How Will Artificial Intelligence Impact Construction Litigation?
September 12, 2023 —
Patrick McKnight - The Dispute ResolverIn the first half of 2023, artificial intelligence (“AI”) caught the public’s imagination. Attorneys have not been immune from the fever-pitch of commentary regarding the possible applications. While early adopters have had varying degrees of success, commentators have proposed various potential impacts on construction projects and disputes. This article discusses potential areas where AI can assist in preventing and resolving disputes from the pre-bid stage through project completion and close-out.
What is AI?
Artificial intelligence entered the popular zeitgeist accompanied by both optimistic and pessimistic predictions about the future. Internet searches on AI exploded in December 2022, reflecting a rapid and widespread public interest in the topic. The term “AI” itself is often loosely used to refer to a machine or computer software with the ability to conduct machine learning.[1] Whereas “automation” is the simple process of computing inputs, artificial intelligence refers to the ability to learn without additional programming from a human being. Now, increased computing power is finally helping some of the potential applications of this technology come into focus. Nonetheless, artificial intelligence is still maturing and is subject to “hallucinations” where the technology essentially generates erroneous nonsense.
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Patrick McKnight, Fox Rothschild LLPMr. McKnight may be contacted at
pmcknight@foxrothschild.com
Panel Declares Colorado Construction Defect Laws Reason for Lack of Multifamily Developments
January 22, 2014 —
Beverley BevenFlorez-CDJ STAFFDennis Huspeni writing for the Denver Business Journal provided reactions from panelists at a ULI Colorado event on January 9th at the Embassy Suites Denver – Downtown/Convention Center hotel regarding a report on “Emerging Trends in Real Estate.” According to Huspeni’s article, panelists discussed “the lack of for-sale multifamily development and attributed it to Colorado’s construction defect laws.”
John Beeble, chairman and CEO of Saunders Construction, one of the panelists, said that Saunders does not build condos because of Denver’s construction defect laws: “We’ve been in business for 42 years and never been sued for construction defects,” Beeble said, according to the Denver Business Journal. “But the odds are close to 100 percent that we’d be in court defending ourselves if we did condos.”
Jeff Hawks, principal at ARA Colorado, claimed, “Colorado has some of the worst construction defect laws in the country. It’s stupid to try and build a condo development until that changes,” as reported by the Denver Business Journal.
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No Indemnity After Insured Settles Breach of Implied Warranty of Habitability Claims
June 09, 2016 —
Tred R. Eyerly – Insurance Law HawaiiApplying Illinois law, the federal district court ruled that there was no coverage for the insured's settlement of claims based upon breach of the implied warranty of habitability. Allied Prop. & Cas. Ins. Co. v. Metro North Condo. Ass'n, 2016 U.S. Dist. LEXIS 43452 (E.D. Ill. March 31, 2016).
Metro North sued the developer of its condominium and a number of its contractors and subcontractors for defective construction that caused various problems, including water infiltration. One subcontractor, CSC, was to provide window and glazing services. After a rainstorm, water infiltrated the project due to CSC's work. Metro North claimed that CSC was liable for breach of the implied warranty of habitability.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Colorado Senate Bill 13-052: The “Transit-Oriented Development Claims Act of 2013.”
January 25, 2013 —
CDJ STAFFLast fall the Denver Regional Council of Governments approached the Colorado Association of Home Builders to inquire as to why there are no builders developing or constructing for-sale, multi-family projects along the newly constructed light rail lines. By surveying its membership, the CAHB quickly learned that the biggest impediment to such construction is Colorado’s litigation environment, i.e., “if you build it, they will sue.” This started a dialogue within the industry in order to determine what changes developers and general contractors would like to see made in order to consider again building for-sale, multi-family construction. The result of this dialogue is Senate Bill 13-052, introduced on January 16, 2013, and known as the Transit-Oriented Development Claims Act of 2013, sponsored by Senators Scheffel and Cadman and Representative DelGrosso. You can find the current iteration of SB 13-052 here.
