Manhattan Bargain: Condos for Less Than $3 Million
February 05, 2015 —
Oshrat Carmiel and Heather Perlberg – BloombergWhen Related Cos. began selling condominiums at one of its former rental buildings last month, 50 people showed up in the first two days for an only-in-Manhattan bargain: almost all the homes cost less than $3 million.
Carnegie Park, a 1980s-era rental property, was renovated as a condo building where one-bedroom apartments with 690 square feet (64 square meters) start at $765,000. The average price for all units is about $1,300 per square foot -- roughly 30 percent less than the average for a newly built Manhattan condo sold in the fourth quarter, according to appraiser Miller Samuel Inc.
Reprinted courtesy of
Oshrat Carmiel, Bloomberg LLP and
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Unpaid Hurricane Maria Insurance Claims, New Laws in Puerto Rico, and the Lesson for all Policyholders
January 09, 2019 —
Walter J. Andrews & Cary D. Steklof - Hunton Andrews KurthPuerto Rico’s dire insurance situation more than a year after Hurricane Maria remains a constant reminder of why policyholders must diligently pursue their property and business interruption claims in the immediate aftermath of a storm. The numbers are staggering. On an island the approximate size of Connecticut, Hurricane Maria caused an estimated $100 billion in damage. According to the Office of the Insurance Commissioner of Puerto Rico, the hurricane resulted in more than 287,000 insurance claims. Roughly 11,000 of those claims, representing an estimated $2 billion in losses, remain unresolved.
Reprinted courtesy of
Walter J. Andrews , Hunton Andrews Kurth and
Cary D. Steklof , Hunton Andrews Kurth
Mr. Andrews may be contacted at wandrews@HuntonAK.com
Mr. Steklof may be contacted at csteklof@HuntonAK.com
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Homebuilder Predictions for Tallahassee
October 10, 2013 —
CDJ STAFFThe cost of putting up a new home in Tallahassee has risen, but Joe Manausa thinks that builders might be putting up homes that will cost more than home buyers are able to pay. He notes that permits and sales are up, but numbers are still well below those in 2006.
Mr. Manusa thinks that Tallahassee could face “a need (demand) for homes priced below $300,000, but a glut of supply for those priced above $300,000.” He says that home builders “need to target construction opportunities below that price point.”
He notes that average price of new construction is $272,000, but resales are going for $161,000, which puts quite a premium on a new home.
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The Relevance and Reasonableness of Destructive Testing
August 17, 2017 —
David Adelstein - Florida Construction Legal UpdatesDestructive testing is a routine investigatory procedure in construction defect disputes. The destructive testing is necessary to determine liability (causation), the extent of damage, and the repair protocol. Destructive testing is designed to answer numerous questions: Why did the building component fail? Was the building component constructed incorrectly? What is the magnitude of the damage caused by the failure? What specifically caused the damage? What is the most effective way to fix the failure and damage? There are different iterations to the same questions, but in many instances, destructive testing is necessary to answer these questions.
Claimants sometimes prohibit destructive testing. Of course, destructive testing is intrusive. In many instances, it is very intrusive. But, this testing is a necessary evil. Without this testing, how can a defendant truly analyze their potential exposure and culpability? They need to be in a position to prepare a defense and figure out their liability. This does not mean destructive testing is warranted in every single construction defect dispute. That is not the case. However, to say it is never warranted is irrational.
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
Dadelstein@gmail.com
Not so Fast – Florida’s Legislature Overrules Gindel’s Pre-Suit Notice/Tolling Decision Related to the Construction Defect Statute of Repose
May 11, 2020 —
Rahul Gogineni - The Subrogation StrategistAs discussed in a prior blog post, in Gindel v. Centex Homes, 2018 Fla.App. LEXIS 13019, Florida’s Fourth District Court of Appeal held that when the plaintiffs provided a pre-suit notice in compliance with §558.004 of Florida’s construction defect Right-to-Cure statute, Fla. Stat. §§ 558.001 to 558.005, et. seq., they commenced a “civil action or proceeding,” i.e. an “action,” within the meaning of Florida’s construction defect Statute of Repose, Florida Statue § 95.11(3)(c). Thus, the court held that the plaintiffs commenced their action prior to the time Florida’s 10-year statute of repose period ended. In overturning the lower court’s dismissal of the action, the court found that because the Right-to-Cure statute, §558 of the Florida Statutes, sets out a series of mandatory steps that must be taken prior to bringing a judicial action, filing pre-suit notice of claim sufficiently constituted an “action” for purposes of Florida’s Statute of Repose.
