U.S. Homeowners Are Lingering Longer, and the Wait Is Paying Off
July 28, 2018 —
Jeremy Hill - BloombergHomeowners in the U.S. are holding on to their houses longer than they have in at least 18 years, and when they do sell, they’re reaping gains that haven’t been seen since before the housing crisis.
Those who sold in the second quarter did so after owning their homes for an average of 8.09 years, the longest stretch since Attom Data Solutions started tracking the statistic in 2000. The wait appears to be paying off: Second-quarter sellers recorded gains averaging $58,000 -- the most since the third quarter of 2007.
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Jeremy Hill, Bloomberg
The Future of Construction Defects in Utah Unclear
December 11, 2013 —
CDJ STAFFIn recent years, more courts have started to view construction defects as accidents, covered under insurance policies. In a post on the Parr Brown Gee & Loveless web site, Jeffrey D. Stevens writes that “the number of courts siding with insurance companies to deny contractors and subcontractors insurance coverage in construction defect lawsuits has been shrinking.” Recently, the Supreme Court of West Virginia “switched sides on this issue completely.”
The Utah Supreme Court has not made a ruling on this, but the Federal District Court for the District of Utah and the Tenth Circuit have looked at Utah law and concluded that “under Utah law damage caused by construction defects is not accidental.” But in another case, “the district court determined that property damage allegedly caused by defective or defectively installed windows was caused by an accident.”
Mr. Stevens thinks that “it is likely” that the Utah Supreme Court “will follow the increasing number of courts that have held that damage caused by construction defects is an accident for insurance purposes.
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White and Williams Defeats Policyholder’s Attempt to Invalidate Asbestos Exclusions
January 28, 2014 —
White and Williams LLPWhite and Williams attorneys scored a significant victory for the insurance industry on January 15, 2014, when a federal jury of four men and four women rejected a policyholder’s novel efforts to invalidate asbestos exclusions contained in insurance policies issued between February 1, 1979 and August 1, 1985.
In General Refractories Co. v. First State Ins. Co., Civil Action No. 04-CV-3509 (E.D. Pa.), General Refractories Company contended that asbestos exclusions in insurance policies issued by various insurance companies in the late 1970s and 1980s had not been submitted to the Pennsylvania Department of Insurance for approval prior to use and, therefore, were unenforceable. Holding a failure to obtain approval, by itself, would not be sufficient to render the exclusions unenforceable, the Honorable Edmund Ludwig sent the matter to trial to determine whether the Pennsylvania Insurance Commissioner implemented a policy that was uniformly executed by the Insurance Department to disapprove all asbestos exclusions between February 1, 1979 and August 1, 1985, such that the exclusions violated a “dominant public policy.”
Reprinted courtesy of Gregory LoCasale, White and Williams LLP
and
Patricia Santelle , White and Williams LLP
Ms. Santelle may be contacted at santellep@whiteandwilliams.com and Mr. LoCasale may be contacted at locasaleg@whiteandwilliams.com.
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Court of Appeals Issues Decision Regarding Second-Tier Subcontractors and Pre-Lien Notice
February 06, 2023 —
Travis Colburn - Ahlers Cressman & SleightVelazquez Framing, LLC (“Velazquez”) v. Cascadia Homes, Inc. (“Cascadia”) is a Court of Appeals, Division 2 case where the primary issue on appeal was whether a second tier subcontractor was required to provide pre-lien notice under RCW 60.04 for its labor.
The defendant, Cascadia, was the general contractor that planned to build a home on property it owned in Lakewood, Washington.[1] High End Construction, LLC (“High End”), submitted a bid to Cascadia for framing work on the home. High End began work on Cascadia’s home, but later subcontracted with Velazquez to complete the framing work.[2] Velazquez did not submit a prelien notice for its work on Cascadia’s home, and Cascadia claimed it was unaware that High End subcontracted with Velazquez for framing at the project.
High End invoiced Cascadia and was paid for its work, but High End never paid Velazquez. Subsequently, Velazquez recorded a lien for both labor and materials, and later filed a complaint to foreclose its lien. Cascadia, due to the fact Velazquez did not provide it with prelien notice, moved for summary judgment, arguing prelien notice was required under RCW 60.04.031(1)[3] and the labor portion of a lien cannot be segregated where a subcontractor’s lien includes both labor and materials. Velazquez argued that no prelien notice was required under RCW 60.04.021[4] and RCW 60.04.031 and claimed that subcontractors can segregate the labor portion from the materials portion. The trial court granted Cascadia’s motion and ruled Velazquez did not fall within one of the exceptions for prelien notice in RCW 60.04.031(2), and therefore, could not enforce the lien. Velazquez appealed.
