Water Drainage Case Lacks Standing
March 28, 2012 —
CDJ STAFFThe Texas Court of Appeals has ruled in the case La Tierra de Simmons Familia Ltd. V. Main Event Entertainment, LP. The trial court had found for Main Event. On appeal, the court threw out some of the grounds on which the trial court had reached its decision.
The case involved two commercial lots in northwest Austin, Texas. The uphill tract (Phase III of the Anderson Arbor development) diverts its runoff onto the lower tract (the “Ballard tract”). The owners of the Ballard tract claim that “the drainage system was designed or constructed in a manner that has damaged and continues to damage the Ballard tract.”
Both tracts have undergone changes of ownership since the construction of the drainage system in 2004. At the time the drainage system was constructed, the parcel was owned by Sears Roebuck and Co. Sears later sold the property. Main Event Entertainment is the current tenant. Likewise, the Ballard tract was previously owned by the Ballard Estate which sold the property to La Tierra on an “as is” basis in 2007.
After La Tierra bought the Ballard tract, La Tierra’s engineer “witnessed and videotaped what he described as ‘flooding’ on the Ballard tract caused by storm water discharge from the Anderson Arbor drainage system during a rainfall event.” La Tierra determined that an adequate drainage system would cost about $204,000. Development plans were put on hold.
La Tierra sued Main Event and various other parties associated with the uphill tract, seeking “actual damages for (1) decrease and loss in rental income due to delay in obtaining the development permit, (2) interest on carrying costs during that time period, (3) the cost to build a water conveyance system on the Ballard tract, (4) engineering fees incurred to redesign the water conveyance system, (5) unspecified out-of-pocket real estate expenses, and (6) property devaluation occasioned by the need to construct an expensive water conveyance system.” The trial court never reached these claims, ruling instead that La Tierra lacked standing, that its claims were barred under the statute of limitations, and that there was no evidence of damage.
La Tierra appealed, arguing that “(1) the summary-judgment evidence does not conclusively establish that property damage claims accrued or were discovered prior to September 11, 2007, which is within the limitations period and was after La Tierra purchased the property; (2) even if the property was damaged before La Tierra acquired ownership of the Ballard tract, standing exists based on the assignments of interest from the Ballard Estate heirs, and the discovery rule tolls limitations until the injury was discovered on September 11, 2007; (3) limitations does not bar La Tierra's request for injunctive relief; (4) La Tierra's water code claim against Main Event and M.E.E.P. is viable based on their control over the drainage system, which makes them necessary and indispensable parties for injunctive relief; (5) La Tierra presented more than a scintilla of evidence to raise a fact issue on damages, causation, and other essential elements of its causes of action; and (6) the trial court abused its discretion when it sustained the defendants' objections to La Tierra's summary-judgment evidence.”
The appeals court concluded that La Tierra’s second claim was irrelevant to standing, as La Tierra “obtained assignments from the Ballard Estate heirs ? nearly one year after the lawsuit was initially filed.” Nor did the court accept their first point. The water system had been operating unaltered since January, 2004, with monthly maintenance and inspection to maintain its designed operation. Further, a feasibility report La Tierra received stated that “over sixteen acres drain into those ponds, and thus onto this site.” The court noted that “the underlying facts giving rise to a cause of action were known before La Tierra acquired ownership of the Ballard tract.”
The court concluded that the drainage issue is a permanent injury, but that it “accrued before La Tierra acquired an ownership interest in the property.” As La Tierra has standing, the appeals court ruled that it was improper for the trial court to rule on the issues. The appeals court dismissed the questions of whether the case was barred under the statute of limitation and also the question of whether or not La Tierra had damages.
As the issue of standing would not allow La Tierra to bring the suit, the appeals court found for the defendants, dismissing the case for this single reason, and otherwise affirming the ruling of the lower court.
Read the court’s decision…
Read the court decisionRead the full story...Reprinted courtesy of
Indiana Court of Appeals Rules Against Contractor and Performance Bond Surety on Contractor's Differing Site Conditions Claim
April 03, 2013 —
Brian M. Falcon - Frost Brown Todd LLCEarlier this year, the Indiana Court of Appeals issued an important opinion that impacts contractors and sureties alike. The decision should give contractors in Indiana pause before ceasing work while a dispute with the owner is pending. Sureties also have been placed on notice that strict compliance with the terms of their bonds is amongst their best defenses to claims made by owners and bond claimants.
