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San Francisco Museum Nears $610 Million Fundraising Goal

June 26, 2014 — Dan Levy – Bloomberg
The biggest museum fundraising campaign in San Francisco history is nearing its $610 million goal two years before the opening of a new wing that will more than double the space for artworks by Andy Warhol, Mark Rothko and David Hockney. About $570 million, or 94 percent, has been raised by the San Francisco Museum of Modern Art for its 235,000-square-foot (21,800-square-meter) expansion and to add $245 million to the museum’s endowment. The $305 million wing designed by the Snohetta architecture firm is rising behind SFMOMA’s current home, opened two decades ago in the technology-heavy South of Market area, or SOMA. “In 1995, we were the pioneers when SOMA was pretty run-down, and the tech boom followed us,” Neal Benezra, the museum’s director, said June 20 in a presentation at Bloomberg LP’s San Francisco offices. “Our expansion will solidify the neighborhood as a cultural hub.” Read the court decision
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Reprinted courtesy of Dan Levy, Bloomberg
Mr. Levy may be contacted at dlevy13@bloomberg.net

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Tennessee Court: Window Openings Too Small, Judgment Too Large

November 18, 2011 — CDJ STAFF

The Tennessee Court of Appeals has issued a ruling in the case of Dayton v. Ackerman, upholding the decision of the lower court, even as they found that the award was incorrectly computed. The Daytons purchased a house that had been designed and built by the Ackermans, who operated a construction business. The court noted that the warranty with the house promised that “for a period of 60 days, the following items will be free of defects in materials or workmanship: doors (including hardware); windows; electric switches; receptacles; and fixtures; caulking around exterior openings; pluming fixtures; and cabinet work.”

Soon, the Daytons began to experience problems with the house. Many were addressed by the Ackermans, but the Daytons continued to have problems with the windows. Neither side could specify a firm date when the Ackermans were contacted by the Daytons about the window problems. The Ackermans maintained that more than two years passed before the Daytons complained about the windows. The lower court found the Daytons more credible in this.

Initially, the Daytons included the window manufacturer in their suit, but after preliminary investigations, the Daytons dropped Martin Doors from their suit. Martin Doors concluded that the windows were improperly installed, many of them “jammed into openings that were too small for them.”

After the Daytons dismissed Martin Doors, the Ackermans sought to file a third party complaint against them. This was denied by the court, as too much time had elapsed. The Ackermans also noted that not all of the window installations were defective, however, the courts found that the Daytons ought not to have mismatched windows.

Unfortunately for the Daytons, the window repair was done incorrectly and the windows were now too small for the openings. The firm that did the repair discounted the windows and Daytons concealed the problem with plantation shutters, totalling $400 less than the original lowest estimate. However, the appeals court noted that it was here that the trial court made their computation error. Correcting this, the appeals court assessed the Ackermans $12,016.20 instead of $13,016.20.

Finally, the Ackerman’s expert was excluded as he had changed his testimony between deposition and trial. The trial reviewed the expert’s testimony and had it been admissible, it would not have changed the ruling.

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How Long does a Florida Condo Association Have to File a Construction Defect Claim?

September 17, 2014 — Beverley BevenFlorez-CDJ STAFF
According to a post on Orlando Sentinel’s HOA & Condo Blog, sponsored by the firm Becker & Poliakoff, generally a Condominium Association has “4 years from turnover of control of the Condominium Association from the developer” to file a lawsuit for construction defects. However, the association may have additional time to file. If defects from the original construction were discovered after the 4 years have lapsed, “[a] condominium association may still pursue a claim for latent defects,” which is one that “is hidden, and not discovered despite the exercise of due diligence, for the period of 4 years from turnover.” The Statute of Repose in Florida is “10 years from the date the building received its original Certificate of Occupancy.” Read the court decision
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Insurer Prevails on Summary Judgment for Bad Faith Claim

July 16, 2023 — Tred R. Eyerly - Insurance Law Hawaii
The court granted summary judgment to the insurer on the insured's claim for bad faith due to denial of the claim. Treigle v. State Farm Fire and Cas. Ins. Co., 2023 U.S. Dist. LEXIS 87786 (E.D. La. May 19, 2023). The insured's home sustained serious water damage due to Hurricane in August 2021. Her policy with State Farm excluded losses related to surface water and mold. The insured reported the loss from Hurricane Ida after she returned to her home and found two inches of standing water in the house. State Farm advised the insured to hire a water mitigation company to help with the water. The insured contacted 7 Brothers Company to start mitigation, including tearing out the disposing of wet building materials. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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Real Estate & Construction News Roundup (08/30/23) – AI Predicts Home Prices, Construction’s Effect on the Economy, and Could Streamline Communications for Developers

October 17, 2023 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, SV invests in a new green “mega-city” outside San Francisco, refunds are given to investors in fraudulent real estate deal, homebuyers are losing purchasing power, and more!

