U.K. Broadens Crackdown on Archaic Property Leasehold System
October 23, 2018 —
Sree Vidya Bhaktavatsalam - BloombergThe U.K. government is cracking down on what it called “unfair” leasehold practices as part of sweeping reforms to its housing system, in a move that would modernize the property market to bring it more in line with nations such as the U.S.
Initially prompted by a malpractice scandal, the proposed scope of the focus by the Ministry of Housing, Communities & Local Government has become far broader. A consultation will seek views not only on the practice of charging buyers an annual fee for owning leasehold properties -- known as ground rents -- it will review the whole process of buying, selling and property management of leasehold homes.
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Sree Vidya Bhaktavatsalam, Bloomberg
Damage Control: Major Rebuilds After Major Weather Events
October 21, 2024 —
David McMillin - Construction ExecutiveMore than two feet of rain drenching Fort Lauderdale in a day, baseball-sized hail chunks falling on Minneapolis and the deadliest wildfire in more than a century destroying more than 2,100 acres of Maui—2023 was a stark reminder that Mother Nature is a force to be reckoned with. In total, $28 billion dollars’ worth of extreme weather and climate-related disasters ripped across the U.S. last year—a new record, according to the National Oceanic and Atmospheric Administration. And there’s no relief in sight: 2024 is already the second-busiest tornado season on the books, and wildfires were burning in Oregon, California, Montana and Texas as this issue went to print.
Part of dealing with disasters is preparing for their impact to infrastructure, and Roland Orgeron Jr.—who co-founded New Orleans-based Legacy Industries with business partner Blake Couch in 2016—has been helping clients do just that. “We do a lot of consulting to identify vulnerabilities, and we offer action plans for companies based on potential storm scenarios,” Orgeron Jr. says.
Some of those clients include large oil and gas companies with operations along the Mississippi River that cannot afford to be shut down for any extended period. “Before Hurricane Ida hit, we pre-positioned equipment inside some facilities, and we had guys responding the day after the storm to clear the area and assess the damage,” Orgeron Jr. says. During the immediate response to Hurricane Ida in 2021, the company’s work involved more than keeping the business locations up and running; they needed to help a business’ employees find a place to live. “We have a home stabilization contract with one oil and gas company designed to make sure their employees can get back to work as comfortably and quickly as possible,” Orgeron Jr. says.
Reprinted courtesy of
David McMillin, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Contractors and Force Majeure: Contractual Protection from Hurricanes and Severe Weather
October 11, 2017 —
Christopher G. Hill - Construction Law MusingsThis week’s Guest Post Friday here at Musings welcomes back Clay Olsen. Clay is is an attorney at Harper Whitwell PLLC. The firm is located in Mississippi and South Carolina where they routinely represent the interests of construction.
This season is not special as hurricanes are a part of life on the east coast and gulf shores. From New York to Louisiana, just about every state has seen massive property loss from hurricanes during the past ten years.
We often see harsh outcomes for those on the coast living in finished homes. What happens to the unfinished and current projects awaiting completion? If you’re building on the coast, take a look at all of the following risk aversion mechanisms:
- Builders Risk Insurance is necessary as is Coverage for named storms. Be sure to review the “excluded perils” or speak to your agent as hurricane coverage best not be omitted.
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Christopher G. Hill, Law Offices of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Court Denies Insured's Motion to Dismiss Complaint Seeking to Compel Appraisal
March 13, 2023 —
Tred R. Eyerly - Insurance Law HawaiiThe court denied the insured's motion to dismiss after the insurer filed suit to compel an appraisal. Allied Trust Ins. Co. v. Tsang, 2023 U.S. Dist. LEXIS 352 (E.D. La. Jan. 3, 2023).
The insureds reported damage to their property arising from Hurricane Ida. The insurer, Allied Trust, investigated and determined that the covered damage was $1,978.18, which was less that the policy's deductible. The insureds estimated that the covered damage was $135,270.78.
