Hawaii Supreme Court Finds Subcontractor Has No Duty to Defend Under Indemnity Provision
July 14, 2016 —
Tred R. Eyerly – Insurance Law HawaiiThe Hawaii Supreme Court vacated the decision of the Intermediate Court of Appeals [see prior post here] and determined that a subcontractor did not have a duty to defend the developer upon tender under an indemnify provision in the parties' contract. Arthur v. State of Hawaii, 2016 Haw. LEXIS 155 (June 27, 2016).
A simplified version of the detailed facts and procedural history follows. The case involved the wrongful death of Mona Arthur. Mona typically gardened on the hillside behind her home. She would cross a concrete drainage ditch and climb over a two-foo-high chain length fence to reach the hillside.
Mona was found lying in a concrete ditch with severe head injuries, which ultimately led to her death. Her husband and estate sued for her wrongful death. Claims were asserted for negligence in failing to build a fence higher than two feet, which would have prevented Mona from having access to the garden. Defendants included the Department of Hawaiian Home Lands; Kamehameha Investment Corporation ("KIC"), the developer; Design Partners, Inc., the architect; Coastal Construction Company, the general contractor; and Sato and Associates, the civil engineer. The second amended complaint sought punitive damages against KIC.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Why Ethiopia’s $5 Billion Dam Has Riled Its Neighbors
September 12, 2022 —
Samuel Gebre & Fasika Tadesse - BloombergEthiopia has been at loggerheads with downstream neighbors Egypt and Sudan for years over a $5 billion mega-dam it’s building on the Nile River. A third phase of filling a 74 billion cubic-meter (2.6 trillion cubic-foot) reservoir behind the Grand Ethiopian Renaissance Dam was completed in August, a process that’s reignited tensions. Egypt has described the unilateral action as a violation of international law and its foreign minister, Sameh Shoukry, wrote to the United Nations Security Council in July, reiterating its objections and accusing Ethiopia of derailing attempts to resolve the standoff.
1. Why is the dam so significant?
The Nile is the most important source of fresh water in a largely arid region that is very vulnerable to drought and climate change and is experiencing rapid population growth. Egypt relies on the 4,000-mile-long river for as much as 97% of its supply, and much of eastern Sudan’s population depends on it for survival. Ethiopia is counting on a 5,150-megawatt hydropower plant on its new dam to help supply electricity to the 60% of its population that don’t have access, and sustain its manufacturing industries. The plant began generating power in 2022, some of which will be sold to neighboring countries.
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Samuel Gebre, Bloomberg and
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Reasons to Be Skeptical About a Millennial Homebuying Boom in 2016
December 10, 2015 —
Patrick Clark – BloombergPredicting whether millennials are finally going to start buying homes in large numbers has become a seasonal sporting event for real estate experts (also something resembling a periodic parental nag). There's good reason for the abiding fixation. Millennials are the largest generation in the U.S. labor force and something akin to guppies in the housing market food chain: When a first-time buyer moves into an entry-level house, it lets the sellers upgrade. But they've been held back by housing price increases that outpace wage hikes, not to mention limited access to credit, and rising rents that make it harder to save for a down payment.
Will next year be the year that millennials1 finally satisfy builders and real estate agents (not to mention mom and dad) by making their presence felt in the housing market? Yes, but not to the degree that many might hope.
Millennials will make up the largest share of homebuyers in 2016
This is more of a demographic inevitability than a prediction. Historically, the largest share of U.S. homebuyers have been between 25 and 34 years old. Millennials will buy one out of three homes in 2016, predicts Jonathan Smoke, chief economist for Realtor.com, a small uptick from this year. If you prefer your glass half empty, though, Zillow Chief Economist Svenja Gudell thinks the median age of first-time home buyers will hit a new high next year. In either case, Americans will continue the trend of buying their first homes later in life than they did in past decades, as the chart below shows—likely due to some mix of wage stagnation, rising housing costs, and a tendency to start families later in life.
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Patrick Clark, Bloomberg
Hong Kong Property Tycoon Makes $533 Million Bet on Solar
April 02, 2014 —
Ehren Goossens and Benjamin Haas - Bloomberg NewsA Hong Kong real-estate tycoon has spent the past year accumulating stakes in failing solar companies, piecing together what may become the biggest collection of photovoltaic factories in the world.
Zheng Jianming, also known in Cantonese as Cheng Kin Ming, has spent or pledged about $533 million to buy assets that at their peak were worth almost $20 billion, according to regulatory filings in the U.S. and Hong Kong, where he has a home and office.
The transactions, if completed, would transform Zheng, a newcomer to the solar industry, into one of its most powerful leaders. Another Zheng solar investment in 2012, a 30 percent stake in Shunfeng Photovoltaic International Ltd. (1165), has surged more than 2,900 percent and is now worth more than $745 million.
