Seattle Washington Building Expert Directory

Quarter Four a Good One for Luxury Homebuilder

December 20, 2012 — CDJ STAFF
Toll Brothers has announced that their fourth-quarter net income is $2.35 per share, which they attribute in part to an income tax benefit. Their revenue, at $632.8 million, easily exceeded analysts’ projections of $565.1 million. Additionally, their number of signed contracts jumped seventy percent while their cancellation rate dropped nearly half to 4.9 percent. Read the court decision
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Texas Supreme Court Rules That Subsequent Purchaser of Home Is Bound by Original Homeowner’s Arbitration Agreement With Builder

May 29, 2023 — Kim Altsuler - Peckar & Abramson, P.C.
In a new opinion Lennar Homes of Texas Land and Construction, Ltd., et al. v. Kara Whiteley, Cause No. 21-0783, 66 Tex. Sup. Ct. J. 8740, issued May 12, 2023, the Texas Supreme Court partially reversed two lower court decisions and held that an arbitration provision contained in the original homeowner’s contract with the builder was binding on a subsequent homeowner. In the decision, the court found that Kara Whiteley—the second owner of the home in Galveston, Texas—was bound to arbitrate her construction defect claims with Lennar by virtue of the doctrine of “direct-benefits estoppel.” The rationale was based on the fact that Whitely was seeking benefits emanating from Lennar’s contract with the original homeowner. The residence in question was first purchased from Lennar in May 2014. Whiteley purchased the home in July 2015. The original contract documents included several arbitration provisions—one in the Purchase and Sale Agreement, one in the Limited Warranty issued by Lennar, and one in the general warranty deed. Whiteley sued Lennar in Galveston County District Court alleging mold growth and other defects at the property. Lennar moved for arbitration and its motion was granted. The parties arbitrated the case and Lennar received an award in its favor. Lennar then moved the District Court to confirm the arbitration award, and Whiteley filed a cross-motion to vacate the award, arguing that Lennar’s original motion to compel arbitration should not have been granted. The District Court agreed with Whiteley, vacating the arbitration award. Lennar appealed. The Court of Appeals affirmed the District Court’s vacatur, and Lennar appealed to the Texas Supreme Court. Read the court decision
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Reprinted courtesy of Kim Altsuler - Peckar & Abramson, P.C.
Ms. Altsuler may be contacted at kaltsuler@pecklaw.com

Chinese Billionaire Sues Local Governments Over Project Payment

January 28, 2015 — Bloomberg News
The billionaire founder of closely held China Pacific Construction Group sued six local governments in a bid to force payment of 900 million yuan ($144 million) his company is owed for infrastructure projects. Yan Jiehe said today he was trying to prove a point and winning the lawsuits wasn’t his main goal. Courts in Hebei, Yunnan, Guizhou, Hunan and Shandong provinces accepted the cases, he said in an interview. “We cannot let the governments work without any supervision anymore,” Yan said. “The results of the lawsuits are not that important to me and I care more about rule of law.” Read the court decision
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Reprinted courtesy of Bloomberg News

Client Alert: Service Via Tag Jurisdiction Insufficient to Subject Corporation to General Personal Jurisdiction

August 27, 2014 — R. Bryan Martin and Kristian B. Moriarty - Haight Brown & Bonesteel LLP
In Martinez v. Aero Caribbean (No. 3:11-cv-03194-WHA, filed 8/21/2014), the United States Court of Appeals for the Ninth Circuit held service of process on a corporation's officer, within the forum state, does not establish general personal jurisdiction over the corporation unless the corporation's contacts with the forum render it essentially at home in the state. Decedent, Lorenzo Corazon Mendoza, was traveling by airplane when the plane crashed, killing everyone aboard. Defendant Avions De Transport Régional (ATR) manufactured the airplane that crashed. Plaintiffs Lorenzo Martinez, Eliezer Martinez, Eliu Mendoza and Gloria Montes (Plaintiffs) filed suit against ATR as heirs of decedent. ATR is a business entity organized under French law with its principal place of business in France. It is not licensed to do business in California, and it has no office or other physical presence there. It has purchased parts from California suppliers, sent representatives to California to promote its business, and advertised in trade publications available in California. It has also sold airplanes to a California corporation. Empire Airlines flies from Santa Barbara to Ontario using ATR planes on a regular basis; however, Empire Airlines purchased the ATR planes secondhand from third parties, and never directly from ATR. At the time of the crash, ATR North America (a wholly owned subsidiary of ATR) had its headquarters in Virginia, and has since relocated to Florida. Reprinted courtesy of R. Bryan Martin, Haight Brown & Bonesteel LLP and Kristian B. Moriarty, Haight Brown & Bonesteel LLP Mr. Martin may be contacted at bmartin@hbblaw.com; Mr. Moriarty may be contacted at kmoriarty@hbblaw.com Read the court decision
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San Francisco House that Collapsed Not Built to Plan

