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Manhattan Condos at Half Price Reshape New York’s Harlem

August 20, 2014 — Jonathan LaMantia – Bloomberg
Jason and Robyn Turetsky watched from their window as, brick by brick, a new condominium development rose across 116th Street in New York’s Harlem. The Turetskys, who married in December, decided to buy a three-bedroom, 1,500-square-foot (140-square-meter) unit at the Adeline, right across from their current rental. Staying in the neighborhood presented a better value than anywhere else they’d considered, including the Upper East Side and Upper West Side, where Robyn lived before moving in with Jason, the couple said. “For the amenities that were going to be provided at the Adeline and the size of the apartment, we could just get much more for our money in Harlem,” said Robyn Turetsky, a 28-year-old clinical dietitian. Read the court decision
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Reprinted courtesy of Jonathan LaMantia, Bloomberg
Mr. Lamantia may be contacted at jlamantia1@bloomberg.net

Public Policy Prevails: Homebuilders and Homebuyers Cannot Agree to Disclaim Implied Warranty of Habitability in Arizona

November 01, 2022 — Ryan Bennett - The Subrogation Strategist
In Zambrano v. M & RC II LLC, et al., 2022 Ariz. LEXIS 309, the Supreme Court of Arizona held that a homebuilder and homebuyer could not waive or disclaim the implied warranty of workmanship and habitability. While the court would normally enforce a contract between two parties – even if one side made a “bad deal” – they will not do so if the contract’s terms are against public policy. In this case, Tina Zambrano (Zambrano) signed a purchase agreement with the homebuilder to buy a newly built home. The agreement included provisions which expressly disclaimed any implied warranties, including the warranty of habitability and workmanship. After the purchase, Zambrano claimed that there were construction defects within the home, including popped nails in the drywall and issues with the home’s foundation. Zambrano sued the homebuilder for breach of the implied warranty of workmanship and habitability. The homebuilder moved for summary judgment based on the waivers within the contract and the trial court, agreeing that the waivers applied, dismissed the case. Zambrano appealed and the appellate court reversed the trial court’s decision. The appellate court specifically explained that Arizona has a public policy interest in protecting consumers. Read the court decision
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Reprinted courtesy of Ryan Bennett, White and Williams LLP
Mr. Bennett may be contacted at bennettr@whiteandwilliams.com

Quick Note: Not In Contract With The Owner? Serve A Notice To Owner.

August 13, 2019 — David Adelstein - Florida Construction Legal Updates
A subcontractor or supplier not in direct contract with an owner must serve a Notice to Owner within 45 days of initial furnishing to preserve construction lien rights. Of course, the notice of commencement should be reviewed to determine whether the subcontractor or supplier has construction lien or payment bond rights so that it knows how to best proceed in the event of nonpayment. Serving a Notice to Owner should be done as a matter of course — a standard business operation; no exceptions. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

DEP Plan to Deal with Noxious Landfill Fumes Met with Criticism

March 19, 2014 — Beverley BevenFlorez-CDJ STAFF
Residents of Roxbury, New Jersey have dealt with hydrogen sulfide fumes coming from the Fenimore landfill, which gives off a rotten-egg smell and many say have “made them or their children sick,” according to New Jersey Online. The Department of Environmental Protection (DEP) announced their plan to fix the situation, which is to “first dig more wells at Fenimore, to help feed noxious gasses into the oxidizer and scrubber system the agency has credited with radically reducing smells over the last several months.” But no one seems to be satisfied with the plan, according to New Jersey Online: “Not state Sen. Anthony R. Bucco, who authored a bill to enable a state takeover of the site last year. Not the Roxbury Township Council. Not the activist group created to respond to Fenimore issues. Not one of the state's most vocal environmental organizations. And not the site's owner, who has been in multi-pronged litigation with the state for months.” Roxbury’s mayor, Jim Rilee, stated, “The council and I will continue to demand that the DEP show us compelling data that supports its conclusions and that its plan is based only on what is best for Township residents," as quoted by New Jersey Online. Read the court decision
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South Carolina Court of Appeals Diverges from Damico Opinion, Sending Recent Construction Defects Cases to Arbitration

