Luxury Home Sales are on the Rise
February 04, 2014 —
Beverley BevenFlorez-CDJ STAFFThe New York Times reports that the sale of luxury homes is on the rise: “Yet despite the bursting of the housing bubble, the ensuing recession and the slow recovery, buyers have not abandoned luxury homes. It turns out that they just took a break. In July 2013, sales of homes costing more than $1 million were up 46.6 percent from the previous July.”
“The housing market is being driven by the move-up buyer, the luxury buyer,” Brad Hunter, chief economist and director of consulting at Metrostudy told the New York Times. “And those who have strong incomes, secure jobs, their stock portfolio is doing well — they are able to buy whatever they want. And what they are buying is larger houses.”
Toll Brothers design director, Tim Gehman, said that “the homes that sell best today are those with the biggest kitchens and most expansive master suites — much as they were before the recession,” according to the New York Times.
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The Economic Loss Rule and the Disclosure of Latent Defects: In re the Estate of Carol S. Gattis
January 15, 2014 —
Brady Iandiorio - Higgins, Hopkins, McLain & Roswell, LLCIn a recent case of first impression, the Colorado Court of Appeals determined that the economic loss rule does not bar a nondisclosure tort claim against a seller of a home, built on expansive soils which caused damage to the house after the sale. The case of In re the Estate of Carol S. Gattis represents a new decision regarding the economic loss rule. Because it is a case of first impression, we must wait to see whether the Colorado Supreme Court grants a petition for certiorari.
Until then, we will analyze the decision handed down on November 7, 2013. The sellers of the home sold it to an entity they controlled for the purpose of repairing and reselling the home. Before that purchase, Sellers obtained engineering reports including discussion of structural problems resulting from expansive soils. A structural repair entity, also controlled by Sellers, oversaw the needed repair work. After the repair work was completed, Sellers obtained title to the residence and listed it for sale.
Sellers had no direct contact with Gattis, who purchased the residence from Sellers. The purchase was executed through a standard-form real estate contract, approved by the Colorado Real Estate Commission: Contract to Buy and Sell Real Estate, to which no changes were made. Several years after taking title to the residence, Gattis commenced action, pleading several tort claims alleging only economic losses based on damage to the residence resulting from expansive soils.
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Brady Iandiorio, Higgins, Hopkins, McLain & Roswell, LLCMr. Iandiorio may be contacted at
iandiorio@hhmrlaw.com
High Attendance Predicted for West Coast Casualty Seminar
March 19, 2014 —
Beverley BevenFlorez-CDJ STAFFWith the diverse speakers and topics planned for this year’s West Coast Casualty Seminar in Anaheim, California on May 15th and 16th, attendance should be high. In 2013, there were approximately 1600 attendees coming from across the country as well as the United Kingdom. The event planners recently added additional blocks of rooms, as the Disneyland Hotel has sold out 90% of the previously allotted room blocks. The planners urge attendees to book their rooms soon.
Seminar and panel topics have been announced. Thomas J. Halliwell, Esq. and Barry Vaughan, Esq. will be starting the seminar off with a discussion of “Recent California, Arizona and Nevada Court Decisions that Impact Construction Litigation and Defect Claims.” May 16th will feature a number of interesting break-out sessions including “Working Smarter with Technology” with speakers Brian Kahn, Esq., Paul R. Kiesel, Esq., Hon. Peter Lichtman (ret), Hon. Nancy Wieben Stock (ret), Peter S. Curry and Don MacGregor (Bert L. Howe & Associates, Inc.).
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Connecticut Court Holds Unresolved Coverage Issues Makes Appraisal Premature
July 18, 2018 —
Michael S. Levine, Lorelie S. Masters & Geoffrey B. Fehling – Hunton Insurance Recovery Law BlogA Connecticut court recently denied a motion to compel appraisal of a claim for coverage of a commercial property damage claim, holding that, where the insurance policy at issue provides for appraisal of disputes related to the value or quantum or a loss suffered—not the rights and liabilities of the parties under the policy—appraisal is premature. The decision relied on law that equates insurance appraisal to arbitration and follows a number of decisions holding that parties cannot expand the scope of appraisal clauses to resolve questions of coverage or liability where, as in this case, those issues are not supported by the applicable policy language.
Reprinted courtesy of Hunton Andrews Kurth attorneys
Michael S. Levine,
Lorelie S. Masters and
Geoffrey B. Fehling
Mr. Levine may be contacted at mlevine@HuntonAK.com
Ms. Masters may be contacted at lmasters@HuntonAK.com
Mr. Fehling may be contacted at gfehling@HuntonAK.com
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Does a No-Damage-for-Delay Clause Also Preclude Acceleration Damages?
