Properly Trigger the Performance Bond
January 05, 2017 —
David Adelstein – Florida Construction Legal UpdatesA performance bond is a valuable tool designed to guarantee the performance of the principal of the contract made part of the bond. But, it is only a valuable tool if the obligee (entity the bond is designed to benefit) understands that it needs to properly trigger the performance bond if it is looking to the bond (surety) to remedy and pay for a contractual default. If the performance bond is not properly triggered and a suit is brought upon the bond then the obligee could be the one materially breaching the terms of the bond. This means the obligee has no recourse under the performance bond. This is a huge downside when the obligee wanted the security of the performance bond, and reimbursed the bond principal for the premium of the bond, in order to address and remediate a default under the underlying contract.
A recent example of this downside can be found in the Southern District of Florida’s decision in Arch Ins. Co. v. John Moriarty & Associates of Florida, Inc., 2016 WL 7324144 (S.D.Fla. 2016). Here, a general contractor sued a subcontractor’s performance bond surety for an approximate $1M cost overrun associated with the performance of the subcontractor’s subcontract (the contract made part of the subcontractor’s performance bond). The surety moved for summary judgment arguing that the general contractor failed to property trigger the performance bond and, therefore, materially breached the bond. The trial court granted the summary judgment in favor of the performance bond surety. Why?
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dma@katzbarron.com
Reinventing the Building Envelope – Interview with Gordon A Geddes
September 01, 2016 —
Aarni Heiskanen – AEC BusinessIn this interview with Gordon A Geddes, CEO of Lynx Systems, we talk about reinventing the building envelope. Gordon also gives great advice to innovators in the construction industry.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aarni@aepartners.fi
Sales of New Homes in U.S. Increased 5.4% in July to 507,000
August 26, 2015 —
Shobhana Chandra – BloombergPurchases of new homes in the U.S. rebounded in July, bolstering signs the real-estate market is picking up.
Sales climbed 5.4 percent, the biggest gain this year, to a 507,000 annualized pace from a 481,000 rate in the prior month, a Commerce Department report showed Tuesday in Washington. The median forecast of 75 economists surveyed by Bloomberg called for 510,000. Demand had declined 7.7 percent in June.
Demand for new properties is likely to keep expanding amid strong employment, low borrowing costs and a lack of available existing homes from which to choose. The improving outlook may spur more residential construction, contributing to the economic expansion in the second half of the year.
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Sales of New U.S. Homes Surged in August to Six-Year High
September 24, 2014 —
Jeanna Smialek – BloombergNew-home sales in the U.S. surged in August to the highest level in more than six years, a sign that the housing recovery is making progress.
Purchases of new houses jumped 18 percent to a 504,000 annualized pace, the strongest since May 2008 and surpassing the highest forecast in a Bloomberg survey of economists, Commerce Department figures showed today in Washington. The one-month increase was the biggest since January 1992.
The housing market is improving in fits and starts this year amid slow wage growth and tight credit conditions. Sustained improvement in the job market will be needed to push up pay and sustain a stronger recovery.
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Jeanna Smialek, BloombergMs. Smialek may be contacted at
jsmialek1@bloomberg.net
Construction Defect Attorneys Call for Better Funding of Court System
June 28, 2013 —
CDJ STAFFThe construction defect law firm Anderson Shoech has a solution to some of the problems with the California courts. They note that cases often work their way through the system more slowly than they did in the past, due to “unprecedented cuts of over $1 billion from the State Court budget.” Prior to the cuts, cases were resolved “within six months to a year.” Under the current conditions, those involved in a lawsuit “would be lucky if their case was heard within 18 months of filing and could expect at least two full years to pass.”
They recommend that California return to appropriately funding the court system. Failure to do so could cause business to go to states “with a functioning and predictable court system.”