February 14, 2014 — Beverley BevenFlorez-CDJ STAFF
Last December, a San Francisco, California “developer’s Twin Peaks house collapsed and slid down a hill during renovations.” The San Francisco Chronicle reported that the house “was being supported by three reinforcing towers, rather than the nine required under its approved plans, according to documents provided to city building inspectors.” According to a report by Department of Building Inspection chief Tom Hui, developer Mel Murphy "’failed to follow and implement the approved plans and the sequence of construction’ in his permit,” as quoted by The San Francisco Chronicle. The report also stated that the work “was not independently inspected as required” though this is “vehemently disputed by Murphy.” Read the court decision
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Condominium Construction Defect Resolution in the District of Columbia

October 26, 2017 — Nicholas D. Cowie - Maryland Condo Construction Defect Law Blog
Newly constructed and newly converted condominiums in the District of Columbia often contain concealed or “latent” construction defects. Left undetected and unrepaired, defects in the construction of a condominium can cause extensive damage over time, requiring associations to assess their members substantial repair costs that could have been avoided by making timely developer warranty claims. This article provides a general overview of how Washington DC condominium associations transitioning from developer control can proactively and successfully identify defects and resolve construction defect claims with condominium developers and builders. Condominium Association Responsibility for Timely Evaluation of Common Element Construction Condominium associations are charged with the responsibility of overseeing and maintaining condominium common element facilities, typically consisting of building roofs, exterior walls, foundations, lobbies, common hallways, elevators, surrounding grounds, and the common structural mechanical, electrical, and plumbing systems. Following the period of developer control, it is incumbent upon a condominium association’s first unit owner elected board of directors to evaluate the construction of the condominium common element facilities and determine whether the existing, developer-created, budget and reserve fund are adequate to cover the cost of maintaining, repairing, and ultimately replacing the condominium facilities over time. Read the court decision
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Reprinted courtesy of Nicholas D. Cowie, Cowie & Mott, P.A.
Mr. Cowie may be contacted at ndc@cowiemott.com

Colorado’s Three-Bill Approach to Alleged Construction Defect Issues

May 01, 2014 — Beverley BevenFlorez-CDJ STAFF
According to the Denver Post, two Colorado construction defect bills have “made their way out of the Senate Affairs Committee Wednesday, with a third reportedly on its way.” The two bills that have made it out of committee are SB 219 and SB 216: “SB 219 would require the Colorado Division of Housing to prepare a study to present to legislators before March 15, 2015, on why there isn't more affordable housing construction in the state,” the Denver Post reported. “SB 216 directs the Colorado Division of Housing to design a program to rebate a portion of the insurance premiums builders pay as a way to boost their willingness to build more projects.” However, a third bill would require “homeowners to pursue arbitration or mediation before litigation.” All three bills are sponsored by Sen. Jessie Ulibarri, D-Commerce City. Read the court decision
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Naughty or Nice. Contractor Receives Two Lumps of Coal in Administrative Dispute

January 21, 2019 — Garret Murai - California Construction Law Blog
So, how were your holidays? Hopefully you were good and didn’t receive a lump of coal from Santa. For one contractor, 2018, wasn’t such a good year. And as its name, Black Diamond, suggests, it did indeed receive a black diamond from the courts. Actually, two of them. Contractors’ State License Board v. Superior Court (Black Diamond No. 1) In Contractors’ State License Board v. Superior Court, Court of Appeals for the First District, Case No. 1154476 (October 11, 2018), the Contractors State License Board (“CSLB”) brought disciplinary proceedings against Black Diamond Electric, Inc. (“Black Diamond”), a C-10 Electrical Contractor, for violating: (1) Labor Code section 108.2, which requires individuals performing work as electricians to be certified; and (2) Labor Code section 108.4, which permits uncertified persons seeking on-the-job experience to perform electrical work so long as they are under the direct supervision of a certified electrician. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen
Mr. Murai may be contacted at gmurai@wendel.com

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