Florida extends the Distressed Condominium Relief Act
June 17, 2015 —
Beverley BevenFlorez-CDJ STAFFThe Distressed Condominium Relief Act had been poised to expire on July 1st, but has now been extended by two additional years by the Florida legislature, the National Review reported. The act was Part VII of the Condominium Act in 2010, and has been previously extended twice. According to the National Review, “This Legislation attempted to allay the fears of potential investors about incurring developer liability in connection with the purchase of bulk units. The Act created a shield in favor of bulk purchasers from such potential liability, especially construction defects liability.”
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The Reptile Theory in Practice
September 06, 2021 —
Nicholas P. Hurzeler - Lewis BrisboisThe “Reptile Theory” is a trial strategy that attempts to use fear and anger to make the jury dislike the defendant so strongly they will award a plaintiff a grossly excessive amount of damages. The plaintiff’s attorney will seek to activate the jurors’ “survival mode” instincts by presenting the defendant’s conduct as highly dangerous and worthy of punishment. The defendant’s conduct will be portrayed as a threat to the safety of the general public, and the award as a deterrent needed to protect the community at large. The Reptile Theory appeals to the jurors’ emotions in place of any rational, impartial evaluation of the evidence.
The term “Reptile Theory” originated in the writings of nuero-physiologist Paul D. MacLean in the 1950s, who suggested that one major part of the brain consisted of a “reptilian complex” that controlled instinctive behaviors involved in aggression, dominance, and territoriality. Then in the 2009 publication “Manual of the Plaintiff’s Revolution” by David Ball and Don Keenan, the authors first described the “Reptile Theory” in the context of litigation. Since then it has become a hot topic in litigation as defense counsel develop methods to combat “Reptile” tactics resulting in runaway jury awards.
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Nicholas P. Hurzeler, Lewis BrisboisMr. Hurzeler may be contacted at
Nicholas.Hurzeler@lewisbrisbois.com
UK Construction Defect Suit Lost over One Word
October 16, 2013 —
CDJ STAFFIn the UK, be careful what you tell your insurer; the Court of Appeal has upheld the legality of basis clauses. As Paul Lewis and Janetta Gibbs of Herbert Smith Freehills LLP explain, “a basis clause is a provision set out in the proposal form or in the insurance contract itself, to the effect that all or any of the answers to the questions in the proposal shall form the basis of the contract of insurance.” The catch, as they point out, is that “should any of those answers — whether material to the risk or not — prove to be untrue, the insurer may repudiate the policy and treat itself as never having been on risk.” There is a move in the UK to abolish the use of basis clauses in business insurance, but currently they are still legal.
This came up in a construction defect case covering latent defects in a public housing project. The contract between the owner, Genesis Housing Association Limited, and the contractor, Time and Tide (Bedford) Ltd, required TT Bedford to indemnify Genesis if it became insolvent. In the contract with the insurer, representatives of Bedford and Genesis referred to the contractor as “TT Construction.”
While the courts concluded that Bedford and Genesis were not guilty of misrepresentation or intent to defraud, they did note that neither party thought the firm’s name was “TT Construction.” Therefore, over the failure to name the builder correctly, the court found that the insurance contract was invalid.
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Investing in Metaverse Real Estate: Mind the Gap Between Recognized and Realized Potential
May 10, 2022 —
Robert G. Howard, David W. Wright & Craig A. de Ridder - Gravel2Gavel Construction & Real Estate Law BlogThe Metaverse is an immersive world combining virtual reality and augmented reality, where users are represented by avatars and roam virtual spaces. It comprises a variety of platforms and environments that can be explored, experienced, and developed. Online social games like Second Life, Fortnite and Minecraft are among the first wave of successful Metaverse games. Now, Meta and Microsoft see the Metaverse as a place to play, live, and work. A JP Morgan white paper stated that opportunities in the Metaverse seem “limitless.” The bank predicted that virtual worlds will “infiltrate every sector in some ways in the coming years.” A March 31 report by Citi concluded that the Metaverse has the potential to become a $13 trillion opportunity by 2030, with total global users of between one and five billion. According to Citi, the Metaverse will become a significant part of the next iteration of the internet (referred to as Web3) enabled by a variety of existing and emerging technologies, including 5G connectivity, secure blockchain and payment platforms, crypto assets, cloud computing, artificial intelligence, 3D modeling tools and headset devices.
A Land Rush, Virtually Speaking
Not surprisingly, investors are speculating regarding the value and potential of “virtual land” within the Metaverse, where land sales in 2021 exceeded $500 million and attracted a lot of attention and hype. The Sandbox, Decentraland, Somnium Space and CryptoVoxels are the most active platforms and owners can build almost anything on their virtual parcels. The open-source Ethereum blockchain, with self-executing smart contract functionality, operates as the foundational layer for most platforms. Parcels of land in The Sandbox and Decentraland are purchased with cryptocurrencies (called SAND and MANA, respectively) on their platforms and can also be sold and purchased on secondary marketplaces like OpenSea.
Reprinted courtesy of
Robert G. Howard, Pillsbury,
David W. Wright, Pillsbury and
Craig A. de Ridder, Pillsbury
Mr. Howard may be contacted at robert.howard@pillsburylaw.com
Mr. Wright may be contacted at david.w.wright@pillsburylaw.com
Mr. Deridder may be contacted at craig.deridder@pillsburylaw.com
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Contractor Liable for Soils Settlement in Construction Defect Suit
February 10, 2012 —
CDJ STAFFThe California Court of Appeals ruled on January 9 in Burrow v. JTL Dev. Corp., a construction defect case in which houses suffered damage due to improperly compacted soil, upholding the decision of the lower court.
