Home Buyers will Pay More for Solar
February 05, 2015 —
Beverley BevenFlorez-CDJ STAFFThe National Association of Home Builders’ (NAHB) Eye on Housing reported that a study’s results “found that homebuyers are willing to pay more for homes that have installed solar photovoltaic (PV) energy systems.” The team of researchers led by the U.S. Department of Energy’s Berkeley Laboratory “estimates a price premium of approximately $4 per watt of PV installed. For a typical PV system, the research team found that this translates into a price premium of $15,000.”
Furthermore, according to the NAHB, the study “suggests that the presence of energy-efficient home features is among the most important concerns for prospective home buyers.”
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Third Circuit Limits Pennsylvania’s Kvaerner Decision; Unexpected and Unintended Injury May Constitute an “Occurrence” Under Pennsylvania Law
December 22, 2019 —
Michael S. Levine & Michelle M. Spatz - Hunton Insurance Recovery BlogThe Third Circuit ruled on Friday that differing “occurrence” definitions can have materially different meanings in the context of whether product defect claims constitute an “occurrence” triggering coverage under general liability insurance policies. The Court held in Sapa Extrusions, Inc. v. Liberty Mutual Insurance Company, that product claims against Sapa may be covered under policies that define an “occurrence” as an accident resulting in bodily injury or property damage “neither expected nor intended from the standpoint of the insured.” However, the Court affirmed that coverage was not triggered under policies lacking the “expected” or “intended” limitation, reasoning that, under those policies, there was no question that the intentional manufacturing of Sapa’s product was too foreseeable to amount to an “accident.”
The coverage dispute arose from an underlying action in which Marvin, a window manufacturer, alleged that, between 2000 and 2010, Sapa sold it roughly 28 million defective aluminum window extrusions. Marvin alleged that the extrusions, which are metal frames that hold glass window panes in place, began to oxidize and break down shortly after they were installed, causing Marvin to incur substantial costs to fix and replace them.
Marvin sued Sapa in 2010 in Minnesota federal court, and the parties settled in 2013. Sapa sought coverage for the settlement from its eight general liability insurers for the period implicated by Marvin’s allegations. The insurers denied coverage and Sapa brought suit in the Middle District of Pennsylvania.
Reprinted courtesy of
Michael S. Levine, Hunton Andrews Kurth and
Michelle M. Spatz, Hunton Andrews Kurth
Mr. Levine may be contacted at mlevine@HuntonAK.com
Ms. Spatz may be contacted at mspatz@HuntonAK.com
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New WA Law Caps Retainage on Private Projects at 5%
May 29, 2023 —
Brett M. Hill & Ryanne S. Mathisen - Ahlers Cressman & Sleight PLLCThis month, Governor Jay Inslee signed into law a new statute that caps retainage on private construction projects to five percent (5%), provides a mechanism for subcontractors to get paid their retainage prior to project completion, and allows for contractors and subcontractors to post a retainage bond and get paid their retainage early. For those interested in reading the full text of this new law, the statute can be found
here.
The new statute goes into effect on July 23, 2023. Under the statute, when a contractor or subcontractor considers their work under a contract subject to retainage complete, they may notify the party they contracted to perform the work for. Within 15 days of receiving the notice of completion of work, the party receiving the notice must respond with either (1) notice of acceptance of work or (2) notice of uncompleted items to the contractor or subcontractor.
If the party receiving notice does not provide notice of uncompleted items within 15 days or fails to respond to the notice of completion entirely, the unpaid retainage will begin to accrue interest at a rate of one percent (1%) per month, 30 days after the initial 15-day period. However, this interest will not accrue against a contractor who has not been paid the retainage by an upper-tier contractor or owner until payment has been received, so long as that contractor has submitted its subcontractor’s notice of completion to the upper-tier contractor or owner within 30 days of receipt.
Reprinted courtesy of
Brett M. Hill, Ahlers Cressman & Sleight PLLC and
Ryanne S. Mathisen, Ahlers Cressman & Sleight PLLC
Mr. Hill may be contacted at brett.hill@acslawyers.com
Ms. Mathisen may be contacted at ryanne.mathisen@acslawyers.com
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The Requirement to Post Collateral Under General Agreement of Indemnity Is Real
May 16, 2022 —
David Adelstein - Florida Construction Legal UpdatesIn prior postings, I have discussed the all-powerful General Agreement of Indemnity (click
here and
here). This is the document a bond-principal executes to obtain bonds (e.g., performance and payment bonds). Not only does the bond-principal execute this General Agreement of Indemnity, but typically, so do other indemnitors such as the company’s principals and their spouses, other related companies, etc. The objective is that the surety has financial comfort that if a claim is made against the bond, there are avenues where it will get reimbursed and indemnified for any cost it incurs, or payment it makes, relative to that claim against the bond. When a surety issues bonds, the objective is that all losses it incurs gets reimbursed because the bonds are NOT insurance policies.
One of the powerful tools the surety can exercise in the General Agreement of Indemnity is to demand the bond-principal and other indemnitors to post collateral in an amount the surety deems sufficient to cover any losses it may incur. This is a right in any General Agreement of Indemnity I have seen and is a right the surety can rightfully exercise.
