Wall Street Journal Analyzes the Housing Market Direction
June 26, 2014 —
Beverley BevenFlorez-CDJ STAFFNick Timiraos of the Wall Street Journal listed “five takeaways” from this week’s housing reports. First, he stated that unless the May “seasonally adjusted annual rate isn’t revised down,” the sales of new homes were “at their highest levels in six years.”
Second, Timiraos claimed that “[s]ales have been soft, in part, because builders have been slow to ramp up production. While inventories are still very low, they are up 16% from last year.” For his final “takeaway,” Timiraos stated that while “home prices are up nearly 25% from their early 2012 levels, they’re still down 18% from their 2006 peak. There’s considerable variation, of course, from one city to another. Prices in Denver and Dallas have reached new highs. Others, such as Miami and Phoenix, have posted double digit increases over the past year, but prices are still off of their peak by more than a third.”
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Home Prices in U.S. Rose 0.3% in August From July, FHFA Says
October 28, 2015 —
Prashant Gopal – BloombergU.S. home prices rose in August as low borrowing costs and sustained job growth fueled demand amid a tight inventory of properties on the market.
Prices climbed 0.3 percent on a seasonally adjusted basis from July, the Federal Housing Finance Agency said Thursday in a report from Washington. The average estimate of 16 economists was for a 0.5 percent increase, according to data compiled by Bloomberg. The gain was 5.5 percent from a year earlier.
Values have increased steadily as buyers, bolstered by an improving job market and easing mortgage standards, compete for a limited supply of existing homes. The number of listed properties in August was the second-lowest for that month since 2002, according to the National Association of Realtors.
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Prashant Gopal, Bloomberg
Infrastructure Money Comes With Labor Law Strings Attached
July 25, 2022 —
Cheryl Behymer, Patrick M. Dalin & Collin Cook - Construction ExecutiveThe federal government has committed to spending $1 trillion under the Infrastructure Investment and Jobs Act on nationwide construction, alteration and repair projects. Billions of dollars have already been deployed on projects to improve highways, bridges, airports, electrical infrastructure and drinking water distribution, and the government is poised to spend the remaining funds on a massive infrastructure build-out over the next five years. While federal government contracts may provide a lucrative and reliable stream of revenue for construction companies, contractors must be prepared to comply with special requirements, particularly under the labor and employment laws enforced by the U.S. Department of Labor (USDOL).
1. The Davis Bacon Act Requires Payment of Prevailing Wages and Fringe Benefits
The Davis Bacon Act (DBA) applies to most federally funded and federally assisted projects for construction, alteration or repair work. This law requires all contractors and subcontractors on a covered project to pay all “laborers or mechanics” the wages and fringe benefits that “prevail” in the locality where the work is being performed. The USDOL determines what the prevailing wages and fringe benefits are for each trade and publishes them in wage determinations that should be issued to all contractors on the project.
Reprinted courtesy of
Cheryl Behymer, Patrick M. Dalin & Collin Cook, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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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.
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Nicholas D. Cowie, Cowie & Mott, P.A.Mr. Cowie may be contacted at
ndc@cowiemott.com
Bound by Group Builders, Federal District Court Finds No Occurrence
August 11, 2011 —
Tred R. Eyerly - Insurance Law HawaiiThe homeowners sued their contractor, alleging the contractor had defectively constructed and failed to complete their home.  State Farm Fire and Casualty Co. v. Vogelgesang, 2011 U.S. Dist. LEXIS 72618 (D. Haw. July 6, 2011). The homeowners' complaint pled, among other things, damage caused by breach of contract and negligence. State Farm agreed to defend under a reservation of rights.
State Farm filed suit in federal court for declaratory relief. Judge Mollway granted State Farm's motion for summary judgment. Relying on the Hawaii Intermediate Court of Appeal's decision in Group Builders, Inc. v. Admiral Ins. Co., 123 Haw. 142, 231 P.3d 67 (Haw. Ct. App. 2010), Judge Mollway determined that the claims asserted in the underlying litigation arose from the contractor's alleged breach of contract.  Group Builders held that breach of contract claims based on allegations of shoddy performance were not covered under CGL policies.
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com
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Georgia Law: “An Occurrence Can Arise Where Faulty Workmanship Causes Unforeseen or Unexpected Damage to Other Property”
March 05, 2011 —
CDCoverage.comIn American Empire Surplus Lines Ins. Co. v. Hathaway Development Co., Inc., No. S10G0521 (Ga. March 7, 2011), insured plumbing subcontractor Whisnant was sued by general contractor Hathaway seeking damages for costs incurred by Hathaway in repairing damage to property other than Whisnant’s plumbing work resulting from Whisnant’s negligently performed plumbing work on three separate projects. On one project, Whisnant installed a pipe smaller
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Ninth Circuit Finds No Coverage for Construction Defects Under California Law
April 05, 2017 —
Tred R. Eyerly – Insurance Law HawaiiThe Ninth Circuit, applying California law, affirmed the district court's decision finding there was no coverage for construction defects. Archer W. Contractors v. Nat'l Union Fire Ins. Co., 2017 U.S. App. LEXIS 3796 (9th Cir. March 2, 2017).
Archer Western Contractors (AWC) was the general contractor for the San Diego County Water Authority's emergency water storage project. The pump house and turbine generators suffered property damage. The damage flowed from AWC's allegedly defective work on the property.
After settling a construction defect lawsuit brought against it by the Water Authority, AWC filed this case against National Union for failing to indemnity portions of the settlement agreement.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Does a Landlord’s Violation of the Arizona Residential Landlord-Tenant Act Constitute Negligence Per Se?
September 21, 2020 —
Kevin J. Parker - Snell & Wilmer Real Estate Litigation BlogIn a recent Arizona Court of Appeals case, Ibarra v. Gastelum, 2020 WL 4218020 (7/23/20), the Court of Appeals addressed the question whether – in a tenant’s personal injury claim against the landlord – a landlord’s violation of the Arizona Landlord-Tenant Act constituted negligence per se. The tenant alleged he was injured by stubbing his toe on a crack in the floor. The tenant alleged that he had made repeated demands that the landlord repair the crack. The statute required the landlord to make all repairs and do whatever is necessary to put and keep the premises in a fit and habitable condition. The tenant argued that a violation of the statute constituted negligence per se, meaning that the violation of the statute satisfied (as a matter of law) the first two elements of a negligence claim – duty and breach of duty. The tenant requested a negligence per se jury instruction. The trial court declined that request and refused to give the requested instruction. The tenant lost the jury trial and appealed.
Reprinted courtesy of
Kevin J. Parker, Snell & Wilmer
Mr. Parker may be contacted at kparker@swlaw.com
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