First Quarter Gains in Housing Affordability
May 20, 2015 —
Beverley BevenFlorez-CDJ STAFFAccording to the National Association of Home Builders’ (NAHB) Eye on Housing, the combination of low interest rates and home prices has provided a “solid boost in nationwide affordability in the first quarter of 2015.” Furthermore, “66.5 percent of new and existing homes sold between the beginning of January and end of March were affordable to families earning the U.S. median income of $65,800.” Syracuse, New York remained the U.S.’s most affordable major housing market, while the San Francisco-San Mateo-Redwood City, California region was the nation’s least affordable major housing market. All five of the least affordable small housing markets were in California.
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Let’s Get Specific: Rhode Island Court Asserts Jurisdiction Over Out-of-State Manufacturer
February 04, 2025 —
Gus Sara - The Subrogation StrategistIn Federal Ins. Co. v. J. Gallant Elec. Servs., Inc. No. 1-22- CV-00123-MSM-LDA, 2024 U.S. Dist. LEXIS 218185, the United States District Court for the District of Rhode Island considered whether it could exercise personal jurisdiction over an out-of-state, third-party defendant. The court granted the third-party defendant’s first motion to dismiss for lack of general jurisdiction but permitted the parties to conduct jurisdictional discovery. After the close of jurisdictional discovery, the third-party defendant renewed its motion to dismiss for lack of jurisdiction. This time, the court found that, based on the record, it could exercise specific personal jurisdiction over the third-party defendant.
The plaintiff, Federal Insurance Company (Insurer), brought this subrogation action after its insured, the Town of Westerly, sustained a water loss at a public elementary school in 2020. The water loss occurred while the school was undergoing renovations. A defendant, Advanced Safety Systems (Advanced), was retained to replace the fire suppression system in the computer server room. Advanced subcontracted with defendant J. Gallant Electrical Services (Gallant) to replace the electrical service panel for the sprinkler system. Gallant was in process of deenergizing the fire suppression system when the system discharged, causing damage to the equipment in the server room. After paying its insured for the damage, Insurer sued Advanced and Gallant for negligence and breach of contract, alleging that Gallant was careless in causing the system to discharge.
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Gus Sara, White and WilliamsMr. Sara may be contacted at
sarag@whiteandwilliams.com
California Supreme Court McMillin Ruling
January 24, 2018 —
Don MacGregor - CDJ STAFFReaction to the recent California Supreme Court ruling in McMillin Albany LLC v. The Superior Court of Kern County has been both swift and diverse, with many notable California law firms weighing in on the potential impact this landmark ruling may have on the Construction Industry and construction defect litigation. In our ongoing desire to serve as a meaningful and comprehensive provider of news and information for Construction and Claims Professionals, we have included a selected number of the submissions we have received regarding this very important judicial ruling.
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Final Furnishing Date is a Question of Fact
November 10, 2016 —
David Adelstein – Florida Construction Legal UpdatesConstruction liens need to be recorded within 90 days from the lienor’s final furnishing date on the project. This date is exclusive of punchlist or warranty work. The final furnishing date needs to be proven at trial to establish that the construction lien was timely recorded. If there is an evidentiary dispute as the final furnishing date (the contractor claims the date was “x” to establish the lien was timely and the owner claims the date was “y” to establish the lien was untimely), then the date is a question of fact to be determined by the jury.
For instance, in Best Drywall Services, Inc. v. Blasczyk, 2016 WL 6246701 (Fla. 2d DCA 2016), a contractor and owner entered into an oral agreement for a residential renovation project. The contractor recorded a construction lien after its final two invoices went unpaid. During trial, the contractor offered conflicting evidence as to when its final furnishing date on the project was. Numerous dates were offered in the record including dates that were more than 90 days prior to the date the contractor recorded its lien, meaning the lien was arguably untimely. As a result, the trial judge entered a directed verdict in favor of the owner and against the contractor on the contractor’s lien claim finding the lien was untimely recorded.
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David Adelstein, Katz, Barron, Squitero, Faust, Friedberg, English & Allen, P.A.Mr. Adelstein may be contacted at
dma@katzbarron.com
Nevada Governor Signs Construction Defect Reform Bill
February 26, 2015 —
Beverley BevenFlorez-CDJ STAFFAccording to the Las Vegas Review-Journal, Nevada Governor Brian Sandoval “signed the first major Republican-backed reform bill of the 2015 session, a measure making changes to Nevada’s construction defect law.”
Sandoval stated, “During my State of the State address, I challenged the Legislature with passing meaningful construction defect reform. They have met that challenge with the Homeowner Protections Act, which discourages frivolous litigation and strengthens Nevada’s rebounding housing market,” as quoted in the Las Vegas Review-Journal.
The bill, which goes into effect immediately, “restricts the definition of what constitutes a home defect, repeals a provision allowing attorney fees and costs in a home defect judgment, and requires specific descriptions of defects.” It also reduces the statute of limitations from ten years to six years, and prohibits homeowner association boards from filing suits on behalf of homeowners.