A recent example is shown from the opinion in Philadelphia Indemnity Ins. Co. v. Quinco Electrical, Inc., 2022 WL 1230110 (M.D.Fla. 2022), which pertains to the surety’s motion for preliminary injunction.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Congress Relaxes Several PPP Loan Requirements
June 15, 2020 —
Greg Tross & Michael Krueger – Newmeyer DillionOn June 3, 2020, Congress passed the Paycheck Protection Program Flexibility Act ("Act") which does exactly what it means to do: provide flexibility for PPP loan recipients. President Trump is expected to sign the bill into law within the week.
The Act extends the "covered period" for Paycheck Protection Program ("PPP") loans from the original eight weeks to 24 weeks or December 31, 2020, whichever is earlier. This extension provides much needed reprieve to small businesses who can utilize these funds to weather the economic effects of the Coronavirus Pandemic through 2020.
The Act also revises the limitations on how small businesses utilize their PPP loans. While the CARES Act originally required 75% of the PPP loan to be used for payroll costs, this number has now been reduced to 60%. This means that up to 40% of the PPP loan can be used to cover mortgage obligations, rent, and other covered utility payments.
The PPP loan payment deferral period has also been extended to align with the date on which the PPP loan's forgiveness amount is remitted to the lender. This should provide more certainty to small businesses on their payback obligations, if any.
Recently, the Small Business Administration also released loan forgiveness applications to assist a business in calculating their loan forgiveness. While the SBA will likely revise it with the Act's passing, small businesses should look at the application's framework to prepare for submitting their loan forgiveness requests in the future.
Newmeyer Dillion continues to follow COVID-19 and its impact on your business and our communities. Feel free to reach out to us at NDcovid19response@ndlf.com or visit us at www.newmeyerdillion.com/covid-19-multidisciplinary-task-force/.
Reprinted courtesy of
Greg Tross, Newmeyer Dillion and
Michael Krueger, Newmeyer Dillion
Mr. Tross may be contacted at greg.tross@ndlf.com
Mr. Krueger may be contacted at michael.krueger@ndlf.com
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Team Temporarily Stabilizes Delaware River Bridge Crack
February 02, 2017 —
Justin Rice - Engineering News-RecordThe team temporarily stabilizing the Delaware River Bridge and planning its permanent repair also are trying to find a precedent for the bridge’s uncommon fracture. Connecting the Pennsylvania and New Jersey turnpikes, the 61-year-old symmetrical truss bridge was shut down indefinitely on Jan. 20, when a complete fracture in a steel truss was discovered below the bridge deck.
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Justin Rice, ENRMr. Rice may be contacted at
ricej@enr.com
When Can a General Contractor’s Knowledge be Imputed to a Developer?
August 06, 2014 —
Zach McLeroy – Colorado Construction LitigationThe Colorado Court of Appeals recently handed down an opinion clarifying when the knowledge of a general contractor can be imputed to a developer. In the case of Jehly v. Brown, 327 P.3d (Colo. App. 2013), the Court of Appeals held that a developer cannot be held liable for fraudulent concealment when the developer has no actual knowledge of the fact or facts allegedly being concealed even if the general contractor had knowledge.
In this case, Brown, the developer, owned real property in Teller County and hired a general contractor to build a single-family house. Sometime before or during the construction, the general contractor became aware that part of the home site was located in a designated floodplain. Although the general contractor was aware that part of the home site was located in a floodplain, he continued to build the home without informing Brown of the floodplain designation.
Once the home was complete, Brown sold the property to the Jehlys. Brown completed a Seller’s Property Disclosure Form regarding the condition of the house and property, but failed to identify that the home site was located in a governmentally designated floodplain.
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Zack McLeroy, Higgins, Hopkins, McLain & Roswell, LLCMr. McLeroy may be contacted at
McLeroy@hhmrlaw.com
Gordon & Rees Ranked #4 of Top 50 Construction Law Firms in the Nation by Construction Executive Magazine
July 11, 2022 —
GRSM Construction Team - Gordon & Rees Construction Law BlogGordon Rees Scully Mansukhani has been ranked as the No. 4 construction law firm in the nation by Construction Executive in the magazine’s 2022 ranking of The Top 50 Construction Law Firms™. As the only law firm with offices and attorneys in all 50 states, Gordon & Rees’ construction group (with over 150 construction lawyers) delivers maximum value to our clients by understanding their business and combining the resources of a full-service national firm with the local knowledge of a regional firm.
Led by Allen Estes and Angela Richie, the construction lawyers at Gordon & Rees are uniquely situated to serve our construction clients. We have attorneys with professional training and practical experience in related fields such as engineering and construction management, as well as lawyers with leadership experience in various construction industry related trade associations, legal advisory committees and government agencies. “If a client is looking for a legal partner in multiple states who understands their business, Gordon & Rees is that partner,” said Angela Richie.
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GRSM Construction Team, Gordon Rees Scully Mansukhani