Fairfield Connecticut Building Expert Directory

New York Court Holds That the “Lesser of Two” Doctrine Limits Recoverable Damages in Subrogation Actions

September 23, 2019 — Michael L. DeBona - The Subrogation Strategist
In New York Cent. Mut. Ins. Co. v. TopBuild Home Servs., Inc., 2019 U.S. Dist. LEXIS 69634 (April 24, 2019), the United States District Court for the Eastern District of New York recently held that the “lesser of two” doctrine applies to subrogation actions, thereby limiting property damages to the lesser of repair costs or the property’s diminution in value. In New York Cent. Mut. Ins. Co., New York Central Mutual Insurance Company’s (New York Central) insureds, Paul and Karen Mazzola, suffered a fire to their home. After the fire, New York Central paid the Mazzolas $708,465.74 to repair the property. New York Central brought a subrogation action against TopBuild Home Services, Inc. (TopBuild), alleging that the fire was caused by negligent work performed by TopBuild. New York Central sought to recover the repair costs it paid to the Mazzolas. TopBuild conceded liability but disputed the proper measure of damages. TopBuild filed a motion for partial summary judgment, arguing that under the “lesser of two” doctrine, New York Central could recover only the lesser of the costs to repair the property or the property’s diminution in value. TopBuild, therefore, asserted that New York Central was not entitled to the repair costs of $708,465.74 but, rather, could recover only the property’s decline in value following the fire – approximately $250,000.[1] In response, New York Central argued that New York’s “lesser of two” doctrine does not apply to subrogation actions because an insurance company cannot mitigate the payment it makes to its insured. Read the court decision
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Reprinted courtesy of Michael L. DeBona, White and Williams LLP
Mr. DeBona may be contacted at debonam@whiteandwilliams.com

Terminating the Notice of Commencement (with a Notice of Termination)

July 19, 2017 — David Adelstein - Florida Construction Legal Updates
The notice of commencement is important for purposes of construction lien priority. Stock Bldg. Supply of Florida, Inc. v. Soares Da Costa Const. Services, LLC, 76 So.3d 313, 317 (Fla. 3d DCA 2011) (“[A] notice of commencement serves to determine the priority of liens under the Construction Lien Law.”). A lien relates back in time to the date the notice of commencement was recorded assuming the notice of commencement is still in effect when the lien is recorded (or an amended noticed of commencement is recorded). Lien priority is very important and the reason why a contractor should always want to ensure there is an effective notice of commencement in place rather than an expired notice of commencement. For the same reasons why a contractor wants to ensure there is an effective notice of commencement, there are times an owner wants to terminate a notice of commencement. An owner may want to terminate the potential priority of a construction lien. For instance, say the owner is refinancing or obtaining a construction loan in the midst of construction. A lender will want to ensure its mortgage maintains first priority and certainly priority over a potential construction lien. Otherwise, why would a lender finance the construction if it does not maintain first priority. It generally will not. Thus, an owner needs to terminate the notice of commencement so that the closing occurs on the loan and the mortgage recorded before a new notice of commencement is recorded and construction continues. Read the court decision
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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at Dadelstein@gmail.com

Sales of New U.S. Homes Slump to Lowest Level Since November

October 28, 2015 — Victoria Stilwell – Bloomberg
Purchases of new U.S. homes slumped in September to a 10-month low, disrupting a trend of steady improvement this year in the industry. Sales dropped 11.5 percent to a 468,000 annualized pace and the prior two months were revised lower, Commerce Department figures showed Monday. The September rate, which included a record percentage decline in the Northeast, was weaker than all economists’ forecasts in a Bloomberg survey. Limited inventory of affordable homes and viable lots on which to build them may be holding back progress in housing, which has helped buffer the U.S. from slower growth abroad. Builders may need confirmation that fundamentals supporting the housing recovery -- job growth and cheap borrowing costs -- remain in place before investing in additional land and labor. Read the court decision
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Reprinted courtesy of Victoria Stilwell, Bloomberg

