NYC Building Explosion Kills Two After Neighbor Reports Gas Leak
March 12, 2014 —
Michelle Kaske and Henry Goldman, BloombergFifteen minutes after a New York City resident reported the pervasive smell of gas in her East Harlem neighborhood, a massive explosion destroyed two buildings, killing two people and injuring at least 18. Utility workers arrived too late.
The explosion at 1644 and 1646 Park Ave., near 116th Street, reported about 9:30 a.m., was heard miles away and turned into a five-alarm fire. Windows were blown out as far as 10 blocks away, and cars across the street were wrecked. The blast sent debris onto adjacent elevated train tracks, halting commuter rail service in and out of Grand Central Terminal. Minor wounds were too numerous to count, said Frank Gribbon, a spokesman for the New York City Fire Department.
“This is a tragedy of the worst kind,” Mayor Bill de Blasio said during a news conference near the scene. He said residents are still missing from the buildings, which had a total of 15 units, and crews would search for them when the fire is extinguished.
Ms. Kaske may be contacted at mkaske@bloomberg.net; Mr. Goldman may be contacted at hgoldman@bloomberg.net
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Michelle Kaske and Henry Goldman, Bloomberg
Construction Defect Claim not Barred by Prior Arbitration
October 28, 2015 —
Beverley BevenFlorez-CDJ STAFFAccording to Stan Martin of Commonsense Construction Law LLC, the Appellate Court of Connecticut ruled in favor of the owner of a twenty-two building development in a construction defect suit despite the contractor’s objection “that the lawsuit was barred by doctrines of res judicata or collateral estoppel.”
When issues of “construction and alleged defects” arose in 1996, the “contractor eventually filed for arbitration, seeking the contract balance.” The contractor was awarded $82,812.81. During the arbitration, “no claims for defective construction were advanced.”
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Warranty of Workmanship and Habitability Cannot Be Disclaimed or Waived Under Any Circumstance
May 01, 2023 —
Jason Feld & Stephanie Wilson - Kahana & Feld LLPArizona residential construction and single-family home production is growing at a rapid pace. And just as fast as the homes are sold, homeowners are constantly seeking warranty repairs from their homebuilders. Despite having strong purchase documents with express warranty language, the Arizona Supreme Court in
Zambrano v. M & RC, II LLC, 254 Ariz. 53 (2022) adopted a bright line rule that regardless of the contract, the implied warranty of workmanship and habitability (“implied warranty”) cannot be disclaimed or waived under any circumstance. The Arizona Supreme Court opinion provides clear guidance of the law in this area on the scope of the implied warranty in contracts between homebuyers and builder/vendors, specifically on the issue of whether an express warranty can negate and effectively waive the common law implied warranty – which is a definitive violation of public policy.
The Zambrano decision involved a licensed real estate broker who bought a new single family home for herself in a newly constructed master planned community in Surprise, AZ. Zambrano entered into a valid sales contract with Scott Homes (homebuilder) which contained a stand-alone 45-page pre-printed form express warranty. The express warranty was to be the “only warranty applicable to the home.” The contract further clarified that the buyer was expressly disclaiming (and, thus, waiving) the implied warranty. The sales documents and express warranty were signed and authorized by Zambrano. A short time later, the home developed alleged “design and construction defects” that were “either time barred or outside the coverage” of the express warranty. Zambrano filed suit for the alleged defects based on the implied warranty. Scott Homes filed summary judgment based on the Zambrano’s waiver and disclaimer of the implied warranty in the purchase agreement. The trial court granted summary judgment and the matter was appealed up to the Arizona Supreme Court.
Reprinted courtesy of
Jason Feld, Kahana & Feld LLP and
Stephanie Wilson, Kahana & Feld LLP
Mr. Feld may be contacted at jfeld@kahanafeld.com
Ms. Wilson may be contacted at swilson@kahanafeld.com
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Just Because I May Be An “Expert” Does Not Mean I Am Giving Expert Testimony
January 17, 2022 —
David Adelstein - Florida Construction Legal UpdatesOn a construction project, it’s hard to argue that the involved parties — whether an architect, engineer, contractor, subcontractor, developer, etc. — are not experts in their field, i.e., they all some scientific, technical, or specialized knowledge or skill particular to their industry. However, this does NOT mean when they testify in trial, at an arbitration, or at a deposition regarding the construction project they are offering expert opinions / testimony as it pertains to that project. Testifying as to facts based on personal knowledge or involvement on a project makes you a fact witness and is different than evaluating and rending an after-the-fact opinion as to the work of others. This does not minimize your knowledge or expertise; it simply means that relative to the construction project you are involved with, your testimony is that of a fact witness and not of an expert. (It is possible to wear both the fact witness and expert witness hat, but that depends on your subsequent role in the litigation or arbitration.)
