Evergrande’s Condemned Towers on China’s Hawaii Show Threat
January 24, 2022 —
Bloomberg NewsThe wrecking ball headed for 39 apartment blocks on a tropical island at the southern tip of China poses the latest threat for China Evergrande Group as local governments race to reclaim land ahead of a looming restructuring of the embattled developer.
The government of Danzhou, a city in the province of Hainan, has asked Evergrande to tear down what it says are illegal buildings within 10 days. The order was signed Dec. 30, meaning the company could start demolition work on the near-complete condos by Jan. 9. Evergrande has appealed the order, according to a media report.
The Hainan edict is among the most extreme in a spate of government actions to seize Evergande’s property and land holdings, underscoring risks to its most-prized assets as the firm prepares for what could be the largest restructuring ever in China. In recent months, at least 11 land parcels have been targeted for confiscation by local authorities for reasons ranging from idle projects to missing fee payments.
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Bloomberg
The EPA’s Renovation, Repair, and Painting Rule: Are Contractors Aware of It?
March 12, 2015 —
Beverley BevenFlorez-CDJ STAFFRemodeling Magazine reported recently that some remodelers are unaware of the U.S. Environmental Protection Agency’s (EPA) Renovation, Repair and Painting (RRP) rule despite that it took effect back in April of 2010.
“There are still quite a few remodelers who have never heard of RRP,” Mark Schlager, president of Access Training Services, an EPA and Occupational Safety and Health Administration (OSHA) trainer in Pennsauken, N.J. told Remodeling Magazine.
According to the article, “The RRP rule applies to homes, apartments, and child-occupied commercial facilities built before 1978.” There are two RRP certifications required on every job: “a “Firm” certification for the company that contracts to do the work, and a “Renovator” certification for the person overseeing the work. A solo operator needs both certifications, which are good for five years.”
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Illinois Law Bars Coverage for Construction Defects in Insured's Work
September 24, 2014 —
Tred R. Eyerly – Insurance Law HawaiiApplying Illinois law, the Seventh Circuit determined there was no coverage for faulty workmanship causing property damage to the insured's project. Nautilus Ins. Co. v. Board of Directors of Regal Lofts Condominium Ass'n, 2014 U.S. App. LEXIS 16250 (7th Cir. Aug. 21, 2014).
The developer converted a vacant building into a condominium. The construction was completed in 2000. The Condominium Board took control of the condo association on July 27, 2000. As early as May 2000, one homeowner was aware of water damage problems in the building. Other complaints surfaced. An investigation found that the exterior brick masonry walls were not fully waterproofed, which caused leaks. The investigation further showed that deteriorated conditions had likely developed over many years, even prior to the condominium conversion, but the present water penetration was caused by the inadequate restoration of the walls to a water-tight condition.
The underlying action was filed against the developer for failure to properly construct the exterior walls. The developer's carrier, Nautilus, denied coverage. In an amended complaint, the Board added a count of negligence. Again, Nautilus denied coverage. The Board's second amended complaint alleged that the developer's negligence had caused damage to personal property within the building, in addition to the interior of the building and the building itself. For the third time, Nautilus denied coverage and filed for declaratory relief.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Joint Venture Dispute Over Profits
January 28, 2019 —
David R. Cook, Jr. - Autry, Hall, & Cook, LLPA recent Georgia Court of Appeals case demonstrates the risk of joint ventures failing to carefully define accounting rules in their joint venture agreement. Two trade contractors teamed up to accomplish certain tasks on a job at a wastewater lift station at Fort Gordon. A joint venture agreement provided for an equal split of the profits and losses. Unfortunately, the parties did not define “profit,” and particularly did not define what cost would be deducted in calculating profit. They disputed in particular whether certain large payments to individuals and 15% overhead charges should be deducted in calculating profits.
One party presented the expert testimony of an accountant while the other did not. The party presenting expert testimony asked the court to dismiss the other party’s claim because it was not supported by expert testimony of an accountant. The trial court granted the motion and dismissed the claim.
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David R. Cook, Jr., Autry, Hall, & Cook, LLPMr. Cook may be contacted at
cook@ahclaw.com
Managing Partner Jeff Dennis Recognized as One of the Most Influential Business People & Opinion Shapers in Orange County
November 17, 2016 —
Newmeyer & Dillion LLPNEWPORT BEACH, Calif. – Nov 15th, 2016 – Prominent business and real estate law firm Newmeyer & Dillion LLP is pleased to announce that managing partner Jeff Dennis was selected as one of the 500 most influential business people and opinion shapers in Orange County by the Orange County Business Journal (OCBJ). Dennis will be recognized in OCBJ’s inaugural issue, OC500, publishing November 14, 2016.
Located in the Newport Beach office, Dennis currently serves as the Firm’s Managing Partner and specializes in a variety of litigation arenas, including construction, real estate and business litigation. He also handles insurance and higher education matters. Tom Newmeyer, Newmeyer & Dillion’s Co-founding Partner, believes the award is representative of the leadership displayed by Dennis. “Jeff is an uncanny consensus builder, and you can see his steady hand in the firms’ growth and success. This recognition is a testament to his strong commitment to the community and his ability to facilitate innovative changes in Orange County.”
