NYC Landlord Accused of Skirting Law With Rent-Free Months Offer
October 15, 2024 —
Natalie Wong - BloombergThe opening of Tower 28, one of the tallest residential towers in New York City outside Manhattan, brought rent-stabilized units to Long Island City roughly seven years ago, adding affordable listings to a neighborhood where soaring prices were increasingly squeezing out many renters.
Now, three tenants at the 58-story building have filed a class-action lawsuit alleging the landlord sought to evade New York City rent regulations in order to raise prices even higher over time.
The lawsuit against the limited liability company tied to 42-12 28th St. in Queens claims that the property owner recorded initial rents with the New York State Division of Housing and Community Renewal that were higher than what the first tenant was actually charged and paid. In doing so, any future rent increases were based off a higher figure, according to the lawsuit.
Read the court decisionRead the full story...Reprinted courtesy of
Natalie Wong, Bloomberg
Recent Amendments and Caselaw Affecting the Construction Industry in Texas
April 19, 2022 —
Frederick H. Wen - Gordon Rees Scully Mansukhani, LLPHere are some recent Texas legislative amendments and Texas Supreme Court cases from the past year concerning the construction industry in Texas.
1) Recent Legislative Amendments Concerning the Construction Industry:
a) The Texas Legislature throws a “Spear” in the Lonergan Doctrine to reduce general/subcontractor liability for owner-provided plans and specs:
Forty-nine out of the fifty states follow the Spearin Doctrine under which owners warrant the accuracy and sufficiency of owner-provided plans and specs in construction contracts. On the other hand, for over a century, Texas has followed the Lonergan Doctrine under which, absent contractual language to the contrary, a general contractor/subcontractor, instead of the owner, bears the risk of deficiencies in owner-provided design documents, once they started construction. Texas Senate Bill 219, which went into effect on September 1, 2021, finally changed that and brought Texas in line with the rest of the country, with a few exceptions.
Read the court decisionRead the full story...Reprinted courtesy of
Frederick H. Wen, Gordon Rees Scully Mansukhani, LLPMr. Wen may be contacted at
fhwen@grsm.com
Connecticut Supreme Court Finds Duty to Defend When Case Law is Uncertain
October 12, 2020 —
Eric B. Hermanson & Austin D. Moody - White and WilliamsThe Connecticut Supreme Court recently addressed whether an insurer has a duty to defend when faced with legal uncertainty as to whether coverage is owed: for example, when there is no Connecticut case law on point, and courts outside of the state have reached conflicting decisions.
The Court suggested that an insurer, in these circumstances, should defend the insured, and should seek a declaratory judgment from a court as to whether coverage is owed.
The issue in Nash St., LLC v. Main St. Am. Assurance Co.,[1] arose out of a home collapse in Milford, Connecticut. The owner of the home (Nash) hired a contractor (New Beginnings) to renovate the home. New Beginnings, in turn, retained a subcontractor to lift the house and to do concrete work on the foundation. While the subcontractor was lifting the house, the house shifted off the supporting cribbing and collapsed.
Reprinted courtesy of
Eric B. Hermanson, White and Williams and
Austin D. Moody, White and Williams
Mr. Hermanson may be contacted at hermansone@whiteandwilliams.com
Mr. Moody may be contacted at moodya@whiteandwiliams.com
Read the court decisionRead the full story...Reprinted courtesy of
Eleventh Circuit Finds Professional Services Exclusion Applies to Construction Management Activities
April 29, 2024 —
Ashley Kellgren - Traub Lieberman Insurance Law BlogIn Colony Ins. Co. v. Coastal Constr. Mgmt., LLC, 2024 U.S. App. LEXIS 4809 (11th Cir. Feb. 29, 2024), the Eleventh Circuit found the insurer had no duty to defend or indemnify its insured based on a professional services exclusion. In that case, the underlying claims arose out of the construction of a four-story apartment complex. The owner and project developer contracted with the insured to provide construction management services as a construction manager and construction consultant. Several years after the project was completed, the owner filed suit against the architect, general contractor, and the insured alleging numerous defects and deficiencies with respect to the project. The owner asserted claims against the insured for breach of contract and negligence, alleging various failures by the insured in connection with its supervision of construction and failures to properly and timely complete the project, and correct inadequate, defective, and noncomplying work.
Colony issued two commercial general liability policies to the insured, both of which contained a professional services exclusion. Although the policy did not expressly define “professional services,” the professional services exclusion provided a non-exhaustive list of examples, including:
(2) preparing, approving, or failing to prepare or approve maps, drawings, opinions, reports, surveys, change orders, designs or specifications;
Read the court decisionRead the full story...Reprinted courtesy of
Ashley Kellgren, Traub LiebermanMs. Kellgren may be contacted at
akellgren@tlsslaw.com
HOA Has No Claim to Extend Statute of Limitations in Construction Defect Case
October 28, 2011 —
CDJ STAFFThe California Court of Appeals ruled on September 20, 2011 in the case of Arundel Homeowners Association v. Arundel Green Partners, a construction defect case involving a condominium conversion in San Francisco. Eight years after the Notice of Completion was filed, the homeowners association filed a lawsuit alleging a number of construction defects, including “defective cabinets, waterproofing membranes, wall-cladding, plumbing, electrical wiring, roofing (including slope, drainage and flashings), fire-rated ceilings, and chimney flues.” Three years of settlement negotiations followed.
