David McLain Recognized Among the 2021 Edition of The Best Lawyers in America© for Construction Law
October 19, 2020 —
David M. McLain – Colorado Construction LitigationDavid McLain is a founding member of Higgins, Hopkins, McLain & Roswell. Mr. McLain has over 22 years of experience and is well known for his work in the defense of the construction industry, particularly in the area of construction defect litigation. He is a member of the Executive Committee of the CLM Claims College - School of Construction, which is the premier course for insurance, industry, and legal professionals. Law Week Colorado recently named Mr. McLain as the 2019 People’s Choice for Best Construction Defects Lawyer for Defendants.
HHMR is highly regarded for its expertise in construction law and the litigation of construction-related claims, including the defense of large and complex construction defect matters. Our attorneys provide exceptional service to individuals, business owners, Fortune 500 companies, and the insurance industry. The firm is experienced in providing legal support throughout trials and alternative dispute resolution such as mediations and arbitrations.
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David McLain, Higgins, Hopkins, McLain & RoswellMr. McLain may be contacted at
mclain@hhmrlaw.com
Is Arbitration Okay Under the Miller Act? It Is if You Don’t Object
October 15, 2014 —
Christopher G. Hill – Construction Law MusingsI have discussed both payment bond claims under the Miller Act and alternate dispute resolution (ADR) here at Construction Law Musings on many an occasion. A question that is sometimes open is what to do when there is contractually mandated arbitration for claims “relating to the contract or the work.”
While here in Virginia, as in most places, the courts will almost automatically send any breach of contract case with such a clause to arbitration, a question exists whether the claim against the bond held by a surety that is not a party to the contract is subject to being referred. Well, in a recent opinion the District Court for the Eastern District of Virginia in Norfolk weighed in on this question where there was no opposition or objection to a motion to stay pending arbitration.
In U.S. for Use of Harbor Construction Co. Inc. v. THR Enterprises Inc. the Court considered a fairly typical payment dispute leading to a Miller Act claim. The general contractor and surety filed a motion to dismiss or alternatively stay the litigation based upon a clause in the contract between general contractor and subcontractor allowing the general contractor to elect the type of ADR to be used to resolve the dispute.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Court Grants Insurer's Motion for Summary Judgment After Insured Fails to Provide Evidence of Systemic Collapse
April 15, 2024 —
Tred R. Eyerly - Insurance Law HawaiiWith the insurer conceding that there was evidence of potential collapse at portions of eight specific building locations, the court granted the insurer's motion for partial summary judgment in determining no additional buildings suffered from collapse. Exec. 1801 LLC v. Eagle W. Ins. Co., 2024 U.S. Dist. LEZXIS 5923 (D. Or. Jan. 11, 2024).
Executive 1801 owned a group of six buildings with eighty-six residential units. The court previously granted partial summary judgment on Executive 1801's rain damage claim, leaving only claims regarding collapse. Eagle insured "the property for direct physical los or damage to Covered Property . . . caused by or resulting from any Covered Cause of loss." The policy further provided, "We will pay for direct physical loss or damage to Covered Property, caused by collapse of a building or any part of a building insured under this policy, if the collapse is caused by . . . hidden decay."
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Latosha Ellis Selected for 2019 Leadership Council on Legal Diversity Pathfinder Program
April 10, 2019 —
Michael S. Levine - Hunton Andrews KurthHunton Andrews Kurth has selected Latosha Ellis, an associate in the firm’s Insurance Coverage practice, for the 2019 Leadership Council on Legal Diversity (LCLD) Pathfinder Program. Pathfinder is a national yearlong program that trains diverse, high performing, early-career attorneys in critical career development strategies, including foundational leadership and building professional networks.
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Michael S. Levine, Hunton Andrews KurthMr. Levine may be contacted at
mlevine@HuntonAK.com
Mortgage Bonds Stare Down End of Fed Easing as Gains Persist
October 29, 2014 —
Jody Shenn – BloombergThe end of the Federal Reserve’s third round of bond purchases is proving to be a non-event for mortgage-backed debt.
That’s partly because even though the U.S. central bank won’t be adding more home-loan securities to its balance sheet, policy makers will still be buying enough to prevent its holdings from shrinking. Those purchases are having a greater impact as the pace of net issuance slows to a quarter of the amount last year amid a weaker property market.