Allied Trust invoked the appraisal provision. Allied Trust later filed suit alleging the insureds failed to comply and participate in the appraisal. The insureds moved to dismiss the complaint as moot. In their motion, the insureds argued that because they were now complying with the appraisal clause, all relief sought by Allied Trust had either already occurred or was currently underway.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Balancing Risk and Reward: The Complexities of Stadium Construction Projects
April 15, 2024 —
Gregory A. Eichorn - Peckar & Abramson, P.C.From grand designs to opening day, stadium construction projects present a captivating blend of high-profile opportunities and significant challenges and risks. Navigating this complex landscape is not easy, but when managed properly, the potential rewards, both in terms of reputation and finances, can make it a gamble worth taking. While each stadium project is different, some of the more common risks include:
- Securing adequate labor, materials and equipment based on the size of the project;
- Logistical concerns regarding the concurrent performance of multiple trade scopes on a single site;
- Protection of work in place from weather due to the large footprint of the stadium project;
- Cash flow issues caused by protracted change order processing, conflicting and/or onerous payment requirements from project financing entities, and reimbursement of considerable monthly general condition costs; and
- Meeting the schedule requirements for the project.
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Gregory A. Eichorn, Peckar & Abramson, P.C.Mr. Eichorn may be contacted at
geichorn@pecklaw.com
Don’t Put Yourself In The Position Of Defending Against An Accord And Satisfaction Defense
October 10, 2022 —
David Adelstein - Florida Construction Legal UpdatesThe doctrine of accord and satisfaction lives and breathes in disputes including construction disputes. Unfortunately, a contractor, in the case discussed below, found out the hard way after it cashed checks that were accompanied with a letter that clearly indicated the checks were final payment. Once those payments were cashed, there was no “buyer’s remorse” that would allow it to still pursue disputed amounts. Remember this the next time you accept and cash a payment that says on the check it is full and final payment OR is accompanied by a letter that makes clear the payment is full and final payment. If you cash it, there is no second bite out of the apple, so to speak. If you are not interested in the payment being full and final payment, return the check. If you are not sure, either return the check or inquire and get that response in writing. Don’t put yourself in the position of defending against an
accord and satisfaction defense.
Even without the doctrine of accord and satisfaction, the contract between the contractor and owner discussed below made clear that contractor’s acceptance of final payment meant that contractor was unconditionally waiving other claims against the owner, further reinforcing that there would be no second bite out of the apple.
The morale:
(1) read the letter that accompanies a check and do NOT cash a check that indicates it is for final payment unless you are prepared to accept that amount; and
(2) read your contract to understand any contractual obligation that kicks-in with the acceptance of final payment.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Denver Parking Garage Roof Collapses Crushing Vehicles
February 12, 2014 —
Beverley BevenFlorez-CDJ STAFFOn Monday night, a parking garage ceiling collapsed at the Park Mayfair Condos in Denver, Colorado, according to KKTV News. Residents claim that “between five and ten vehicles were completely destroyed after the ceiling of the underground garage caved in.” No one was injured from the incident. Structural engineers have not commented “yet on how the collapse occurred, but residents told sister station KCNC that the ceiling fell after a cement beam holding up one side of the roof collapsed.”
According to KWGN News, FOX31 interviewed a “passerby” who alleged that he lived in the condominium five years ago, but moved out “because inspectors repeatedly sent notices to fix problems with the garage, but, to his knowledge, no action was taken by the condo complex.”
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U.S. Homeowners Are Lingering Longer, and the Wait Is Paying Off
July 28, 2018 —
Jeremy Hill - BloombergHomeowners in the U.S. are holding on to their houses longer than they have in at least 18 years, and when they do sell, they’re reaping gains that haven’t been seen since before the housing crisis.
Those who sold in the second quarter did so after owning their homes for an average of 8.09 years, the longest stretch since Attom Data Solutions started tracking the statistic in 2000. The wait appears to be paying off: Second-quarter sellers recorded gains averaging $58,000 -- the most since the third quarter of 2007.
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Jeremy Hill, Bloomberg