In Dave's Excavating, Inc. and Liberty Mutual Insurance Co. v. City of New Castle, Indiana, 959 N.E.2d 369 (Ind. Ct. App. 2012), the contractor (“Dave’s”) was the successful bidder on a public sanitary sewer and water main extension project. Dave's procured a performance bond from Liberty Mutual to guarantee its performance obligations to the owner (the "City"). After encountering what it deemed different subsurface conditions—and indeed after having been previously granted a change order to use excavated materials as backfill in light of the subsurface conditions on site—Dave’s placed the project engineer on notice of a differing site conditions claim. The total claim amounted to an 84% increase in the total contract price. With the claim, Dave's advised the project engineer it was ceasing further work until the project engineer provided direction.
While the project engineer reviewed the claim, it reminded Dave's of its contractual obligation to "carry on the work and adhere to the progress schedule during all disputes or disagreements with the OWNER." A dispute immediately occurred regarding whether Dave's was required to continue to work while the project engineer resolved the differing site condition claim. After Dave's maintained its position that it was not required to continue to work, the project engineer placed it on notice of default and copied the letter to Liberty Mutual.
Read the court decisionRead the full story...Reprinted courtesy of
Brian M. FalconBrian M. Falcon can be contacted at http://www.frostbrowntodd.com/contact.html
Another Smart Home Innovation: Remote HVAC Diagnostics
June 17, 2015 —
Beverley BevenFlorez-CDJ STAFFBuilder magazine reported that “smart home technology manufacturer Nexia Home Intelligence now offers monitoring of a home’s HVAC system even when owners are away. If an issue arises, it can be fixed quickly, sometimes without a service call, the company says.”
The service is available “with Trane and American Standard Wi-Fi-enabled thermostats” and requires a free Nexia account. System alerts are automatically transmitted to the dealer.
Read the court decisionRead the full story...Reprinted courtesy of
ASCE Statement on Passage of the Water Resources Development Act (WRDA) of 2022
December 26, 2022 —
Maria Lehman - American Society of Civil EngineersWASHINGTON, D.C. – ASCE applauds Congress for passing the bipartisan Water Resources Development Act (WRDA) for 2022, which was included in the National Defense Authorization Act. The legislation authorizes construction for 25 new and existing U.S. Army Corps of Engineers (USACE) water infrastructure projects, including those related to dams, ports and inland waterways, flood risk management, and storm risk reduction. We are encouraged that the biannual reauthorization of WRDA continues to be a congressional priority.
ASCE applauds Congress for WRDA 2022 authorizing and establishing several programs dedicated to ensuring that our nation's water resources infrastructure benefits communities across the country. These accomplishments include reauthorizing the National Levee Safety Program; authorizing dredging activity in underserved community harbors; authorizing the USACE to recruit individuals more actively for careers in science, technology, engineering, and math (STEM); and enhancing infrastructure resilience, such as allowing the USACE to incorporate resilience measures into federally authorized hurricane or shore protection projects when performing emergency repairs. ASCE is also pleased to see that WRDA 2022 makes the current federal cost share formula for Inland Waterways Trust Fund projects permanent, with 65 percent coming from the general fund and 35 percent from the Inland Waterways Trust Fund (IWTF). ASCE strongly supports this provision, as it was a key recommendation to raise the nation's "D+" inland waterways grade in the 2021 Report Card for America's Infrastructure.
Additionally, ASCE strongly supports provisions in WRDA 2022 that will enhance the safety of the nation's dams and levees, which each received a "D" grade in the 2021 report card. The bill requires the Corps to establish a new National Low-Head Dam Inventory to account for the nation's low-head dams, which can pose significant public hazards. Identifying and monitoring these types of dams nationwide will contribute to the overall safety of the nation's dams and help to save lives.
Finally, the reauthorization of WRDA works hand-in-hand with the additional investments made in the Bipartisan Infrastructure Law. This reauthorization shows that infrastructure remains a bipartisan priority. We thank Congress for passing this legislation and look forward to translating these investments to critical water infrastructure system improvements nationwide.
ABOUT THE AMERICAN SOCIETY OF CIVIL ENGINEERS
Founded in 1852, the American Society of Civil Engineers represents more than 150,000 civil engineers worldwide and is America's oldest national engineering society. ASCE works to raise awareness of the need to maintain and modernize the nation's infrastructure using sustainable and resilient practices, advocates for increasing and optimizing investment in infrastructure, and improve engineering knowledge and competency. For more information, visit www.asce.org or www.infrastructurereportcard.org and follow us on Twitter, @ASCETweets and @ASCEGovRel.
