Big Changes and Trends in the Real Estate Industry
February 06, 2023 —
Rachel Mihai - Bremer Whyte Brown & O'Meara LLPIn my practice, I am fortunate enough to attend a real estate conferences on a regular basis. And, without exception, we always get a run down on hot trends/cases from industry leaders. Some issues that are being attacked in hot cases/trends are:
- Are the typical commission structures – e.g., the typical 5% to 6% divided in half – fair or creating an antitrust issue?
- Is MLS commission anti-competitive and artificially inflates commission rates?
- Can a buyer’s agent advertise/represent that it is working for its client for free, as generally happens and has been allowed?
- What is the impact of agent only showing their clients houses with higher typical commissions, like 6%? And how is this being advertised, pushed for and manipulated contrary to the interests of consumers?
There are currently some big, national cases that will likely bring about big changes in the entire national real estate community with regard to how real estate brokers’/agents’ commissions are determined, explained and advertised. These cases revolve around antitrust and alleged conspiracy claims – asserting that the use of commissions in today real estate markets are creating an overcharging to consumers and artificially manipulation of the market.
Read the court decisionRead the full story...Reprinted courtesy of
Rachel Mihai, Bremer Whyte Brown & O'Meara LLPMs. Mihai may be contacted at
rmihai@bremerwhyte.com
Plaintiffs In Construction Defect Cases to Recover For Emotional Damages?
March 16, 2011 —
CDJ STAFFA recent post to the Markusson, Green, Jarvis Blog reports on an important appeals decision which promises to impact construction defect litigation in Colorado.
The post provides analysis on the recovery of inconvenience damages. The focus of the piece is centered on Hildebrand v. New Vista Homes II, LLC, 08CA2645, 2010 WL 4492356 (Colo. Ct. App. Nov. 10, 2010), wherein it was held that " the plain language of Construction Defect Action Reform Act permits recovery of damages for inconvenience, and that the trial court did not err by allowing inconvenience damages to go to the jury".
According to the MGJ Blog "The Hildebrand decision is important because it provides Construction Defect Plaintiffs with a foothold for collecting emotional damages. While several questions of law remain as to who or under exactly what circumstances a Plaintiff may recover these types of damages, the Hildebrand case has clearly set forth that emotional damages may be considered as part of actual damages pursuant to CDARA."
Read Full Story...
Read the court decisionRead the full story...Reprinted courtesy of
Appeals Court Rules that CGL Policy Doesn’t Cover Subcontractors’ Faulty Work
August 06, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to Business Insurance, in J-McDaniel Construction Co. Inc. v. Mid-Continental Casualty Co. et al., an appeals court upheld a lower court ruling that a “construction company's commercial general liability insurance policy does not provide coverage for faulty workmanship or subcontractor negligence.”
“We are not at liberty to disregard the binding law of the state, nor may we substitute our judgment for that of the Arkansas Supreme Court,” said the panel, in affirming the lower court ruling, as quoted in Business Insurance.
Judy Greenwald of Business Insurance pointed out that “[l]ast year, the 6th U.S. Circuit Court of Appeals in Cincinnati held that a subcontractor's allegedly faulty preparation of a building pad, which resulted in subsequent settling and structural damage to the building constructed on top of it, was not an occurrence within the standard coverage language of a CGL policy.”
Read the court decisionRead the full story...Reprinted courtesy of
Challenging Enforceability of Liquidated Damages (In Federal Construction Context)
March 11, 2024 —
David Adelstein - Florida Construction Legal UpdatesA recent summary judgment opinion from the Armed Services Board of Contract Appeals (ASBCA), Appeals Of – BCI Construction USA, Inc.,ASBCA No. 6257, 2024 WL 773324 (2024), contains a worthy discussion regarding a contractor’s challenge to the government’s assessment of liquidated damages, specifically the enforceability of the liquidated damages rate. Although this challenge is in the federal context, this discussion would be more expansive and apply outside of the federal context.
When dealing with the enforceability of a liquidated damages, the ASBCA “examines whether the liquidated damages amount ‘is extravagant, or disproportionate to the amount of property loss, as to show that compensation was not the object aimed at or as to imply fraud, mistake, circumvention or oppression.” Appeals of – BCI Construction USA, Inc. (citation omitted).
