The Nightmare Scenario for Florida’s Coastal Homeowners
April 20, 2017 —
Christopher Flavelle - BloombergOn a predictably gorgeous South Florida afternoon, Coral Gables Mayor Jim Cason sat in his office overlooking the white-linen restaurants of this affluent seaside community and wondered when climate change would bring it all to an end. He figured it would involve a boat.
When Cason first started worrying about sea-level rise, he asked his staff to count not just how much coastline the city had (47 miles) or value of the property along that coast ($3.5 billion). He also told them to find out how many boats dock inland from the bridges that span the city’s canals (302). What matters, he guessed, will be the first time a mast fails to clear the bottom of one of those bridges because the water level had risen too far.
“These boats are going to be the canary in the mine,” said Cason, who became mayor in 2011 after retiring from the U.S. foreign service. “When the boats can’t go out, the property values go down.”
If property values start to fall, Cason said, banks could stop writing 30-year mortgages for coastal homes, shrinking the pool of able buyers and sending prices lower still. Those properties make up a quarter of the city’s tax base; if that revenue fell, the city would struggle to provide the services that make it such a desirable place to live, causing more sales and another drop in revenue.
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Christopher Flavelle, Bloomberg
Contractor Changes Contract After Signed, Then Sues Older Woman for Breaking It
September 03, 2015 —
Beverley BevenFlorez-CDJ STAFFChannel 13 Who TV reported, in Winterset, Iowa, Mary Gregory allegedly signed an estimate for hail damage repair to her home, and was later told by the contractor that it was a contract. When a crew showed up to her home to perform the work, she turned them away. Then, Gregory received a letter from an attorney demanding eight thousand dollars for breach of contract.
It turns out that the contractor altered the estimate Gregory signed and submitted it to the insurance company. According to Who TV, the altered estimate “contained work that Gregory says she didn’t authorize and a price tag of $32,134.” Jim Nelle, the contractor, admitted that he added to the contract after it was signed. He claims he was only trying to help her.
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Commercial Construction in the Golden State is Looking Pretty Golden
August 26, 2015 —
Garret Murai – California Construction Law BlogIf the $2.1 trillion erased from the U.S. stock market over the last week has you white knuckled, you might consider commercial construction in the Golden State, where things are looking . . . well . . . pretty golden.
According to the Summer/Fall 2015 Commercial Real Estate Survey jointly published by Allen Matkins and the UCLA Anderson School of Management, commercial construction in California has risen to its highest level since 2001.
The survey, conducted of commercial real estate developers and financiers and their outlook for seven metropolitan regions in California including the East Bay, the Inland Empire, Los Angeles, Orange County, San Diego, San Francisco and Silicon Valley, found that all respondents expressed optimism (characterized as an optimism sentiment above 50) that office, multifamily, industrial and retail construction would grow over the next three-years although it varied depending on the region and sentiment was at times lower than when the survey was last taken last year.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
A Trio of Environmental Decisions from the Fourth Circuit
August 28, 2018 —
Anthony B. Cavender - Gravel2GavelWithin the past few weeks, the U.S. Court of Appeals for the Fourth Circuit has issued some very significant rulings regarding the construction of new natural gas pipelines. These cases are Berkley, et al. v. Mountain Valley Pipeline, LLC, decided July 25; Sierra Club, Inc., et al., v. U.S. Forest Service, The Wilderness Society, et al., v. U.S. Forest Service, and Sierra Club, Inc. et al. v. U.S. Department of the Interior, decided July 27, 2018; and Sierra Club v. U.S. Department of the Interior and Defenders of Wildlife, et al., v. U.S. Department of the Interior, decided August 6, 2018. The first two cases involve the Mountain Valley Pipeline, and the last case involves the Atlantic Coast Pipeline.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Does the Implied Warranty of Habitability Extend to Subsequent Purchasers? Depends on the State
October 08, 2014 —
Beverley BevenFlorez-CDJ STAFFAttorneys for Traub Liberman Straus & Shrewsberry LLP (in JD Supra Business Advisor), discussed how state courts have come to different conclusions as to “whether a subsequent purchaser of a previously inhabited residence can recover contract damages from a builder or general contractor for breach of the implied warranty of habitability.”