January 27, 2020 —
Ted R. Gropman & Christine Z. Fan - ConsensusDocsConstruction contracts often include a “no damage for delay” clause that denies a contractor the right to recover delay-related costs and limits the contractor’s remedy to an extension of time for noncontractor-caused delays to a project’s completion date. Depending on the nature of the delay and the jurisdiction where the project is located, the contractual prohibition against delay damages may well be enforceable. This article will explore whether an enforceable no-damage-for-delay clause is also a bar to recovery of “acceleration” damages, i.e., the costs incurred by the contractor in its attempt to overcome delays to the project’s completion date.
Courts are split as to whether damages for a contractor’s “acceleration” efforts are distinguishable from “delay” damages such that they may be recovered under an enforceable no-damage-for-delay clause. See, e.g., Siefford v. Hous. Auth. of Humboldt, 223 N.W.2d 816 (Neb. 1974) (disallowing the recovery of acceleration damages under a no-damage-for-delay clause); but see Watson Elec. Constr. Co. v. Winston-Salem, 109 N.C. App. 194 (1993) (allowing the recovery of acceleration damages despite a no-damage-for-delay clause). The scope and effect of a no-damage-for-delay clause depend on the specific laws of the jurisdiction and the factual circumstances involved.
There are a few ways for a contractor to circumvent an enforceable no-damage-for-delay clause to recover acceleration damages. First, the contractor may invoke one of the state’s enumerated exceptions to the enforceability of the clause. It is helpful to keep in mind that most jurisdictions strictly construe a no-damage-for-delay clause to limit its application. This means that, regardless of delay or acceleration, courts will nonetheless permit the contractor to recover damages if the delay is, for example, of a kind not contemplated by the parties, due to an unreasonable delay, or a result of the owner’s fraud, bad faith, gross negligence, active interference or abandonment of the contract. See Tricon Kent Co. v. Lafarge N. Am., Inc., 186 P.3d 155, 160 (Colo. App. 2008); United States Steel Corp. v. Mo. P. R. Co., 668 F.2d 435, 438 (8th Cir. 1982); Peter Kiewit Sons’ Co. v. Iowa S. Utils. Co., 355 F. Supp. 376, 396 (S.D. Iowa 1973).
Reprinted courtesy of
Ted R. Gropman, Pepper Hamilton LLP and Christine Z. Fan, Pepper Hamilton LLP
Mr. Gropman may be contacted at gropmant@pepperlaw.com
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Teaching An Old Dog New Tricks: The Spearin Doctrine and Design-Build Projects
October 30, 2018 —
John Castro - Gordon & Rees Construction Law BlogThe United States District Court for the Southern District of California has now held that the Spearin doctrine applies to design-build subcontractors where the subcontractor is expected to design a portion of their work. The case is United States for the use and benefit of Bonita Pipeline, Inc., et al. v. Balfour Beatty Construction, LLC, et al. (“Bonita Pipeline”) (Case No. 3:16-cv-00983-H-AGS).
In Bonita Pipeline, a subcontractor sued the general contractor and its sureties alleging breach of contract, breach of implied warranty, declaratory relief, and recovery under the Miller Act. The subcontractor then filed a motion for partial summary judgment against the general contractor on its declaratory relief cause of action, seeking a finding that the general contractor could not shift legal responsibility for its defective plans and specifications to the subcontractor.
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John Castro, Gordon & Rees Scully MansukhaniMr. Castro may be contacted at
jcastro@grsm.com
Determining Duty to Defend in Wisconsin Does Not Include Extrinsic Evidence
September 22, 2016 —
Tred R. Eyerly – Insurance Law HawaiiThe policyholder's attempt to extend the duty to defend analysis beyond the complaint's allegations and the four-corners of the policy failed before the Wisconsin Supreme Court. Water Well Solutions Service Group Inc. v. Consolidated Ins. Co., 2016 Wisc. LEXIS 163 (Wis. Sup. Ct. June 30, 2016).
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Additional Insured Not Entitled to Reimbursement of Defense Costs Paid by Other Insurers
October 21, 2015 —
Tred R. Eyerly – Insurance Law HawaiiCon Edison ("Con Ed") was unsuccessful in arguing for defense costs that had already been paid by other insurers. Consol. Edison Co. of N.Y. v. Lexington Ins. Co., 2015 U.S. Dist. LEXIS 121573 (S.D. N.Y. Sept. 9, 2015).
Team, Inc. was under contract with Con Ed to provide repairs to the steam system running below the streets of New York City. The contract required Team to indemnify Con Ed for all claims resulting from personal injury or property damage connected to Team's work. Team also obtained a CGL policy naming Con Ed as an additional insured. The policy was to provide primary coverage. Any insured was responsible for the first $250,000 of costs for investigation and/or defense.
On July 1, 2007, a steam distribution main, on which Team had finished working, ruptured, creating a huge crater and sending steam and debris, including asbestos insulation, into the surrounding area. The rupture caused substantial damage to nearby buildings, vehicles and underground infrastructure. It also caused personal injury, including two individuals in a tow truck that fell into the crater and a woman who suffered a fatal heart attack while running from the explosion.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com