Housing Starts Plunge by the Most in Four Years
May 20, 2015 —
Bloomberg(Bloomberg) -- Housing starts plummeted in February by the most since 2011 as plunging temperatures and snow became the latest hurdles for an industry struggling to recover.
Work began on 897,000 houses at an annualized rate, down 17 percent from January and the fewest in a year, the Commerce Department reported Tuesday in Washington. The pace was slower than the most pessimistic projection in a Bloomberg survey of 81 economists.
“Today’s report leaves me a little concerned,” said Michelle Meyer, deputy head of U.S. economics at Bank of America Corp. in New York. “While the initial reaction is to dismiss much of the drop because of the bad weather, the level of home construction continues to be depressed.”
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Bloomberg News
Liability Coverage For Construction Claims May Turn On Narrow Factual Distinctions
March 25, 2024 —
Scott S. Thomas - Payne & FearsIn a recent trial court decision, a Montana federal court reminds us how fragile insurance coverage can be for construction-related insurance claims. Specifically, this case illustrates how seemingly small factual nuances can make or break coverage. The case turned on the application of policy provisions familiar to all who deal with these kinds of cases. (See Nautilus Ins. Co. v. Farrens, No. CV 22-193-M-DWM, 2024 WL 885109 (D. Mont. Mar. 1, 2024))
First, the court rebuffed the insurer’s argument that damage resulting from defective workmanship (in this case, the flawed design and installation of an elaborate floating-floor pool system) is not “caused by an occurrence.” The court correctly applied the test followed by most states: if either act causing injury is unintentional or the resulting injury is unexpected or unintended, the “occurrence” requirement is met. Fortunately, the court distinguished sloppy language from earlier Montana federal court decisions suggesting otherwise.
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Scott S. Thomas, Payne & FearsMr. Thomas may be contacted at
sst@paynefears.com
Balcony Collapses Killing Six People
June 17, 2015 —
Beverley BevenFlorez-CDJ STAFFSix college students died from injuries that occurred when a balcony collapsed at a downtown apartment complex in Berkeley, California, according to Berkeleyside. The city of Berkeley ordered a structural inspection of the remaining balconies at Library Gardens, and to immediately remove the failed balcony.
The following day Berkeleyside reported that the city ordered the Library Gardens’ owners to remove another balcony after “[i]nspectors determined that the third-floor balcony ‘was structurally unsafe and presented a collapse hazard endangering public safety.’”
Berkeley’s mayor, Tom Bates, stated that “investigators believe the wood wasn’t sealed properly at the time of construction and was damaged by moisture as a result,” the Wall Street Journal reported.
Read the full story, 6/16/15 Berkeleyside article...
Read the full story, 6/17/15 Berkeleyside article...
Read the full story, Wall Street Journal...
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Texas Central Wins Authority to Take Land for High-Speed Rail System
October 03, 2022 —
Barclay Nicholson & Erica Gibbons - Sheppard Mullin Construction & Infrastructure Law BlogMove over luxury bus lines and quick flights. Central Texans should be on the lookout for bulldozers and train stops. On June 24, 2022, the Supreme Court of Texas held that Texas Central Railroad & Infrastructure, Inc. and related entities (collectively “Texas Central”) have eminent domain authority to acquire property for a proposed high-speed rail system between Dallas and Houston.
[1] Specifically, the Court held that the corporation qualifies as an “interurban electric railway company” under the Texas Transportation Code. This ruling grants Texas Central the broad condemnation authority to procure land for the project.
Texas Central has Statutory Authority to Take Land
The plaintiff in the matter, a farm owner with property south of Dallas along the proposed path of the bullet train, challenged the companies power to condemn land. The landowner’s declaratory judgment action challenged Texas Central’s eminent-domain authority. Under Texas law, condemnation power must be conferred by the legislature, either expressly or by necessary implication.
[2]
Here, Texas Central was created for the purpose of constructing, acquiring, maintaining, or operating lines of electric railway between Texas municipalities. The Court found that Texas Central is engaged in activities to further that purpose. Therefore, the Court concluded, that although legislators did not contemplate high-speed railways at the time of drafting the Transportation Code, Texas Central nonetheless qualified as “interurban electric railway companies” under the statute.
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Barclay Nicholson, Sheppard Mullin and
Erica Gibbons, Sheppard Mullin
Mr. Nicholson may be contacted at bnicholson@sheppardmullin.com
Ms. Gibbons may be contacted at egibbons@sheppardmullin.com
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Contractor Sues Supplier over Defective Products
June 28, 2011 —
CDJ STAFFFast Track Specialties has sued RJF International after needing to remove wall protection units at Methodist West Houston Hospital, according to an article in the Houston Chronicle. Fast Track claims that contractors had to disconnect gas, water, and electric from the area to facilitate removal of corner guards, handrails, and crash guards from the hospital. This cost the contractor more than $135,000.
