Lien Attaches To Landlord’s Interest When Landlord Is Party To Tenant Improvement Construction Contract
January 03, 2022 —
David Adelstein - Florida Construction Legal UpdatesIf you are a landlord / lessor, then you want to maximize the protections afforded to you under Florida’s Lien Law in Florida Statute s. 713.10. These protections are designed to protect your property from liens for improvements performed by your tenant / lessee. The intent is that if you comply with s. 713.10, then a tenant improvement contractor’s recourse is against the leasehold interest, and NOT against the interest of the real property (or your interest as the landlord / lessor). Needless to say, it is imperative that a landlord / lessor make efforts to comply with this section when a tenant is performing tenant improvements, even when the landlord is contributing money to those improvements.
Section 713.10 provides in material part:
(1) Except as provided in s. 713.12, a lien under this part shall extend to, and only to, the right, title, and interest of the person who contracts for the improvement as such right, title, and interest exists at the commencement of the improvement or is thereafter acquired in the real property. When an improvement is made by a lessee in accordance with an agreement between such lessee and her or his lessor, the lien shall extend also to the interest of such lessor.
(2)(a) When the lease expressly provides that the interest of the lessor shall not be subject to liens for improvements made by the lessee, the lessee shall notify the contractor making any such improvements of such provision or provisions in the lease, and the knowing or willful failure of the lessee to provide such notice to the contractor shall render the contract between the lessee and the contractor voidable at the option of the contractor.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
“Rip and Tear” Damage Remains Covered Under CGL Policy as “Accident”—for Now.
September 01, 2016 —
Michael Lindsay & Luke Mecklenburg – Snell & Wilmer Real Estate Litigation BlogThe Colorado Supreme Court has approved a settlement between the parties to an appeal of the 2012 Colorado Pool Systems v. Scottsdale Insurance Company Court of Appeals case, leaving that ruling intact. The ruling parses a fine line between uncovered costs of repairing defective work and covered costs of damage caused to nondefective work while repairing defective work. This nuanced opinion, which is now established Colorado law, is worth a second look.
In Colorado Pool Systems, Inc. v. Scottsdale Insurance Company, the Colorado Court of Appeals determined that so-called “rip and tear” damage caused by a construction professional to nondefective work while correcting defective work is covered as an “accident” under standard Commercial General Liability insurance language. 317 P.3d 1262 (Colo. App. 2012). A pool company excavated and built a rebar frame in order to construct a pool, but it hired a subcontractor to pour the concrete. An inspector later noticed that some of the rebar was too close to the surface, and the pool company agreed to demolish and replace the pool after an agent of its insurer represented that this loss would be covered. But the agent was wrong, the insurer denied coverage, and litigation ensued.
Reprinted courtesy of
Michael Lindsay, Snell & Wilmer and
Luke Mecklenburg, Snell & Wilmer
Mr. Lindsay may be contacted at mlindsay@swlaw.com
Mr. Mecklenburg may be contacted at lmecklenburg@swlaw.com
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Protect Your Right To Payment By Following Nedd
August 03, 2022 —
Denise Motta - Gordon & Rees Construction Law BlogIn order to preserve your right to payment, you must satisfy the contractual requirements supporting a change order for the increased costs or time due to the delay. The key to the successful presentation of change order claims is educating your team on the following:
1. NOTICE
- Review the change order and notice provisions of your contracts. Make your contract searchable and insert the term “Noti” and look for the items listed below.
- Who: Check the designated representative for notice.
- It may not be the project manager.
- Confirm who can authorize the change order.
- Is owner approval required?
- Ensure that the party approving the change order has authority to do so.
- What: Check for specific information required by the contract.
- Provide ALL information available.
- If certain information is not yet available, state that the information will be provided when available.
- Reserve all rights to amend and submit additional information.
- Request both an increase to the Contract Sum and Contract Time.
- Make the request even if you do not believe the delay or time necessary will cause a significant impact.
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Denise Motta, Gordon Rees Scully Mansukhani, LLPMs. Motta may be contacted at
dmotta@grsm.com
The Contributors to This Blog Are Pleased to Announce That….