Mr. Goossens may be contacted at egoossens1@bloomberg.net; Mr. Haas may be contacted at bhaas7@bloomberg.net
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Ehren Goossens and Benjamin Haas, Bloomberg News
Complying With Data Breach Regulations in the Construction Industry
November 24, 2019 —
Ryan Bilbrey - Construction ExecutiveRecent data breach incidents—like the massive Capital One cyberattack, where a former employee accessed more than 100 million customer accounts and credit card applications—have left many users questioning how safe their information really is in the hands of companies.
There is reason to be concerned. More than 4.1 billion records were exposed in nearly 4,000 data breaches reported in the first half of 2019 alone, according to the 2019 MidYear QuickView Data Breach Report. Construction companies are not immune.
As the industry becomes more reliant on technology—using augmented reality, Building Information Modeling and drones on construction sites, for example—construction companies are becoming greater targets for hackers looking to gain a financial or strategic advantage.
Instead of assuming a company will never experience a breach (or rather, denying that it will ever happen), it’s important to be aware of possible threats and establish data breach response policies to minimize potentially catastrophic fallout.
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Ryan Bilbrey, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Bilbrey may be contacted at
rbilbrey@biaprotect.com
Small to Midsize Builders Making Profit on Overlooked Lots
March 26, 2014 —
Beverley BevenFlorez-CDJ STAFFTeresa Burney and John Caulfield writing in Big Builder discussed how many small to mid-size firms are making profits off of lots overlooked by the big building firms. They stated that “builders are scouring the country for land to meet the new housing demand, and they are having trouble finding good lots in the right place at the right price. This is particularly true for small to mid-size builders.”
While the number of finished lots may be up, Burney and Caulfield declared that “the numbers are deceptive because roughly 25 percent of them are in what Metrostudy, BUILDER’s research company, describes as ‘D’ and ‘F’ locations—places so undesirable that nobody wants to live there.”
Strategies that builders have tried with success, according to Big Builder, include looking for older communities that local builders have forgotten, or choosing a lot that needs more work than most builders would want to deal with. “We are kind of a savior for developers with troublesome leftover lots,” William H. Hoover, president of Texas-based Inland Homes, told Big Builder. “You have got some ugly lots, let us come and finish out your community.”
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ASCE Statement on The Partial Building Collapse in Surfside, Florida
June 28, 2021 —
Tom Smith - American Society of Civil EngineersThe following is a statement by Tom Smith, Executive Director, American Society of Civil Engineers (ASCE):
WASHINGTON, DC. – We are saddened by the tragic news coming out of Surfside, Florida, regarding the fatal partial building collapse of a condominium early Thursday morning. Safety is the top priority of every civil engineer, and protecting public health and safety is core to our mission at ASCE. We share our deepest condolences to all of those affected by this tragedy.
Collapses like these are fortunately highly unusual and extremely rare. However, it is imperative to identify the root cause of failures when they do occur, and to ensure that proactive steps are taken to prevent future incidents. ASCE fully supports the need for continued engineering assessments to pinpoint the cause of the collapse, and we stand ready to support official investigations with technical expertise and advice available through our 150,000 civil engineer members worldwide.
While rescue and recovery operations are underway, it is important that we support our first responders who are conducting essential rescue efforts and are operating as quickly as possible. We will also continue to keep those who have been injured and those who have not yet been accounted for in our hearts and thoughts, and we share our heartfelt sympathies to all of those affected.
ABOUT THE AMERICAN SOCIETY OF CIVIL ENGINEERS
Founded in 1852, the American Society of Civil Engineers represents more than 150,000 civil engineers worldwide and is America's oldest national engineering society. ASCE works to raise awareness of the need to maintain and modernize the nation's infrastructure using sustainable and resilient practices, advocates for increasing and optimizing investment in infrastructure, and improve engineering knowledge and competency. For more information, visit www.asce.org or www.infrastructurereportcard.org and follow us on Twitter, @ASCETweets and @ASCEGovRel.
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Incorporation by Reference in Your Design Services Contract– What Does this Mean, and Are You at Risk? (Law Note)
June 19, 2023 —
Melissa Dewey Brumback - Construction Law in North CarolinaHas an Owner ever asked you to sign his contract before you started work on a new design project? Rhetorical question– this happens all the time, right? Especially in commercial work, developers or owners typically are not happy to simply agree to your Proposal for Services, but instead want you to sign *their* contract.
There are some risks with that you should be aware of — one of which is the seemingly arcane and legalistic language that reads something like this:
“The Developer’s contract with Owner is hereby incorporated by reference.”
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Melissa Dewey Brumback, Ragsdale LiggettMs. Brumback may be contacted at
mbrumback@rl-law.com