Columbus Ohio Building Expert Directory

That Boilerplate Language May Just Land You in Hot Water

December 17, 2015 — Kevin Brodehl – California Construction Law Blog
The following post originally appeared in my partnerKevin Brodehl‘s informative blog, Money and Dirt. If you’re involved in real estate investment, development and/or secured lending in California, it’s a must read. While Kevin’s post below discusses a case involving a real estate purchase agreement, it applies equally to construction contracts, perhaps even more so, since I can’t think of any other type of contract in which indemnity and integration clauses are as common, or as integral. Almost all real estate purchase and sale agreements contain provisions relating to integration and indemnity. In the “boilerplate” worldview, these provisions are standard, generic, and basically all the same — integration clauses prohibit extrinsic evidence that would contradict the terms of the agreement, and indemnity clauses force the seller to protect the buyer from third party claims arising after closing. But a recently published opinion by the California Court of Appeal (Fourth District, Division Three in Santa Ana) — Hot Rods, LLC v. Northrop Grunman Systems Corp. — clarifies that integration and indemnity clauses can have vastly different effects depending on how they are drafted. Read the court decision
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Reprinted courtesy of Kevin Brodehl, California Construction Law Blog
Mr. Brodehl may be contacted at kbrodehl@wendel.com

Grenfell Fire Probe Faults Construction Industry Practices

November 28, 2022 — Peter Reina - Engineering News-Record
"Incompetence and poor practices in the construction industry" and among others led to the June 2017 fire at London's Grenfell residential high-rise building, causing 72 deaths, according to the lead counsel for the public inquiry that ended Nov. 10. Reprinted courtesy of Peter Reina, Engineering News-Record Mr. Reina may be contacted at reina@btinternet.com Read the full story... Read the court decision
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Filing Motion to Increase Lien Transfer Bond (Before Trial Court Loses Jurisdiction Over Final Judgment)

May 15, 2023 — David Adelstein - Florida Construction Legal Updates
If a construction lien is recorded against real property, the lien can be transferred to a lien transfer bond. This transfers the security or collateral of the construction lien from the real property to the lien transfer bond. The lien transfer bond can be a bond posted by a surety company or it can be cash. This is governed by Florida Statute s. 713.24. The amount of the lien does not dictate the amount of the lien transfer bond. Rather, the lien transfer bond needs to be in the amount of the lien, plus interest on that amount for three years, plus $1,000 or 25% of the amount of the lien (whichever is greater so factor in the 25%) to cover attorney’s fees. Fla. Stat. 713.24(1). If you are looking to transfer a construction lien to a lien transfer bond, make sure to consult with counsel. Keep in mind there is a statutory mechanism for a lienor to increase the lien transfer bond to cover attorney’s fees and costs and notice the word “must” in the statute below. Pursuant to Florida Statute s. 713.24(3):

Any party having an interest in such security or the property from which the lien was transferred may at any time, and any number of times, file a complaint in chancery in the circuit court of the county where such security is deposited, or file a motion in a pending action to enforce a lien, for an order to require additional security, reduction of security, change or substitution of sureties, payment of discharge thereof, or any other matter affecting said security. If the court finds that the amount of the deposit or bond in excess of the amount claimed in the claim of lien is insufficient to pay the lienor’s attorney’s fees and court costs incurred in the action to enforce the lien, the court must increase the amount of the cash deposit or lien transfer bond. Nothing in this section shall be construed to vest exclusive jurisdiction in the circuit courts over transfer bond claims for nonpayment of an amount within the monetary jurisdiction of the county courts.

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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

New Jersey Traffic Circle to be Eliminated after 12 Years of Discussion

February 04, 2014 — Beverley BevenFlorez-CDJ STAFF
The online publication New Jersey.com reported that on February 6th a “Pre-Construction Public Information hearing” will be held in Little Ferry, New Jersey, to discuss “the upcoming Route 46 Circle Elimination construction project.” The project includes “installation of a storm water pump station” as well as reconfiguring the circle into “a conventional four-way signalized intersection with a brand new traffic signal.” Conti Enterprises of Edison was awarded the bid “at a cost of $33,837,739,” according to New Jersey.com. The project, which has been discussed for over a decade, stalled over combining the elimination of the traffic school with rehabilitation of a bridge. Improvements include “replacing of the entire bridge deck, structural steel member replacement and strengthening, sidewalk replacement on both sides of the structure and substructure patching, crack sealing and reconstruction where needed.” The informational meeting will introduce the public to the engineer and contractor for the project. "This information session will help residents learn more about the project and what to expect as the state undertakes this work," Little Ferry Mayor Mauro Raguseo told New Jersey.com. "I wish we could fast forward to the completion of the project so we can realize the benefits without the headaches, but that's not reality. We all need to be prepared." Read the court decision
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Fall 2024 Legislative Update:

