Million-Dollar Home Sales Thrive While Low End Stumbles
May 05, 2014 —
Prashant Gopal – BloombergMillion-dollar homes in the U.S. are selling at double their historical average while middle-class property demand stumbles, showing that the housing recovery is mirroring America’s wealth divide.
Purchases costing $1 million or more rose 7.8 percent in March from a year earlier, according to data released last week by the National Association of Realtors. Transactions for $250,000 or less, which represent almost two-thirds of the market, plunged 12 percent in the period as house hunters found few available homes in that price range.
Luxury-home sales are climbing as an improving economy and stocks that have almost tripled from 2009 lows bolster confidence among affluent buyers. At the same time, slow wage growth, tight credit standards and escalating prices are putting homeownership out of reach for many Americans. While investors drain the market of lower-end properties, builders are constructing more expensive houses that generate bigger profits.
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Prashant Gopal, BloombergMr. Gopal may be contacted at
pgopal2@bloomberg.net
Can a Non-Union Company Be Compelled to Arbitrate?
August 02, 2017 —
Wally Zimolong - Supplemental ConditionsSome of the most viewed topics on this blog are those concerning double breasted company. That is a two separate firms, commonly owned, one that is a signatory to a union and the other that is merit shop.
An issue frequently encountered with double breasted construction companies is an union arbitrator’s jurisdiction over the non-signatory firm. The issue usually goes something like this. A signatory employer’s collective bargaining agreement contains language prohibiting double breasting (which could be invalid). The collective bargaining agreement also contains an arbitration provision requiring all disputes concerning a breach of the agreement (a grievance) be decided by an arbitrator in private arbitration. The union files a demand for arbitration claiming that the union signatory has breached the collective bargaining agreement’s anti-dual shop provision. The union names the non-union firm as a party to the arbitration based on its status as an alleged “single employer.”
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Wally Zimolong, Zimolong LLCMr. Zimolong may be contacted at
wally@zimolonglaw.com
Hawaii Supreme Court Says Aloha to Insurers Trying to Recoup Defense Costs From Policyholders
January 02, 2024 —
Lara Degenhart Cassidy & Yosef Itkin - Hunton Insurance Recovery BlogThe Hawaii Supreme Court emphatically rejected insurer efforts to seek reimbursement of defense costs absent a provision in the policy providing for such reimbursement in St. Paul Fire & Marine Insurance Company v. Bodell Construction Company, No. SCCQ-22-0000658, 2023 WL 7517083, (Haw. Nov. 14, 2023). The state high court’s well-reasoned decision rests on bedrock law regarding insurance policy construction and application, follows the nationwide trend of courts compelling insurers to satisfy their contractual obligations in full, and should carry great weight as other jurisdictions continue to debate the same issue.
In Bodell, the Hawaii Supreme Court joined the swelling ranks of courts recognizing that an insurer may not use a reservation of rights to create the extra-contractual “right” to recoup already paid defense costs for a claim on which the insurer ultimately owes no coverage. See, e.g., Am. & Foreign Ins. Co. v. Jerry’s Sport Ctr., Inc., 2 A.3d 526 (Pa. 2010). Other jurisdictions, such as California, will permit an insurer to seek reimbursement from a policyholder for defense costs incurred in defending claims later determined to be uncovered. See Buss v. Superior Court, 16 Cal.4th 35 (1997) (holding insurers have a right to reimbursement of defense costs incurred for noncovered claims).
Reprinted courtesy of
Lara Degenhart Cassidy, Hunton Andrews Kurth and
Yosef Itkin, Hunton Andrews Kurth
Ms. Cassidy may be contacted at lcassidy@HuntonAK.com
Mr. Itkin may be contacted at yitkin@HuntonAK.com
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The Job is Substantially Complete, the Subcontract was Never Signed, the Subcontractor Wants to be Paid—Now What?
July 28, 2016 —
John P. Ahlers – Ahlers & Cressman PLLCA recent case in North Carolina illustrates the types of problems created when a general contractor accepts a subcontractor’s bid and then allows the subcontractor to perform the work without obtaining a signed subcontract.[i] In this case, the general contractor (Choate Construction Company – “Choate”) accepted a bid from a foundation subcontractor (Southeast Caissons, LLC – “SEC”). Choate sent the subcontract to SEC. SEC provided its changes in a “Proposed Addendum” to the subcontract stating, “[SEC] hereby accepts the terms of the attached Subcontract, subject to and conditioned upon Choate[’s] acceptance of the terms set forth in this Addendum[.]” After that, Choate called SEC and exchanged emails concerning the subcontract terms, but did not reach an agreement. SEC then performed its subcontract and sought payment, and acknowledged it had not signed the subcontract. Choate agreed it owed SEC something, but refused to pay because SEC did not have a signed subcontract, asserting the subcontract was not binding on Choate.