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
U.S. Building Permits Soared to Their Highest Level in Nearly Eight Years
June 17, 2015 —
Michelle Jamrisko – BloombergThrough all its ups and downs, the U.S. homebuilding industry is making slow progress.
While housing starts declined 11.1 percent in May to a 1.04 million annualized rate, it followed a revised 1.17 million pace the prior month to cap the best back-to-back readings since late 2007, Commerce Department data showed Tuesday in Washington. Permits for future projects climbed to the highest level in almost eight years.
The stop-and-go nature of the rebound, which has been exacerbated by the inclement weather that brought construction to a near standstill at the start of the year, masks a steady recovery in the industry at the center of the past recession. While residential real estate has yet to fulfill its typical role as a pillar of this economic expansion, gains in hiring and bigger paychecks are brightening Americans’ moods and could lift home purchases in the second half of 2015.
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Michelle Jamrisko, Bloomberg
Slump in U.S. Housing Starts Led by Multifamily: Economy
September 24, 2014 —
Jeanna Smialek – BloombergHousing starts slumped in August from the highest level in almost seven years, reflecting a setback in multifamily projects that are at the forefront of the rebound in U.S. real estate.
Beginning home construction fell 14.4 percent, the most since April 2013, to a 956,000 annualized rate following July’s revised 1.12 million pace that was the strongest since November 2007, the Commerce Department said today in Washington. Work on apartments and condominiums, which tends to be volatile, dropped 31.7 percent after jumping 44.9 percent in July.
As more Americans decide that homeownership isn’t for them because wage growth is slow and qualifying for mortgages remains difficult, builders have focused on putting up more rental units, which means the industry will see bigger swings month to month. The average number of multifamily units started over the past 12 months was the most since 2006.
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Jeanna Smialek, BloombergMs. Smialek may be contacted at
jsmialek1@bloomberg.net
Homebuilders See Record Bearish Bets on Shaky Recovery
June 18, 2014 —
Callie Bost – BloombergSomeone thinks the housing rebound is built on shaky foundations.
A record 180,000 puts traded on the SPDR S&P Homebuilders (XHB) exchange-traded fund on June 11, according to data compiled by Bloomberg. The contract with the highest ownership pays off in the event of a 20 percent slump by December in the ETF tracking stocks from DR Horton Inc. to Williams-Sonoma Inc.
Prospects for rising interest rates and an uneven recovery in the housing market have hurt returns this year, sending the SPDR Homebuilders ETF down 3.3 percent. While economic data yesterday showed that builders broke ground on 1 million U.S. homes in May, permits, a proxy for future construction, decreased because of fewer applications for condominiums and apartment buildings.
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Ms. Bost may be contacted at
cbost2@bloomberg.net
Appeals Court Affirms Carrier’s Duty to Pay Costs Taxed Against Insured in Construction Defect Suit
November 03, 2016 —
Jesse Howard Witt – The Witt Law FirmOne of the key reasons for builders to maintain liability insurance is to cover the cost of hiring defense counsel and paying litigation costs in the event of a construction defect lawsuit. If a builder loses a lawsuit, it will typically be responsible for paying the plaintiff’s litigation costs. Today, the Colorado Court of Appeals clarified that the “supplementary payments” section of a standard Commercial General Liability (CGL) insurance policy covers such costs, even if the carrier has reserved the right to dispute whether it has a duty to indemnify the actual damages awarded. This may seem counter-intuitive, insofar as a carrier may owe costs even if it does not cover the underlying loss, but the court’s decision is consistent with the plain language of the CGL form that most carriers use.
Reprinted courtesy of
Jesse Howard Witt, The Witt Law Firm
Mr. Witt may be contacted at his website www.witt.law
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