Housing Affordability Down
November 20, 2013 —
CDJ STAFFIn what Rick Judson, the chairman of the National Association of Home Builders, describes as a “‘perfect storm’ scenario,” home prices and interest rates are up “at the same time that the cost of building homes is rising due to tightened supplies of building materials, developable lots and labor.” Residential housing is becoming less affordable.
David Crowe, the Chief Economist for the NAHB, attributes this to “higher mortgage rates and the more than year-long steady increase in home prices,” but he notes that “a family earning a median income can afford 65% of homes recently sold.”
For the last four quarters, the San Francisco-San Mateo-Redwood City area in California holds the dubious distinction of being the nation’s least affordable area. There, a family earning the area’s median income of $101,200 (nearly double the national median) could only afford 16% of the homes sold in the area.
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Preserving Your Construction Claim
February 18, 2015 —
Craig Martin – Construction Contractor AdvisorA recent article in the Construction Executive discussed the importance of preserving your claim, both in terms of timeliness of submitting your claim and making sure that you aren’t waiving portions of your claim when executing releases. These are all excellent points and bear some follow-up.
Timing Your Claim
I often review construction contracts that contain deadlines by which claims must be submitted. It may seem counter intuitive to think that you need to submit a claim when you are discussing the basis for the claim with an upstream contractor or the owner. But, there are more cases than I care to count where a contractor’s claim has been denied because the claim was not timely submitted.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
No Coverage for Tenant's Breach of Contract Claims
April 05, 2017 —
Tred R. Eyerly – Insurance Law HawaiiThe court granted summary judgment to the insurer, finding there was no duty to defend or indemnify a tenant/insured's contract-related claims. Erie Ins. Exch. v. Little Ducklings Daycare Associates, LP, 2017 Phila. Ct. Com. Pl. LEXIS 22 (Pa. D. Jan. 25, 2017).
Little Ducklings Daycare Preschool ("tenant") leased from the Estate of Carmen Neri ("landlord") premises to run a day care center for five years. The lease identified two of tenant's members, Maryanne L. Hatzold and Thomas Hatzold, as guarantors for the lease. The Hatzolds ("Guarantors") delivered to the landlord a written lease guaranty agreement. The guarantee assured the full payment and satisfaction of the rent owed under the lease.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Court of Appeals Upholds Default Judgment: Serves as Reminder to Respond to Lawsuits in a Timely Manner
October 02, 2023 —
Anna Basnaw - Ahlers Cressman & Sleight PLLCIn
Cyrus Way Partners, LLC. (“Cyrus”) v. Cadman, Inc. (“Cadman”), the primary issue on appeal was whether the trial court erred in denying Cadman’s motion to vacate the default judgment under Civil Rules 55 and 60. A default judgment is a legal ruling that can be entered in favor of the plaintiff when the defendant fails to respond to a lawsuit. If that happens, the court may resolve the lawsuit without hearing from the other side. In Washington, a party typically has 20 days to appear in a suit before being at risk for default judgment. If a default judgment is entered for the plaintiff, the defendant can move to vacate the default judgment, meaning the defendant hopes the court will set aside the default judgment as if it never happened. In this case, Cadman, the defendant, presents several ultimately unsuccessful arguments for why the default judgment in favor of Cyrus, the plaintiff, should be vacated.
Cyrus and Orca Beverage Inc. (“Orca”) are under common ownership. In 2018, Cyrus began a project to build a warehouse for Orca, which included the construction of a large concrete slab. Cadman was hired to supply the concrete. Cyrus hired Olympic Concrete Finishing Inc. (“Olympic”) to finish the concrete. On April 1, 2018, Cadman poured the concrete, and Olympic finished the slab. The next day, Cyrus noticed several problems with the slab, which experts hired by both Cyrus and Cadman opined were caused by an abnormally high air content in the concrete.
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Ahlers Cressman & Sleight PLLC
Teaming Agreements- A Contract to Pursue a Solicitation and Negotiate
November 23, 2020 —
David Adelstein - Florida Construction Legal UpdatesTeaming agreements are practical and useful agreements on public projects where a prime contractor teams with a subcontractor for purposes of submitting a bid or proposal in response to a solicitation. The prime contractor and subcontractor work together to pursue that solicitation and have the government award the contract to the prime contractor. The teaming agreement allows for information to be confidentially shared (estimating and pricing, construction methodologies, systems, and suggestions, value engineering, etc.) where the subcontractor agrees that it will only pursue the solicitation with the prime contractor. In other words, the subcontractor ideally is not going to submit pricing to another prime contractor proposing or bidding on the same project and is not going to share information the prime contractor has furnished to it. Likewise, the prime contractor is not going to use the subcontractor’s information for purposes of finding another subcontractor at a lower price and is agreeing to use its good faith efforts or best attempts to enter into a subcontract with the subcontractor if it is awarded the project. This is all memorialized in the teaming agreement.
