Taylor Morrison v. Terracon and the Homeowner Protection Act of 2007
June 11, 2014 —
Buck Mann – Colorado Construction LitigationOn January 30, 2014, the Colorado Court of Appeals decided the case of Taylor Morrison of Colorado, Inc. v. Bemas Construction, Inc. and Terracon Consultants, Inc. 2014WL323490. The case addressed a substantial issue of Colorado constitutional law, as well as a variety of procedural issues of potential importance to construction litigation attorneys. Of particular interest is the question of whether the provisions of the 2007 Homeowner Protection Act (“HPA”) are limited in application to contracts between residential homeowners and construction professionals, or whether they have broader application between commercial construction professional parties as well. As discussed below, the Court of Appeals stated that it would not answer the question, and then, separately, implied that the statute might only apply to homeowner transactions – with the resulting exclusion of commercial transactions. However, after its analysis, it left the actual decision of that issue to a future court in a later case.
The factual background for the case involved claims of breach of a contract for soils engineering by Terracon Consultants, Inc. (“Terracon”) and negligent excavation work by Bemas Construction, Inc. (“Bemas”). Plaintiff was Taylor Morrison of Colorado (“Taylor Morrison”), the developer and general contractor for a residential subdivision called Homestead Hills. After it constructed many homes, Taylor Morrison began to receive complaints of cracking drywall resulting from foundation movement and it made repairs at significant expense. Taylor Morrison then filed suit against Terracon and Bemas in connection with their respective roles in the original construction.
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Buck Mann, Higgins, Hopkins, McLain & Roswell, LLCMr. Mann may be contacted at
mann@hhmrlaw.com
WSHB Ranked 4th Most Diverse Law Firm in U.S.
July 14, 2016 —
Beverley BevenFlorez-CDJ STAFFAmerican Lawyer, in its annual Diversity Scoreboard Survey, ranked Wood Smith Henning & Berman LLP (WSHB) one of the four top law firms in the nation. Scores are based upon the firms’ combined percentage of minority lawyers as well as minority partners in U.S. offices.
“Historically, law has not been among the most diverse of professions,” Partner Domingo Tan, Chair of WSHB’s Recruiting Committee, stated according to the firm’s media release. “This trend has recently begun to change and I am proud that our firm is one of the national leaders in recognizing and celebrating diversity as a core value.”
WSHB Partner Jade Tran explained how the firm’s diversity benefits its clients: “At WSHB, we are a litigation powerhouse built upon the experiences drawn from our diverse attorney backgrounds. It’s this diversity that also makes our attorneys relatable to our clients who themselves stem from diverse backgrounds.”
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Houston Office Secures Favorable Verdict in Trespass and Nuisance Case Involving Subcontractor’s Accidental Installation of Storm Sewer Pipe on Plaintiff’s Property
June 12, 2023 —
Lewis Brisbois NewsroomHouston, Texas (May 26, 2023) - Houston Partners Joelle Nelson and Matt Begley secured a defense verdict on behalf of a gasoline services company following a four-day trial in the 284th District Court of Montgomery County, Texas.
In this case, Lewis Brisbois represented a client who hired a contractor to install a storm sewer line to mitigate flood risks to the client’s property. The contractor, however, deviated from the engineering plans and installed the storm sewer line on a neighboring property owned by the plaintiff. The storm sewer line then remained on the plaintiff’s property for five years while the parties attempted to negotiate potential solutions to the situation. The plaintiff refused multiple reasonable settlement attempts and ultimately sued the client and the contractor for continuous trespass and private nuisance. The contractor’s carrier denied coverage, making the client the target defendant. The matter proceeded to trial.
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Lewis Brisbois
Designing a Fair Standard of Care in Design Agreements
February 21, 2022 —
ConsensusDocsOne of the concerns faced by construction companies is now design liability. Design liability concerns are not limited to just design-build projects. It is a hot-button issue for builders because the line between an architect’s responsibility to create sufficient design documents and a builder’s responsibility to execute the means, methods, and techniques is increasingly blurry. Problems arise when owners, design professionals, and builders point fingers, rather than truly collaborate, and communicate. While construction technologies used to assemble complex systems within buildings are increasingly sophisticated, such sophistication is unfortunately not matched with increased information sharing and effective communication.
Another reason for growing design liability is unclear and inadequate specifications. Too often projects rush as well as shortchange design budgets. And some projects use hybrid prescriptive and performance specifications. This hybrid approach often confuses and obfuscates rather than clarifies design requirements.
