Firm Sued for Stopping Construction in Indiana Wants Case Tried in Germany
October 16, 2013 —
CDJ STAFFGetrag Transmission, a German firm, is being sued by a Detroit-based construction firm that Getrag had hired to build a factory in Indiana. When a court gave the go-ahead to Walbridge Construction for the suit, Getrag appealed, stating that the case should be held in German so that Getrag officials do not have the expense of traveling to Indiana.
Getrag was building the plant, which would have cost $350 million, as part of a partnership with Chrysler. Chrysler dropped from the project after filing for bankruptcy. Shortly afterward, Getrag also filed for bankruptcy.
Walbridge is seeking $118.5 million due to expenses incurred with subcontractors. Chrysler has announced its intention of finishing the plant, which they estimate will cost about $162 million. Once complete, the plant will employ about 850 workers.
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Drought Dogs Developers in California's Soaring Housing Market
September 17, 2015 —
John Gittelsohn – BloombergCalifornia’s already tight housing market is facing another long-term complication: drought.
The state’s dry spell is creating challenges for developers at a time when home prices are soaring because of limited inventory. The metropolitan areas of San Jose, San Francisco and San Diego had the nation’s biggest gap between the number of new jobs and residential building permits from 2012 to 2014, according to a report Wednesday by the National Association of Realtors. Now the drought, into its fourth year, stands to curb affordability further.
“It’s contributing to price appreciation by restricting supply,” said Mark Boud, founder of Real Estate Economics, a housing-consulting firm based in Irvine, California.
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John Gittelsohn, Bloomberg
Contrasting Expert Opinions Result in Denial of Cross Motions for Summary Judgment
February 27, 2023 —
Tred R. Eyerly - Insurance Law HawaiiGiven the opposing experts' contradictory reports, the court denied both the insured and insurer's motions for summary judgment regarding coverage for a pipe leak. Pronti v. Hanover Ins. Co., 2022 U.S. Dist. LEXIS 222306 (W.D. N. Y. Dec. 9, 2022).
The insured had a swimming poll and spa, which functioned using a subsurface plumbing system, covered with concrete decking. A subsurface pipe began to leak, preventing the pool from properly functioning. The insureds gave notice under their homeowners' policy and contended that significant portions of the pool, spa, concrete decking and other landscaping had to be torn out to do repairs. The insurer retained an expert, Sarah G. Byer, a structural engineer, to investigate. The parties agreed that the pipe had a leak, but disputed if the location of the leak was specifically identified.
The parties also disputed the cause of the leak. Byer found that the most likely cause was deterioration incurred over the pipe's lifetime based on the age of the plumbing system and Byer's personal observation of the pipe. Byer further stated that the physical qualities of flexible PVC piping made it susceptible to damage from chlorine and water over time.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
New Jersey Strengthens the Structural Integrity of Its Residential Builds
March 11, 2024 —
Matthew D. Stockwell - Gravel2Gavel Construction & Real Estate Law BlogIn response to the June 2021 Champlain Towers collapse in Florida, New Jersey supplemented its State Uniform Construction Code Act by enacting legislation (effective January 8, 2024) to strengthen laws related to the structural integrity of certain residential structures in the State. The legislation applies to condominiums and cooperatives (but not single-family dwellings or primarily rental buildings) with structural components made of steel, reinforced concrete, heavy timber or a combination of such materials. The legislation also supplements the Planned Real Estate Development Full Disclosure Act to ensure that associations created under the Act maintain adequate reserve funds for certain repairs.
The legislation requires structural engineering inspections of any primary load-bearing system (structural components applying force to the building which deliver force to the ground including any connected balconies). Buildings that are constructed after the date the legislation was signed must have their first inspection within 15 years after receiving a Certificate of Occupancy. Buildings that are 15 years or older must be inspected within two years of the legislation. Thereafter, the structural inspector will determine when the next inspection should take place, which will be no more than 10 years after the preceding inspection, except for buildings more than 20 years old which must be inspected every five years. Also, if damage to the primary load-bearing system is otherwise observable, an inspection must be performed within 60 days.
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Matthew D. Stockwell, PillsburyMr. Stockwell may be contacted at
matthew.stockwell@pillsburylaw.com
California Court of Appeal Adopts Horizontal Exhaustion Rule
June 28, 2013 —
Tred Eyerly, Insurance Law HawaiiIn a long running suit regarding thousands of asbestos bodily injury claims brought against Kaiser Cement and Gypsum Corporation, the California appellate court held that the excess carrier's indemnity obligation did not attach until all collectible primary policies were exhausted. Kaiser Cement and Gypsum Corp. v. Ins. Co. of the State of Pennsylvania, 215 Cal. App.4th 210 (Cal. Ct. App. April 8, 2013).
