Orange County Home Builder Dead at 93
April 25, 2012 —
CDJ STAFFRandall E. Presley was a homebuilder in Southern California for more than thirty years, acting as head of Presley Development Company from 1956 until selling the firm to Lyon Homes in 1987. The two companies merged in 1991 as the Presley Cos. Mr. Presley saw the need in the 1950s to provide people in Southern California with low- to medium-priced quality homes.
His firm built more than 160 communities and was among the ten largest homebuilding firms in the country, expanding beyond California. Mr. Presley was 93 when he succumbed to pneumonia. He is survived by a wife, three children, seven grandchildren, and 11 great-grandchildren.
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Insurance Law Alert: Ambiguous Producer Agreement Makes Agent-Broker Status a Jury Question
September 10, 2014 —
Valerie A. Moore & Christopher Kendrick - Haight Brown & Bonesteel LLPIn Douglas v. Fidelity National Ins. (No. A137645; filed 8/29/14), a California appeals court held that it was a jury question whether a retail insurance service with limited binding authority should be deemed a broker or an agent for the purpose of determining if application misrepresentations would void coverage.
In Douglas, the homeowners needed insurance for a house they had used as a group home. They sought coverage from Cost-U-Less, which provided personal lines insurance from, among others, Fidelity National Insurance Company. According to the couple’s wife, she went to a Cost-U-Less office where she answered application questions from a person on the telephone, who was later identified as an employee of another company, InsZone.
InsZone had a producer contract with Fidelity. In practice, InsZone would be contacted by Cost-U-Less via telephone, at which point an InsZone employee would verbally solicit information from the client, with the information being entered into a computer by the InsZone employee and then transmitted electronically to Fidelity.
Reprinted courtesy of
Valerie A. Moore, Haight Brown & Bonesteel LLP and
Christopher Kendrick, Haight Brown & Bonesteel LLP
Ms. Moore may be contacted at vmoore@hbblaw.com; Mr. Kendrick may be contacted at ckendrick@hbblaw.com
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Subcontractors on Washington Public Projects can now get their Retainage Money Sooner
July 26, 2017 —
Brett M. Hill - Ahlers & Cressman PLLCSubcontractors on public projects in Washington State will no longer be required to wait until final acceptance of the project to get their retainage money. A new statute, which goes into effect on July 23, 2017 and applies only to Washington public projects, will allow subcontractors to get their retainage sooner.
Under prior law, a subcontractor could only get its retainage prior to final acceptance if the general contractor provided a retainage bond to the public owner to secure a release of the general contractor’s retainage and the subcontractor then provided a similar retainage bond to the general contractor in the amount of its own retainage. If the general contractor decided to not provide a retainage bond to the owner, the subcontractor would be forced to wait until final acceptance of the project before it could get paid its retainage.
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Brett M. Hill, Ahlers & Cressman PLLCMr. Hill may be contacted at
bhill@ac-lawyers.com
Reversing Itself, West Virginia Supreme Court Holds Construction Defects Are Covered
July 31, 2013 —
Tred Eyerly, Insurance Law HawaiiThe West Virginia Supreme Court previously held that construction defects were not covered under a CGL policy. The Court, however, reversed itself in Cherrington v. Erie Ins. Prop. & Cas. Co., 2013 W.Va. LEXIS 724 (W.V. June 18, 2013).
The underlying complaint against the general contractor alleged various defects in the plaintiff’s recently constructed house, including an uneven concrete floor, water infiltration through the roof and chimney joint, a sagging support beam, and numerous cracks in the drywall walls and partitions throughout the house. Erie Insurance denied coverage. The insured general contractor sued, but the trial court found that faulty workmanship was not sufficient to give rise to an “occurrence.”
The West Virginia Supreme Court reversed its prior rulings determining there was no coverage for construction defects. The court recognized its prior position was in the minority, as is Hawaii's position on coverage for construction defects. See Group Builders Inc. v. Admiral Ins. Co., 123 Haw. 142, 148, 231 P.3d 67, 73 (Haw. Ct. App. 2010). Now joining the majority position, the West Virginia Supreme Court found that defective workmanship causing property damage was an “occurrence” under a CGL policy. Further, the homeowner had demonstrated that she sustained "property damage" as a result of the allegedly defective construction of her home.
The trial court also determined that the business risk exclusions barred coverage. Again, the West Virginia Supreme Court disagreed.
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Tred EyerlyTred Eyerly can be contacted at
te@hawaiilawyer.com
Chicago Developer and Trade Group Sue City Over Affordable Housing Requirements
September 03, 2015 —
Beverley BevenFlorez-CDJ STAFFThe Chicago Tribune reported that Hoyne Development and Home Builders Association of Greater Chicago are suing the city of Chicago, claiming that the “Affordable Requirements Ordinance is unconstitutional because it involves the taking of private party without ‘just compensation,’ violating the Fifth Amendment.”