November 02, 2017 —
Snell & Wilmer Real Estate Litigation BlogSnell & Wilmer’s Real Estate Litigation Group, which provides the content for The Real Estate Litigation Blog, is pleased to announce that it has been recognized in both the national and metropolitan rankings by U.S. News Media Group and Best Lawyers for the 2018 edition of “Best Law Firms.” We achieved the following rankings:
- National Tier 1: Litigation – Real Estate
- Phoenix (AZ) Tier 1: Litigation – Real Estate
- Utah Tier 1: Litigation – Real Estate
- Colorado Tier 1: Litigation – Real Estate
- Reno (NV) Tier 1: Litigation – Real Estate
- Tucson (AZ) Tier 1: Litigation – Real Estate
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South African Building Industry in Line for More State Support
November 08, 2021 —
Prinesha Naidoo - BloombergSouth Africa’s government is planning more measures to bolster its ailing building industry after banning the use of imported cement on state construction projects.
“Government is undertaking research across a range of construction-related products where there appears to be significant potential for localization,” Stephen Hanival, chief economist at the Department of Trade, Industry and Competition, said in an emailed response to questions. “Further announcements will be made in due course.”
The country’s preferential procurement policy framework enables the department to designate sectors for localization in line with national development and industrial policy goals. While the government has pursued localization since 2014, it has become more strategic since the advent of the pandemic with business, government and labor groups agreeing on an initial list of 42 products and sub-sectors that should be prioritized, Hanival said.
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Prinesha Naidoo, Bloomberg
Wisconsin Supreme Court Holds Fire Damage Resulted from Single Occurrence
November 21, 2018 —
Brian Margolies - TLSS Insurance Law BlogIn its recent decision in Secura Ins. v. Lyme St. Croix Forest Co., LLC 2018 WI 103 (Oct. 30, 2018), the Wisconsin Supreme Court had occasion to consider whether a forest fire that caused damage to several homes and properties should be considered a single or multiple occurrences.
Secura insured Lyme St. Croix Forest Company under a general liability policy. Of relevance was the policy’s $500,000 sublimit of coverage for property damage due to fire arising from logging or lumbering operations, subject to a $2 million general policy aggregate limit. Lyme St. Croix sought coverage under the policy for a fire that resulted from its logging equipment. The fire lasted for three days, burning nearly 7,500 acres and causing damage to numerous homes and businesses.
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Brian Margolies, Traub Lieberman Straus & Shrewsberry LLPMr. Margolies may be contacted at
bmargolies@tlsslaw.com
No Duty to Defend Construction Defect Claims
May 16, 2022 —
Tred R. Eyerly - Insurance Law HawaiiThe court determined the insurer had no duty to defend construction defect claims asserted against the insured. Pa. Nat'l Mut. Cas. Ins. Co. v. River City Roofing, 2022 U.S. Dist. LEXIS 38226 (E.D. Va. March 3, 2022).
Branch Builds, Inc, was the general contractor for Shock Valley View Genesis, LLC ("Genesis") in charge of constructing apartments. River City Roofing was a subcontractor for all roofing, aluminum and composition siding at the project. River City contracted and warranted its materials and work, agreed to indemnify Branch, and agreed to make Branch an additional insured under its CGL policy.
After completion of the project, Genesis reported defects in the construction. The roof, aluminum and composition siding allowed water intrusion and property damage to the apartments. Branch repaired and compensated Genesis for all damage done to the apartments. Branch then sued River City and another subcontractor and demanded judgment of $3,000,000.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Ahlers Cressman & Sleight PLLC Recognized Among The Top 50 Construction Law Firms TM of 2024 by Construction Executive
July 15, 2024 —
Ahlers Cressman & Sleight PLLCACS is proud to announce that it has once again been ranked among The Top 50 Construction Law Firms in the Construction Executive 2023 rankings.
Since its first publication in 2003, Construction Executive magazine has served as the leading source for news, market developments, and business issues impacting the construction industry, and its articles are designed to help owners and top managers run a more profitable and productive construction business.
Construction Executive established the rankings by asking over 600 hundred U.S. construction law firms to complete a survey. Constructive Executive’s data collection includes: 2023 revenues from the firm’s construction practice, the number of attorneys in the firm’s construction practice, percentage of the firm’s total revenues derived from its construction practice, the number of states in which the firm is licensed to practice, the year in which the construction practice was established, and the number of construction industry clients served during the fiscal year 2023.
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Ahlers Cressman & Sleight PLLC