Lennar Profit Tops Estimates as Home Prices Increase
March 26, 2014 —
John Gittelsohn – BloombergLennar Corp. (LEN), the biggest U.S. homebuilder by market value, reported a fiscal first-quarter profit that beat analysts’ estimates as the company sold more homes at increased prices.
Net income climbed to $78.1 million, or 35 cents a share, in the three months through February, from $57.5 million, or 26 cents, a year earlier, the Miami-based company said in a statement today. Analysts expected earnings of 28 cents a share, the average of 17 estimates compiled by Bloomberg.
Publicly traded builders have been increasing prices to take advantage of a tight supply of new and existing homes while using their economies of scale to reduce costs and widen profit margins. Lennar’s profit, deliveries and orders grew even as inclement weather threatened home sales in much of the U.S. during the quarter, according to Drew Reading, a Bloomberg Industries analyst.
“Lennar followed KB Home (KBH) in reporting order trends indicating a strong start to the spring selling season,” Reading said in a note after the earnings were released.
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John Gittelsohn, BloombergMr. Gittelson may be contacted at
johngitt@bloomberg.net
Enforceability of Contract Provisions Extending Liquidated Damages Beyond Substantial Completion
April 15, 2024 —
Stu Richeson - The Dispute ResolverThis post takes a look at the enforceability of contract provisions providing for liquidated delay damages after substantial completion. Typically, the assessment of liquidated delay damages ends at substantial completion of a project. However, various standard form contracts, including some of the ConsensusDocs and EJCDC contracts, contain elections allowing for the parties to agree on the use of liquidated damages for failing to achieve substantial completion, final completion, or project milestones. The standard language in the AIA A201 leaves it up to the parties to define the circumstances under which liquidated damages will be awarded.
Courts are split on the enforceability of provisions that seek to assess liquidated damages beyond substantial completions. Courts in some jurisdictions will not impose liquidated damages after the date of substantial completion on the ground that liquidated damages would otherwise become a penalty if assessed after the owner has put the project to its intended use. Perini Corp. v. Greate Bay Hotel & Casino, Inc., 129 N.J. 479, 610 A.2d 364 (1992). When the terms are clear, other jurisdictions will enforce contract terms providing for liquidated damages until final completion, even if the owner has taken beneficial use of the facility. Carrothers Const. Co. v. City of S. Hutchinson, 288 Kan. 743, 207 P.3d 231 (2009).
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Stu Richeson, PhelpsMr. Richeson may be contacted at
stuart.richeson@phelps.com
White and Williams Obtains Reversal on Appeal of $2.5 Million Verdict Against Electric Utility Company
September 03, 2014 —
Edward Koch, Mark Paladino, Luke Repici, & Andrew Susko – White and Williams LLPPPL Electric Utilities successfully argued on appeal that the $2.5 million plaintiff’s molded verdict awarded to an injured painting subcontractor should be vacated because the alleged evidence was legally insufficient and therefore the utility was not liable.
In Nertavich v. PPL Electric Utilities, the plaintiff argued that although the utility was a landowner out of possession of the worksite, the utility was liable because it controlled the work of the subcontractor both by contract and by conduct. PPL argued on appeal before the Superior Court of Pennsylvania that the alleged evidence of the utility company’s control was insufficient as a matter of law to constitute control over the means and methods of the subcontractor’s work, and thus, PPL was not liable as a landowner out of possession.
Reprinted courtesy of White and Williams LLP attorneys
Edward Koch,
Mark Paladino,
Luke Repici and
Andrew Susko
Mr. Koch may be contacted at koche@whiteandwilliams.com;
Mr. Paladino may be contacted at paladinom@whiteandwilliams.com;
Mr. Repici may be contacted at repicil@whiteandwilliams.com;
and Mr. Susko may be contacted at suskoa@whiteandwilliams.com
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City of Pawtucket Considering Forensic Investigation of Tower
October 08, 2014 —
Beverley BevenFlorez-CDJ STAFFPawtucket, Rhode Island’s mayor, Donald Grebien, has asked their city council to approve “a forensic investigation of the Pawtucket City Hall tower to determine whether the city should sue the contractor that repaired it eight years ago,” the Valley Breeze reported.
Back in 2011, “city officials had been unable to locate a signed contract for the tower project as they sought to hold NER responsible for continued leaking into the structure just five years after the company's $3 million renovation project was complete,” according to the Valley Breeze. “The costs of that project grew to $4.6 million once interest was factored in.”
Documents have recently been discovered that Grebien believes may open the possibility to sue NER.