Shannon Breymaier, spokeswoman for Chicago Mayor Rahm Emanuel, however, disputes the claims, and told the Chicago Tribune in an email that the city planned to “defend the ordinance vigorously.”
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Project Labor Agreements Will Now Be Required for Large-Scale Federal Construction Projects
February 14, 2022 —
Lori Ann Lange, Aaron C. Schlesinger & Lauren Rayner Davis - Peckar & Abramson, P.C.On February 4, 2022, President Biden issued an Executive Order on Use of Project Labor Agreements for Federal Construction Projects (EO), which will require the use of project labor agreements (PLAs) on large-scale federal construction projects with a total estimated cost of $35 million or more unless a senior official within the agency grants an exception. Agencies also may require the use of PLAs on projects that are less than $35 million.
While the EO is effective immediately, it will only apply to solicitations issued on or after the effective date of final regulations issued by the FAR Council. The FAR Council has 120 days to propose regulations implementing the EO. Often there is a significant period of time between the publication of proposed regulations, evaluation of public comments, and publication of final regulations.
Reprinted courtesy of
Lori Ann Lange, Peckar & Abramson, P.C.,
Aaron C. Schlesinger, Peckar & Abramson, P.C. and
Lauren Rayner Davis, Peckar & Abramson, P.C.
Ms. Lange may be contacted at llange@pecklaw.com
Mr. Schlesinger may be contacted at aschlesinger@pecklaw.com
Ms. Davis may be contacted at ldavis@pecklaw.com
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Public Projects in the Pandemic Pandemonium
September 07, 2020 —
Ashlynn E. Hutton, Michael J. Crook & Christian F. Torgrimson - Construction ExecutiveDespite the ongoing pandemic, states are opening up for business and establishing a new normal. This determination to move forward includes pushing public transportation projects full steam ahead. While this may be good news for certain industries, it may not be for commercial property owners hoping to see a slow down to public projects and avoid a taking of private property. As many grapple with new economic realities, we examine the approaches employed by states in the southeast to manage construction of public projects in this unprecedented time.
GEORGIA
The Georgia Department of Transportation (GDOT) is moving forward with all of its previously funded public projects, including the massive I-285 Top-End Project, designated as a “Major Mobility Project” for the Atlanta metro region. Affecting approximately 260 property owners along I-285 and Georgia Highway 400, environmental review of the project continues. GDOT anticipates a contract let date in 2022 and construction start in 2023. Like ocean liners, these projects don’t turn on a dime. Under the 2015 Transportation Funding Act, the budgeted funds cannot be shifted to other needs or projects due to economic shutdown. Once environmental review is complete, GDOT will approve the final design and move toward acquiring right-of-way from affected property owners.
Reprinted courtesy of
Ashlynn E. Hutton, Michael J. Crook & Christian F. Torgrimson, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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MTA Debarment Update
December 02, 2019 —
Steven M. Charney, Gregory H. Chertoff & Paul Monte - Peckar & Abramson, P.C.Alliance for Fair and Equitable Contracting Today, Inc., a nonprofit formed by five trade associations, including the GCA, the BTEA and the NY Building Congress, has sued the Metropolitan Transportation Authority over rules that debar contractors for delays and cost overruns on MTA projects without regard to the reasons for the delays and cost overruns.
As described in our prior client alert (see
here), the current rules automatically debar firms that are determined to have gone over the MTA approved contract price or time by more than 10%. The rules do not consider mitigating circumstances. Delays and cost overruns are often caused by unforeseen conditions, design errors and omissions, and changes requested by the MTA. The MTA’s rules could lead contractors to absorb additional costs they shouldn’t be responsible for rather than face the risk of being debarred. As argued in Alliance’s action, “Debarment is the death penalty for a public works contractor, and not just in New York. A debarment by the MTA could result in debarment nationwide, given that public and private contractors throughout the country commonly inquire about bidders’ debarment history when considering project bids. The Debarment Statute and MTA Regulations thus effectively export an unreasonable law not only throughout New York State, but to all other states as well.”
Reprinted courtesy of Saxe Doernberger & Vita, P.C. attorneys
Steven M. Charney,
Gregory H. Chertoff and
Paul Monte
Mr. Charney may be contacted at scharney@pecklaw.com
Mr. Chertoff may be contacted at gchertoff@pecklaw.com
Mr. Monte may be contacted at pmonte@pecklaw.com
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