by Hitachi Zosen Corp in Osaka, Japan, was the world’s largest TBM at 57.5 ft. in diameter. The TBM was built to drill the Seattle SR 99 Viaduct replacement tunnel. Seattle Tunnel Partners (“STP”) has a contract with the Washington State Department of Transportation (WSDOT) to dig the two-mile tunnel which is now complete.
In December of 2013, tunneling was stopped ostensibly because a 119 ft.-long, eight-inch diameter steel well casing halted the TBM. See 2/15 Blog “Bertha is Stuck and She Remains Mired in Controversy.” Reports are that WSDOT installed the pipe in 2002 to measure groundwater levels and the pipe was allegedly mentioned in the reference material provided to bidders. STP had assumed that the pipe had been removed until the steel casing got stuck in Bertha’s cutting teeth, halting progress. See 1/30/14 Blog “Big Bertha Stuck: Differing Site Condition Principles Revisited.” STP had a design-build contract with WSDOT. The contract contains a Differing Site Conditions (“DSC”) clause pursuant to which if the contractor can prove that the eight-inch pipe was an unforeseen condition (not disclosed in the contract documents), and that the unforeseen condition caused the TBM’s failure, STP is entitled to an equitable adjustment of its contract.
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John P. Ahlers, Ahlers & Cressman PLLCMr. Ahlers may be contacted at
jahlers@ac-lawyers.com