Kaiser manufactured a variety of asbestos-containing products from 1944 through the 1970's. Truck Insurance Company provided primary insurance to Kaiser from 1964 to 1983, through four CGL policies covering 19 annual policy periods. The policy in effect from 1974 to 1981 contained a $500,000 "per occurrence" liability limit. Kaiser was insured by three other primary carriers between 1947 and 1987. ICSOP issued a first layer excess policy to Kaiser from 1974 through 1976.
Kaiser tendered numerous claims for bodily injury to Truck. By October 2004, Truck's indemnity payments exceeded $50 million and included at least 39 claims that resulted in payments in excess of $500,000. For claims alleging bodily injury in 1974, Kaiser selected Truck's 1974 policy to respond to each of the claims.
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Tred EyerlyTred Eyerly can be contacted at
te@hawaiilawyer.com
Kadeejah Kelly Named to The National Black Lawyers’ “Top 40 Under 40” List
October 17, 2022 —
Lewis BrisboisNew York, N.Y. (October 6, 2022) – New York Associate
Kadeejah J. Kelly was recently named to The National Black Lawyers (NBL) “Top 40 Under 40” list.
The NBL “Top 40 Under 40” recognizes the most talented black attorneys under the age of 40 who have an outstanding reputation among peers, the judiciary and the public. The honorees on this list are nominated from leading lawyers, current members, and Executive Committee members.
Ms. Kelly is a member of the General Liability and Professional Liability Practices. She has extensive experience defending owners, contractors, developers and corporations in high exposure construction cases including New York Labor Law matters, premises liability and construction defect claims. She also has experience defending malpractice claims against attorneys, accountants, architects, engineers, funeral home directors and other miscellaneous professionals.
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Lewis Brisbois
Mississippi Supreme Court Addresses Earth Movement Exclusion
December 09, 2019 —
Anthony Hatzilabrou - Traub LiebermanRecently, the Mississippi Supreme Court held that structural damages to the foundation of an insured’s home came within the earth movement exclusion in a homeowner’s policy, notwithstanding a provision in the policy which provided coverage for water damage resulting “from accidental discharge or overflow of water … from within … [p]lumbing, heating, air condition or household appliance.”
In Mississippi Farm Bureau Cas. Ins. Co. v. Smith, 264 So. 3d 737 (Miss. 2019), the appellee, Smith, filed a lawsuit against her homeowner's insurance company, Mississippi Farm Bureau Casualty Insurance Company (“Farm Bureau”) for its refusal to pay for repairs to the foundation of Smith’s home. Smith alleged that the refusal to pay for repairs amounted to breach of contract and asserted claims for bad faith and tortious breach of contract. In response, Farm Bureau filed a motion for summary judgment on the basis of the policy’s earth-movement exclusion, which provided that Farm Bureau “did not insure for loss caused directly or indirectly by…Earth Movement…[which] means…[a]ny other earth movement including earth sinking, rising or shifting... caused by or resulting from human or animal forces.” Smith filed a cross-motion for partial summary judgment on the basis that the earth-movement exclusion did not preclude coverage because her insurance policy also contained a clause expressly covering water damage.
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Anthony Hatzilabrou, Traub LiebermanMr. Hatzilabrou may be contacted at
thatzilabrou@tlsslaw.com
Under Colorado House Bill 17-1279, HOA Boards Now Must Get Members’ Informed Consent Before Bringing A Construction Defect Action
April 11, 2018 —
Luke Mecklenburg – Snell & Wilmer Real Estate Litigation Blog Last year, I wrote
a post calling attention to stalled efforts in the Colorado legislature to pass meaningful construction defect reform. Shortly thereafter, the legislature got it done in the form of House Bill 17-1279. This bill creates an important pre-litigation notice-and-approval process whenever an HOA initiates a construction defect action in its own name or on behalf of two or more of its members.
Before May 2017, the pre-litigation requirements that an HOA had to fulfill before bringing a construction defect claim under the Colorado Construction Defect Action Reform Act (“CDARA”) were generally minor. For example, while many declarations required majority approval from the community prior to initiation of claims, in practice, what the industry was seeing is that some HOAs were making it so that only a majority of the HOA Board had to approve bringing the claim, rather than the majority of interested unit owners. It was also common that, even where the majority of owners were involved, they were often voting in favor of filing a lawsuit or arbitration without fully understanding the risks and costs. This practice presented a risk to developers—it is easier to get approval from a small group than from a larger group, and it is easier to get approval when the voting owners do not fully appreciate the risks and costs inherent in filing a claim.
Colorado House Bill 17-1279, which was signed into law by Governor Hickenlooper in May 2017 and is codified at C.R.S. § 38-33.3-303.5, lessens these risks by amending the Colorado Common Interest Ownership Act (“CCIOA”) to add certain pre-litigation requirements. Section 38-33.3-303.5 applies any time an HOA institutes a construction defect action its own name on behalf of itself or two or more unit owners on matters affecting the common interest community. C.R.S. §§ 38-33.3-302(1)(d), -303.5(1)(a).
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Luke Mecklenburg, Snell & WilmerMr. Mecklenburg may be contacted at
lmecklenburg@swlaw.com