Dennis believes that community participation is a vital part of his law practice. He currently serves on the Executive Leadership Team for the American Heart Association’s Orange County Heart Walk. Under Dennis’ leadership, the firm proudly supports the OC Heart Walk, with over 150 participants joining Team N&D in 2016. As such, he volunteered to serve in the Orange County District Attorney’s selective Trial Advocacy Partnership (TAP) program. He is the past president of the Occidental College Board of Governors and helped lead Occidental’s Alumni Association as its former Orange County Regional Chair.
About Newmeyer & Dillion
For more than 30 years, Newmeyer & Dillion has delivered creative and outstanding legal solutions and trial results for a wide array of clients. With over 70 attorneys practicing in all aspects of business, employment, real estate, construction and insurance law, Newmeyer & Dillion delivers legal services tailored to meet each client’s needs. Headquartered in Newport Beach, California, with offices in Walnut Creek, California and Las Vegas, Nevada, Newmeyer & Dillion attorneys are recognized by The Best Lawyers in America©, and Super Lawyers as top tier and some of the best lawyers in California, and have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949-854-7000 or visit www.ndlf.com.
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Construction and Contract Issues Blamed for Problems at Anchorage Port
August 27, 2013 —
CDJ STAFFA third-party audit of the construction at the Port of Anchorage has found fault with the design provided by the engineers. In response, PND, the engineering firm involved, has claimed that it was not their design, but faulty construction of it that lead to an interruption in the construction project.
Separately, the Office of the Inspector General has called into question how MARAD, the agency which oversaw the port construction, handled the planning and contracts for the project.
Control of the project has been taken over by the Municipality of Anchorage, and they have called into question PND’s open cell sheet pile design and PND’s design of the dock infrastructure. Simpson, Gumpertz and Heger reviewed the design, comparing it to a design provided by CH2M Hill, and found that the PND design was inadequate. A contract was subsequently awarded to CH2M Hill.
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Hawaii Federal District Court Denies Title Insurer's Motion for Summary Judgment
February 01, 2022 —
Tred R. Eyerly - Insurance Law HawaiiIn a rare title insurance dispute before the federal district court in Hawaii, the court denied the insurer's motion for summary judgment while granting the insured's motion for summary judgment. First Am. Title Ins. Co. v. GS Industries, LLC, 2021 U.S. Dist. LEXIS 240601 (D. Haw. Dec. 16, 2021).
GS Industries, LLC took ownership of a parcel of real property located fronting Waipa Lane in Honolulu. The property used four buildings and a parking area for 50 cars. GS obtained a title insurance policy from First American. The policy insured GS' fee simple interest in the property in the amount of $3,500,000. The policy insured GS "against loss or damage, not exceeding $3,500,000, sustained or incurred by GS by reason of . . . not right of access to and from the land,." The policy did not identify any issues with access to the property and did not define "access."
A portion of Waipa Lane was owned by the City and County of Honolulu. Parcel 86 and Parcel 91 on Waipa Lane were privately owned. (Private Waipa Lane Parcels). Vehicular access to (ingress) and from (egress) the property was via Waipa Lane. Ingress was made via the publicly owned portion of Waipa Lane. Vehicular egress was made via the Private Waipa Lane Parcels. The City of Honolulu maintained the Private Waipa Lane Parcels and considered them to be pubic. None of the owners of Parcels 86 or 91 notified GS of their intent to block the use of Waipa Lane.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
The EEOC Targets Construction Industry For Heightened Enforcement
May 15, 2023 —
Meghan Douris & Andrew Scroggins - The Construction SeytSeyfarth Synopsis: On January 10, 2023, the Equal Employment Opportunity Commission (EEOC) released for public comment its
draft 2023-2027 Strategic Enforcement Plan (“SEP”)—a document that will guide the Commission’s enforcement priorities for the next five years. The EEOC’s prior Strategic Plan described how it would pursue its enforcement goals. (See our earlier blog on the Strategic Plan
here). The Strategic Enforcement Plan, on the other hand, describes what the EEOC’s enforcement priorities will be. Earlier actions by the EEOC suggested that it might be turning its attention to the construction industry. In the SEP, the EEOC makes its intentions explicit, putting the construction industry—and especially those receiving federal funding—squarely in its sights.
History of the SEP
The EEOC’s
first SEP covered Fiscal Years 2013-2016 (the EEOC’s fiscal years begin on October 1) and identified six broad subject-matter priorities. The EEOC’s
second SEP set the course for enforcement priorities for FY2017-2022. The
latest proposed SEP, published in the Federal Register for comment for the first time, provides notable additional details that put the employer community on notice of the Commission’s intentions for FY2023-2027.[
1]
Reprinted courtesy of
Meghan Douris, Seyfarth and
Andrew Scroggins, Seyfarth
Ms. Douris may be contacted at mdouris@seyfarth.com
Mr. Scroggins may be contacted ascroggins@seyfarth.com
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