Builders FirstSource to Buy ProBuild for $1.63 Billion
April 15, 2015 —
Prashant Gopal – BloombergBuilders FirstSource Inc., a Dallas-based maker of materials for new homes, rose the most on record after saying it agreed to buy competitor ProBuild Holdings LLC for $1.63 billion.
ProBuild, based in Denver, operates about 400 lumber and building product distribution, manufacturing and assembly centers serving 40 U.S. states, according to a statement Monday. The companies had 2014 combined revenue of $6.1 billion.
Builders FirstSource surged 68 percent to $11.57. It was the biggest one-day gain ever for the shares, which began trading in June 2005.
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Prashant Gopal, Bloomberg
In Review: SCOTUS Environmental and Administrative Decisions in the 2020 Term
August 10, 2021 —
Anthony B. Cavender - Gravel2GavelSeveral decisions of interest were issued in the 2020 term, which stretched from October 2020 until early July 2021. This review will concentrate on environmental and administrative law cases.
Texas v. New Mexico
On December 14, 2020, the Court issued its ruling in an Original Action. Water is precious in the Pecos River Valley, and the distribution of water is governed by the Pecos River Compact. Here, Texas complained that New Mexico illegally was seeking delivery credits for evaporated water credits but the Court agreed that New Mexico was entitled to these credits under the provisions of the River Master’s Manual.
Florida v. Georgia
On April 1, 2021, in another waters right ruling on an Original Action filed in the Supreme Court, the Court rejected Florida’s claims that Georgia’s use of interstate waters harmed Florida’s businesses. Florida had to satisfy a heavy burden of proof, which it failed to do.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
North Dakota Universities Crumble as Oil Cash Pours In
August 27, 2014 —
Jennifer Oldham – BloombergNorth Dakota is struggling to finance deteriorating public universities even as it experiences the biggest energy boom in its history, raising concern that less prosperous states will face more serious funding challenges.
Students returning this week will attend classes in buildings without adequate ventilation or fire detection systems and in historic landmarks with buckling foundations. A space crunch is making it difficult for researchers to obtain grants and putting the accreditation of several programs at risk, administrators say.
“It’s embarrassing,” said North Dakota state Representative Kathy Hawken, a Republican from Fargo who sits on the higher education funding and budget committees. “We have a divided legislature on higher ed: Some think we put too much money into it and some think we don’t put enough. Buildings aren’t people, so we don’t put dollars there.”
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Jennifer Oldham, BloombergMs. Oldham may be contacted at
joldham1@bloomberg.net
Construction Group Seeks Defense Coverage for Hard Rock Stadium Claims
December 09, 2019 —
Sergio F. Oehninger & Daniel Hentschel - Hunton Insurance Recovery BlogIn an insurance coverage action pending in the S.D.N.Y., Hunt Construction Group (Hunt) contends that Berkley Assurance Company wrongfully denied defense coverage for claims arising out of the renovation of Hard Rock Stadium (home to the Miami Dolphins and Miami Hurricanes football teams).
The stadium owner, South Florida Stadium LLC (SFS), hired Hunt to serve as the construction manager for the renovation project. Hunt subcontracted with Alberici Constructors Inc. (Alberici) to design and fabricate roof structures for the stadium.
Hunt and SFS sued Alberici over its work on the project. In March 2017, Alberici asserted counterclaims against Hunt and SFS. In May 2018, SFS sought defense and indemnification from Hunt with respect to Alberici’s coverage claims.
Hunt is insured under claims made and reported professional liability insurance policies issued by Berkley with policy periods from June 15, 2016 to June 15, 2017 (with an automatic extended reporting period through August 14, 2017) and from July 15, 2017 to June 15, 2018. Hunt notified Berkley of Alberici’s counterclaim on July 20, 2017 (within the extended reporting period of the 2016-2017 policy) and of SFS’s indemnity claim on June 5, 2018 (within the 2017-2018 policy period).
Reprinted courtesy of
Sergio F. Oehninger, Hunton Andrews Kurth and
Daniel Hentschel, Hunton Andrews Kurth
Mr. Oehninger may be contacted at soehninger@HuntonAK.com
Mr. Hentschel may be contacted at dhentschel@HuntonAK.com
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Construction Legislation Likely to Take Effect July 1, 2020
April 27, 2020 —
Christopher G. Hill - Construction Law MusingsCoronavirus is dominating the news and planning for the effects of COVID-19 is a big deal for construction companies in the Commonwealth. However, these issues, though immediate, are not the only ones that have popped up here at the beginning of 2020. Several bills that I have been monitoring (here and here) have recently passed both the House of Delegates and the Virginia Senate and are on their way to the Governor for signature (a signature that is most likely going to happen in each case).
Among those bills that did not pass are a bill that would have eliminated right to work in Virginia and allowed so called “closed shops” as well as fair share fees legislation that would have required those that were not part of a union to pay certain portions of union expenses.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Harmon Hotel Construction Defect Update
July 18, 2011 —
CDJ STAFFCoverage of the ongoing litigation concerning the Harmon Hotel continues to proliferate. Architectural Record and a number of other news outlets continue to provide additional details and coverage of the matter. Chief among the conditions alleged are improperly installed reinforcing steel inside link beams on 15 floors. MGM Claims that the conditions amount to hundreds of millions of dollars in damages, while Perini (the builder) indicated in a July 12th statement that the buildings problems are related to the design, and the they are “fixable.”