Fast Track is claiming that RJD International has committed breach of contract, breach of warranty, and negligent representation.
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Appetite for Deconstruction
July 02, 2024 —
Patrick Sisson - BloombergThe death of 206 College Avenue was slow and painstaking. Over several days in January 2022, dozens of bundled-up volunteers swarmed over the three-story property, a tired wooden boarding house built in the early 1900s in Ithaca, New York. Long used as rental apartments for Cornell University students, the 13-bedroom house was set to be demolished, along with several neighboring structures of the same vintage, to make room for a new multi-use complex. But while those buildings were quickly reduced to rubble by trackhoes, the house at 206 was deconstructed, piece by piece, so that its elements could be used again.
The Catherine Commons Deconstruction Project, an effort by Cornell’s Circular Construction Lab, was a large-scale pilot designed to show how building waste can be kept out of landfills. As volunteers pulled nails out of fir, oak, and walnut boards and hauled lumber off to be sorted and redistributed, a team of eight workers with heavy machinery began meticulously sawing, slicing and removing 8-by-18-foot panels of the old building. These were trucked off to a warehouse, where they’d be taken apart and recycled.
The labor that went into this process was substantially more than a typical demolition. But it avoided the societal penalties left behind at nearly every building and demo site across the US. The sheer volume of waste generated by knocking down, adding to or renovating buildings in the US is stunning: 600 million tons of construction demolition waste annually, according to the most recent EPA estimate from 2018. Roughly 75% gets ground up into aggregate and fill, and only a small share is recycled and reused, necessitating production of new material for the next project. For scale, municipal solid waste only accounts for 300 million tons every year.
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Patrick Sisson, Bloomberg
Illinois Court Assesses Factual Nature of Term “Reside” in Determining Duty to Defend
October 30, 2023 —
James M. Eastham - Traub LiebermanIn State Farm Fire & Cas. Co. v. Guevara, 2023 IL App (1st) 221425-U, P2, the Illinois First District Court of Appeals addressed an insurance carrier’s duty to defend under a homeowners insurance policy. The underlying suit stemmed from an alleged injury suffered at a residence located in Berwyn, Illinois and owned by named insured Luz Melina Guevara, a defendant in the suit. After Guevara tendered the suit, State Farm filed a complaint for declaratory judgment seeking a declaration that it had no duty to defend or indemnify Guevara because Guevara did not “reside” at the insured premises.
The policy defined the "insured location" as the "residence premises," and residence premises was defined as "the one, two, three or four-family dwelling, other structures, and grounds or that part of any other building; where you reside and which is shown in the Declarations." In response to the underlying lawsuit, Guevara had filed an answer and affirmative defenses in which Guevara denied the allegation that "At all relevant times, [Guevara] resided in Berwyn, Cook County, Illinois." Guevara admitted that she owned the Berwyn property but denied that she "resided in, maintained and controlled the property". The declaratory judgment complaint alleged (among other things) that, based on admissions by Guevara in her answer, the Berwyn residence was not an "insured location" under the State Farm policy. State Farm moved for summary judgment at the trial court level on this ground and summary judgment was granted in State Farm’s favor. An appeal ensued wherein the parties disagreed as to whether there is a genuine issue of material fact that, under the language of the policy, State Farm had no duty to defend because the Berwyn property was not an "insured location" because she did not "reside" there.
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James M. Eastham, Traub LiebermanMr. Eastham may be contacted at
jeastham@tlsslaw.com
Does the Implied Warranty of Habitability Extend to Subsequent Purchasers? Depends on the State
October 08, 2014 —
Beverley BevenFlorez-CDJ STAFFAttorneys for Traub Liberman Straus & Shrewsberry LLP (in JD Supra Business Advisor), discussed how state courts have come to different conclusions as to “whether a subsequent purchaser of a previously inhabited residence can recover contract damages from a builder or general contractor for breach of the implied warranty of habitability.”
Recently, a Pennsylvania “sided with the builder, holding that the implied warranty of habitability was grounded in contract law. Thus, the Court reasoned that an action for breach of the implied warranty of habitability required a showing of contractual privity between the parties. Because there was no contractual privity between the Conways and the builder, the Conways could not pursue an action against the builder based on a breach of the implied warranty of habitability.”
However, other state courts have made other conclusions. “Iowa permits an action for breach of the implied warranty of workmanlike construction by subsequent purchasers and does not require a showing of contractual privity. Rhode Island also does not require contractual privity, but limits liability to latent defects discovered within 10 years of construction.” Vermont and Connecticut, however, require contract privity.
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