• With major tech companies like Google and Amazon laying off workers, those with computer science and related degrees are looking to construction as a place to start or restart their careers. (Zachary Phillips, Construction Dive)
• Although Silicon Valley is the haven for most tech startups, Israel has become a place where those in construction innovation can find support and funding. (Matthew Thibault, Construction Dive)
• For those who may be concerned about the future price of their home, it may be possible for AI to look at a house and predict its price with “striking accuracy.” (Jacob Zinkula, Business Insider)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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New York’s Highest Court Gives Insurers “an Incentive to Defend”

November 20, 2013 — CDJ STAFF
The New York Court of Appeals, that state’s highest court, has ruled that when an insurer disclaims duty to defend, “if the disclaimer is found bad, the insurance company must indemnify its insured for the resulting judgment, even if policy exclusions would have otherwise negated the duty to indemnify.” The insurer who makes a failed claim that there was no duty to defend cannot thereafter claim exclusions. This recent New York decision is discussed by Allen R. Wolff and Eric R. Reed of Anderson Kill in their Policyholder Advisor. They note that the decision “confirms that the estoppel rule applies in New York , as it does in at least four other states.” But this may not be the last word. American Guarantee made a motion for reargument, which the court granted. The case will return to the court in January 2014. They note that “if paying defense costs is the only consequence an insurance company faces for breaching its duty to defend the insured, an insurance company has a financial incentive to ‘kick the can down the road.’” Read the court decision
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Construction and AI: What Contractors Need to Know from ABC’s New Report

November 05, 2024 — Aarni Heiskanen - AEC Business
The Associated Builders and Contractors (ABC) has just released its fourth annual construction technology report, which dives deep into AI’s evolving role in the construction industry. “ABC contractor members and the overall contracting community want more information on AI and how it can help them improve safety, quality and profitability—and win more work,” said Matt Abeles, ABC vice president of construction technology and innovation. The newly released ABC AI Tech Report delivers on this need, highlighting AI-driven case studies, resources, and thought leadership from ABC’s Tech Alliance. Understanding AI’s Role in Construction The report provides a comprehensive AI Resource Guide, breaking down the basics of artificial intelligence and how it applies to construction. Understanding AI is key for contractors to stay competitive in the rapidly changing industry. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

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Client Alert: Court of Appeal Applies Common Interest Privilege Doctrine to HOA Litigation Meetings

March 19, 2014 — David W. Evans, Steven M. Cvitanovic, and Michael C. Parme - Haight Brown & Bonesteel LLP
In Seahaus La Jolla Owners Assoc. v. Superior Court (No. D064567, March 12, 2014), the California Court of Appeal held a homeowners association’s (“HOA”) litigation meetings related to the HOA’s construction defect lawsuit were subject to protection under the attorney-client privilege. Specifically, the court concluded the common interest doctrine applied to the subject litigation meetings, thereby barring the defendants in the HOA’s lawsuit from seeking discovery related to the content and disclosures made during those meetings. The plaintiff HOA initiated a construction defect lawsuit against a residential developer and builder, seeking damages for construction defects related to common areas. The defendants took the depositions of individual homeowners and inquired regarding the communications and disclosures made at informational litigation update meetings. The meetings were conducted by the HOA’s counsel with groups of homeowners, some of whom had filed their own, separate lawsuits against the same defendants. Motions to compel were filed after attorney-client privilege objections were asserted by counsel for the HOA. After the court-appointed discovery referee opined that the common interest doctrine applied and that the communications presented at the meetings were subject to the attorney-client privilege, the trial court rejected this recommendation and overruled the HOA’s privilege objections. The HOA filed a petition for a writ of mandate. The defendants argued the privilege had been waived based on the presence of persons who were not the clients of the HOA’s attorney, that the subject communications were not “confidential communications” and that the individual homeowners and the HOA did not share common interests at the time. After setting forth a comprehensive discussion of the statutory principles underlying the attorney-client privilege and the bases for waiver, as provided in California Evidence Code §§ 912 and 952, and summarizing applicable decisional law, the court specifically analyzed the question of whether the common interest doctrine applied in the context of the disputed HOA litigation meetings. The common interest doctrine protects confidential communications made by counsel to third parties if the third parties are present to further the interest of the client or are those to whom disclosure is reasonably necessary for the transmission of the information or the accomplishment of the purpose for which the lawyer was consulted. Reprinted courtesy of David W. Evans, Steven M. Cvitanovic, and Michael C. Parme of Haight Brown & Bonesteel LLP Mr. Evans may be contacted at devans@hbblaw.com, Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com, and Mr. Parme may be contacted at mparme@hbblaw.com Read the court decision
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