Columbus Ohio Building Expert Directory

Attorneys' Fee Clauses are Engraved Invitations to Sue

April 19, 2021 — David M. McLain – Colorado Construction Litigation
As we start another trip around the sun, hopefully you are in the process of updating your form contracts, including purchase and sale agreements and express written warranties. Because the law and litigation landscape continually changes, it is a good practice to periodically update the forms you use in order to give yourself a fighting chance if and when the plaintiffs' attorneys come knocking on your door. As you engage in this process, I hope that you will take a critical look at whether your contracts include a prevailing party attorneys' fees clause and, if so, whether you should leave it in there. In Colorado, parties are entitled to recover attorneys' fees only if provided for by statute or by contract. Historically, plaintiffs' attorneys relied on two statutes, the Colorado Consumer Protection Act and Colorado's Statutory Interest statute, to recover attorneys’ fees in construction defect cases. In 2003, the Colorado legislature capped treble damages and attorneys' fees under the Colorado Consumer Protection Act at $250,000, effectively restricting plaintiffs' attorneys from relying on the CCPA to recoup their attorneys' fees, especially in large cases. In 2008, the Colorado Supreme Court issued its decision in Goodyear v. Holmes, stating that plaintiffs can only claim prejudgment interest under Colorado's Statutory Interest statute, in cases where they have already spent money on repairs, not when they are suing for an estimate of what repairs will cost in the future. Without either the CCPA or the prejudgment interest statute to recover attorneys' fees, plaintiffs' attorneys most often now rely on the prevailing party attorney fee clause in contracts between the owner and builder, or in the declaration of covenants, conditions and restrictions in situations where a claim is prosecuted by an HOA. Read the court decision
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Reprinted courtesy of David McLain, Higgins, Hopkins, McLain & Roswell
Mr. McLain may be contacted at mclain@hhmrlaw.com

Fannie Overseer Moves to Rescue Housing With Lower Risk to Lenders

May 21, 2014 — Kathleen M. Howley – Bloomberg
Melvin Watt, the overseer of Fannie Mae and Freddie Mac, broke five months of silence to help boost lending as slowing sales threatens the housing recovery. Watt, 68, in his first speech as director of the Federal Housing Finance Agency, announced new rules to reduce the risk that lenders will have to repurchase bad mortgages. The changes, designed to allow banks to relax credit standards, probably will increase housing sales by 5 percent this year, said Stephanie Karol, an economist at Englewood, Colorado-based research firm IHS Inc. “It means a restart for the real estate recovery,” said Mark Zandi, chief economist of Moody’s Analytics Inc. “We’re not going to get back on track until we start making credit more available to potential buyers.” He said he expects Watt’s moves to spur “meaningful” sales growth. Read the court decision
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Reprinted courtesy of Kathleen M. Howley, Bloomberg
Ms. Howley may be contacted at kmhowley@bloomberg.net

Real Estate & Construction News Round-Up (05/11/22)

May 30, 2022 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
The supply of homes for sale is on the uptick, the White House releases a plan to improve the permitting process for infrastructure projects, cryptocurrency opens the door to a new class of property owners, and more.

Though the number of active listings is still down 67% from pre-pandemic levels, the supply of homes for sale is finally showing signs of improvement. (Diana Olick, CNBC)
Large corporations and institutional investors are flocking to buy digital real estate, with parcels being bought faster than they can be created. (Dan Patterson, CBS News)
London-based company, Admix, has been purchasing real estate in various Metaverse platforms and leasing them to companies interested in becoming involved in the online virtual space. (Nate Berg, Fast Company)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

Illinois Town’s Bond Sale Halted Over Fraudulent Hotel Deals

June 26, 2014 — William Selway and Elizabeth Campbell – Bloomberg
A city outside Chicago was blocked from selling bonds after the U.S. Securities and Exchange Commission accused it of defrauding investors and steering secret fees to a municipal official. The case against Harvey, Illinois, a struggling city of 25,000 battered by poverty and crime, involves about $14 million in bonds sold from 2008 to 2010 that were to pay for development of a Holiday Inn hotel and conference venue. The SEC said that the city hoodwinked investors by using $1.7 million to pay payroll and other operating expenses, while the hotel stands in disrepair with holes in its facade, exposed studs and a gutted interior. The SEC said Comptroller Joseph Letke, 55, also profited by receiving $269,000 in undisclosed payments while advising the developer of the ill-fated project. Mr. Selway may be contacted at wselway@bloomberg.net; Ms. Campbell may be contacted at ecampbell14@bloomberg.net Read the court decision
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Reprinted courtesy of William Selway and Elizabeth Campbell, Bloomberg

Supreme Court Grants Petition for Review Regarding Necessary Parties in Lien Foreclosure Actions

