ETF Bulls Bet Spring Will Thaw the U.S. Housing Market
April 08, 2014 —
Corinne Gretler – BloombergBuild it and they will come, if it’s not too chilly.
Traders have turned bullish on a security that tracks home construction companies, appliance makers and furniture retailers as spring finally ends the harsh winter.
As the SPDR S&P Homebuilders ETF (XHB) heads for its first weekly gain since February, investors are buying options betting that the rebound will keep going. The cost of bullish contracts has risen to the highest versus bearish ones in 2 ½ years. The ETF has gained 2.2 percent this week.
The exchange-traded fund of companies such as Ryland Group Inc., Whirlpool Corp. and Home Depot Inc. has rebounded 8 percent after reaching its lowest level this year on Feb. 3 as investors attribute weakness in the housing market to winter weather. Between December and February, snow covered 1.42 million square miles of the continental U.S., the 10th-largest snow cover in records going back to 1966, according to the National Climatic Data Center.
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Corinne Gretler, BloombergMs. Gretler may be contacted at
cgretler1@bloomberg.net
Surplus Lines Carrier Can Force Arbitration in Louisiana Despite Statute Limiting Arbitration
February 12, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe federal district court granted the surplus lines insurer's motion to compel arbitration despite a Louisiana statute barring policies from depriving courts of jurisdiction in cases against insurers. Queens Beauty Supply, LLC v. Indep.Specialty Ins. Co., 2023 U.S. Dist. LEXIS 195372 (E.D. La. Oct. 31, 2023).
Hurricane Ida damaged property leased by Queens. Queens filed suit against its insurer, Independent Specialty Insurance Company (ISIC) for breath of contract and bad faith for failing to pay the full amount Queens contends it was owed for the damage. ISIC moved to compel arbitration.
Queens argued that ISIC waived its right to enforce the policy's arbitration clause by its actions before the court, including failing to opt-out of the settlement program adopted for Hurricane Ida cases. The court disagreed, ISIC had taken no overt act that evidenced a desire to resolve the instant dispute through litigation rather than arbitration. ISIC asserted as an affirmative defense that Queens's claims were barred by the arbitration clause in the policy. ISIC then participated in the settlement program for Hurricane Ida cases, which evidences a desire to settle the dispute, not to resolve it by litigation. Therefore, ISIC had not waived its right to arbitrate.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Construction Defect Claim Must Be Defended Under Florida Law
February 15, 2018 —
Tred R. Eyerly – Insurance Law HawaiiThe Eleventh Circuit found that the insured caused property damage to areas beyond its own work, obligating the insurer to defend. Addison Ins. Co. v. 4000 Island Blvd. Condo. Ass'n, 2017 U.S. App. LEXIS 26870 (11th Cir. Dec. 28, 2017).
The condominium association contracted with Poma Construction Corp. to replace the building's aging concrete balcony railings with new aluminum and glass railings. Poma subcontracted with Windsor Metal Specialties, Inc. to paint the new railings. Work was completed on February 24, 2012. Poma issued a 10-year warranty covering its installation of the railings. Windsor issued a 20-year limited warranty covering the paint job.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Thousands of London Residents Evacuated due to Fire Hazards
June 29, 2017 —
David Suggs – Bert L. Howe & Associates, Inc.Nearly 4,000 residents were ordered by municipal authorities to “urgently evacuate apartments in five London high-rise buildings…after fire inspectors warned that the safety of the residents could not be guaranteed,” reported the New York Times. Displaced families were urged to find shelter with family or friends, but temporary accommodations were offered. Repairs may take up to four weeks.
The five London towers that were evacuated all contain the same exterior cladding and insulation that is similar to what was used in Grenfell Tower, where 79 people died in fire only the preceding week, according to the New York Times. Camden Council stated that the cladding material would be removed. They had ordered noncombustible cladding, but later learned that combustible cladding had been installed.