October 24, 2023 — Laura Paris Paton - Gordon Rees Construction Law Blog
Could the latest opinion from the South Carolina Court of Appeals be the distant ringing of a death knell for runaway construction defects verdicts? On the heels of the Damico ruling earlier this year, the courts have issued several opinions distinguishing various arbitration agreements from the one analyzed in Damico and have sent subsequent cases to arbitration. This summer, the Supreme Court and Court of Appeals compelled arbitration in Cleo Sanders v. Savannah Highway Automotive Company, et al. Appellate Case No. 2021-000137 / Opinion No. 28168 (petition for rehearing pending) and Joseph Abruzzo v. Bravo Media Productions, et al. Appellate Case No. 2020-001095 / Opinion 6004. Now, in the matter of Jonathan Mart, on behalf of himself and others similarly situated, Respondent, v. Great Southern Homes, Inc., Appellant, Appellate Case No. 2018-001598, the Court of Appeals reversed the circuit court’s order denying a homebuilder’s motion to dismiss and compelled arbitration in this action, which was brought by the homeowner, individually and on behalf of other similarly situated homeowners. Read the court decision
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Reprinted courtesy of Laura Paris Paton, Gordon Rees Scully Mansukhani
Ms. Paton may be contacted at lpaton@grsm.com

Pandemic Magnifies Financial Risk in Construction: What Executives Can Do to Speed up Customer Payments

August 23, 2021 — Lori J. Drake - Construction Executive
Construction businesses are waiting longer for payment in 2021, according to the newly released 2021 Construction Cash Flow and Payment Report conducted by Levelset. According to respondents, only 10% of construction businesses get paid in full, which is a 75% drop from 2020, and only 9% get paid on time, which is a drop of 60% over last year. The report, based on a survey of 764 construction professionals, illustrates that financial risk in the industry flowed down the payment chain. General contractors were four times more likely to get paid in 30 days, and 50% more likely to get paid in full. However, 20% of subcontractors, suppliers and other second-tier companies were kept waiting more than 60 days to collect payment. Reprinted courtesy of Lori J. Drake, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Additional Dismissals of COVID Business Interruption, Civil Authority Claims

December 29, 2020 — Tred R. Eyerly - Insurance Law Hawaii
Among 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 decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Deck Police - The New Mandate for HOA's Takes Safety to the Next Level

November 18, 2019 — Joseph Ferrentino – Newmeyer Dillion
A recent California law will hold homeowners’ associations accountable for the safety of their decks. SB326 now mandates all homeowners' associations to have decks inspected at least once every nine years by an architect or structural engineer to determine whether the decks are safe and waterproof. This law (Civil Code section 5551) follows SB721 which was passed in 2018 and requires a similar inspection every six years for other multifamily dwelling units. Failure to comply can result in paying the enforcement costs of local building agencies. DETAILS ON THE MANDATE: More specifically, the 2019 law requires inspections of wood “decks, balconies, stairways, and their railings” more than six feet off of the ground and designed for human use. Additionally, the engineer or architect must (1) certify that he or she has inspected for safety and waterproofing, and (2) certify the remaining useful life of the system. Further, the inspector must inspect a random sample of enough units to provide 95% confidence that “the results are reflective of the whole.” In other words, in addition to the inspector, the association will have to hire a statistician. The nine-year timetable for inspection is no coincidence. After all, the statute of limitations for construction defects is ten years. In fact, associations are required to give notice to their members before filing a suit against a builder. However, under the new law, the association can delay giving notice to its members “if the association has reason to believe that the statute of limitations will expire.” Also, recent case law held that builders could add requirements to CC&R’s to limit a board’s authority to file lawsuits – i.e. adding a supermajority vote by members. Under SB326, any such provisions are now void. Hence, “supermajority” voting provisions are now invalid. IMPACT ON CONSTRUCTION LITIGATION These recent laws are clearly a reaction to the tragic collapse of an apartment balcony in Berkley in 2015 that resulted in the death of six college students. While it is imperative that decks be structurally safe, the requirements of SB326 will fuel more construction defect litigation. Joseph Ferrentino is a Partner in Newmeyer Dillion's Newport Beach office. With 25 years of experience, Joe guides clients through construction law issues, among other areas. For more information on how Joe can help, contact him at joe.ferrentino@ndlf.com ABOUT NEWMEYER DILLION For 35 years, Newmeyer Dillion has delivered creative and outstanding legal solutions and trial results that align with the business objectives of clients in diverse industries. With over 70 attorneys working as an integrated team to represent clients in all aspects of business, employment, real estate, privacy & data security and insurance law, Newmeyer Dillion delivers tailored legal services to propel clients’ business growth. Headquartered in Newport Beach, California, with offices in Walnut Creek, California and Las Vegas, Nevada, Newmeyer Dillion attorneys are recognized by The Best Lawyers in America©, and Super Lawyers as top tier and some of the best lawyers in California and Nevada, and have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949.854.7000 or visit www.newmeyerdillion.com Read the court decision
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