Negotiations ended in the eleventh year with the homeowners association filing a lawsuit. Arundel Green argued that the suit should be thrown out as California’s ten-year statute of limitations had passed. The court granted judgment to Arundel Green.
The homeowners then filed for a new trial and to amend its complaint, arguing that the statute of limitations should not apply due to the doctrine of equitable estoppel as Arundel Green’s actions had lead them to believe the issues could be solved without a lawsuit. “The HOA claimed that it was not until after the statute of limitations ran that the HOA realized Arundel Green would not keep its promises; and after this realization, the HOA promptly brought its lawsuit.” The trial court denied the homeowners association’s motions, which the homeowners association appealed.
In reviewing the case, the Appeals Court compared Arundel to an earlier California Supreme Court case, Lantzy. (The homeowners also cited Lantzy as the basis of their appeal.) In Lantzy, the California Supreme Court set up a four-part test as to whether estoppel could be applied. The court applied these tests and found, as was the case in Lantzy, that there were no grounds for estoppel.
In Arundel, the court noted that “there are simply no allegations that Arundel Green made any affirmative statement or promise that would lull the HOA into a reasonable belief that its claims would be resolved without filing a lawsuit.” The court also cited Lesko v. Superior Court which included a recommendation that the plaintiffs “send a stipulation?Ķextending time.” This did not happen and the court upheld the dismissal.
Read the court’s decision…
Read the court decisionRead the full story...Reprinted courtesy of
Foreign Entry into the United States Construction, Infrastructure and PPP Markets
September 11, 2023 —
Robert A. James - Gravel2Gavel Construction & Real Estate Law BlogTwo major forces are combining to create extraordinary opportunities for infrastructure project participants in the United States. One is the long pent-up demand for overhaul of the nation’s roads, ports, dams and other civil works. The American Society of Civil Engineers (ASCE) routinely
awards “C-” or worse grades for the status and safety of the country’s backbone facilities. The lack of prior investment is apparent to anyone who uses public transit in the U.S. and then uses similar conveniences in major cities around the globe.
The other is the set of political incentives laid down by recent legislation including the Infrastructure Investment and Jobs Act and the Inflation Reduction Act, which have authorized over $1 trillion for programs, many of which call for new and expanded facilities. According to the 2023 U.S. Construction Industry Databook Report, the national construction market is expected to record a compound annual growth rate of 5.2% during 2023 – 2027, and the aggregate output is expected to reach $1.7 trillion by 2027.
Read the court decisionRead the full story...Reprinted courtesy of
Robert A. James, PillsburyMr. James may be contacted at
rob.james@pillsburylaw.com
Plans Go High Tech
April 25, 2012 —
CDJ STAFFOne construction executive described it as “the wave of the future.” What is it? Accessing building plans on an iPad. According to an article in MacWorld, several companies are now offering solutions to distribute and update construction plans on iPads. Changes to plans and notes can be distributed quickly through cloud computing.
Alan Dillon, a senior superintendent at DPR Construction told MacWorld, “I can take my iPad into the field and have my whole set of drawings.” He described a set of drawings for a large construction project as “five or six inches thick.” Danielle Douthet, of Level 10 Construction said it “can help everyone be on the same page more quickly, and make sure that everybody is working off the most current set of documents.”
And it’s not just building plans. Other firms offer building management applications designed to be taken into the field on mobile devices.
Read the full story…
Read the court decisionRead the full story...Reprinted courtesy of
ASCE Statement on The Partial Building Collapse in Surfside, Florida
June 28, 2021 —
Tom Smith - American Society of Civil EngineersThe following is a statement by Tom Smith, Executive Director, American Society of Civil Engineers (ASCE):
WASHINGTON, DC. – We are saddened by the tragic news coming out of Surfside, Florida, regarding the fatal partial building collapse of a condominium early Thursday morning. Safety is the top priority of every civil engineer, and protecting public health and safety is core to our mission at ASCE. We share our deepest condolences to all of those affected by this tragedy.
Collapses like these are fortunately highly unusual and extremely rare. However, it is imperative to identify the root cause of failures when they do occur, and to ensure that proactive steps are taken to prevent future incidents. ASCE fully supports the need for continued engineering assessments to pinpoint the cause of the collapse, and we stand ready to support official investigations with technical expertise and advice available through our 150,000 civil engineer members worldwide.
While rescue and recovery operations are underway, it is important that we support our first responders who are conducting essential rescue efforts and are operating as quickly as possible. We will also continue to keep those who have been injured and those who have not yet been accounted for in our hearts and thoughts, and we share our heartfelt sympathies to all of those affected.
ABOUT THE AMERICAN SOCIETY OF CIVIL ENGINEERS
Founded in 1852, the American Society of Civil Engineers represents more than 150,000 civil engineers worldwide and is America's oldest national engineering society. ASCE works to raise awareness of the need to maintain and modernize the nation's infrastructure using sustainable and resilient practices, advocates for increasing and optimizing investment in infrastructure, and improve engineering knowledge and competency. For more information, visit www.asce.org or www.infrastructurereportcard.org and follow us on Twitter, @ASCETweets and @ASCEGovRel.
Read the court decisionRead the full story...Reprinted courtesy of