“Preliminary tests on the insulation samples from Grenfell Tower show that they combusted soon after the test started,” Detective Superintendent McCormack said in a televised statement, as quoted by the New York Times. “Cladding tiles had also failed initial tests,” she continued.
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JD Supra’s 2017 Reader’s Choice Awards
March 22, 2017 —
Garret Murai – California Construction Law BlogJD Supra, one of the world’s leading content distribution companies for the legal industry, announced its Readers’ Choice Awards for 2017 earlier this week. We were honored to be among a group of 200 authors selected from over 40,000 who published legal news, commentary and analysis on legal issues of importance to the clients we serve.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Lightstone Committing $2 Billion to Hotel Projects
February 26, 2015 —
Nadja Brandt – Bloomberg(Bloomberg) -- David Lichtenstein, whose real estate company owned Extended Stay Hotels when the chain went bankrupt, is committing $2 billion to developing and investing in lodging properties.
Lightstone Group is choosing “top-branded” select-service properties, those with limited amenities, in proven U.S. markets for its projects, Lichtenstein said in an interview. As part of the strategy, Lightstone has teamed up with Marriott International Inc. to build five Moxy hotels in New York -- four in Manhattan and one in Brooklyn. The “micro” lodgings, with high-tech features and smaller-than-average rooms, are geared toward younger travelers.
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Nadja Brandt, BloombergMs. Brandt may be contacted at
nbrandt@bloomberg.net
Don’t Forget to Mediate the Small Stuff
August 02, 2017 —
Christopher G. Hill - Construction Law MusingsIt’s been a while since I talked mediation here at Construction Law Musings. Those that read regularly (thanks) have likely missed my musings on the topic. Those who read this construction blog regularly also know that I am both a Virginia Supreme Court certified general district court mediator and a huge advocate of mediation as a method to resolve construction disputes. While many of us think of mediation as a method to resolve the major disputes or litigation that occasionally rear their heads in the course of running a construction law practice or construction business, my experience as both a construction attorney and a mediator has taught me something: mediation works for all sizes of cases.
As an advocate for my construction clients, I know that proper trial preparation requires the same diligence and attention to detail for a smaller case as it does for a larger case. While a smaller case in the Virginia general district court may not have the depositions, written discovery and motions practice that a Virginia circuit court case may have, it still requires witness preparation, document processing and review and many of the other aspects of a larger case. While construction litigation is never a money maker in the best of circumstances, in the smaller cases the attorney fees often total a larger percentage of the total potential recovery. For this reason, the small cases are almost better suited for a quick mediated resolution than the larger ones. The larger cases may cost more to prosecute or defend, but the fees are less likely to eat up such a large percentage of any recovery.
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Christopher G. Hill, The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Do Engineers Owe a Duty to Third Parties?
June 10, 2015 —
Craig Martin – Construction Contractor AdvisorA Texas Court of Appeals, in USA Walnut Creek, DST v. Terracon Consultants, Inc., recently ruled that an engineer owed a duty to the buyer of an apartment complex, even though the engineer had no contractual relationship with the buyer. This is an expansion of the duty professionals owe on construction projects and could signal a change in the law.
In the case, Walnut Creek purchased a three year old apartment complex. A few years after taking possession, Walnut Creek noticed problems with the apartments, including cracking foundations, walls, breaking windows, and out of square door frames. Walnut Creek sued the developer and general contractor, alleging construction defects. The developer claimed that the engineer, Terracon, was at fault and Walnut Creek added Terracon to the lawsuit, asserting that Terracon was negligent in performing engineering services during construction. Terracon asked the court to dismiss the claim, arguing that it did not owe a duty to Walnut Creek. Walnut Creek in turn argued that engineers do owe a duty to subsequent owners. The trial court dismissed the case against the engineer and Walnut Creek appealed.
The appellate court reversed the trial court, finding that the engineer did owe a duty to subsequent purchasers. The court seemed persuaded by the allegations that the engineer actually created the construction defects which were the basis for the litigation.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com