Agrihoods: The Best of Both Worlds
July 23, 2014 —
Beverley BevenFlorez-CDJ STAFFSmithsonian Magazine reported on a new U.S. trend of blending farms and housing developments: The concept is called Development Supported Agriculture (DSA), or more commonly known as “Agrihoods.” In a DSA, “consumers pledge money or resources to support a farm operation, and in turn, receive a share of what it produces, but take the concept one step further by integrating the farm within residential developments.” Residents receive similar perks of being a part of a home owner association such as supported pools, tennis courts, and playgrounds through their contribution to the farm.
The first DSA, Prairie Crossing, was built in Grayslake, Illinois to preserve land while adding about 350 residential homes. Willowsford, a new DSA being built in Ashburn Virginia, will have over 2,000 homes.
Willowsford’s developers have preserved 2,000 acres, with 300 acres of farmland. The development will be broken into four villages, and each will have its own farm.
Part of the popularity of DSAs is that they may “require less of an investment than other green space communities—for instance, communities planned around golf courses,” according to Smithsonian Magazine. “What does it cost to leave the open space alone in the first place? Almost nothing,” said Ed McMahon, the Charles E. Fraser chair on sustainable development and environmental policy at the Urban Land Institute, as quoted by Smithsonian Magazine. “A light bulb went off in the mind of savvy developers who said, ‘Jeez, I can build a golf course development without the golf course.’ So that led to designing communities around other green-space amenities such as a farm.”
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More Hensel Phelps Ripples in the Statute of Limitations Pond?
February 03, 2020 —
Christopher G. Hill - Construction Law MusingsAs is always the case when I attend the Virginia State Bar’s annual construction law seminar, I come away from it with a few posts on recent cases and their implications. The first of these is not a construction case, but has implications relating to the state project related statute of limitations and indemnification issues for construction contracts brought out in stark relief in the now infamous Hensel Phelps case.
In Radiance Capital Receivables Fourteen, LLC v. Foster the Court considered a waiver of the statute of limitations found in a loan contract. The operative facts are that the waiver was found in a Continuing Guaranty contract and that the default happened more than 5 years prior to the date that Radiance filed suit to enforce its rights. When the defendants filed a plea in bar stating that the statute of limitations had run and therefore the claim was barred, Radiance of course argued that the defendants had waived their right to bring such a defense. The defendants responded that the waiver was invalid in that it violated the terms of Va. Code 8.01-232 that states among other things:
an unwritten promise not to plead the statute shall be void, and a written promise not to plead such statute shall be valid when (i) it is made to avoid or defer litigation pending settlement of any case, (ii) it is not made contemporaneously with any other contract, and (iii) it is made for an additional term not longer than the applicable limitations period.
The Circuit Court and ultimately the Supreme Court agreed with the defendants. In doing so, the Virginia Supreme Court rejected arguments of estoppel and an argument that a “waiver” is not a “promise not to plead.”
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Nevada HOA Criminal Investigation Moving Slowly
January 22, 2014 —
Beverley BevenFlorez-CDJ STAFFSix years have passed since the FBI started investigating “allegations of the sweeping scheme to take over valley homeowners associations” in Nevada, according to Jeff German writing for the Las Vegas Review-Journal, however, “the public still doesn’t have the full story of how the scheme unfolded.” Defendants who plead guilty are still awaiting sentencing and no trial has been set for “former construction company boss Leon Benzer, the accused mastermind of the scheme” despite that he and ten others have already been indicted. The trial had been set for March, however, defense lawyers stated “they were overwhelmed by the massive amount of evidence and won’t be prepared for trial until well into 2015.”
Benzer, Nancy Quon (late construction defect attorney), and others allegedly “funneled more than $8 million through secret bank accounts to land the lucrative legal and construction defect contracts from the homeowners associations,” according to the Las Vegas Review-Journal. Quon committed suicide in 2012, and therefore was never charged in the case.
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Hawaii Federal District Court Denies Brokers' MSJ on Duties Owed In Construction Defect Case
October 19, 2017 —
Tred R. Eyerly - Insurance Law HawaiiThe federal district court for the District of Hawaii denied the brokers' motion for summary judgment seeking dismissal from claims that they inadequately advised the insured of the law regarding construction defects in Hawaii. Am Auto. Ins. Co. v. Haw. Nut & Bolt, Inc., 2017 U.S. Dist. LEXIS 148571.
Safeway sued Hawaii Nut & Bolt (HNB) and others for construction defects in a newly constructed store. The underlying complaint alleged products liability claims against HNB as the distributor of the "VersaFlex Coating System." HSB had represented that the coating system was adequate for its intended use. The underlying complaint alleged failure of the VersaFlex Coating System in waterproofing the roof deck of the store. After the store opened, water leaks from the roof deck appeared. Safeway alleged they were caused by the cracks and failures in the waterproof membrane in the roof deck.