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John P. Ahlers, Ahlers & Cressman PLLCMr. Ahlers may be contacted at
jahlers@ac-lawyers.com
Condo Buyers Seek to Void Sale over Construction Defect Lawsuit
November 07, 2012 —
CDJ STAFFA Michigan couple seeks to void their purchase of a condo in Texas after discovering that the complex was undergoing a construction defect lawsuit. ABQ Journal reports that Charles M. Lea and Olga Y. Ziabrikova said that they would not have purchased the condo if they had known the association was already alleging construction defects. The condo association discovered the defects “by at least late 2010,” according to the suit. The couple bought their condo in August 2011 and heard of the defects only in March 2012.
The couple notes that no one involved with the sale informed them of the construction defect complaints. The community association’s lawsuit states that problems have lead to $2.5 million in damages. The developer, Vegas Verde Condo Partners, have filed a general denial of the construction problems.
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Punchlist: The News We Didn’t Quite Get To – May 2016
May 12, 2016 —
Garret Murai – California Construction Law BlogIf you’re a solar contractor make sure you don’t get burned. The California Contractors State License Board (“CSLB”) is taking a closer look at solar contractors as the industry grows in the Golden State. Only contractors holding a Class “A” Engineering, Class “B” General Contractor, or Class C-46 Solar license can perform solar construction and installation.
The CSLB has clarified that C-39 Roofing contractors can install installation as part of an overall roofing job. The CSLB considers such insulation work as “incidental and supplemental” under Section 831 of the California Code of Regulations and does not require a separate C-2 Insulation and Acoustical contractor license.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Lien Waivers Should Be Fair — And Efficient
February 18, 2015 —
Christopher G. Hill – Construction Law MusingsThis week for our Guest Post Friday here at Construction Law Musings, we welcome back my good friend Scott Wolfe. Scott, a thought leader in the construction industry, combines his construction background, tech experience, entrepreneurial spirit, and legal education to bring a unique perspective to the industry’s construction payment problem. Scott is the founder of zlien, a venture-backed construction payment platform. A licensed attorney in six states, his writing has appeared in the New York Times, CFMA’s Building Profits, Supply House Times, Construction Executive, and tED Magazine. He has been a Keynote Speaker for the American Subcontractors Association annual conference, and spoken at CFMA events.
Lien waivers are perhaps the most legally and practically complicated documents exchanged in the construction industry. Unfortunately, this results in huge corporate inefficiencies, and worse, provides an opportunity for some parties to exert undue leverage over others.
Lien waivers — or lien releases, as they are commonly (but mistakenly) called — aren’t supposed to be complicated, though. They are designed to make the complex construction payment process easy and fair.
This article will address why that is, how it works, and where things have gone awry.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
New OSHA Vaccination Requirements For Employers With 100 Or More Employees (And Additional Advice for California Employers)
November 19, 2021 —
Laura Fleming & Rana Ayazi - Payne & FearsUpdate 11.8.21: On Nov. 6, 2021, the United States Court of Appeals for the Fifth Circuit granted a stay of the OSHA ETS, stating that the OSHA ETS may have “grave statutory and constitutional issues.” The stay is not a final ruling on the validity of the ETS but temporarily halts its implementation nationwide. OSHA has until Nov. 8, 2021 at 5:00 PM to respond and the petitioners have until Nov. 9, 2021 at 5:00 PM to reply to OSHA’s response. The Fifth Circuit will then issue its ruling likely late this week or early next week.
On Sept. 9, 2021, President Joe Biden announced his COVID-19 Action Plan. The Action Plan called on the Department of Labor’s Occupational Safety and Health Administration (“OSHA”) to develop a rule requiring all employers with 100 or more employees to ensure their workforce is fully vaccinated or require any workers who remain unvaccinated to produce a negative test result on at least a weekly basis before coming to work.
On Nov. 4, 2021, OSHA released the rule in the form of an Emergency Temporary Standards (“OSHA ETS”). Here are ten things you need to know about the OSHA ETS:
- How To Count To 100: (1) The applicable number is the total number of employees employed on November 5, 2021—this is the headcount that will be used for the duration of the OSHA ETS. (2) The count must be done at the employer level not the individual location level. (3) Part-time employees do count towards the total number of employees. (4) Employees who work from home do count towards the total number of employees. (5) Independent contractors do not count towards the total number of employee.
Reprinted courtesy of
Laura Fleming, Payne & Fears and
Rana Ayazi, Payne & Fears
Ms. Fleming may be contacted at lf@paynefears.com
Ms. Ayazi may be contacted at ra@paynefears.com
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