For various reasons, the parties appealed the decision to the Supreme Court of Florida. In July of 2019, before the Florida Supreme Court could decide whether to hear the case, the Florida legislature passed legislation that effectively overruled the decision. To overrule the decision, the Florida Legislature modified § 558.004 of Florida’s Right-to-Cure statute to expressly state that a notice of claim served pursuant to the Right-to-Cure statute does not toll the 10-year statute of repose period for construction claims. See Fla. Stat.
§ 558.004(d).
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Rahul Gogineni, White and Williams LLPMr. Gogineni may be contacted at
goginenir@whiteandwilliams.com
Housing Starts in U.S. Little Changed From Stronger January
March 19, 2014 —
Jeanna Smialek – BloombergHousing starts in the U.S. were little changed in February after declining less than previously estimated a month earlier, indicating the home-building industry is stabilizing after bad winter weather curbed construction.
The 0.2 percent decrease to 907,000 homes at an annualized rate last month followed a revised 909,000 pace in January, figures from the Commerce Department in Washington showed today. The median estimate in a Bloomberg survey called for a 910,000 rate after a previously reported 880,000 in January.
Warmer temperatures, a pickup in demand during the spring selling season and limited housing supply may help fuel further gains in new residential construction. The outlook for the industry later this year depends on whether hiring picks up enough to overcome higher mortgage rates and home prices.
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Jeanna Smialek, BloombergMs. Smialek may be contacted at
jsmialek1@bloomberg.net
You’ve Been Suspended – Were You Ready?
April 20, 2020 —
Curtis W. Martin, Patrick J. Greene, Jr. & Levi W. Barrett - Peckar & Abramson“Effective tomorrow … the City is suspending all regular activity at construction sites in Boston.” This was just one of the surprises that greeted contractors last week. Contractors and owners with projects across the country are scrambling to comply with mandated governmental suspensions. Project participants should begin contingency planning for possible project shutdowns.
Reacting to Suspension
Your legal rights and remedies will be largely determined by your contract and the laws applicable to it. But some basic principles will be applicable depending on the source of the suspension.
Suspension by the Owner: An owner work suspension suggests review of the contract’s suspension of work clause. Federal contractors would look to the FAR Suspension of Work clause, FAR 52.242-14, but that is applicable if the suspension is by the Contracting Officer; the US would argue that a systemic suspension was a sovereign act and outside the FAR clause.
Contractors for private work and state or municipal work may have contractual suspension of work clauses. At least some suspension clauses provide relief for time and money.
Reprinted courtesy of Peckar & Abramson attorneys
Curtis W. Martin,
Patrick J. Greene and
Levi W. Barrett
Mr. Martin may be contacted at cmartin@pecklaw.com
Mr. Greene may be contacted at pgreene@pecklaw.com
Mr. Barrett may be contacted at lbarrett@pecklaw.com
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Couple Gets $79,000 on $10 Million Construction Defect Claim
September 24, 2013 —
CDJ STAFFA Florida couple who sought more than $10 million in damages in a construction defect suit, has received a jury verdict of only $79,000. Leo and Kathryn Vecellio bought the 25,000 square-foot home in 2008, after which they discovered water intrusion issues. They sued both the builder and couple from whom they had bought the house.
Although the Vecellios spent more than $11 million to repair their home, the jury concluded that the builder did not know about the construction defects. The jury did determine that the builder, Dan E. Swanson, did either lie about or conceal certain facts about the construction. He was ordered to pay the $79,000 in damages to the Vecellios.
Lawyers for the defendants argued that the leaks were not from the original construction of the home, but were instead caused by the renovations made by the Vecellios. The Vecellios are pursuing whether they are entitled to money from home warranties. “There will be more evidence to be considered. I’m determined to see this through,” said Leo Vecellio.
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