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David McLainMr. McLain can be contacted at
mclain@hhmrlaw.com
Indemnity Clauses—What do they mean, and what should you be looking for?
May 07, 2015 —
Craig Martin – Construction Contractor AdvisorIt seems that every construction contract now-a-days, contains an indemnity clause. Contractors should be reviewing these indemnity clauses very carefully to understand the potential scope of an indemnity obligation and your opportunity to negotiate changes.
What is an indemnity Clause?
An indemnity clause transfers risk from one party to another. When a contractor signs an indemnity agreement, it is agreeing to pay for damages for which another party could be liable.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
Understanding the Real Estate and Tax Implications of Florida's Buyer Ban Law
July 16, 2023 —
Kelly Erb - White and Williams LLPLast month, Gov. Ron DeSantis (R) of Florida signed a new law that would prohibit people who are not U.S. citizens or permanent residents and whose "domicile" is in China from purchasing certain real property in the state. Generally, the prohibition applies to agricultural land and other land within ten miles of restricted areas, including military bases and infrastructure like airports and wastewater treatment plants.
The law, which takes effect on July 1, 2023, would also impose criminal penalties on any person or real estate company that knowingly sells real estate in the Sunshine State to anyone impacted by the ban.
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Kelly Erb, White and Williams LLPMs. Erb may be contacted at
erbk@whiteandwilliams.com
NY Attorney General to Propose Bill Requiring Climate Adaptation for Utilities
May 21, 2014 —
Gerald B. Silverman – BloombergBloomberg BNA — New York Attorney General Eric T. Schneiderman (D) has proposed legislation to require that New York's electricity and gas utilities assess their vulnerability to the impacts of climate change and prepare a plan for adapting to severe weather.
Schneiderman May 19 said the proposed legislation would build on a February decision by the state Public Service Commission (PSC), which approved a plan by Consolidated Edison to spend $1 billion over the next four years for storm hardening and resiliency projects.
A spokeswoman for the attorney general told Bloomberg BNA that he is working with members of the Legislature to have the bill formally introduced.
The PSC decision also required that all New York utilities integrate the potential impacts of climate change into their system planning and construction forecasts and budgets.
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Gerald B. Silverman, Bloomberg
Colorado General Assembly Sets Forth Prerequisites for an Insurance Company to Use Failure to Cooperate as a Defense to a Claim for First Party Insurance Benefits
August 10, 2020 —
Christine Kroupa, John Palmeri & Katelyn Werner - Gordon & ReesDespite first party insurance policies generally requiring cooperation from an insured in the investigation of a claim, insurers can no longer rely on the failure to cooperate as a defense in a claim for first party insurance benefits in Colorado unless certain conditions are met.
The Bill:
On July 2, 2020, Colorado Governor Jared S. Polis signed House Bill 20-1290 which addresses the ability of an insurer to use a failure to cooperate defense in an action where the insured has made a claim for benefits under an insurance policy. This bill bars an insurer from raising the failure to cooperate unless the following conditions are met:
- The insurer submitted a written request to the insured or the insured’s representative for the information (via electronic means if consent was given by insured or insured’s representative, or via certified mail);
- The information is not available to the insurer without the assistance of the insured;
- The written request provides the insured 60 days to respond;
- The written request is for information a reasonable person would determine the insurer needs to adjust the claim filed by the insured or to prevent fraud; and
- The insurer gives the insured an opportunity to cure, which must:
- Provide written notice to the insured of the alleged failure to cooperate, describing with particularity the alleged failure within 60 days after the alleged failure; and
- Allow the insured 60 days after receipt of the written notice to cure the alleged failure to cooperate.
Reprinted courtesy of Gordon & Rees attorneys
Christine Kroupa,
John Palmeri and
Katelyn Werner
Ms. Kroupa may be contacted at ckroupa@grsm.com
Mr. Palmeri may be contacted at jpalmeri@grsm.com
Ms. Werner may be contacted at kwerner@grsm.com
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