Home Prices Up, Inventory Down
February 04, 2013 —
CDJ STAFF"Housing is clearly recovering," David Blitzer of Standard & Poor told USA Today. Standard & Poor issued their Case-Shiller Index of home sale prices for November. In their review of twenty metropolitan areas, prices rose in all but one area. In the report for October, housing overall saw a 0.1% decline with gains only in ten cities.
The article attributes this in part to that the inventory of unsold homes was 4.4 months, which was the lowest since May 2005. "Any new listings are getting eaten up right away," said E. J. Bowlds, a broker at Coldwell Banker Bain. He is seeing six to ten competing offers on homes in his area of Washington State.
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Compliance with Contractual and Jurisdictional Pre-Suit Requirements is Essential to Maximizing Recovery
November 27, 2023 —
Michael S. Levine, Geoffrey B. Fehling & Charlotte Leszinske - Hunton Insurance Recovery BlogTimely notice is an important first step in a successful insurance recovery. But insurance policies are not always straightforward in identifying how, when, and to whom notice must be provided. Some states may also impose additional procedural hurdles, including requiring policyholders to contact their insurers before filing suit (the idea behind this requirement is that it may avoid litigation). Failing to comply with pre-suit requirements can hurt the policyholder’s recovery, as illustrated in a recent decision from the Northern District of Texas.
In NewcrestImage Holdings, LLC v. The Travelers Lloyds Insurance Company, No. 2:23-cv-039-BR (N.D. Tex. Oct. 17, 2023), the court considered whether NewcrestImage had forfeited its right to recover attorneys’ fees by failing to give Travelers pre-suit notice. NewcrestImage had filed suit against Travelers to obtain coverage for damage to its hotel property arising out of Winter Storm Uri. In its answer, Travelers asserted that NewcrestImage failed to provide the insurer with pre-suit notice as required under the Texas Insurance Code, and that if NewcrestImage successfully proved it was entitled to coverage, NewcrestImage’s failure to provide pre-suit notice precluded it from recovering attorneys’ fees. Travelers later moved to strike the claim for attorneys’ fees on that basis.
Reprinted courtesy of
Michael S. Levine, Hunton Andrews Kurth,
Geoffrey B. Fehling, Hunton Andrews Kurth and
Charlotte Leszinske, Hunton Andrews Kurth
Mr. Levine may be contacted at mlevine@HuntonAK.com
Mr. Fehling may be contacted at gfehling@HuntonAK.com
Ms. Leszinske may be contacted at cleszinske@HuntonAK.com
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AB 3018: Amendments to the Skilled and Trained Workforce Requirements on California Public Projects
February 18, 2019 —
Alex R. Bagdassarian & Nathan A. Cohen - Peckar & AbramsonWhat California Contractors Need To Know About AB 3018
California contractors used to face limited consequences for non-compliance with the state’s skilled and trained workforce requirements on public works projects. A sea-change to the statutory landscape went into effect on January 1, 2019 as a result of Assembly Bill No. 3018 (“AB 3018”).1 The Code re-defines what constitutes a skilled/trained workforce by eliminating existing exemptions, strengthens monthly reporting guidelines and agency oversight, and empowers the Labor Commissioner and public agencies with enforcement tools that include monetary penalties and debarment. Contractors who fail to institute a program to comply with AB 3018’s reporting requirements do so at their peril.
What Does The 30% Requirement Mean?
Previously, in order to comply with the skilled workforce requirements2, 30% of skilled journeypersons had to be graduates of an apprenticeship program, except for certain listed trades which were exempt from the apprenticeship percentage requirement3. AB 3018 eliminates this exception for the listed occupations and requires 30% of all trades to be comprised of apprenticeship program graduates.
Reprinted courtesy of
Alex R. Baghdassarian, Peckar & Abramson and
Nathan A. Cohen, Peckar & Abramson
Mr. Baghdassarian may be contacted at Abaghdassarian@pecklaw.com
Mr. Cohen may be contacted at ncohen@pecklaw.com
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40 Year Anniversary – Congratulations Ed Doernberger
November 23, 2016 —
Tracy Alan Saxe - Saxe Doernberger & Vita, P.C.Forty years ago, on the Big Island of Hawaii,
Edwin L. Doernberger was sworn in as an attorney. Fifteen years ago, Ed rejoined two former partners to help build an exciting new boutique insurance policyholder practice. Today, Saxe Doernberger & Vita is pleased to celebrate the 40th anniversary of its most distinguished partner.
“Ed’s energy and enthusiasm are undiminished,” said co-founder and Managing Partner, Tracy Alan Saxe. “He’s still one of the firm’s most active litigators.” Ed has extensive appellate experience, having argued before the Connecticut and Hawaii Supreme and Appellate Courts, New York Appellate Courts, and the Second and Ninth Circuits.
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Tracy Alan Saxe, Saxe Doernberger & Vita, P.C.Mr. Saxe may be contacted at
tas@sdvlaw.com
Why Builders Should Reconsider Arbitration Clauses in Construction Contracts
October 21, 2019 —
David M. McLain – Colorado Construction LitigationMy advice to home builders has long been to arbitrate construction defect claims instead of litigating them in front of juries. Based on my experience and watching others litigate claims, I have learned that home builders usually fare better in arbitration than in jury trials, both in terms of what they have to pay the homeowners or HOAs and also in what they recover from subcontractors and design professionals. Because of these dynamics, conventional wisdom has been that builders should arbitrate construction defect claims. For several reasons, I am now questioning whether the time is right to consider a third option.
First, plaintiffs’ attorneys dislike arbitration and will continue their attempts to do away with arbitration for construction defect claims. In 2018, the Colorado Legislature considered HB 18-1261 and HB 18-1262. While both bills were ultimately killed, they showed the plaintiffs’ attorneys disdain for arbitration, and serve as a warning that attempts to prevent arbitration legislatively will continue. If the legislature does away with the ability to arbitrate construction defect claims, and that is the only means of dispute resolution contained in a builder’s contracts, that builder may find itself in front of a jury.
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David McLain, Higgins, Hopkins, McLain & RoswellMr. McLain may be contacted at
mclain@hhmrlaw.com
Repeated Use of Defective Fireplace Triggers Duty to Defend Even if Active Fire Does Not Break Out Until After End of Policy Period
November 30, 2016 —
Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLPIn Tidwell Enterprises v. Financial Pacific Ins. Co. (No. C078665, filed 11/29/16), a California appeals court held that that even though a house fire occurred after the policy period, there was nonetheless a possibility of coverage because the fire might have been the result of ongoing damage to the wood in the chimney chase during the policy period, due to the exposure of that wood to excessive heat from the chimney every time a fire was burned in the fireplace.
Reprinted courtesy of
Christopher Kendrick, Haight Brown & Bonesteel LLP and
Valerie A. Moore, Haight Brown & Bonesteel LLP
Mr. Kendrick may be contacted at ckendrick@hbblaw.com
Ms. Moore may be contacted at vmoore@hbblaw.com
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"My Bad, I Thought It Was in Good Faith" is Not Good Enough - Contractor Ordered to Pay Prompt Payment Penalties
February 23, 2016 —
David A. Harris & Jesse M. Sullivan – Haight Brown & Bonesteel LLPRetention clauses are almost always included in California construction contracts and permit an Owner to withhold a portion of what is owed to the General Contractor as security to ensure the proper completion of the work. General Contractors pass the withholding of retention down to the subcontractors. Thus, if the subcontractor fails to complete its work, or fails to correct deficiencies, the Owner/General Contractor can use the retention to pay the costs of completing or correcting the subcontractor’s work.
The contractor must release any retention it receives from the owner within ten days unless a “good faith dispute exists between the direct contractor and the subcontractor.” (Civil Code section 8814.) Where there is a good faith dispute, the contractor “may withhold from the retention to the subcontractor an amount not in excess of 150 percent of the estimated value of the disputed amount.” (Civil Code section 8814(c).) If the contractor wrongfully withholds retention, it must not only pay the retention but must also pay the subcontractor “a penalty of 2 percent per month on the amount wrongfully withheld.” The contractor must also pay the subcontractor’s costs and reasonable attorney’s fees incurred in collecting the retention. (Civil Code section 8818.)
Reprinted courtesy of
David A. Harris, Haight Brown & Bonesteel LLP and
Jesse M. Sullivan, Haight Brown & Bonesteel LLP
Mr. Harris may be contacted at dharris@hbblaw.com
Mr. Sullivan may be contacted at jsullivan@hbblaw.com
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Construction Wall Falls, Hurts Three
November 06, 2013 —
CDJ STAFFA construction wall collapsed on November 1 during heavy rainfall in New York City. Two women were briefly trapped under the rubble, while other bystanders worked to free them. Einstein Construction Group, a contractor based in Texas, was remodeling the first floor for a new tenant, a Japanese restaurant. The company, which disclaims responsibility for the occurrence, were cited for violations and a stop work order was issued.
Just prior to the incident, high winds whipped through the area. The construction wall allegedly had not been securely attached to the building.
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