How Drones are Speeding Up Construction
July 26, 2017 —
Aarni Heiskanen - AEC BusinessDrones, or unmanned aerial vehicles (UAVs), are being used in many industries, e.g. agriculture, construction, mining, oil & gas, mapping, and surveying. In construction, drones have proven to be quite disruptive, offering huge productivity increases.
Gartner’s famous Hype Cycle for Emerging Technologies, 2016, positioned drones as just entering the Peak of Inflated Expectations. Gartner claims that, “Smart machine technologies will be the most disruptive class of technologies over the next 10 years due to radical computational power, near-endless amounts of data, and unprecedented advances in deep neural networks.”
Commercial UAVs are one of the smart machine technologies in question, together with smart robots, autonomous vehicles, cognitive expert advisors, and others.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
info@aepartners.fi
Nondelegable Duties
June 04, 2024 —
David Adelstein - Florida Construction Legal UpdatesHave you heard the expression “nondelegable duty”? The issue of a nondelegable duty comes into play when a party hires an independent contractor and the independent contractor commits negligence, primarily in the personal injury context. In other words, a plaintiff wants to hold a defendant liable for the injuries caused by the defendant’s independent contractor.
A nondelegable duty is one that “may be imposed by statute, contract, or the common law. In determining whether a duty is nondelegable, the question is whether the responsibility at issue is so important to the community that an employer should not be allowed to transfer it to a third party.” Garcia v. Southern Cleaning Service, Inc., 360 So.3d 1209, 1211 (Fla. 3d DCA 2023) (internal citation omitted).
When it comes to CONTRACTUAL duties:
[S]pecifically the principle that one who undertakes by contract to do for another a given thing cannot excuse himself to the other for a faulty performance by showing that he hired someone else to perform the task and that other person was the one at fault. In other words, where the contracting party makes it her or his duty to perform a task, that party cannot escape liability for the damage caused to the other contracting party by the negligence of independent contractors hired to carry out the task.
Gordon v. Sanders, 692 So.2d 939, 941 (Fla. 3d DCA 1997).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Construction Litigation Roundup: “You May Want an Intervention …”
June 10, 2024 —
Daniel Lund III - LexologyYou may want an intervention … but you are not getting one!
So said a federal court in New Orleans to a masonry supplier seeking to intervene in in an upstream subcontractor’s lawsuit against a payment bond surety for allegedly unpaid subcontract sums.
It all seems so obvious: the masonry supplier indicates it is unpaid, and the subcontractor to which it supplied materials is saying the same thing and pursuing monies from the general contractor’s surety. Eventually, if the subcontractor prevails against the surety, monies ought to flow to the supplier – a set of facts lending itself to an intervention.
The federal district court disagreed, however. Referring to Federal Rule of Civil Procedure 24(a)(2) and prior United States Fifth Circuit Court of Appeals case law the topic, the court opined that the masonry supplier lacked an interest in the subcontractor’s potential recovery that was “related to the property or transaction that forms the basis of the controversy…an interest that is ‘direct, substantial, [and] legally protectable.’"
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
Speculative Luxury Homebuilding on the Rise
April 08, 2014 —
Beverley BevenFlorez-CDJ STAFFForbes reported that there is a “comeback in speculative building of luxury homes in centers of wealth across the country.”
“The appearance of spec homes in the upper price range is an indication of the maturation of the housing cycle,” Stuart Gabriel, director of the Ziman Center for Real Estate at UCLA, told Forbes. “It’s an indication of increasing levels of confidence on the part of home builders.”
Dana Kuhn, of the Corky McMillin Center for Real Estate at San Diego State University, stated that she “would expect luxury buyers to want more design control than can be afforded them if the house is mostly complete when they make their purchase.” But the article showed the flip side: Some luxury buyers are “too busy to bother with such involvement” and even prefer to buy the house fully furnished.
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Housing in U.S. Cools as Rate Rise Hits Sales: Mortgages
April 28, 2014 —
John Gittelsohn and Prashant Gopal – BloombergAfter a roller-coaster decade of boom-bust-boom, the U.S. housing market is going downhill just when many economists thought annual sales would be heading up.
