Fairfield Connecticut Building Expert Directory

Texas Mechanic’s Lien Law Update: New Law Brings a Little Relief for Subcontractors and a Lot of Relief for Design Professionals

June 07, 2021 — Tracey L. Williams - Peckar & Abramson, P.C.
After several recent failed attempts to amend Chapter 53 of the Texas Property Code (the “Texas Mechanic’s Lien Statute”), it appears that long awaited relief may, at least in part, be on the horizon for subcontractors in Texas. Additionally, architects, engineers, and surveyors also appear to be significant benefactors of House Bill 2237 (“HB 2237”). Under existing law, many subcontractors often fail to perfect their mechanic’s liens under the Texas Mechanic’s Lien Statute because of complex notice requirements which must be sent for every month in which labor or material are furnished. And architects, engineers and surveyors currently have no lien rights unless they have a direct contractual relationship with the owner of the project. Effective January 1, 2022, HB 2237 amends the Texas Mechanic’s Lien Statute in several significant respects. Subcontractor Impacts HB 2237 impacts subcontractors in the following ways:

Establishes uniformity in the notice requirements by imposing the same notice obligation on all subcontractors regardless of with whom they have contracted. Rather than sending one notice to the owner and one to the general contractor, the single notice now required must be sent to both simultaneously. Additionally, HB 2237 prescribes the form of the notice to be given under both Section 53.056 (notice of derivative claimant) and 53.057 (notice of contractual retainage).

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Reprinted courtesy of Tracey L. Williams, Peckar & Abramson, P.C.
Ms. Williams may be contacted at twilliams@pecklaw.com

Second Circuit Certifies Question Impacting "Bellefonte Rule"

December 15, 2016 — Ellen Burrows – White and Williams LLP
Calling into question the continued validity of the so-called “Bellefonte Rule,” on December 8, 2016, the United States Court of Appeals for the Second Circuit certified to the New York Court of Appeals the question whether a facultative reinsurance contract limit is presumptively all-inclusive and “caps” the reinsurer’s total exposure even where the reinsured policy pays defense costs in addition to the limit. Global Reinsurance Corporation v. Century Indemnity Company Docket No. 15-2164-cv (December 8, 2016).[1] In Bellefonte Reinsurance Company v. Aetna 903 F.2d 910 (2d Cir. 1990), the court ruled that a reinsurer was not liable to pay defense costs above the stated reinsurance contract limit. Although litigants argued that this ruling was dependent on the fact that the reinsured policy limits were defense cost-inclusive, a later panel of the Second Circuit applied the “cap” ruling in Bellefonte to a situation where the reinsured policy limit was not cost-inclusive and where the insurer was obligated to pay defense costs in addition to the policy limit. Unigard Security Insurance Company v. North River Insurance Company 4 F.3d 1049 (2d Cir. 1993). Read the court decision
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Reprinted courtesy of Ellen Burrows, White and Williams LLP
Ms. Burrows may be contacted at burrowse@whiteandwilliams.com

Manhattan Condo Resale Prices Reach Record High

September 03, 2014 — Oshrat Carmiel – Bloomberg
Prices for previously owned Manhattan condominiums rose to a record last month even as an increase in the supply of units eased competition among buyers. An index of resale prices climbed 1.1 percent from June to reach the highest level in data going back to 1995, StreetEasy.com, a New York real estate website, said in a report today. The inventory of condos on the market grew 5.4 percent from a year earlier, the biggest annual gain since October 2009. The market is still tight, with the number of available condos about 16 percent below the five-year average for Manhattan. That will continue to drive up prices, according to StreetEasy, which projects a 0.4 percent increase for August. Read the court decision
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Reprinted courtesy of Oshrat Carmiel, Bloomberg
Ms. Carmiel may be contacted at ocarmiel1@bloomberg.net

County Elects Not to Sue Over Construction Defect Claims

June 18, 2014 — Beverley BevenFlorez-CDJ STAFF
Even though repairs are expected to cost four million, the New Hanover County Board of Commissioners announced that they will not be pursuing litigation against Clancy and Theys Construction Company for their alleged construction defects of their work on the W. Allen Cobb Judicial Annex in North Carolina, according to Star News Online. “The board stated that taxpayer money would be better spent on the repairs than on a lengthy court case,” reported Star News Online. “But as a result of the faulty work, the board removed the company from its list of prequalified bidders and stated that it would not be eligible to work on other county construction projects.” Read the court decision
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Florida Condos Bet on Americans Making 50% Down Payments