Read the court decisionRead the full story...Reprinted courtesy of
David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Defeating the Ten-Year Statute of Repose For Latent Construction Defects
January 28, 2015 —
The Porter Law GroupIt is an all-too-common scenario in California construction: Nine and a half years after completion of a major California construction project, immediately before the 10-year “statute of repose” for suing on “latent” construction defects expires, a lawsuit claiming damages for “recently discovered” latent construction defects is filed. The property owner sues the contractor for the alleged defects. The direct contractor sues all its subcontractors for indemnity and defense. The attorneys spontaneously generate. Experts proliferate. Claimed defects are extrapolated. Four or five years later, after a few dozen attorneys earn a small fortune in fees, the insurance companies make payments. Attorneys collect more fees. The owners take what remains. They repair nothing... and buy vacation homes.
Perhaps a cynical view, but there are many in the construction defect world who would reach a similar conclusion. The question is: How can you defeat this seemingly inevitable chain of events? Under a case known as Brisbane Lodging L.P. v. Webcor Builders, Inc. 216 Cal.App 4th 1249 (2013) there may be hope. California Code of Civil Procedure sections 337.1 and 337.15 grant a 10-year “statute of repose” for bringing claims for “latent” construction defects. These statutes allow a lawsuit for such claimed defects to be filed in court up until ten years after the project has been completed. Latent defects are generally defined as those which are “not apparent by reasonable inspection” (CCP §337.15(b)). It is extremely common for such claims to be filed immediately before this 10-year deadline expires. When the lawsuit is brought, the cash register begins to ring.
Read the court decisionRead the full story...Reprinted courtesy of
The Porter Law Group
Insurers Can Sue One Another for Defense Costs on Equitable Indemnity and Equitable Contribution Basis
March 21, 2022 —
Garret Murai - California Construction Law BlogSince I don’t do insurance defense work, fights between insurers isn’t something I have to deal with. It’s good sport nonetheless. In the next case, Travelers v. Navigators Specialty Insurance Company, Case No. D078852 (October 15, 2021), three of the biggies – Travelers, Navigators and Mt. Hawley – got into it over indemnity.
The Travelers Case
General contractor TF McGukin, Inc. was involved in a construction defect lawsuit with respect to a condominium project. TFM entered into subcontracts with several subcontractors including F&F Steel and Stairway, Inc and Calvac Paving which required the subcontractor to defend and indemnify TFM against any claims arising out of the subcontractor’s work. The subcontracts also required the subcontractors to name TFM as an additional insured.
Read the court decisionRead the full story...Reprinted courtesy of
Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Additional Dismissals of COVID Business Interruption, Civil Authority Claims
December 29, 2020 —
Tred R. Eyerly - Insurance Law HawaiiAmong the recent decisions dismissing complaints for business interruption and civil authority coverage due to closures caused by COVID-19 are Pappy's Barber Shops, Inc. v. Farmers Group, Inc., 2020 U.S. Dist. LEXIS 166808 (S.D. Calif. Sept. 11, 2020) and Sandy Point Dental v. Cincinnati Insurance Co., 2020 U.S. Dist. LEXIS 171979 (E.D. Ill. Sept. 21, 2020). The difficulty in proving "direct physical loss" was the downfall of both cases.
In Pappy's, claims were made for business income losses insured as a result of local and state closure orders. The policy required "direct physical loss of or damage to property at the described premises." Plaintiffs argued that "direct physical loss of" did not require a tangible damage or alteration to property and that the loss of the ability to continue operating their businesses as a result of the government orders met this requirement.
The court relied upon a prior decision, 10E, LLC v. Travelers Indem. Co. of Connecticut, 2020 U.S. Dist. LEXIS 165252 (C.D. Calif. Sept. 2, 2020) [post here], where the court noted that under California law, losses from inability to use property did not amount to "direct physical loss" within the meaning of the policy.
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Governmental Action Exclusion Bars Claim for Damage to Insured's Building
November 27, 2023 —
Tred R. Eyerly - Insurance Law HawaiiThe lower court's decision finding no coverage based upon the governmental action exclusion was affirmed by the Appellate Court of Illinois. McCann Plumbing, Heating & Cooling v. Pekin Ins. Co., 2023 Ill.App. LEXIS 300 (Ill. App. Ct. Aug. 23, 2023).
McCann purchased a building to use for its heating, ventilation, and air conditioning business. The building was surrounded by two unihhabited properties which often flooded. The city determined that a building on the adjacent property had to be demolished. In the course of destruction, the McCann's building was damaged, leaving a portion of their building open to the elements.
McCann sought coverage from Pekin for damage incurred in the demolition. The policy provided coverage for "direct physical loss of or damage to" the covered property. Pekin denied coverage under the policy's governmental action exclusion, which provided,
We will not pay for loss or damage caused directly or indirectly by any of the following:
. . .
c. Governmental Action
Seizure or destruction of property by order of governmental authority . . .
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com