Good and Bad News on Construction Employment
February 10, 2012 —
CDJ STAFFThe construction industry hit a two-year high in January, with 21,000 jobs added that month. The mild winter is assumed to have helped. According to the General Contractors of America, the construction industry currently employs about 5.57 million people. This is a 21 percent gain over January 2010. Ken Simonson, the chief economist of GCA, noted that “the unemployment rate in construction is still double that of the overall economy.” He said it was not currently clear if “the recent job growth reflects a sustained pickup or merely acceleration of homebuilding and highway projects that normally halt when the ground freezes in December and January.”
Stephen Sandherr, the chief executive officer of the GCA, said that the federal government had to make infrastructure funding a top priority. “Without adequate long-term funding for infrastructure, competitive tax rates and fewer costly regulatory hurdles, the construction industry may lose some of the jobs it gained in the last year.”
Read the full story…
Read the court decisionRead the full story...Reprinted courtesy of
Be Careful With Construction Fraud Allegations
April 06, 2016 —
Christopher G. Hill – Construction Law MusingsHere at Construction Law Musings we have discussed the intersection of contracts, construction and fraud on several occasions. We’ve even discussed how such fraud can bleed over from the civil to the criminal.
Recently, the Virginia Supreme Court weighed in again on the question of construction fraud and criminal allegations. In O’Connor v. Tice, the Court discussed a malicious prosecution action brought by a contractor against owners of a commercial building. In O’Connor, the owners and the contractor got into a disagreement over alleged damage to the roof of the owners’ building and who was responsible. In response to this disagreement, the owners contacted the local sheriff’s office, accusing the contractor of construction fraud, and then wrote a “15 day letter” to the contractor outlining the criminal consequences should he fail to pay the damages sought in the owners civil lawsuit. Subsequently, a criminal warrant was issued against the contractor based solely upon the word of the owners. This last occurred at the insistence of the owners (who did not inform the sheriff’s deputy or the Commonwealth Attorney that they’d had this conversation or that the contractor had partially performed) after they discussed the matter with the contractor’s attorney and were informed that any claim that they may have had was civil in nature.
Read the court decisionRead the full story...Reprinted courtesy of
Christopher G. Hill, Construction Law MusingsMr. Hill may be contacted at
chrisghill@constructionlawva.com
Collapse Claim Fails Due To Defectively Designed Roof and Deck
May 28, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe insured's claim for collapse of his roof and deck failed due to defective design and other exclusions under the policy. Dudar v. State Farm & Cas. Co., 2024 U.S. Dist. LEXIS 52706 (N.D. Ga. Feb. 6, 2024).
The insured submitted a claim to State Farm for damage to the roof ("Roof Claim"). State Farm's adjuster placed a ladder on the deck to access the roof and a portion of the deck collapsed. The insured then reported a claim to State Farm for damage to the deck ("Deck Claim"). The claims were denied and suit was filed.
The roof had leaked on several occasions prior to submission of the Roof Claim. On February 25, 2022, the insured discovered that a branch had cut a hole in the tarp, causing water to leak into the home. The insured performed repairs on the roof. On March 8, 2022, a storm caused more water to seep through the tarp into the ceilings and walls. Thereafter, the Roof Claim was submitted.
The damage from the leaking roof and the deck collapse were caused by rotting. The rotting, in turn, was caused by a combination of defective building design and resulting water damage from rain and storms over the years. The roof and deck were constructed to provide mutual support to one another. The roof did not contain an adequate slope, which caused water to seep down into the walls and flooring rather than to flow downward and away from the property. Over time, penetrating water caused portions of the roof, the floor, and the supporting wall between the roof and deck to rot.
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Federal Judge Vacates CDC Eviction Moratorium Nationwide
May 24, 2021 —
Zachary Kessler, Amanda G. Halter & Adam Weaver - Gravel2Gavel Construction & Real Estate Law BlogLate last week a federal district court judge for the District of Columbia held that the nationwide eviction moratorium issued by the Centers for Disease Control and Prevention (CDC) went beyond the agency’s statutory authority and vacated it nationwide. This decision effectively expanded a similar decision by a Texas federal court last month that found the CDC’s moratorium was an improper use of federal power but limited its decision to the litigants to that case and declined to vacate the CDC order.
The CDC eviction moratorium (the Order) was designed to halt certain cases of eviction for low-income tenants and was the most significant nationwide tenant protection for nonpayment of rent due to the COVID-19 pandemic. While the federal government has said it will appeal this week’s decision and has sought to stay its effect, it is a significant blow to the federal government’s efforts to halt evictions due to the COVID-19 pandemic. This decision may now open an avenue for landlords to begin evicting nonpaying tenants that had been halted by the eviction moratorium since mid-2020.
Reprinted courtesy of
Zachary Kessler, Pillsbury,
Amanda G. Halter, Pillsbury and
Adam Weaver, Pillsbury
Mr. Kessler may be contacted at zachary.kessler@pillsburylaw.com
Ms. Halter may be contacted at amanda.halter@pillsburylaw.com
Mr. Weaver may be contacted at adam.weaver@pillsburylaw.com
Read the court decisionRead the full story...Reprinted courtesy of
Condominium Construction Defect Resolution in the District of Columbia
October 26, 2017 —
Nicholas D. Cowie - Maryland Condo Construction Defect Law BlogNewly constructed and newly converted condominiums in the District of Columbia often contain concealed or “latent” construction defects. Left undetected and unrepaired, defects in the construction of a condominium can cause extensive damage over time, requiring associations to assess their members substantial repair costs that could have been avoided by making timely developer warranty claims.