Recently, a Pennsylvania “sided with the builder, holding that the implied warranty of habitability was grounded in contract law. Thus, the Court reasoned that an action for breach of the implied warranty of habitability required a showing of contractual privity between the parties. Because there was no contractual privity between the Conways and the builder, the Conways could not pursue an action against the builder based on a breach of the implied warranty of habitability.”
However, other state courts have made other conclusions. “Iowa permits an action for breach of the implied warranty of workmanlike construction by subsequent purchasers and does not require a showing of contractual privity. Rhode Island also does not require contractual privity, but limits liability to latent defects discovered within 10 years of construction.” Vermont and Connecticut, however, require contract privity.
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Definitions Matter in Illinois: Tenant Held Liable Only for Damage to Apartment Unit
September 09, 2024 —
Gus Sara - The Subrogation StrategistIn Phila. Indem. Ins. Co. v. Gonzalez, No. 1-23-0833, 2024 Ill. App. Unpub. LEXIS 1372, the Appellate Court of Illinois considered whether the terms of a lease agreement limited a tenant’s liability for fire damages, a fire caused by her negligence, to her apartment unit only. The plaintiff insured the subject apartment building, which incurred damage to several units as result of a fire in the tenant’s unit. The lease defined “Premises” as the specific apartment unit occupied by the tenant and held the tenant responsible for damage caused to the Premises. While the court found that the lease permitted the plaintiff to subrogate against the tenant, it held that the lease terms limited the damages to the tenant’s apartment unit only.
In Gonzalez, the plaintiff’s insured owned a multi-unit apartment building in Chicago. In September 2019, the building owner entered into a lease agreement with the defendant for apartment Unit 601. The lease stated that Unit 601 was the “Leased Address (Premises).” Another provision stated that building owner “hereby leases to Tenant(s) and Tenant(s) hereby leases from Landlord(s) for use as a private dwelling only, the Premises, together with the fixtures and appliances (if any) in the premises…” The lease also stated that “Tenant shall be liable for any damage done to the premises as a result of Tenant’s or Tenant’s invitees, guests or others authorized to reside in the Premises [sic] direct action, negligence, or failure to inform Landlord of repairs necessary to prevent damage to the Premises.”
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Gus Sara, White and WilliamsMr. Sara may be contacted at
sarag@whiteandwilliams.com
California Committee Hosts a Hearing on Deadly Berkeley Balcony Collapse
April 28, 2016 —
Beverley BevenFlorez-CDJ STAFFAccording to Mercury News, state Senators Jerry Hill and Loni Hancock scheduled the hearing in Sacramento with state and local agencies to discuss their response to the Berkeley, California balcony collapse incident that killed three people and severely injured seven others.
The agencies also testified regarding “best practices and disclosure requirements for licenses.” Hill and Hancock are the sponsors of Senate Bill 465 that “would require companies to report certain settlements to the Contractors State License Board, and in some cases to the public.”
Investigators of the Berkeley balcony incident alleged “that crews applied waterproofing to wet wood during construction. Water was trapped inside, which led to severe dry rot and the catastrophic collapse,” reported Mercury News.
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Philadelphia Revises Realty Transfer Tax Treatment of Acquired Real Estate Companies
January 05, 2017 —
Nancy Frantz, Kevin Koscil & James Vandermark – White and Williams LLPOn December 8, 2016, the Philadelphia City Council voted unanimously to amend the ordinance governing realty transfer taxes in an effort to increase tax revenue. The current combined realty transfer tax rate in Philadelphia is 4.0% and will increase to 4.1% after December 31, 2016.[1] The amendment significantly impacts how taxes are imposed upon transfers of ownership in so-called “real estate companies” and effectively eliminates deals commonly referred to as 89-11 transactions. The amendment mainly focuses on transfers of real estate companies, rather than direct transfers of real estate, but it also affects certain direct transfers of real estate in exchange for noncash consideration.
Reprinted courtesy of White and Williams LLP
Nancy Frantz,
Kevin Koscil and
James Vandermark
Ms. Frantz may be contacted at frantzn@whiteandwilliams.com
Mr. Koscil may be contacted at koscilk@whiteandwilliams.com
Mr. Vandermark may be contacted at vandermarkj@whiteandwilliams.com
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