There is significant speculation that MGM Resorts International isn’t interested in repairing the hotel due to a glut of hotel rooms attendant to the troubled economy. In a statement Tuesday Perini reportedly stated that “Repairing and opening the Harmon would only create a greater glut of unused hotel rooms for MGM,” “If market conditions were better and MGM found that demand existed for the Harmon hotel rooms, MGM would not be claiming that the Harmon is unstable.”
MGM asserts that Perini failed to ”properly construct” the project. Clark County’s Department of Development Services has reportedly asked MGM to provide a plan to fix the project by August 15th.
The Harmon is part of the $8.5 billion CityCenter project that opened in the fourth quarter of 2009 and is jointly owned by MGM Resorts and Dubai World.
Prior reports indicated that the owner (MGM) had considered razing the entire project. The future of the project remains uncertain.
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California Judicial Council Votes to Rescind Prohibitions on Eviction and Foreclosure Proceedings
September 28, 2020 —
David Rao & Lyndsey Torp - Snell & Wilmer Real Estate Litigation BlogThe California Judicial Council’s emergency rules staying evictions and judicial foreclosures are coming to an end.
On March 27, 2020, the Governor of California issued executive order N-38-20, giving the Judicial Council emergency authority to act in response to the COVID-19 pandemic. On April 6, 2020, the Judicial Council of California voted to approve temporary emergency rules of court. Rule 1 prohibited the issuance of a summons, or the entering of a default, in an eviction action for both residential and commercial properties except as necessary to protect public health and safety. Rule 1 also continued all pending unlawful detainer trials for at least 60 days, with no new trials being set until at least 60 days after a request was filed. Rule 2 stayed all pending judicial foreclosure actions, tolled the statute of limitations, and extended the deadlines for responding to such actions.
Rule 1 and Rule 2 were to remain in effect until 90 days after the Governor declared the state of emergency resulting from the COVID-19 pandemic lifted, or until repealed by action of the Judicial Council. On August 13, 2020, the Judicial Council voted 19-1 to sunset Rule 1 and Rule 2 as of September 1, 2020. Beginning September 2, 2020, California state courts are authorized to issue summons on unlawful detainer actions, enter defaults, and set trial dates on request. Stays on pending judicial foreclosure actions will be lifted.
Reprinted courtesy of
David Rao, Snell & Wilmer and
Lyndsey Torp, Snell & Wilmer
Mr. Rao may be contacted at drao@swlaw.com
Ms. Torp may be contacted at ltorp@swlaw.com
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Delays in Filing Lead to Dismissal in Moisture Intrusion Lawsuit
September 09, 2011 —
CDJ STAFFThe Alabama Court of Civil Appeals has upheld a summary judgment in the case of Franklin v. Mitchell. Walter Mitchell, doing business as Southern Classic Construction built a new home for the Franklins. The Franklins moved into the home in October 2001. In April 2006 they discovered sagging floors in both the bathroom and kitchen. They contacted Mitchell who suggested the flooring might be defective. The Franklins spent eight months attempting to contact the flooring manufacturer.
In March 2007, the Franklins had the home inspected. The sagging was determined to be due to a loss of strength in the decking because of condensation from the air conditioning system. Air returns were not properly sealed and drawing moisture into the structure. There was mold on the decking and floor joints.
When Mitchell was contacted by the Franklins, he told them his one-year warranty had expired but had the HVAC subcontractor, Southern Mechanical Heating & Air (owned by Mitchell’s father, Jim Mitchell), look at the situation. SMHA replaced and braced subfloors. Later, they entered the crawl space to tape ducts, seal the air return, and insulate the air vent housing. The Franklins were not satisfied with the repairs, as not all the ducts were taped, nor were the air vent housings insulated.
Franklin complained to Walter Mitchell who again cited his one-year warranty. Jim Mitchell said he would not report complaints to his insurer, stating that the repairs were unnecessary, that the work had been done correctly in the first place, and it was only done at the request of Walter Mitchell.
In February 2009, the Franklins sued Walker Mitchell. Mitchell denied the claims, citing in part the statute of limitations. Mitchell also filed complaints against three subcontractors, including his father’s firm. Mitchell received a summary judgment as the case started after Alabama’s six-year statute of limitations.
The appeals court rejected the Franklin’s argument that the claim of damage did not start until they were aware it was due to a construction defect. The court noted that as Walter Mitchell was licensed as a “residential home builder, the statute the Franklins cite did not apply, as it concerns architects, engineers, and licensed general contactors.”
Nor did they feel that Mitchells’ claim that his warranty had expired were sufficient to override the statute of limitations, quoting an earlier case, “Vague assurances do not amount to an affirmative inducement to delay filing suit.” Their claim of subsequent negligent repairs was rejected because Mitchell did not direct the specific actions taken by his father’s firm.
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