October 28, 2024 — Joshua Lane - Ahlers Cressman & Sleight PLLC
Review of (a) RCW 60.30.010-020, (b) RCW 49.17.530, (c) RCW 19.95.020, (d) RCW 39.116.005, et seq., (e) RCW 36.70B.080, and (f) RCW 39.12.010 and .13 While much of the focus on the recent legislative updates has been on RCW 39.04.360, a number of other legislative changes may also have significant impacts on Washington’s construction industry. Six of these changes are summarized below. A. RCW 60.30.010 and .020 (SSB 6108) – Concerning Retainage on Private Construction, Effective June 6, 2024 Last year, ESSB 5528 imposed restrictions and obligations related to retainage and timing of final payment on private (non-public works) projects. It capped retainage at 5%, required prompt payment on final payments, and required owners to accept a retainage bond on private construction projects, excluding single-family residential construction less than 12 units. This year, SSB 6108 adds suppliers to the statutes (RCW 60.30.010 and 0.020) pertaining to retainage on private construction projects. Read the court decision
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Reprinted courtesy of Joshua Lane, Ahlers Cressman & Sleight PLLC
Mr. Lane may be contacted at joshua.lane@acslawyers.com

Insurer Sued for Altering Policies after Claim

January 13, 2014 — CDJ STAFF
A lawsuit alleges that Fidelity National Property & Casualty Insurance Co. retroactively cancelled policies, substituting policies that covered less after claims were made due to damages from Hurricane Sandy. Insurance Journal reports that Dayton Towers Corp., which owns seven high-rises in Queens, New York City, has sued the insurer. According to Dayton, the policies covered the buildings for amounts from $2.5 to $2.7 million. The total coverage for all seven buildings was $18.5 million. Under new policies, the buildings were covered for $250,000 each, for a total of $1,750,000, which is the amount that Fidelity paid Dayton. The lawsuit alleges that the policy does not allow for the terms to be rewritten when claims are pending. Read the court decision
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How New York City Plans to Soak Up the Rain

May 02, 2022 — Linda Poon - Bloomberg
When the remnants of Hurricane Ida pummeled New York City with more than 3 inches of rain in just one hour, the city struggled to soak it up. Instead, streets and subways flooded as storm drains were overwhelmed, basement apartments were inundated, and more than a dozen people died. That September 2021 storm and the ones before it, including a cloudburst downpour during Tropical Storm Elsa in July, have forced New York to take a hard look at becoming a “spongier” city — one that combines nature-based green infrastructure like street-side rain gardens with gray infrastructure like storm drains to divert or absorb water and prevent catastrophic flooding. “New York City is preparing for both chronic storm events — these cloudburst events that we see occurring more and more frequently — as well as extreme storm events like Ida,” says Jennifer Cherrier, a professor of earth and environmental sciences at Brooklyn College. On top of that, the city also faces mounting risks from storm surges, like during Hurricane Sandy in 2012. Read the court decision
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Reprinted courtesy of Linda Poon, Bloomberg

Red Wings Owner, Needing Hockey-Arena Neighborhood, Builds One

August 06, 2014 — Chris Christoff – Bloomberg
Billionaire Mike Ilitch and his family plan to create an instantaneous neighborhood around Detroit’s new hockey arena and jump-start an economic recovery where other sports ventures fell short. The 250-acre (101-hectare) project near downtown sets the arena apart from other U.S. stadiums where little or no related development occurred, or arose long after construction. The Ilitches, owners of the National Hockey League’s Detroit Red Wings, will spend $200 million on apartments and retail space to attract residents by the time the arena opens for the 2017 season. They’ll also pay 44 percent of cost to build the arena. “This isn’t, ‘Build it and they will come.’ This is, ‘We’re coming and we’re building it,” said Mark Morante, a manager for the Michigan Strategic Fund, which must authorize a $450 million bond sale to build the arena, the largest by the state’s economic development arm. Read the court decision
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Reprinted courtesy of Chris Christoff, Bloomberg
Mr. Christoff may be contacted at cchristoff@bloomberg.net

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