August 17, 2017 — Lindsay K. Taft - Ahlers & Cressman PLLC
For several years, the requirements for which parties must be named in a lien foreclosure action when a release of lien bond is in place have been cloudy. RCW 60.04 et seq., the “mechanics’ lien” or “construction lien” statute, provides protection for a party or person who provides labor, materials, or equipment to a construction project. That person or party, if not paid, can file a lien against the construction project property to secure recovery. As the lien impacts the property by “clouding title” and could potentially result in foreclosure of the property, the statute sets forth strict requirements with respect to timing, notice, and parties. For example, the lien must be recorded within 90 days of the person or party’s last day of work or materials or equipment supplied, and the lien claimant must then give a copy of the claim of lien to the owner or reputed owner within 14 days of the lien recording. RCW 60.04.081. The statute also allows a property owner or other party to “free” the property from the lien prior to the claim being resolved by issuing a release of lien bond. While the claim is still in dispute, the lien then attaches to the bond and not the property. The same rules about foreclosure, however, still apply but not without some confusion. Read the court decision
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Reprinted courtesy of Lindsay K. Taft, Ahlers & Cressman PLLC
Ms. Taft may be contacted at ltaft@ac-lawyers.com

BHA has a Nice Swing: Don’t Forget to Visit BHA’s Booth at WCC to Support Charity

May 13, 2014 — Beverley BevenFlorez-CDJ STAFF
At this week's West Coast Casualty Construction Defect Seminar, for every hole-in-one made at the golf putting game at the Bert L. Howe & Associates (BHA) booth, the firm will make a $25.00 cash donation in the golfer’s name to the Construction Defect Community Charitable Foundation (CDCCF). Each winner will also receive a $25.00 Best Buy gift card. BHA’s traditional golf game has been technologically reimagined. As the putter steps onto the artificial turf, he or she is plunged into a virtual golf course through an animated video projected on a giant 23 feet wide by 8 feet tall screen! While at the booth, don’t forget to test out BHA’s industry leading data collection and inspection analysis systems. BHA has recently added video overviews to their data collection process, as well as next-day viewing of inspection data via their secured BHA Client Access Portal. Discover meaningful cost improvements that translate to reduced billing while providing superior accuracy and credibility. Attendees can also enter to win Dodger baseball tickets, a new iPad Air, or a trip to the Del Mar Race Track! Other BHA giveaways include water bottles, pocket tape measures, multi-tools, flashlight fans, foam footballs, and Godiva chocolates. Bert L. Howe & Associates strongly supports the goals and principles of the CDCCF, and is honored to assist the foundation in fulfilling its mandate of assisting those in the construction defect community who are in need. Read how the CDCCF assists the construction defect community... Read the court decision
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Reprinted courtesy of

Norristown, PA to Stop Paying Repair Costs for Defect-Ridden Condo

February 10, 2014 — Beverley BevenFlorez-CDJ STAFF
The city of Norristown, Pennsylvania has already paid “$3.4 million for construction repairs and legal expenses” for the 26-unit condominium on 770 Sandy Street, according to The Times Herald. Therefore city officials recently declared that “they will no longer pay the $40,000 annual cost for maintenance, electricity and repairs” for the building. “At some point, the folks that own it have to step up and take responsibility for it,” Norristown Council President William Caldwell told The Times Herald. “No later than February 28, the municipality will cease to provide or pay for maintenance of 770 Sandy Street.” Previously, Norristown had received court orders to repair the building, after numerous construction defects turned up including “missing firestops in numerous walls, missing grout and steel rebar in block-wall, emergency stair towers, faulty electrical wiring and no provision for firestopping in the first-floor garage ceiling.” City officials “were faulted by Montgomery County Common Pleas Court judges for not properly inspecting the construction.” Charles Madracchia, past Customers Bank attorney and current Homeowner attorney, is “continuing active litigation in both federal and state court.” Read the court decision
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Reprinted courtesy of

Receiving a $0 Verdict and Still Being Deemed the Prevailing Party for Purposes of Attorney’s Fees

May 24, 2018 — David Adelstein - Florida Construction Legal Updates
Low and behold, a party can be the prevailing party for purposes of attorney’s fees even if that party is awarded $0. That’s right, even if the party is awarded a big fat zero, they can still be the prevailing party for purposes of being entitled to attorney’s fees. This is because a party is the prevailing party if they prevail on the significant issues in the case. A party can prevail on the significant issues even if that party is awarded $0. Whoa! For example, in Coconut Key Homeowner’s Association, Inc. v. Gonzalez, 43 Fla.L.Weekly D1045a (Fla. 4th DCA 2018), a homeowner sued her homeowner’s association claiming the association breached its governing documents. There was a basis for fees under Florida’s homeowner’s association law (and there likely was a basis under the governing documents). At trial, the jury held that the association breached its governing documents, but awarded the homeowner nothing ($0). The trial court also issued injunctive relief in favor of the homeowner. The homeowner claimed she should be deemed the prevailing party for purposes of attorney’s fees; however, this was denied by the trial court based on the $0 verdict and no fees were awarded to the homeowner. Read the court decision
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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at dadelstein@gmail.com

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