October 29, 2014 — John Gittelsohn – Bloomberg
Jorge Perez crashed along with the real estate market, then regained his crown as Florida’s “Condo King” by building new projects with 50 percent deposits from foreign buyers. Now, for his next development, he’s looking to wealthy Americans. In December, he’ll begin marketing the Auberge Beach Residences and Spa Fort Lauderdale, a $500 million oceanfront project 35 miles (56 kilometers) north of Miami. He expects as many as two-thirds of the buyers to come from the U.S. or Canada. All future owners must pay hefty deposits to finance construction by Perez’s Related Group, Fortune International Group and Fairwinds Group in a partnership that the companies plan to announce tomorrow. “The U.S. buyers have made up an increasing share of luxury beachfront condominiums and, like our foreign buyers, they have shown little resistance to larger deposits,” Perez said in an e-mail. “Most feel that if they can’t put a 50 percent down payment, they probably should not be buying.” Read the court decision
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Reprinted courtesy of John Gittelsohn, Bloomberg
Mr. Gittelsohn may be contacted at johngitt@bloomberg.net

Seven Coats Rose Attorneys Named to Texas Rising Stars List

March 12, 2014 — Beverley BevenFlorez-CDJ STAFF
Seven attorneys from Coats Rose were named to the “Texas Rising Stars list,” which is comprised of “the top up-and-coming attorneys in Texas for 2014,” according to a press release on PR Newswire. “Each year, no more than 2.5 percent of the lawyers in the state receive this honor. The selection for this respected list is made by the research team at Super Lawyers.” The Coats Rose attorneys named include “Charles Conrad, Jon Paul Hoelscher, Ryan Kinder, Matthew Moore and Timothy Rothberg in Houston; Brian Gaudet in League City; and Mason Hester in San Antonio.” According to PR Newswire, “For more than 30 years, Coats Rose attorneys have worked with clients in construction/surety law, real estate law, commercial litigation of all types, municipal law, public finance, affordable housing, insurance law, labor and employment law, and governmental relations. Coats Rose is comprised of over 90 attorneys, with offices in Houston, Clear Lake, Dallas, Austin, San Antonio, and New Orleans.” Read the court decision
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Landmark Montana Supreme Court Decision Series: The Duty to Defend

February 28, 2022 — Lorelie S. Masters, Patrick M. McDermott & Rachel E. Hudgins - Hunton Insurance Recovery Blog
This post in our Landmark Montana Supreme Court Decision Series discusses the Montana Supreme Court’s consideration of an insurer’s duty to defend in National Indemnity Co. v. State, 499 P.3d 516 (Mont. 2021). For 67 years, W.R. Grace & Company’s mining operations spread asbestos through the town of Libby, Montana, causing elevated rates of asbestosis and asbestos-related cancer in Libby residents – even among those who never worked in the mine. The Environmental Protection Agency deemed the Libby Mine the “most significant single source of asbestos exposure” in US history. In 2000, Libby residents began filing lawsuits against the State of Montana, alleging that the State had failed to warn them about the mine’s danger, and this failure contributed to their bodily injuries. Id. at 521-22. The Libby plaintiffs’ asbestos exposures and related injuries had occurred decades earlier, and so the State searched its storage units for records of any potentially applicable insurance policies. Reprinted courtesy of Lorelie S. Masters, Hunton Andrews Kurth, Patrick M. McDermott, Hunton Andrews Kurth and Rachel E. Hudgins, Hunton Andrews Kurth Ms. Masters may be contacted at lmasters@HuntonAK.com Mr. McDermott may be contacted at pmcdermott@HuntonAK.com Ms. Hudgins may be contacted at rhudgins@HuntonAK.com Read the court decision
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Old Case Teaches New Tricks

March 16, 2017 — Angela A.L. Connor & Curtis W. Martin - Peckar & Abramson, P.C.
Eight years after completion of the wharf project, Zachry and the Port of Houston continue to slug it out in the appellate courts and continue to refi ne Texas construction law along the way. In the latest appellate opinion, the Court of Appeals details the general contractor’s control of the means and methods of their work without interference from a governmental entity. It also supports a subcontractor’s use of a pass-through claim as a cost efficient way to recover damages. By now most of us are familiar with the project and the previous decisions. Zachry sued the Port claiming breach after the Port denied Zachry the right to continue construction using its frozen cutoff wall. The Texas Supreme Court upheld the jury’s $20 million verdict for Zachry, ruling that the Port’s “no damages for delay” clause would not bar Zachry’s claim in light of the Port’s active interference with Zachry’s work. The Supreme Court then sent the case back to the Court of Appeals to consider other arguments that the Port had made. That led to the most recent decision. In December, 2016, the Houston Fourteenth Court of Appeals ruled in favor of Zachry on all issues and affirmed the jury verdict. In doing so, the Court of Appeals provides several lessons or reminders on Texas Construction law. Reprinted courtesy of Angela A.L. Connor, Peckar & Abramson, P.C. and Curtis W. Martin, Peckar & Abramson, P.C. Ms. Connor may be contacted at aconnor@pecklaw.com Mr. Martin may be contacted at cmartin@pecklaw.com Read the court decision
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