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Hurricane Ian: Discussing Wind-Water Disputes
October 10, 2022 —
Randy J. Maniloff - White and Williams LLP“Most of the Florida homes in the path of Hurricane Ian lack flood insurance, posing a major challenge to rebuilding efforts, new data show. In the counties whose residents were told to evacuate, just 18.5 percent of homes have coverage through the National Flood Insurance Program, according to Milliman, an actuarial firm that works with the program.”
That’s how a September 29th article on The New York Times website begins.
When it comes to insurance coverage for hurricanes, the oft-stated maxim is that homeowner’s policies cover damage caused by wind but not flood waters.
Such a low take-up rate for flood insurance policies would seemingly create an incentive for those affected by Hurricane Ian to argue, when feasible, that their property damage, despite appearing to have been caused by flood, was also caused by wind. [And, of course, businesses looking to make business interruption claims, under commercial property policies, will be in the same boat.]
Further, even when someone has a homeowner’s policy and a flood policy, there may still be a reason to argue that the loss was caused by wind, as homeowner’s policies often have greater limits than flood policies.
[As an important aside, when hurricane damages are covered, homeowner’s policies can have a significant deductible, perhaps up to 10% of a home’s insured value.]
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Randy J. Maniloff, White and Williams LLPMr. Maniloff may be contacted at
maniloffr@whiteandwilliams.com
Boots on the Ground- A Great Way to Learn and Help Construction Clients
May 02, 2022 —
Christopher G. Hill - Construction Law MusingsThis past week, I attended the Construction Law and Public Contracts seminar in Charlottesville, VA and also a breakfast meeting of the Richmond chapter of the Associated General Contractors of Virginia. Reflecting on this past week, I realized that my membership and participation in both of these great organizations (I am a member of the Board of Governors for the state bar section and the Executive Committee for the Richmond District of AGC-VA) not only provides great marketing and friendship opportunities, participation helps my construction clients in ways that a singular online marketing and interactive path would not (even with the growth of social media).
Among other benefits (including case digests and the insightful newsletter), being a member of the Construction Law and Public Contracts section helps my clients in numerous ways, not the least of which is the ability to network and gain the perspective of many of the great construction attorneys here in Virginia. The ability to bounce legal thoughts off of others for their perspectives gives me the benefit of their experiences and, importantly to my clients, allows me to be more efficient in my research and arguments because of their insight.
Additionally, as a solo construction attorney, knowing other attorneys in other parts of the Commonwealth of Virginia gives me a network of trusted lawyers to whom I can safely and confidently refer a case where a conflict exists or other factors (like geography) make such a referral a benefit to a construction firm in need of legal assistance on a particular matter.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Patti Santelle Honored by Rutgers School of Law with Arthur E. Armitage Sr. Distinguished Alumni Award
March 01, 2021 —
Patricia Santelle - White and WilliamsWhite and Williams is proud to announce that Patti Santelle, Chair Emeritus, will be honored by the Rutgers School of Law-Camden Alumni Association with the 2020 Arthur E. Armitage Sr. Distinguished Alumni Award. The Armitage Award was established in 1983 in memory of Armitage, who, with a group of interested citizens, founded both the South Jersey Law School in 1926 and its companion College of South Jersey in 1927. Past recipients include governors, member of Congress, state and federal judges, and industry leaders.
Patti, a 1985 graduate, is a Co-Chair of the Executive Committee of the newly established Rutgers Law Alumnae Network and a Past Chancellor and long-time member of the Board of the Rutgers-Camden Law Alumni Association. While in law school, she was President of the Student Bar Association, winner of the Hunter Advanced Moot Court Competition and a member of the National Moot Court Team. In 2010, Patti received the Scarlet Oak Meritorious Service Award from Rutgers University for her contributions as an alumni leader and student mentor at the law school. For the past seven years, she served as the Managing Partner and Chair of the Executive Committee at White and Williams, the first woman in the firm’s history and in the City of Philadelphia to serve in that role in a major law firm.
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Patricia Santelle, White and WilliamsMs. Santelle may be contacted at
santellep@whiteandwilliams.com