Not all legislatures were in favor of the measure. For instance, Sen. Aaron Ford “called the measure the ‘homeowner rejection’ act rather than a homeowner protection act at a joint hearing on the bill,” according to the Las Vegas-Review Journal.
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New Evidence Code Requires Attorney to Obtain Written Acknowledgement that the Confidential Nature of Mediation has been Disclosed to the Client
January 02, 2019 —
Steven J. Pearse, Esq. & David A. Napper, Esq. – Chapman Glucksman Dean Roeb & BargerSenate Bill 954: MEDIATION CONFIDENTIALITY DISCLOSURES.
California regards mediation as a beneficial process for parties to resolve disputes in an expeditious and economical fashion. To assure open and candid participation, there is a longstanding policy in California to maintain confidentiality during the mediation process. However, the mediation confidentiality statutes have prevented some clients from suing their·attorneys for alleged malpractice that occurred during the mediation process. (see Cassel v. Superior Court, (2011) 51 Cal.4th 113). Senate Bill ("SB") 954, was recently passed and thereafter approved by the Governor on September 11, 2018 to address this concern.
SB 954, which will amend California Evidence Code section 1122 and add California Evidence Code section 1129, requires that an attorney representing a client participating in a mediation or a mediation consultation provide that client with a written disclosure and acknowledgement containing the mediation confidentiality restrictions as set forth in the California Evidence Code.
This written disclosure and acknowledgement requirement does not apply to class or representative actions. Additionally, the failure of an attorney to follow the new requirement will not be a basis to set aside an agreement prepared in the course of, or pursuant to, a mediation. Any communication, document, or writing related to an attorney's compliance with the disclosure requirement will not be considered confidential and may be used in a disciplinary proceeding if the communication, document, or writing does not disclose anything said or done or any admission made in the course of the mediation.
California Evidence Code section 1129 sets forth the exact language that must be used in the disclosure. It even informs the client that all communications between the client and the attorney made in preparation for a mediation, or during a mediation, are confidential and cannot be disclosed or used (except in extremely limited circumstances), even if the client later decides to sue the attorney for malpractice because of something that happens during the mediation.
The new disclosure requirement will allow mediation to maintain the confidentiality that encourages open and candid communications during the process while ensuring that before clients agree to mediation that the clients are made aware of how that confidentiality can potentially impact them. SB 954, will take effect on January 1,2019.
Reprinted courtesy of
Stephen J. Pearce, Chapman Glucksman Dean Roeb & Barger and
David A. Napper, Chapman Glucksman Dean Roeb & Barger
Mr. Pearce may be contacted at dnapper@cgdrblaw.com
Mr. Napper may be contacted at jpaster@HuntonAK.com
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Graham & Who May Trigger The Need To Protest
December 23, 2023 —
Hugo Fraga - Ahlers Cressman & Sleight PLLCOn May 30, 2023, the Washington Court of Appeals, Division I, issued a decision that appears to expand a contractor’s obligation with respect to WSDOT notice and claim procedures. In
Graham Contracting, Ltd. v. City of Federal Way, No. 83494-1-I, 2023 WL 3721171 (Wash. Ct. App. May 30, 2023) (Unpublished), the Court held that under the 2016 WSDOT Standard Specifications for Road, Bridge, and Municipal Construction (“Standard Specifications”), a Contractor must protest the actions of not only the “Engineer” but also the actions of any person or organization acting on behalf of the Owner.
This case arises out of a public construction contract in which Graham Contracting Ltd (“Graham”) built a multi-million dollar roadway improvement for the City of Federal Way along a stretch of Pacific Highway. The appeal was from the trial court’s granting of the City’s motion for summary judgment to dismiss claims by Graham for extra time and money due to delays and impacts to Graham’s construction of the Project.
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Hugo Fraga, Ahlers Cressman & Sleight PLLCMr. Fraga may be contacted at
hugo.fraga@acslawyers.com
Water Damage: Construction’s Often Unnoticed Threat
November 02, 2020 —
Yaron Dycian - Construction ExecutiveFire damage to commercial buildings might get headlines, but water damage, whether to projects under construction or completed buildings, delivers massive financial blows to owners, developers and contractors. The impact is massive, reaching many billions of dollars per year. One water leak on the 19th floor at a construction site of a high-end apartment building in New York City resulted in $30 million in property damage and millions in delayed delivery penalties.
Imagine this all-too-typical scenario: A 20-story building has thousands of pipe connections and many tens of thousands throughout the entire building. It only takes one of those joints failing, perhaps due to human oversight. Early on a Saturday morning when no one is onsite, one of the connections inside a wall begins to leak, slowly at first. In a couple hours the connection fails completely, sending a cascade of water into the building. The site is located next to a highway, so the security guards don’t hear the water flowing.
The leak goes undetected until crews come back onsite on Monday morning. By that point, lower levels of the building have been inundated with thousands of gallons of water that has destroyed construction material, carpeting and electrical switchgear. It’s flowed into the elevator pits and mechanical room.
Reprinted courtesy of
Yaron Dycian, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Dycian may be contacted at
yaron@wint.ai