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Travis Colburn, Ahlers Cressman & SleightMr. Colburn may be contacted at
travis.colburn@acslawyers.com
Arizona Purchaser Dwelling Actions Are Subject to a New Construction
September 04, 2019 —
William L. Doerler - The Subrogation StrategistArizona recently amended its Purchaser Dwelling Action statute to, among other things, involve all contractors in the process, establish the parties’ burdens of proof, add an attorney fees provision, establish procedural requirements and limit a subcontractor’s indemnity exposure. The governor signed the bill—2019 Ariz. SB 1271—on April 10, 2019, and the changes go into effect and apply, retroactively “to from and after June 30, 2019.” The following discussion details some of the changes to the law.
Notice to Contractors and Proportional Liability
Under the revised law, a “Seller” who receives notice of a Purchaser Dwelling Action (PDA) from a residential dwelling purchaser pursuant to A.R.S. § 12-1363* has to promptly forward the notice to all construction professionals—i.e. architects, contractors, subcontractors, etc., as defined in A.R.S. § 12-1361(5)—that the Seller reasonably believes are responsible for an alleged construction defect. A.R.S. § 12-1363(A). Sellers can deliver the notice by electronic means. Once construction professionals are placed on notice, they have the same right to inspect, test and repair the property as the Seller originally placed on notice. A.R.S. § 12-1362(B), (C).
To the extent that the matter ultimately goes to suit, A.R.S. § 12-1632(D) dictates that, subject to Arizona Rules of Court, construction professionals “shall be joined as third-party defendants.” To establish liability, the purchaser has the burden of proving the existence of a construction defect and the amount of damages. Thereafter, the trier of fact determines each defendant’s or third-party defendant’s relative degree of fault and allocates the pro rata share of liability to each based on their relative degree of fault. However, the seller, not the purchaser, has the burden of proving the pro rata share of liability for any third-party defendant. A.R.S. § 12-1632(D).
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William L. Doerler, White and Williams LLPMr. Doerler may be contacted at
doerlerw@whiteandwilliams.com
A Brief Discussion – Liquidating Agreements
June 27, 2022 —
Gerard J. Onorata - Peckar & Abramson, P.C.During a construction project, it is not uncommon for disputes to arise between a general contractor and a subcontractor. Frequently, these disputes involve claims for extra work and delay damages that can be attributed to the owner of the project due to deficient design or unforeseen conditions. When these occasions arise, the parties can often resolve these claims without the need for litigation or arbitration by entering into a “liquidating agreement.”
What is a Liquidating Agreement?
Because there is no direct contractual relationship between a subcontractor and an owner, there does not exist a legal basis for a subcontractor to assert a breach of contract claim against a project owner. In legal parlance, this is known as “lack of contractual privity.” A liquidating agreement bridges this contractual gap and allows a subcontractor to pass its claim against the owner through the general contractor. Essentially, with a liquidating agreement, the general contractor acts as a conduit for passing through the subcontractor’s claim.
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Gerard J. Onorata, Peckar & Abramson, P.C.Mr. Onorata may be contacted at
gonorata@pecklaw.com
Calling Hurricanes a Category 6 Risks Creating Deadly Confusion
March 25, 2024 —
Brian K Sullivan - BloombergCategory 5 has become part of the world’s lexicon to describe a disaster of monumental proportion.
Now, thanks to climate change, a pair of scientists don’t think that is a dire enough level to describe hurricanes. They raise the possibility, on a “hypothetical” basis, for a Category 6.
Global warming has increased the energy available for storms to grow stronger, according to a paper by Michael Wehner, senior scientist at the Lawrence Berkeley National Lab, and James Kossin, climate and atmospheric professor at the University of Wisconsin. Their work was published in Proceedings of the National Academy of Sciences of the US.
The scientists make a case for adjusting the five-step, Saffir-Simpson Hurricane Wind Scale, which is used to describe hurricane power. A Category 5 is assigned when storm winds reach 157 miles per hour, and today that goes up to the limit of physics. Wehner and Kossin suggest considering anything over 192 mph a Category 6.
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Brian K Sullivan, Bloomberg
Skyline Cockpit’s Game-Changing Tower Crane Teleoperation
August 21, 2023 —
Aarni Heiskanen - AEC BusinessIn
this episode of the AEC Business podcast, host Aarni Heiskanen interviews Zachi Flatto, CEO and co-founder of Skyline Cockpit. The startup offers a tower crane teleoperation, AI monitoring, and autonomous driving system. Zachi discusses the background of Skyline Cockpit, how they make construction safer and more efficient, and what technologies they use.
A ground-breaking change in crane operation
Zachi Flatto, the CEO and co-founder of
Skyline Cockpit, is leading a startup that specializes in providing advanced technology solutions for tower crane operations. The company’s main objective is to eliminate the need for crane operators to climb 100 meters every morning and spend long hours operating the crane from such heights. Zachi firmly believes that in 2023, this traditional practice is no longer necessary.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi