CAMBRIDGE MASSACHUSETTS BUILDING EXPERT
DIRECTORY AND CAPABILITIES

California Case Adds Difficulties for Contractors & Material Suppliers

August 20, 2014 — Beverley BevenFlorez-CDJ STAFF
Garret Murai in his California Law Blog declared that “things just got a lot tougher for contractors and material suppliers in the Golden State.” In his blog, Murai analyzed the recent case Golden State Boring & Pipe Jacking, Inc. v. Eastern Municipal Water District, Case No. E054618 (July 23, 2014), in which “the California Court of Appeals for the Fourth Appellate District found that a subcontractor’s public works payment bond claim was time barred because its stop payment notice was served ‘before’ a notice of completion was recorded.” Murai explained the importance of the ruling and how it changed the status quo: “Whereas before, it was commonly understood that you could serve a stop payment notice ‘during’ construction (after all, that was the point wasn’t it, to stop construction funds before they are paid out), now you may have only have a 30 day window (probably less) to serve a stop notice within 30 days after a notice of completion or notice of cessation is recorded.” Read the court decision
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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 Blog
In 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.” Read the court decision
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Reprinted courtesy of Richard H. Herold, Real Estate Litigation Blog
Mr. Herold may be contacted at rherold@swlaw.com

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Construction Lien Does Not Include Late Fees Separate From Interest

December 30, 2019 — David Adelstein - Florida Construction Legal Updates
Construction liens can include unpaid finance charges. But, what about late fees? You know, the late fees that certain vendors like to include in their contract or purchase order unrelated to finance charges. An added cost for being delinquent with your payment. Can a late fee be tacked onto the lien too? In a recent case, Fernandez v. Manning Building Supplies, Inc., 2019 WL 4655988 (Fla. 1st DCA 2019), a residential owner hired a contractor for a renovation job. The contractor entered into a contract with a material supplier. The terms of the supplier’s contract with the contractor provided that there would be a 1.5% delinquency charge for late payments and it seemed apparent that the delinquency charge was separate from finance charges. Florida Statute s. 713.06(1) provides in relevant portion:

A materialman or laborer, either of whom is not in privity with the owner, or a subcontractor or sub-subcontractor who complies with the provisions of this part and is subject to the limitations thereof, has a lien on the real property improved for any money that is owed to him or her for labor, services, or materials furnished in accordance with his or her contract and with the direct contract and for any unpaid finance charges due under the lienor’s contract.

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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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New Utah & Colorado Homebuilder Announced: Jack Fisher Homes

July 23, 2014 — Beverley BevenFlorez-CDJ STAFF
Henry Walker Homes announced the creation of Jack Fisher Homes, “a new venture that will continue their tradition of homebuilding excellence in Northern Utah, Southern Utah and Colorado,” according to a press release on PR Web. “Colin Wright, Owen Fisher, Chad Bessinger and Steve Sandholtz founded Jack Fisher Homes to focus on areas of their proven expertise in real estate, including residential land development and homebuilding, commercial assets in multifamily development and seniors’ housing,” PR Web reported. Jack Fisher has “1,300 single-family residential units in its pipeline” and “anticipates closing more than 230 homes in the remainder of 2014 with sales expected to exceed $70 million.” The homebuilder expects those numbers to double in 2015. “All of the original elements that made Henry Walker great are incorporated and improved upon with Jack Fisher Homes,” Wright said, according to the press release. “The influx of new capital, our years of experience, and the improved real estate landscape have us very excited about the future of Jack Fisher Homes.” Read the court decision
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Third Circuit Court of Appeals Concludes “Soup to Nuts” Policy Does Not Include Faulty Workmanship Coverage

December 11, 2018 — Timothy Carroll - White and Williams LLP
Earlier this month, in Frederick Mutual Insurance Company v. Hall, the U.S. Court of Appeals for the Third Circuit concluded that coverage for faulty workmanship claims is “simply not the kind of coverage insurance agents and insurance companies expect to provide” to construction industry professionals “unless the insured explicitly requests such coverage.” 2018 U.S. App. LEXIS 31666, at *9 (3d Cir. Nov. 8, 2018). In Hall, a stone masonry contractor was sued by its customer for causing over $350,000 in property damage resulting from “substandard and defective work” performed on the customer’s residence. The insurer sought a declaration that it owed neither a defense nor indemnity for those damages because, under Pennsylvania law, the policy did not cover property damage caused by faulty workmanship. Read the court decision
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Reprinted courtesy of Timothy Carroll, White and Williams LLP
Mr. Carroll may be contacted at carrollt@whiteandwilliams.com

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Drone Use On Construction Projects

June 05, 2023 — Brent N. Mackay - ConsensusDocs
The use of drones, or small unmanned aircraft systems (“UAS”), has become common throughout the construction industry in all phases of construction, including pre-construction, progress of the work, project closeout, and maintenance. This article examines the federal regulations related to drone use, as well as considerations for construction professionals related to state and local laws, project location, and weather issues. Federal Regulations Regardless of the state in which the project is located, companies and persons operating commercial drones must observe regulations promulgated by the Federal Aviation Administration (“FAA”), which has the exclusive authority to regulate aviation safety, airspace navigation, and air traffic control. Reprinted courtesy of Brent N. Mackay, Watt, Tieder, Hoffar, & Fitzgerald, LLP (ConsensusDocs) Mr. Mackay may be contacted at bmackay@watttieder.com Read the court decision
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Eleventh Circuit Rules That Insurer Must Defend Contractor Despite “Your Work” Exclusion, Where Damage Timing Unclear

May 13, 2019 — Michael S. Levine & David M. Costello - Hunton Andrews Kurth
The Eleventh Circuit has reversed an insurer’s award of summary judgment after finding that uncertainty about when the alleged property damage occurred raised questions about whether the damage came within the scope of the “Your Work” exclusion. More specifically, the court found unclear whether the damage occurred before or after the contractor abandoned the job, thereby triggering an exception to the “Your Work” exclusion for damage to work that had “not yet been completed or abandoned.” The decision illustrates how timing can be a critical factor when it comes to triggering coverage for work and completed operations. In Southern-Owners Insurance Company v. MAC Contractors of Florida, LLC, a pair of trustees hired MAC Contractors (doing business as KJIMS Construction) to serve as the general contractor for a custom residence. After construction began, disputes between the trustees and KJIMS caused the contractor to abandon the job before completing the project. The trustees followed with a lawsuit alleging, among other things, that KJIMS had damaged wood floors and a metal roof, which KJIMS had promised to remediate but never did. Reprinted courtesy of Michael S. Levine, Hunton Andrews Kurth and David Costello, Hunton Andrews Kurth Mr. Levine may be contacted at mlevine@HuntonAK.com Mr. Costello may be contacted at dcostello@HuntonAK.com Read the court decision
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Modified Plan Unveiled for Chicago's Sixth-Tallest Tower

February 15, 2018 — Jeff Yoders – ENR
The Chicago Plan Commission on Jan. 18 approved a $700-million development that, as presented, would include the city’s sixth-tallest building. Read the court decision
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Reprinted courtesy of Jeff Yoders, Engineering News-Record
Mr. Yoders may be contacted at yodersj@enr.com

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