HNB notified its insurers of the claims. The insurers defended HNB during the litigation subject to reservation of rights letters.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
You’re Only as Good as Those with Whom You Contract
April 17, 2019 —
Christopher G. Hill - Construction Law MusingsI have been beating the drum of the need to have a solid construction contract as the basis for your construction project and contractor/subcontractor/supplier relationships. I have also emphasized that communication early and often is one of the best ways to assure a smooth project. However, the sad truth is that even with the best contract drafted with the assistance of an experienced construction attorney, if the other party to the contract simply decides not to perform, whether that is through unjustified non-payment or simple refusal to complete a scope of work without reason, it will be an expensive proposition to force compliance or be compensated for the monetary damage caused by such actions.
It is this often unmentioned truth relating to any contract, including those that construction professionals in Virginia deal with on a daily basis, that makes having a good knowledge of those with whom you plan to contract is key to a successful (read profitable) construction project. Of course be sure that any contractor or subcontractor you contract with has the basics of propoer insurance, the right experience and of course a contractor’s license with the proper specialty or specialties. These basics will get you most of the way to assuring that those that contract with you at least are responsible in business. Another key component, if you can find this information out, is the financial wherwithall of the other party. For a General Contractor, this means both sides of the equation: Owner and Subcontractors. For a Subcontractor, the key is the Contractor, but any other information you can get on the Owner is helpful (though this can be difficult) particularly in the face of a “pay if paid” clause.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Potential Extension of the Statutes of Limitation and Repose for Colorado Construction Defect Claims
April 27, 2020 —
David M. McLain – Colorado Construction LitigationOn January 27th, Senator Robert Rodriguez introduced SB 20-138 into the Colorado Legislature. The bill has been assigned to the Senate Judiciary Committee and has not yet been scheduled for its first hearing in that committee. In short, Senate Bill 20-138, if enacted, would:
- Extend Colorado’s statute of repose for construction defects from 6+2 years to 10+2 years;
- Require tolling of the statute of repose until the claimant discovers not only the physical manifestation of a construction defect, but also its cause; and
- Permit statutory and equitable tolling of the statute of repose.
Colorado’s statute of repose for construction defect claims are codified at C.R.S. § 13-80-104. In 1986, the Colorado Legislature set the statute of repose period at 6+2 years. For the last 34 years, Colorado’s statute of repose for owners’ claims against construction professionals has been substantially the same, to wit:
(1) (a) Notwithstanding any statutory provision to the contrary, all actions against any architect, contractor, builder or builder vendor, engineer, or inspector performing or furnishing the design, planning, supervision, inspection, construction, or observation of construction of any improvement to real property shall be brought within the time provided in section 13-80-102 after the claim for relief arises, and not thereafter, but in no case shall such an action be brought more than six years after the substantial completion of the improvement to the real property, except as provided in subsection (2) of this section.
(2) In case any such cause of action arises during the fifth or sixth year after substantial completion of the improvement to real property, said action shall be brought within two years after the date upon which said cause of action arises.
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David McLain, Higgins, Hopkins, McLain & RoswellMr. McLain may be contacted at
mclain@hhmrlaw.com
Construction Law Job Opps and How to Create Them
October 24, 2021 —
Christopher G. Hill - Construction Law MusingsFor this weeks Guest Post Friday, Kirsten Grant (@kgrantcareers on Twitter) has graced us with her thoughts on a very timely topic: How to get a job as a construction attorney. Before becoming a career specialist at Kaplan University, one of the largest online universities in the nation, Kirsten Grant had faxed almost 1000 resumes, e-mailed close to 300 resumes, personally mailed 20 resumes with each one featuring “special inserts” to encourage hiring managers to read her resume (50% of those resumes received calls for an interview) and interviewed with 50 companies over the course of 5 months. Based on the feedback hiring managers provided, in addition to 10 years experience in human resources, training, recruiting and staffing she REALLY learned what hiring managers look for in a candidate and today helps over 40,000 adult learners understand how to conduct successful job searches and earn a promotions.
As the real estate industry makes torrid adjustments to right itself due to foreclosures, short sales, and falling house prices, court rooms are seeing more construction law cases. As houses and properties fall into states of disrepair and as efforts are taken to repair them a chain of events take place:
- Property is purchased
- Contractors are hired to make repairs to a property
- The selected contractor files permits for the type of work performed
- After work has been performed, contactor receives compensation
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Bad Faith Claim For Independent Contractor's Reduced Loss Assessment Survives Motion to Dismiss
January 28, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe insured's bad faith claim based upon the insurer's alleged use of an independent contractor to assess the amount of loss in order to lower the amount paid survived a motion to dismiss. Williamson v. Chubb Indem. Ins. Co., 2013 U.S. Dist. LEXIS 178022 (E.D. Pa. Dec. 19, 2013).
The insureds' home was damaged. Chubb, their insurer, retained an independent contractor, Eastern Diversified Services (EDS) to assess the amount of loss. EDS estimated the loss to be $193,270.43, and Chubb paid this amount.
Chubb's standard practice was to conduct damage estimates itself using an estimating program called Symbility. EDS used a different program with a data base creating lower payments for loss. When this was brought to Chubb's attention, Chubb refused to recalculate the plaintiff's estimate.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