Turf Construction entered into a deal with JTL to develop a parcel they acquired. A third firm, Griffin Homes, withdrew from the agreement “when a geotechnical and soils engineering firm reported significant problems with soil stability on 14 of the lots.” Turf Construction then took over compacting and grading the lots. Turf “had never compacted or graded a residential tract before.” Robert Taylor, the owner of Turf, “testified he knew there was a significant problem with unstable soils.”
After homes were built, the plaintiffs bought homes on the site. Shortly thereafter, the homes suffered damage from soil settlement “and the damage progressively worsened.” They separately filed complaints which the court consolidated.
During trial, the plaintiff’s expert said that there had been an inch and a half in both homes and three to five inches in the backyard and pool areas. “He also testified that there would be four to eight inches of future settlement in the next fifteen to twenty years.” The expert for Turf and JTL “testified that soil consolidation was complete and there would be no further settlement.”
Turf and JTL objected to projections made by the plaintiffs’ soil expert, William LaChappelle. Further, they called into question whether it was permissible for him to rely on work by a non-testifying expert, Mark Russell. The court upheld this noting that LaChappelle “said that they arrived at the opinion together, through a cycle of ‘back and forth’ and peer review, and that the opinion that the soil would settle four to eight inches in fifteen to twenty years was his own.”
Turf and JTL contended that the court relied on speculative damage. The appeals court disagreed, stating that the lower court based its award “on evidence of reasonably certain damage.”
Turf also that it was not strictly liable, since it did not own or sell the properties. The court wrote that they “disagree because Turf’s grading activities rendered it strictly liable as a manufacturer of the lots.” The court concluded that “Turf is strictly liable as a manufacturer of the lots.”
Judge Coffee upheld the decision of the lower court with Judges Yegan and Perren concurring.
Read the court’s decision…
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Engineers Propose 'River' Alternative to Border Wall
May 10, 2017 —
Frank K. Johnson - Engineering News-RecordOf all the ideas that have been suggested for the border wall, there is one that may help to bring together Mexico and the U.S., instead of pitting the countries against each another over illegal immigration. I’m part of a group of civil engineers in Massachusetts that has conceived of a program that is based on a recently acquired patent for an advanced concrete construction technology for building large-scale, monolithic concrete structures capable of physically partitioning two countries while serving to promote economic development. This fast and thrifty construction method and our proposed program prove that, as far as creativity is concerned, civil engineering isn’t dead yet.
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Frank K. Johnson, ENRENR may be contacted at
ENR.com@bnpmedia.com
Is Your Business Insured for the Coronavirus?
March 16, 2020 —
J. Kelby Van Patten & Jared De Jong - Payne & FearsHow bad will the pandemic get? How much will it spread in the United States? Will we develop a vaccine in time to do any good?
As insurance lawyers, we have no idea. But we can help you figure out whether your business is insured for the coronavirus risks that keep business owners up at night.
Risk 1: An outbreak forces my business to close until the outbreak ends. Are my financial business losses covered?
Maybe. Many commercial property policies provide “business interruption coverage” which may apply.
This coverage typically requires that:
(i) Your business is shut down. If your business actually closes for a period of time, you may meet this requirement. However, you wouldn’t meet it if your business slows because half of your staff is home sick.
(ii) The shutdown is necessary. “Necessary” means something different than “desirable” or “prudent.” Whether a shutdown is necessary depends on the facts. If it is physically or legally impossible to enter your building, then closure is necessary. But if the government issues a public advisory recommending that businesses close, and you voluntarily comply, that’s a different story.
(iii) The shutdown is caused by physical damage to your property. Is a viral outbreak “damage” to your property? There’s not a clear answer. On the one hand, courts have found that hazardous contamination of a building constitutes property damage to the building. For example, asbestos incorporated into a building constitutes property damage to the building under a commercial general liability policy. Environmental contamination can also constitute property damage to the contaminated property. Policyholders whose businesses close during an outbreak will argue that property contaminated by the virus satisfies the “physical damage to property” requirement. On the other hand, insurers may argue that the real cause of the shutdown is not the contaminated building surfaces, but the need for social distancing in a neighborhood with many contagious people. Coverage will depend on the policy language and the details of the shutdown.
Reprinted courtesy of
J. Kelby Van Patten, Payne & Fears and
Jared De Jong, Payne & Fears
Mr. Van may be contacted at kvp@paynefears.com
Mr. Jong may be contacted at jdj@paynefears.com
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Google, Environmentalists and University Push Methane-Leak Detection
December 21, 2016 —
Mary B. Powers – Engineering News-RecordNational Grid, which serves New York, Massachusetts and Rhode Island, is set to be the second U.S. natural-gas utility to use technology advanced by Google Earth, the Environmental Defense Fund (EDF) and Colorado State University to boost large-scale methane-leak detection. It is launching a $3-billion effort to replace gas pipelines in New York. The technology uses cutting-edge spatial analytics methods and methane sensors, specially fitted to Google Street View cars, to identify leaks and accurately measure the amount of methane escaping.
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Mary B. Powers, Engineering News-RecordENR may be contacted at
ENR.com@bnpmedia.com