Corporate Formalities: A Necessary Part of Business

February 18, 2020 — Hannah Kreuser - Porter Law Group
Many benefits exist in choosing to create a corporation or limited liability company (“LLC”) as your business entity. However, what attracts most people to these entities is the protection they afford the business owner(s) against personal liability for the business’ obligations, debts, and other liabilities. Whatever reason prompts your decision to form a corporation or LLC, if you are like many smaller businesses, once the formation process is over its back to business as usual. However, in order to keep the protection against personal liability associated with a corporation or LLC, the business must engage in, what are known as corporate formalities. Corporate formalities are formal actions that must be taken by a corporation or LLC in order to maintain the benefits associated with that business entity. These corporate formalities may be required under California law, by the bylaws, and/or by the operating agreement of your business. When your business is formed as a corporation, many of the corporate formalities exist as part of California’s Corporations Code (“CCC”). These formalities include: (1) holding annual meetings (CCC § 600); (2) regularly electing directors (CCC § 301); (3) keeping meeting minutes (CCC § 1500); and (4) maintaining accurate corporate records (CCC § 1500). While these are only a few of the corporate formalities existing for corporations in the State of California, these formalities are often overlooked or put off by smaller businesses because they are either unknown to the business or are intended to be complied with later, as the actual running of the business takes priority. Read the court decision
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Reprinted courtesy of Hannah Kreuser, Porter Law Group
Ms. Kreuser may be contacted at hkreuser@porterlaw.com

Real Estate & Construction News Round-Up (11/30/22) – Proptech Trends, Green Construction, and Sustainable Buildings

December 13, 2022 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
This week’s round-up explores 4 key trends expected to impact proptech in 2023, global investment in green construction technologies, sustainable buildings and their perceived value for tenants in Europe, and more.

Sitting at the crossroads between real estate and technology, proptech has experienced significant growth, which is expected to accelerate via 4 key trends in 2023. (Zain Jaffer, Forbes)
Global investment in green construction technologies reached $2.2 billion in 2022, with legislation and technological innovation serving as the key driving forces behind this growth. (Jennifer Kite-Powell, Forbes)
In Europe, sustainable buildings have increased the asset values for commercial real estate managers, with tenants willing to pay more for efficient buildings. (David Worford, Environment + Energy Leader)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

UConn’s Law-School Library Construction Case Settled for Millions

June 11, 2014 — Beverley BevenFlorez-CDJ STAFF
A group of builders recently settled with the state of Connecticut for $12.1 million in a case “over flaws in the construction of UConn's law-school library” reported Hartford Business. The State of Connecticut v. Lombardo Bros. Mason Contractors, Inc., et al. had been scheduled to start trial in 2015. According to Hartford Business, “The settlement ends six years of litigation over defects in construction of the library, which was completed in 1996 and renamed in 2010 in honor of the late Gov. Meskill.” An investigation into the construction of the library began after “[l]eaks, instability in the library’s granite façade, and other structural and safety problems became evident.” Read the court decision
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Charlotte, NC Homebuilder Accused of Bilking Money from Buyers

April 01, 2015 — Beverley BevenFlorez-CDJ STAFF
The Charlotte Observer reported that a homebuilder couple “was arrested Tuesday on charges alleging that they kept more than $600,000 three families paid them to build Lake Wylie homes that were never completed.” Robert Scott Kuhlkin and wife, Sherry Lynn Kuhlkin “accepted $189,000 from one family, $239,000 from another family, and $233,000 from a third family to build houses, 16th Circuit assistant solicitor Matthew Hogge said in court, but instead they ‘took the money for themselves.’” The alleged victims told the court that the homes had defects or were left unfinished. Read the court decision
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As Florence Eyes East Coast, Are You Looking At Your Insurance?

October 02, 2018 — Michael S. Levine & Andrea DeField - Hunton Insurance Recovery Blog
Hurricane Florence will affect the U.S. east coast later this week with significant damage to property and resulting business disruption. Businesses far-removed from the impact zone also will be affected as manufacturing, retail, travel and supply chains, among other industries, are disrupted by the physical damage. For those in the impact zone, knowing the fundamentals about your property insurance is critical. For those in remote locations, now is a good time to refresh yourself as well, since post-storm disruptions and losses require prompt notice to insurers and fast action to help mitigate any resulting loss. A failure on either front could jeopardize coverage. Reprinted courtesy of Michael S. Levine, Hunton Andrews Kurth and Andrea DeField, Hunton Andrews Kurth Mr. Levine may be contacted at mlevine@HuntonAK.com Ms. DeField may be contacted at adefield@HuntonAK.com Read the court decision
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FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES