Arizona Court Affirms Homeowners’ Association’s Right to Sue Over Construction Defects
October 15, 2024 —
Melissa Kenney - White and Williams LLPIn Gallery Community Association v. K. Hovnanian at Gallery LLC, No. 1 CA-CV 23-0375, 2024 Ariz. App. Unpub. LEXIS 696 (Ct. App.), the Court of Appeals of Arizona (Court of Appeals) discussed whether a homeowners’ association can file an action for breach of the implied warranty of workmanship and habitability arising from construction defects. At issue was whether the implied warranty extended to the areas within the community that the association maintained, including the common areas. The Court of Appeals held that homeowners’ associations can sue builder-vendors for breach of the implied warranty arising from construction defects.
In this case, a homeowners’ association, responsible for managing and maintaining a community of townhomes, sued the developer/builder for alleged construction defects in the common area and exteriors of homes that the association maintained for the homeowners in the community. The alleged defects included the pool cabana and staircase walls in the common areas and the exterior walls, roofs, and staircases on the separately owned townhomes in the community. The builder filed a motion for summary judgment, arguing that the implied warranty extended to dwelling actions initiated by homeowners – not homeowners’ associations – and that the alleged construction defects at issue were not related to a dwelling. The trial court granted the motion. The Court of Appeals vacated the trial court’s grant of summary judgment and remanded for further proceedings. In reaching its decision, the Court of Appeals determined that both common law and statutory law authorized the homeowners’ association’s breach of implied warranty claim.
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Melissa Kenney, White and WilliamsMs. Kenney may be contacted at
kenneyme@whiteandwilliams.com
Payment Bond Surety Entitled to Award of Attorneys’ Fees Although Defended by Principal
February 01, 2023 —
Garret Murai - California Construction Law BlogFor contractors involved in California public works projects the scenario is not uncommon: The general contractor awarded the public works project is required to obtain a payment bond for the benefit of subcontractors and suppliers and the payment bond surety issuing the payment bond requires the general contractor to defend and indemnify the surety from and against any claims against the payment bond.
In
Cell-Crete Corporation v. Federal Insurance Company, 82 Cal.App.5th 1090 (2022), the 4th District Court of Appeal examined whether a payment bond surety, who prevails in a claim against the payment bond, is entitled to statutory attorneys’ fees when the party actually incurring the attorneys’ fees was the general contractor, pursuant to its defense and indemnity obligations, as opposed to the surety itself.
The Cell-Crete Case
General contractor Granite Construction Company was awarded a public works contract issued by the City of Thermal known as the Airport Boulevard at Grapefruit Boulevard and Union Pacific Railroad Grade Separation Project. We’ll just call it the “Project.” Subcontractor Cell-Crete Corporation entered into a subcontract with Granite for lightweight concrete and related work.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Can Your Small Business Afford to Risk the Imminent Threat of a Cyber Incident?
November 28, 2018 —
Jeffrey M. Dennis & Heather H. Whitehead – Newmeyer & Dillion LLPCybersecurity incidents are occurring on a daily basis and at an increasingly growing rate. Yet, many small businesses still have not obtained adequate (or any) cyber insurance to address these risks and the costly impacts to the business that will result. In a recent study completed by the Insurance Information Institute1, only about a third of all small businesses polled responded that they have cyber insurance in place, with 70% of respondents replying that they have no plans to purchase a cyber insurance policy in the next 12 months. Most of the businesses indicated that they do not believe they have any need for cyber insurance, yet almost half of those same companies stated they are unprepared to handle cyber threats. A main reason for not purchasing cyber insurance was a lack of understanding about this type of insurance and coverages available.
The Risks for Small Businesses
These statistics are alarming considering that the average cost of a cyber-related loss for a small business has increased 250% in the past two years, and now totals $188,400. In determining whether insurance coverage should be purchased, companies typically assess the perceived risks to the company, the likelihood of such risks occurring, as well as any costs or expenses that may result. For example, most companies regularly obtain a property policy to cover a fire or other casualty that may damage its business location even though such an event is unlikely or unexpected. Yet, cyber incidents are just as likely, if not more likely to occur, and the impacts to a company in the event of an incident are far worse. Many incidents result in a complete suspension of the daily operations of the company for several days or longer.
In addition to financial loss, companies may face the following as a result of a cyber incident:
- Theft, breach or loss of information and data;
- Damage to the company's reputation, brand or image; and
- Regulatory, governance and legal issues.
- How Cyber Insurance can Help
Cyber insurance policies can be obtained to address the losses related to a data breach and may include costs for investigating a breach, notifying people affected by a breach of personally identifiable information, managing the potential damage to reputation and other crisis-management expenses, recovering lost or corrupted data, and related legal expenses. More importantly, well-drafted policies can afford coverage for business interruption losses; i.e. those expenses and lost revenue resulting from a breached system and a company's inability to continue its usual operations. Coverage may also be obtained for "cyber extortion", which covers costs resulting from an extortion event such as ransomware or fraudulent wire transfers.
It is important to keep in mind that cyber insurance is only one component to consider when developing and implementing an overall risk management strategy to prevent cyber incidents. However, taking into account the exposure to a company if and when a cyber incident occurs, it is highly advisable to have this coverage in place.
1Insurance Information Institute, "Small business, big risk: Lack of cyber insurance is a serious threat," October 2018.
Jeff Dennis is the head of the firm's Privacy & Data Security practice. Jeff works with the firm's clients on cyber-related issues, including contractual and insurance opportunities to lessen their risk. For more information on how Jeff can help, contact him at jeff.dennis@ndlf.com.
Heather Whitehead is a Partner in the firm's Privacy & Data Security practice. Heather also practices insurance coverage matters for commercial, retail, industrial, mixed-use, multi-family and residential projects. For more information on how Heather can help, contact her at heather.whitehead@ndlf.com.
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Rihanna Gained an Edge in Construction Defect Case
January 29, 2014 —
Beverley BevenFlorez-CDJ STAFFIn depositions taken last week, the former owner of Rihanna’s “dream home” in Los Angeles, California, alleged “that he’d told brokers Prudential California Realty of the house’s issues,” according to Inquisitr. However, Rihanna, the singer and recent Grammy Award winner, claims that Prudential “didn’t inform” her “of these problems before she moved in, in 2009.”
Rihanna has claimed that roof leaks “ruined a sound system that she’d had custom-fitted into her new abode, which cost her $6.9 million, and it also lead to mold growing on some of her designer garments too.” The singer claims to have been “tricked” into purchasing the property: “’the actual value of the property at the time of purchase, taking into consideration the extensive construction defects… was millions of dollars less’” than what she ultimately paid for it.”
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White and Williams Ranked in Top Tiers of "Best Law Firms"
November 08, 2021 —
White and Williams LLPWhite and Williams has achieved national recognition from U.S. News and World Report as a "Best Law Firm" in the practice areas of Insurance Law, Bankruptcy and Creditor Debtor Rights / Insolvency and Reorganization Law and Media Law. Our Boston, Delaware, New Jersey, New York City and Philadelphia offices have also been recognized in their respective metropolitan regions in several practice areas.
National Tier 1
Insurance Law
National Tier 2
Bankruptcy and Creditor Debtor Rights / Insolvency and Reorganization Law
National Tier 3
Media Law
Metropolitan Tier 1
Boston
Insurance Law
Litigation - Insurance
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White and Williams LLP
FEMA Fire Management Assistance Granted for the French Fire
July 08, 2024 —
The Federal Emergency Management AgencyOAKLAND, Calif. – The Federal Emergency Management Agency's (FEMA) Region 9 Administrator authorized the use of federal funds on July 4 at 11:37 p.m. PDT / 2:37 a.m. EDT to assist the state of California to combat the French Fire burning in Mariposa County.
On July 4, the state of California submitted a request for a Fire Management Assistance Grant (FMAG). At the time of the request, the fire threatened approximately 1,019 homes in and around Mariposa, CA, population 1,300. 95% of the threatened homes are primary residences and 5% are secondary residences.
The fire started on July 4, 2024 and had burned more than 790 acres of State and private land. The fire was 0% contained. There are five large fires burning uncontrolled within the State.
FMAGs provide federal funding for up to 75 percent of eligible firefighting costs. The Disaster Relief Fund provides allowances for FMAGs through FEMA to assist in fighting fires that threaten to become a greater incident.
Eligible costs covered by FMAGs can include expenses for field camps, equipment use, materials, supplies and mobilization, and demobilization activities attributed to fighting the fire.
For more information on FMAGs, visit https://www.fema.gov/assistance/public/fire-management-assistance.
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12 Newmeyer Dillion Attorneys Named to 2022 U.S. News Best Lawyers in Multiple Practice Areas
August 23, 2021 —
Newmeyer DillionProminent business and real estate law firm Newmeyer Dillion is pleased to announce that twelve of the firm's attorneys were recently selected for inclusion and will be recognized in their respective areas in The Best Lawyers in America© 2022. Additionally, Greg Dillion has been selected to Best Lawyers 2022 Lawyer of the Year list in Construction Law.
The twelve 2022 Best Lawyers are:
Jason Moberly Caruso,
Michael S. Cucchissi,
Jeffrey M. Dennis,
Greg L. Dillion,
Joseph A. Ferrentino,
Jon J. Janecek,
Michael B. McClellan,
Thomas F. Newmeyer,
John A. O'Hara,
Thomas H. Reilly,
Bonnie T. Roadarmel and
Jane M. Samson
Best Lawyers is the oldest peer-review publication for the legal profession. Attorneys are chosen through intensive peer-review surveys in which leading lawyers evaluate their professional peers. Best Lawyers listings are published in almost 70 countries worldwide and are recognized for their reliable and unbiased selections.
About Newmeyer Dillion
For over 35 years, Newmeyer Dillion has delivered creative and outstanding legal solutions and trial results that achieve client objectives in diverse industries. With over 60 attorneys working as a cohesive team to represent clients in all aspects of business, employment, real estate, environmental/land use, privacy & data security and insurance law, Newmeyer Dillion delivers holistic and integrated legal services tailored to propel each client's operations, growth, and profits. Headquartered in Newport Beach, California, with offices in Walnut Creek, California and Las Vegas, Nevada, Newmeyer Dillion attorneys are recognized by The Best Lawyers in America©, and Super Lawyers as top tier and some of the best lawyers in California and Nevada, and have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949.854.7000 or visit www.newmeyerdillion.com.
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Daiwa House to Invest 150 Billion Yen in U.S. Rental Housing
March 07, 2014 —
Kathleen Chu – BloombergDaiwa House Industry Co. (1925), Japan’s biggest homebuilder by market value, plans to invest 150 billion yen ($1.48 billion) in U.S. rental housing, three times more than it had aimed to allocate to overseas investments, to boost revenue.
Daiwa House will acquire and develop leasing properties in Texas and allocate the funds over the next three years, the Osaka-based company said in an e-mailed statement today. The homebuilder targets 50 billion yen of revenue in the U.S. by the year ending March 2019, it said.
Japan’s shrinking population has prompted the country’s homebuilders such as Daiwa House to seek new revenue sources. Texas is the most that Daiwa House is investing overseas for rental housing and compares with the 50 billion yen the company had announced for investments abroad in its mid-term plan in November.
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Kathleen Chu, BloombergMs. Chu may be contacted at
kchu2@bloomberg.net