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Pollution Exclusion Found Ambiguous
May 23, 2022 —
Tred R. Eyerly - Insurance Law HawaiiThe Mississippi Supreme Court found the pollution exclusion ambiguous under the facts presented. Omega Protein, Inc. v. Evanston Ins. Co., 2022 Miss. LEXIS 90 (Miss. March 31, 2022).
Omega Protein, Inc., entered a contract with Ascu-fab to perform welding and other fabrication work at their facility. Accu-fab was required to have CGL coverage naming Omega as an additional insured. Accu-fab purchased a $1 million primer policy from Colony Insurance Company and a $5 million excess policy issued by Evanston Insurance Company.
Accu-fab performed welding and other fabrication work on a large metal storage tank used for the temporary storage of stickwater, which was a liquid composed of water, fish oil, and fish solids. An explosion occurred at the Omega plant while Accu-fab workers were welding and grinding on a large metal tank that was used for the temporary storage of stickwater. One of Accu-fab's workers , Jerry Lee Tayler, was killed, another was seriously injured, and still others suffered less serous injuries.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Nine Haight Attorneys Selected for Best Lawyers®: Ones to Watch 2021
September 14, 2020 —
Haight Brown & Bonesteel LLPNine Haight Brown & Bonesteel LLP attorneys were selected for Best Lawyers®: Ones to Watch 2021. Congratulations to
Courtney Arbucci,
Frances Brower,
James de los Reyes,
Kyle DiNicola,
Arezoo Jamshidi,
Kristian Moriarty,
Beth Obra-White,
Casey Otis and
Kaitlin Preston!
Since it was first published in 1983, Best Lawyers® has become universally regarded as the definitive guide to legal excellence. Best Lawyers lists are compiled based on an exhaustive peer-review evaluation. Almost 94,000 industry leading lawyers are eligible to vote (from around the world), and Best Lawyers has received over 11 million evaluations on the legal abilities of other lawyers based on their specific practice areas around the world. Lawyers are not required or allowed to pay a fee to be listed; therefore inclusion in Best Lawyers is considered a singular honor. Corporate Counsel magazine has called Best Lawyers “the most respected referral list of attorneys in practice.”
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Haight Brown & Bonesteel LLP
Comparative Breach of Contract – The New Benefit of the Bargain in Construction?
October 26, 2020 —
Steven Hoffman - Florida Construction Law NewsAsk most Florida Construction Law practitioners, and you will likely hear that liability may not be apportioned in “pure” breach of contract cases via the Comparative Fault Act, section 768.81, Florida Statutes (the “Act”). If a material breach is a “substantial factor” in causing damages, the breaching party must answer for all damages that were reasonably contemplated by the parties when they formed the contract. Claimants argue that matters of contract should be governed strictly by the agreement, and risk can be controlled by negotiated terms, including waivers and limitations. Defendants complain that construction projects are collaborative, multi-party affairs, and strict application of contract principles leads to harsh results for relatively minor comparative fault for the same or overlapping damages.
The notion of apportioning purely economic loss contract damages based on comparative fault is not new. Since April 2006, Florida has been a “pure” comparative fault jurisdiction with limited exceptions. Prior to the amendment, tort liability for non-economic damages was purely comparative, but liability for economic damages was typically a combination of joint and several liability with an additional exposure based on comparative fault.
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Steven Hoffman, Cole, Scott & KissaneMr. Hoffman may be contacted at
Steven.Hoffman@csklegal.com
Subcontractors Have Remedies, Even if “Pay-if-Paid” Provisions are Enforced
February 19, 2019 —
John P. Ahlers - Ahlers Cressman & Sleight PLLCIn a recent case in Kentucky[1], a sub-tier subcontractor sued the general contractor and owner for failure to pay for extra work. At the trial, the court held the subcontractor was entitled to recover under the theories of implied contracts and unjust enrichment, even though the subcontract contained a “pay-if-paid” clause. All parties appealed. In particular, the general contractor asserted that the pay-if-paid provision in the subcontract precluded recovery by the subcontractor. The issue was petitioned to the Supreme Court of Kentucky.
The question to be resolved by the Supreme Court of Kentucky was whether a pay-if-paid provision was enforceable as between a general contractor and subcontractor, and if so, whether the subcontractor could nevertheless pursue the owner directly for payment notwithstanding a lack of privity between the owner and subcontractor.
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John P. Ahlers, Ahlers Cressman & Sleight PLLCMr. Ahlers may be contacted at
john.ahlers@acslawyers.com