Read the court decisionRead the full story...Reprinted courtesy of
Good-To-Know Points Regarding (I) Miller Act Payment Bonds And (Ii) Payment Bond Surety Compelling Arbitration
December 22, 2019 —
David Adelstein - Florida Construction Legal UpdatesEvery now and then I come across an opinion that addresses good-to-know legal issues as a corollary of strategic litigation decisions that are questionable and/or creative. An opinion out of the United States District Court of New Mexico, Rock Roofing, LLC v. Travelers Casualty and Surety Company of America, 2019 WL 4418918 (D. New Mexico 2019), is such an opinion.
In Rock Roofing, an owner hired a contractor to construct apartments. The contractor furnished a payment bond. The contractor, in the performance of its work, hired a roofing subcontractor. A dispute arose under the subcontract and the roofer recorded a construction lien against the project. The contractor, per New Mexico law, obtained a bond to release the roofer’s construction lien from the project (real property). The roofer then filed a lawsuit in federal court against the payment bond surety claiming it is entitled to: (1) collect on the contractor’s Miller Act payment bond (?!?) and (2) foreclose its construction lien against the lien release bond furnished per New Mexico law.
Count I – Miller Act Payment Bond
Claiming the payment bond issued by the contractor is a Miller Act payment bond is a head scratcher. This claim was dismissed with prejudice upon the surety’s motion to dismiss. This was an easy call.
Read the court decisionRead the full story...Reprinted courtesy of
David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
The General Assembly Adds Some Clarity to Contracts and Unlicensed Contractors
March 28, 2018 —
Christopher G. Hill – Construction Law MusingsFor years, the statute regarding performing construction without a valid license (
Va. Code 54.1-1115) was a bit murky. While that statute listed several prohibited acts, among them contracting without the proper class of license or use of the license of another, the consequences of such activity, in particular the effect that such action would have on the enforcement of a construction contract (Section C of the statute), were less than clear.
Read the court decisionRead the full story...Reprinted courtesy of
Christopher G. Hill, The Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Insurance Policies Broadly Defining “Suits” May Prompt an Insurer’s Duty to Defend and Indemnify During the Chapter 558 Pre-Suit Notice Process
May 30, 2018 —
Daniel Garcia - Gordon & Rees Construction Law BlogIn Altman Contractors, Inc. v. Crum & Forster Specialty Insurance Company, No. SC16-1420, 2017 WL 6379535 (Fla. Dec. 14, 2017), the Florida Supreme Court addressed whether the notice and repair process set forth in chapter 558, Florida Statutes, constitutes a “suit” within the meaning of a commercial liability policy issued by Crum & Forster Specialty Insurance Company (“C&F”) to Altman Contractors, Inc. (“Altman”). The Court found that because the chapter 558 pre-suit process is an “alternative dispute resolution proceeding” as included in the definition of “suit” in the policy by C&F to Altman, C&F had a duty to defend Altman during the chapter 558 process, prior to the filing of a formal lawsuit.
Chapter 558, titled “Construction Defects,” sets forth procedural requirements before a claimant may file a construction defect action. It requires a claimant to serve a written notice of claim on the applicable contractor, subcontractor, supplier, and/or design professional prior to filing a construction defect lawsuit. The legislature intended for Chapter 558 to be an alternative dispute resolution mechanism in certain construction defect matters allowing an opportunity to resolve the claim without further legal process.
Read the court decisionRead the full story...Reprinted courtesy of
Daniel Garcia, Gordon & Rees Scully MansukhaniMr. Garcia may be contacted at
daniel.garcia@grsm.com
Agreement Authorizing Party’s Own Engineer to Determine Substantial Compliance Found Binding on Adverse Party
August 30, 2021 —
Garret Murai - California Construction Law BlogWhen it comes to resolving construction disputes it’s a bit like the “31 Flavors” of Baskin Robins. There’s a flavor for nearly everyone. From mediation, to arbitration, to litigation, to dispute resolution boards (DRBs), to the architect as the “initial decision maker” under AIA contracts, parties and their counsel have developed numerous ways to resolve disputes on construction projects, including by expert review.
But if you’re going to agree to a dispute resolution procedure, make sure it’s one you can live with, because if you don’t, it’s often going to be too late to go back to the proverbial drawing board as the parties in the next case discovered.
The Coral Farms Case
In December 2010, a mudslide impacted three properties in San Juan Capistrano, California. One of the properties was owned by Coral Farms, L.P., another by Paul and Susan Mikos, and the third by Thomas and Sonya Mahony.
Read the court decisionRead the full story...Reprinted courtesy of
Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