The $5.4 trillion market for government-backed mortgage bonds is defying predictions for a slump tied to the wind-down of the Fed stimulus program, whose completion economists predict will be announced today. Yields on benchmark Fannie Mae (FNMA) notes have shrunk 0.14 percentage point this year relative to government debt, narrowing to within 1.09 percentage points of an average of five- and 10-year Treasury rates.
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Jody Shenn, BloombergMs. Shenn may be contacted at
jshenn@bloomberg.net
Guardrail Maker Defrauded U.S. of $175 Million and Created Hazard, Jury Says
October 22, 2014 —
Patrick G. Lee – BloombergSecret changes by Trinity Industries Inc. to its guardrail systems were found to have cheated the U.S. government, exposing the company to $1 billion in damages and penalties and sending shares plummeting as states question the safety of the product.
The east Texas jury’s verdict comes as scrutiny of the highway-safety product called the ET-Plus intensifies across the country after it’s been blamed for multiple deaths. The Federal Highway Administration this month asked all states to start submitting information on crashes involving the ET-Plus to the agency’s safety office.
The agency will evaluate the findings of the case and “consider whether it affects the continued eligibility of the ET-Plus,” Brian Farber, a spokesman for the Department of Transportation, said in an e-mail.
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Patrick G. Lee, BloombergMr. Lee may be contacted at
plee315@bloomberg.net
New York State Legislature Reintroduces Bills to Extend Mortgage Recording Tax to Mezzanine Debt and Preferred Equity
March 15, 2021 —
Steven E. Coury & Marissa Levy - White and WilliamsCompanion bills in the New York State Legislature, Assembly Bill No. A3139 and Senate Bill No. S3074, if enacted, would subject mezzanine loans and preferred equity investments to the same recording and taxation requirements placed on mortgages.
The bills were reintroduced last month after similar bills (S7231/A9041) were introduced in the 2019-2020 legislative session. The prior bills died in committee when last year’s legislative session adjourned.
As discussed in our prior alert, the proposed bills would require: (1) a financing statement evidencing any mezzanine debt and/or preferred equity investments related to real property to be filed in the county in which the real property is located and (2) a recording tax, at the same rate as the applicable mortgage recording tax rate (2.80% for commercial mortgages over $500,000 in New York City), to be imposed on the amount of the debt and/or investment at the time the financing statement is filed. The bills contain a limited carve-out for owner-occupied residential cooperatives.
Reprinted courtesy of
Steven E. Coury, White and Williams and
Marissa Levy, White and Williams
Mr. Coury may be contacted at courys@whiteandwilliams.com
Ms. Levy may be contacted at levmp@whiteandwilliams.com
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Drawing the Line: In Tennessee, the Economic Loss Doctrine Does Not Apply to Contracts for Services
December 11, 2023 —
Gus Sara - The Subrogation StrategistIn Commercial Painting Co. v. Weitz Co. LLC, No. W2019-02089-SC-R11-CV, 2023 Tenn. LEXIS 39 (Weitz), the Supreme Court of Tennessee (Supreme Court) considered whether the economic loss doctrine barred the plaintiff’s claims for fraud, negligent misrepresentation and punitive damages arising out of a contract with the defendant for construction services. The court held that the economic loss doctrine only applies to product liability cases and does not apply to claims arising from contracts for services. This case establishes that, in Tennessee, the economic loss doctrine does not bar tort claims in disputes arising from service contracts.
In Weitz, defendant, Weitz Co. LLC (Weitz), was the general contractor for a construction project and hired plaintiff Commercial Painting Co. (Commercial) as a drywall subcontractor. Weitz refused to pay Commercial for several of its payment applications, claiming that the applications were submitted untimely and contained improper change order requests. Commercial filed a lawsuit against Weitz seeking over $1.9 million in damages, alleging breach of contract, unjust enrichment, enforcement of a mechanic’s lien, and interest and attorney’s fees under the Prompt Pay Act of 1991. Weitz filed a counterclaim for $500,000 for costs allegedly incurred due to Commercial’s delay and defective workmanship. In response, Commercial amended its complaint to add claims for fraud, intentional and negligent misrepresentation, rescission of the contract and $10 million in punitive damages. Commercial alleged that Weitz received an extension of the construction schedule but fraudulently withheld this information from Commercial and continued to impose unrealistic deadlines.
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Gus Sara, White and WilliamsMr. Sara may be contacted at
sarag@whiteandwilliams.com