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
Next Steps for Policyholders in the Aftermath of the California Wildfires
February 03, 2025 —
Scott P. DeVries, Lorelie S. Masters, Michael S. Levine & Yosef Itkin - Hunton Insurance Recovery BlogThe insurance claims process can be daunting even under the most ordinary circumstances; a catastrophic series of fires like Southern California is enduring has created extraordinary circumstances.
To help make the insurance part of the recovery process easier and answer some common policyholder questions, we’ve prepared the following guide for navigating the first steps after a wildfire:
- Take care of your family’s immediate needs and personal safety first.
Reprinted courtesy of
Scott P. DeVries, Hunton Andrews Kurth LLP,
Lorelie S. Masters, Hunton Andrews Kurth LLP,
Michael S. Levine, Hunton Andrews Kurth LLP and
Yosef Itkin, Hunton Andrews Kurth LLP
Mr. DeVries may be contacted at sdevries@HuntonAK.com
Ms. Masters may be contacted at lmasters@HuntonAK.com
Mr. Levine may be contacted at mlevine@HuntonAK.com
Mr. Itkin may be contacted at yitkin@HuntonAK.com
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Hunton Insurance Head Interviewed Concerning the Benefits and Hidden Dangers of Cyber Insurance
December 04, 2018 —
Michael S. Levine - Hunton Insurance Recovery BlogThe head of Hunton Andrews Kurth’s insurance practice, Walter Andrews, was interviewed earlier this week by ABC 7 (WJLA) concerning the need for cyber insurance and the benefits that it can provide to government contractors and other businesses that are impacted by a cyber event. Andrews explains the diverse spectrum of benefits that are available through cyber insurance products, but cautions that a serious lack of uniformity exists among today’s cyber insurance products, making it crucial that policyholders carefully analyze their cyber insurance to ensure it provides the scope and amount of insurance they desire.
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Michael S. Levine, Hunton Andrews KurthMr. Levine may be contacted at
mlevine@HuntonAK.com
Buy Clean California Act Takes Effect on July 1, 2022
July 25, 2022 —
Garret Murai - California Construction Law BlogThe Buy Clean California Act (BCCA) – Public Contract Code section 3500 et seq. – requires state agencies to consider the carbon content of the following products when awarding contracts:
- Structural steel;
- Concrete reinforcing steel;
- Flat glass; and
- Mineral wool board insulation.
It is anticipated that additional products may be added through future legislation.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Insured's Remand of Bad Faith Action Granted
December 30, 2019 —
Tred R. Eyerly - Insurance Law HawaiiThe federal district court agreed remand of the insured's bad faith action to state court was appropriate. Kavanaugh v. Nat'l Union Fire Ins. Co., 2019 U.S. Dist. LEXIS 138465 (C.D. Calif. Aug. 15, 2019).
The insured sued National Union and Great American Insurance Company in state court for failing to defend him in three civil actions. In the alternative, claims were brought against Gallagher Risk Management Services, Inc. and Chelsea Laing for professional negligence in failing to broker and procure adequate insurance for him. Laing acted as an "agent and/or broker and procured at least one of the policies at issue."
Gallagher removed the action based on federal diversity jurisdiction. Although Laing was a citizen of California, Gallagher argued she was fraudulently joined and was a sham defendant, so her citizenship should be disregarded for purposes of diversity jurisdiction. The insured moved to remand because Laing was a proper defendant.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Construction Lien Waiver Provisions Contractors Should Be Using
January 06, 2020 —
Jason Lambert - Construction ExecutiveIt is common in construction for a subcontractor or material supplier of any tier to be required to provide a lien waiver when receiving payment. But not all lien waivers are created equal. While at a minimum, a lien waiver, by definition, needs to include a release of liens, it can also include many other terms that can tie up loose ends or resolve potential problems before they begin.
Additional Releases
A typical lien release is going to release any liens and right to claim liens on the subject property. But a lien waiver can also include releases of any claims against surety bonds, other statutory rights or claims, and at its broadest, claims against the paying party. One example of a provision that could help accomplish this is a release of “any right arising from a payment bond that complies with a state or federal statute, any common law payment bond right, any claim for payment, and any rights under any similar ordinance, rule, or statute related to claim or payment rights.” Broad release language can also be used to effectively preclude any claims arising prior to the date of the release.
Payment Representations and Warranties
A typical lien release has no representations or warranties about payment to subcontractors or material suppliers of a lower tier. But contractors can include language requiring the company receiving payment to represent and warrant that all subcontractors of a lower tier have been paid or will be paid within a certain timeframe using the funds provided and that these are material representations and inducements into providing payment. On a related note, if the contract requires subcontractors to provide lien releases from lower tier subcontractors in addition to their own release when seeking payment, contractors can require the sub-subcontractor releases to include representations that they have been paid by the subcontractor to try and tie up payment loose ends all around.
Reprinted courtesy of
Jason Lambert, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Lambert may be contacted at
jason.lambert@nelsonmullins.com
Too Costly to Be Fair: Texas Appellate Court Finds the Arbitration Clause in a Residential Construction Contract Unenforceable
November 21, 2022 —
Gus Sara - The Subrogation StrategistIn Cont’l Homes of Tex., L.P. v. Perez, No. 04-21-00396-CV, 2022 Tex. App. LEXIS 7691, the Court of Appeals of Texas (Appellate Court) considered whether the lower court erred in refusing to enforce an arbitration clause in a construction contract between the parties. The Appellate Court considered the costs of the arbitration forum required by the contract in the context of the plaintiffs’ monthly household income. The court also compared the arbitration cost to the estimated cost of litigating the dispute. The court held that the arbitration clause was substantively unconscionable on the grounds that the arbitration costs were not affordable for the plaintiffs and not an “adequate and accessible substitute to litigation.” The Appellate Court affirmed the lower court’s decision denying the defendant’s motion to compel arbitration.
The plaintiffs, Giancarlo and Krystle Perez (collectively, the Perezes), hired the defendant, Continental Homes of Texas, LP d/b/a Express Home (Express Homes), to build a new home in San Antonio. Express Homes provided its standard contract, which included a binding arbitration clause. The clause stated that every potential dispute between the parties occurring before and after the closing of the purchase of the home was subject to binding arbitration, to be administered and conducted by the American Arbitration Association (AAA). The clause also stated that the costs of the arbitration were to be split by the parties.
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Gus Sara, White and Williams LLPMr. Sara may be contacted at
sarag@whiteandwilliams.com
Subcontractors Essential to Home Building Industry
February 14, 2014 —
Beverley BevenFlorez-CDJ STAFFThe National Association of Home Builders (NAHB), Eye on Housing reports that subcontractors are essential to the home building industry—a point that is often overlooked by those outside of the industry. According to the NAHB, “71 percent of those employed in the home building industry are subcontractors.”
The average number of subcontractors used in single-family detached homes in 2012 was twenty-five, however larger builders used more subcontractors: “On average, builders who built more than 25 units used 32 subcontractors during 2012, compared to 23 for builders who built less than 25 units.”
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