This article provides a general overview of how Washington DC condominium associations transitioning from developer control can proactively and successfully identify defects and resolve construction defect claims with condominium developers and builders.
Condominium Association Responsibility for Timely Evaluation of Common Element Construction
Condominium associations are charged with the responsibility of overseeing and maintaining condominium common element facilities, typically consisting of building roofs, exterior walls, foundations, lobbies, common hallways, elevators, surrounding grounds, and the common structural mechanical, electrical, and plumbing systems. Following the period of developer control, it is incumbent upon a condominium association’s first unit owner elected board of directors to evaluate the construction of the condominium common element facilities and determine whether the existing, developer-created, budget and reserve fund are adequate to cover the cost of maintaining, repairing, and ultimately replacing the condominium facilities over time.
Read the court decisionRead the full story...Reprinted courtesy of
Nicholas D. Cowie, Cowie & Mott, P.A.Mr. Cowie may be contacted at
ndc@cowiemott.com
NYC Shuts 9 Pre-Kindergartens for Health, Safety Issues
September 03, 2014 —
Henry Goldman – BloombergNew York City won’t permit nine of 1,700 planned pre-kindergarten centers to open because of health and safety shortcomings and will delay use of 36 others for incomplete construction, officials in Mayor Bill de Blasio’s administration said.
The announcement in an e-mail from the mayor’s press office came two days before the city was to embark on de Blasio’s signature policy initiative to offer free universal pre-school to the city’s 4-year-olds starting with more than 50,000 this year and expanding to more than 70,000 next year.
The nine shuttered schools each raised health and safety concerns after they were examined by building inspectors, fire officials and the Health Department, said Wiley Norvell, a spokesman for the mayor. Of the 236 students enrolled for those locations, officials had found alternatives for 83. The city is working with parents to find other schools for the rest, Norvell said.
Read the court decisionRead the full story...Reprinted courtesy of
Henry Goldman, BloombergMr. Goldman may be contacted at
hgoldman@bloomberg.net
Client Alert: Michigan Insurance Company Not Subject to Personal Jurisdiction in California for Losses Suffered in Arkansas
February 05, 2015 —
R. Bryan Martin, Lawrence S. Zucker II, and Kristian B. Moriarty – Haight Brown & Bonesteel LLPIn Greenwell v. Auto-Owners Ins. Co. (No. C074546, Filed 1/27/2015) (“Greenwell”), the California Court of Appeal, Third Appellate District, held a California resident could not establish specific personal jurisdiction over an insurance company, located in Michigan, which issued a policy of insurance to the California resident where the claimed loss occurred in Arkansas.
Plaintiff purchased a policy of insurance from defendant, Auto-Owners Ins. Co. (“Auto”), a Michigan corporation. The policy provided commercial property coverage for an apartment building owned by Plaintiff, located in Arkansas. The policy also provided commercial general liability coverage for plaintiff’s property ownership business, which plaintiff operated from California.
Both coverage provisions insured certain risks, losses, or damages that could have arisen in California. The dispute which arose between Plaintiff and Defendant, however, involved two fires that damaged the apartment building in Arkansas. As a result of coverage decisions that Auto made in the handling of the claim, plaintiff filed suit for breach of contract and bad faith.
Reprinted courtesy of Haight Brown & Bonesteel LLP attorneys
R. Bryan Martin,
Lawrence S. Zucker II and
Kristian B. Moriarty
Mr. Martin may be contacted at bmartin@hbblaw.com;
Mr. Zucker may be contacted at lzucker@hbblaw.com;
and Mr. Moriarty may be contacted at kmoriarty@hbblaw.com
Read the court decisionRead the full story...Reprinted courtesy of
Colorado Abandons the “Completed and Accepted Rule” in Favor of the “Foreseeability Rule” in Determining a Contractor’s Duty to a Third Party After Work Has Been Completed
January 17, 2013 —
Brady Iandiorio, Higgins, Hopkins, McLain & Roswell, LLCIn a recent case, the Colorado Court of Appeals found that a contractor had a duty to a third party to warn it of a dangerous condition, even after the contractor had completed its work and the owner had accepted the contractor’s work. Collard v. Vista Paving Corp., -- P.3d --, 2012 WL 5871446 (Colo. App. 2012). While not an earth shattering or entirely new concept, the decision rendered in Collard directly accepted the foreseeability rule at the expense of the completed and accepted rule. Id.
In Collard, the City of Grand Junction (“the City”) hired Vista Paving Corp. (“Vista”) to construct two road medians according to the City’s plans and designs. On July 9, 2007, Vista began work on the medians. According to its contract with the City, Vista was responsible for traffic control during construction of the medians. On July 19, 2007, Vista completed its construction of both medians. On that date, the City’s project inspector conducted his final inspection of Vista’s work. The City’s inspector then told Vista that its work had been completed and that Vista was authorized to leave the site. Vista requested permission to remove the traffic control devices to which the City’s inspector agreed. Vista removed all of its traffic control devices.
Read the court decisionRead the full story...Reprinted courtesy of
Brady IandiorioMr. Iandiorio can be contacted at
iandiorio@hhmrlaw.com