The potential problem lies with language that requires the parties to use their good faith efforts or best attempts to enter into a subcontract if the project is awarded to the prime contractor. In essence, this can become a disfavored “agreement to agree” to a future contract that could allow either party to create an argument to back out of the deal under the auspice that they could not come to terms with the subcontract.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
AFL-CIO Joins in $10 Billion Infrastructure Plan
June 30, 2011 —
CDJ STAFFThe AFL-CIO has announced plans to generate up to $10 billion in funding for infrastructure development, training construction workers, and making buildings more energy efficient, pledging $20 million to retrofit buildings. Bloomberg News reports that union officials made the announcement in Chicago at the Clinton Global Initiative, releasing a statement from Richard Trumka, president of the union, “we, at the AFL-CIO, believe that together, with our partners in business and government, we can profitably invest significant resources to make America more competitive and energy efficient.” A foot injury prevented Mr. Trumka from attending the event.
The statement also quoted Mark Ayers, president of the Building and Construction Trades Department of the AFL-CIO, “the time is now to become intensely focused on the creation of jobs.”
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¡AI Caramba!
January 07, 2025 —
Daniel Lund III - LexologyYou can’t make this up.
That’s what a federal judge in Texas told an attorney whom it was sanctioning for impermissible reliance on artificial intelligence in preparing a brief to the court.
“Pending before the court is the question of whether Plaintiff's counsel… should be sanctioned for submitting a response brief to the court that includes case cites generated by artificial intelligence that refer to nonexistent cases as well as to nonexistent quotations.”
Counsel for the defendant in the case – pursuing summary judgment for a tire manufacturer in a wrongful termination lawsuit – pointed up in a reply brief that the opposition brief of the plaintiff cited two purported – and as it turned out, nonexistent – unpublished decisions: Roca v. King's Creek Plantation, LLC, 500 F. App'x 273, 276 (5th Cir. 2012) and Beets v. Texas Instruments, Inc., No. 94-10034, 1994 WL 714026, at *3 (5th Cir. Dec. 16, 1994), and quotations from as many as six other apparently-existing cases but which were unable to be found within the reported decisions.
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
ASCE Statement on Congress Passage of National Debt Limit Suspension
June 12, 2023 —
The American Society of Civil EngineersThe following is a statement by Tom Smith, Executive Director, American Society of Civil Engineers (ASCE):
WASHINGTON, D.C. – The
American Society of Civil Engineers (ASCE) applauds Congress for passing a measure to avoid a U.S. debt default while safeguarding the critical funding allotments for our nation's infrastructure from the Infrastructure Investment and Jobs Act (IIJA). The bipartisan Fiscal Responsibility Act of 2023 (
H.R. 3746) will not only protect funding from the IIJA, but it also takes steps to advance permitting reform, a major priority for ASCE and the civil engineering community.
Streamlining permitting is crucial to ensuring we make the most of available funding mechanisms. ASCE is pleased to see that many elements of the
BUILDER Act made it into the debt ceiling suspension, including setting deadlines for environmental reviews and providing clarity around permitting requirements. Although further actions are needed to streamline these processes, the Fiscal Responsibility Act is a crucial first step towards implementing much-needed permitting reform to keep valuable projects moving and bring benefits to communities across the country.
ASCE once again applauds Congress and the Administration for taking these necessary steps to protect the U.S. economy and infrastructure systems.
ABOUT THE AMERICAN SOCIETY OF CIVIL ENGINEERS
Founded in 1852, the American Society of Civil Engineers represents more than 150,000 civil engineers worldwide and is America's oldest national engineering society. ASCE works to raise awareness of the need to maintain and modernize the nation's infrastructure using sustainable and resilient practices, advocates for increasing and optimizing investment in infrastructure, and improve engineering knowledge and competency. For more information, visit www.asce.org or www.infrastructurereportcard.org and follow us on Twitter, @ASCETweets and @ASCEGovRel.
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