Sales of previously owned properties in March tumbled 7.5 percent from a year earlier to the slowest pace in 20 months, while purchases of new houses sank 14.5 percent from February, according to reports this week. Mortgage applications to buy homes plunged 19 percent from a year earlier, indicating slowing demand during what is typically the busiest season for deals.
The housing market’s underlying fragility is emerging as outside influences that fueled a two-year rebound are receding. Mortgage interest rates are rising from record lows as the central bank withdraws its stimulus, and investors, who had helped drive national prices up more than 20 percent as they went on a buying spree, are now retreating.
Mr. Gittelsohn may be contacted at johngitt@bloomberg.net; Mr. Gopal may be contacted at pgopal2@bloomberg.net
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John Gittelsohn and Prashant Gopal, Bloomberg
Construction Law Client Alert: California Is One Step Closer to Prohibiting Type I Indemnity Agreements In Private Commercial Projects
June 15, 2011 —
Haight Brown & Bonesteel, LLPOn June 1, 2011 by majority vote, the California Senate passed Senate Bill 474, which would amend Civil Code section 2782, and add Civil Code section 2782.05. The passage of this new law is a critical development for real estate developers, general contractors and subcontractors because it will affect how these projects are insured and how disputes are resolved.
Civil Code section 2782 was amended in 2007 to prohibit Type I indemnity agreements for residential projects only. Since 2007, various trade associations and labor unions have lobbied to expand those very same restrictions to other projects. These new provisions apply to contracts, entered into after January 1, 2013, that are not for residential projects, and that are not executed by a public entity. The revisions provide that any provision in a contract purporting to indemnify, hold harmless, and defend another for their negligence or other fault is against public policy and void. These provisions cannot be waived.
A provision in a contract requiring additional insured coverage is also void and unenforceable to the extent it would be prohibited under the new law. Moreover, the new law does not apply to wrap-up insurance policies or programs, or a cause of action for breach of contract or warranty that exists independently of the indemnity obligation.
The practical impact of this new law is that greater participation in wrap-up insurance programs will likely result. While many wrap-up programs suffer from problems such as insufficient limits, and disputes about funding the self-insured retention, the incentive for the developer or general contractor to utilize wrap-up insurance will be greater than ever before because they will no longer be able to spread the risk of the litigation to the trades and the trade carriers.
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Reprinted courtesy of Steve Cvitanovic of Haight Brown & Bonesteel, LLP.
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Franchisors Should Consider Signing a Conditional Lease Assignment Rather Than a Franchisee’s Lease
November 17, 2016 —
Richard H. Herold – Real Estate Litigation BlogIn Franchise & High Properties, LLC v. Happy’s Franchise, LLC, a 2015 decision issued by the Court of Appeals in Michigan, the franchisor, Happy’s Pizza Franchise, LLC, signed a five-year lease for the commercial space to be occupied by its franchisee, Happy’s Pizza #19, Inc. The franchisor did so to secure a right of first refusal to purchase the property and to enforce the franchise agreement to have the lease assigned to the franchisor if the franchisee defaulted.
The issue in the case was whether the term “tenant” referred solely to Happy’s Pizza #19 or whether it also included Happy’s Franchise as a co-tenant. “Tenant” was defined as follows: “Happy’s Pizza #19, Inc., 29102 Telegraph Road, Suite 607, Southfield, MI 48034, the lessee, and Happy’s Pizza Franchise, LLC, a Michigan limited liability company (hereinafter referred to as `Franchisor’), hereinafter designated as the Tenant.”
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Richard H. Herold, Real Estate Litigation BlogMr. Herold may be contacted at
rherold@swlaw.com
Housing Starts Plunge by the Most in Four Years
May 20, 2015 —
Bloomberg(Bloomberg) -- Housing starts plummeted in February by the most since 2011 as plunging temperatures and snow became the latest hurdles for an industry struggling to recover.
Work began on 897,000 houses at an annualized rate, down 17 percent from January and the fewest in a year, the Commerce Department reported Tuesday in Washington. The pace was slower than the most pessimistic projection in a Bloomberg survey of 81 economists.
“Today’s report leaves me a little concerned,” said Michelle Meyer, deputy head of U.S. economics at Bank of America Corp. in New York. “While the initial reaction is to dismiss much of the drop because of the bad weather, the level of home construction continues to be depressed.”
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Bloomberg News