Cambridge Massachusetts Building Expert Directory

Insurers Reacting to Massachusetts Tornadoes

August 11, 2011 — CDJ STAFF

The Patriot-Ledger reports that insurers could pay out as much as $200 million to cover homes damaged or destroyed in the tornadoes that hit central and southern Massachusetts in June, 2011. Joseph Murphy, Commissioner of the State Division of Insurance didn?t foresee problems with insurers covering these claims. “At this point, there doesn’t seem to be any one company overexposed in that area,” he told the Patriot-Ledger.

Insurance executives did not think the tornadoes would cause them to raise rates. Steve Chevalier, CEO of NLC Companies, said, “it’s a major event for those impacted by it, but it’s not close to a financial hit to us.”

One insurer noted that the winter weather generated more claims; however the cumulative value of those claims was $15 million.

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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

“Good Faith” May Not Be Good Enough: California Supreme Court to Decide When General Contractors Can Withhold Retention

March 22, 2018 — Erinn Contreras and Joy O. Siu – Construction & Infrastructure Law Blog
It is industry standard in California for owners of a construction project to make monthly payments to a contractor for work it has completed, less a certain percentage that is withheld as a guarantee of future satisfactory performance. This withholding is called a retention. Contractors generally pass these withholdings on to their subcontractors via a retention clause in the subcontract. Under such clause, if a subcontractor fails to complete its work or correct deficiencies in its work, the owner and the general contractor may use the retention to bring the subcontractor’s work into conformance with the requirements of the contract. When and how retention payments must be released are governed by, among other statutes, Civil Code section 8800 et seq. Specifically, Civil Code section 8814, subdivision (a), states that a direct contractor must pay each subcontractor its share of a retention payment within ten days after the general contractor receives all or part of a retention payment. Failure to make payments in accordance with Section 8814 can subject an owner or a contractor to a (1) two percent penalty per a month on the amount wrongfully withheld, and (2) claim for attorney’s fees for any litigation required to collect the wrongfully withheld retention payments. (Civ. Code, § 8818.) Reprinted courtesy of Erinn Contreras, Sheppard, Mullin, Richter & Hampton LLP and Joy Siu, Sheppard, Mullin, Richter & Hampton LLP Ms. Contreras may be contacted at econtreras@sheppardmullin.com Ms. Siu may be contacted at jsiu@sheppardmullin.com Read the court decision
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Manhattan Bargain: Condos for Less Than $3 Million

February 05, 2015 — Oshrat Carmiel and Heather Perlberg – Bloomberg
When Related Cos. began selling condominiums at one of its former rental buildings last month, 50 people showed up in the first two days for an only-in-Manhattan bargain: almost all the homes cost less than $3 million. Carnegie Park, a 1980s-era rental property, was renovated as a condo building where one-bedroom apartments with 690 square feet (64 square meters) start at $765,000. The average price for all units is about $1,300 per square foot -- roughly 30 percent less than the average for a newly built Manhattan condo sold in the fourth quarter, according to appraiser Miller Samuel Inc. Reprinted courtesy of Oshrat Carmiel, Bloomberg LLP and Heather Perlberg, Bloomberg LLP Read the court decision
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Construction Defects and Second Buyers in Pennsylvania

February 07, 2013 — CDJ STAFF
The ability to sue over construction defects has typically been limited to the initial purchaser of a home. But as Kevin F. McKeegan writes in the Pittsburgh Post-Gazette, the Pennsylvania Superior Court recently expanded that to subsequent purchasers. As Mr. Keegan notes, "not only can the first buyer of a new home bring a lawsuit against a builder, but now any subsequent buyer within 12 years of the home's construction can file a claim." Mr. Keegan, a lawyer with Meyer, Unkovic & Scott, notes that in the underlying case, the second owners of a home in Jamison, Pennsylvania filed a claim that the water infiltration violated the "implied warranty of habitability." There are still limitations on construction defects in Pennsylvania. The suit must be filed within twelve years of completion of the construction, and a breach of implied warranty must be proven. Mr. Keegan notes that "the homeowner must show that a defect is hidden and non-obvious, that it is the result of the builder's design or construction, and that it affects the habitability of the residence." Read the court decision
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Congratulations to Nicholas Rodriguez on His Promotion to Partner

November 25, 2024 — Dolores Montoya - Bremer Whyte Brown & O'Meara LLP
Bremer Whyte Brown & O’Meara, LLP is very proud to announce that Nick Rodriguez has been promoted to the position of partner with the firm! Nick has been with BWB&O since 2019 and is licensed to practice law in California and the U.S. District Courts. Nick’s practice focuses on complex construction defect matters, as well as personal injury and wrongful death claims. During his time with the firm, Nick has successfully represented numerous clients through alternative dispute resolution and has taken matters to trial where he has received favorable jury verdicts. He also supervises and manages a team of associates in the Newport Beach office. Read the court decision
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Reprinted courtesy of Dolores Montoya, Bremer Whyte Brown & O'Meara LLP

Summary Judgment in Favor of General Contractor Under Privette Doctrine Overturned: Lessons Learned

March 27, 2023 — Garret Murai - California Construction Law Blog
It seems like we’ve been seeing a lot of Privette doctrine cases recently. Here’s another, Brown v. Beach House Design & Development, 85 Cal.App.5th 516 (2002), which provides a cautionary tale for general contractors to watch what they include in their scope of work and how they manage projects. The Beach House Case Kyle Brown was a carpenter employed by subcontractor O’Rourke Construction, Inc. who contracted with general contractor Beach House Design and Development to provide finish carpentry on a construction project. A&D Plastering Co., another subcontractor on the project, had erected scaffolding on the project. On June 16, 2017, while using A&D’s scaffolding, Brown fell onto a concrete walkway where he suffered severe injuries. Following the accident, Beach House and A&D inspected the scaffolding and found that some of the scaffolding was not properly secured to the building and that planks, crossbars, ties and guardrails had been cut or were missing. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Infrared Photography Illuminates Construction Defects and Patent Trolling

October 01, 2013 — CDJ STAFF
Reuben Saltzman, a home inspector in the Minneapolis area wrote a piece for the Star Tribune in which he discussed the use of infrared photography in home inspections. Lack of insulation and water intrusion show up clearly on infrared photography where there is not yet any visible damage. Moist or cold areas show up as darker than their surroundings. Mr. Saltzman included one photo with his article in which the problem shows up as a hot spot: a carpet installer had covered over a floor register. Mr. Saltzman’s use of infrared photography may be in danger, as he recently learned that a Mississippi firm has actually taken out a patent on using infrared photography for home inspections. Read the court decision
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CAMBRIDGE MASSACHUSETTS BUILDING EXPERT DIRECTORY AND CAPABILITIES