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ConsensusDocs
Critical Updates in Builders Risk Claim Recovery: Staying Ahead of the "Satisfactory State" Argument and Getting the Most Out of LEG 3
December 11, 2023 —
Gregory D. Podolak & Cheryl L. Kozdrey - Saxe Doernberger & Vita, P.C.Builders risk claims routinely involve complicated and aggressive debate about the interplay between covered physical loss and uncovered faulty work. However, denials on this front have recently experienced a noticeable uptick in frequency, creativity, and aggressiveness. The insurer arguments concentrate in two key areas with a common theme – that any damage associated with a construction defect is not covered:
- Defective construction does not qualify as a “physical” loss to trigger the insuring agreement; and
- Any natural results of defective construction are excluded as faulty workmanship, even with favorable LEG 3 or similar language.
Neither of these arguments should impede access to coverage in the majority of scenarios. To ensure as much, it is incumbent on the savvy policyholder to understand the insurer tactics, be prepared to spot them early, and have thoughtful counter positions at the ready to address them decisively.
Reprinted courtesy of
Gregory D. Podolak, Saxe Doernberger & Vita, P.C. and
Cheryl L. Kozdrey, Saxe Doernberger & Vita, P.C.
Mr. Podolak may be contacted at GPodolak@sdvlaw.com
Ms. Kozdrey may be contacted at CKozdrey@sdvlaw.com
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Pending Sales of U.S. Existing Homes Increase 0.8% in November
January 07, 2015 —
Michelle Jamrisko – BloombergContracts to purchase previously owned homes rose in November as employment gains and low borrowing costs helped bring potential buyers into the market.
The pending home sales index advanced 0.8 percent after a revised 1.2 percent decrease in October, the National Association of Realtors said today in Washington. The median projection in a Bloomberg survey of economists called for the index to rise 0.5 percent, with estimates ranging from a decline of 1.5 percent to an advance of 3.5 percent.
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Michelle Jamrisko, BloombergMs. Jamrisko may be contacted at
mjamrisko@bloomberg.net
Loan Modifications Due to COVID-19 Pandemic: FDIC Answers CARES Act FAQs
May 11, 2020 —
Nancy Sabol Frantz, Marissa Levy, Timothy E. Davis & Kristen E. Andreoli - White and WilliamsIn support of financial institutions and borrowers during the COVID-19 pandemic, the newly enacted Coronavirus Aid, Relief, and Economic Security Act (CARES Act) includes a number of provisions permitting lenders to suspend, during a covered period, requirements under U.S. Generally Accepted Accounting Principles (GAAP) with respect to categorizing certain loan modifications as a troubled debt restructuring (TDR) due to COVID-19. In light of the CARES Act, the Federal Deposit Insurance Corporation (FDIC) issued a series of answers to FAQs for financial institutions with respect to loan modifications. The FAQs help guide lenders as well as borrowers as they address pending defaults under existing credit facilities. The FAQs encourage financial institutions to work with borrowers who may be unable to meet their payment obligations due to COVID-19 in several ways:
Payment Accommodations
Short-term accommodations which modify, extend, suspend or defer repayment terms should be intended to facilitate the borrower’s ability to work through the immediate impact of the virus. According to the FAQs, all loan accommodation programs should ultimately be targeted towards repayment. To that end, the FDIC recommends that financial institutions address deferred or skipped payments by either extending the original maturity date or by making those payments due in a balloon payment at the maturity date of the loan.
Reprinted courtesy of White and Williams attorneys
Nancy Sabol Frantz,
Marissa Levy,
Timothy E. Davis and
Kristen E. Andreoli
Ms. Frantz may be contacted at frantzn@whiteandwilliams.com
Ms. Levy may be contacted at levymp@whiteandwilliams.com
Mr. Davis may be contacted at davist@whiteandwilliams.com
Ms. Andreoli may be contacted at andreolik@whiteandwilliams.com
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The American Rescue Plan Act: What Restaurants Need to Act on NOW
March 22, 2021 —
Michael Krueger - Newmeyer DillionThe American Rescue Plan Act (“Act”) was passed by the Senate over the weekend and passed by the House today. President Biden is set to sign the Act into law on Friday, March 12th. The Act has $1.9 Trillion in relief funds with $28.6 Billion set aside for the restaurant industry in the Restaurant Revitalization Fund (“Fund”). The Fund has apportioned funds into two funding groups; $5 Billion for restaurants with annual gross revenue under $500,000 and $23.6 Billion for restaurants over $500,000 in annual gross revenue.
Differences from the Paycheck Protection Program (“PPP”)
This is a grant program with no loan documents or forgiveness applications. Instead, each restaurant entity can apply for and receive up to $10M in grant funds through the Act. The amount a restaurant receives is based on the sum of the restaurant’s gross revenue in 2019 minus the gross revenue in 2020 minus PPP and EIDL money received. For example, Restaurant A made $7M gross revenue in 2019, made $3M gross revenue in 2020 and received $1M in PPP and EIDL combined. ($7M - $3M -$1M =$3M) The restaurant will receive $3M in grant funds directly from the SBA (as long as funds are available).
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Michael Krueger, Newmeyer DillionMr. Krueger may be contacted at
michael.krueger@ndlf.com