Condo Owners Allege Construction Defects at Trump Towers
April 28, 2016 —
Beverley BevenFlorez-CDJ STAFFThe Daily Business Review reported that three lawsuits have been filed against the developers of Trump Towers in Sunny Isles Beach, Florida alleging cracked pool decks, sloping roofs, water intrusion, among other construction defects.
While Gary Mars, the attorney for the associations, did not have an estimate of repair costs, an engineer hired by the unit owners listed over 300 defects in two of the towers, according to the Daily Business Review.
Attorney Peri Rose Huston-Miller of Derrevere Hawkes Black & Cozad, counsel for Steven Feller (a defendant), stated their client is "aware of the complaints that have been filed and is confident the parties will work together toward a resolution of the issues alleged.”
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Blue Gold: Critical Water for Critical Energy Materials
October 24, 2022 —
Robert A. James & Ashleigh Myers - Gravel2Gavel Construction & Real Estate Law BlogAs demand increases for low-carbon technologies to power the energy transition, the acquisition of critical materials—so-called given their integral role in the transition of energy activities—is becoming increasingly important. As described in our previous post, such critical materials include rare earth elements (REE), lithium, nickel and platinum group metals. In short, the transition endeavors to reduce use of one non-renewable resource—fossil fuel—by significantly ramping up our use of other non-renewable resources. While critical material discussions have largely centered on the availability and economic extractability of the minerals themselves, Pillsbury is also counseling on the other resources needed to bring the materials to market at the scales required for our decarbonization goals.
Chief among these resources is water. The extraction, processing and manufacture of critical materials into low-carbon technologies all require significant volumes of water. For example, up to 5,000 gallons of water are needed to produce one ton of lithium. Critical materials are often found in arid climates that are already experiencing water stress (such as the “lithium triangle” of Argentina, Bolivia and Chile, and copper in Chile), or in areas experiencing conflict and challenges to water development (such as cobalt production in the Democratic Republic of the Congo). In the U.S., development potential resides largely in the water-constrained western and southwestern states, such as Arizona (copper), California (REE), New Mexico (copper, REE), Texas (REE), Utah (magnesium, lithium, platinum, palladium, vanadium, copper), and Wyoming (REE, platinum, titanium, vanadium).
Reprinted courtesy of
Robert A. James, Pillsbury and
Ashleigh Myers, Pillsbury
Mr. James may be contacted at rob.james@pillsburylaw.com
Ms. Myers may be contacted at ashleigh.myers@pillsburylaw.com
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Construction Materials Company CEO Sees Upturn in Building, Leading to Jobs
November 05, 2014 —
Beverley BevenFlorez-CDJ STAFFThe Washington Post reported that Mesa Industries Inc. (a construction equipment and materials company), are "prepping for significant growth," which suggests that the construction industry is poised for growth. Terry Segerberg, CEO of Mesa Industries Inc., "is seeing enough nonresidential orders to suggest a sustained jobs recovery is underway in the industry — and in firms like hers that supply it."
A Bureau of Labor Statistics report predicted that 1.6 million construction jobs will be added through 2022, according to the Washington Post.
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2018 Spending Plan Boosts Funding for Affordable Housing
April 11, 2018 —
Emily Bias – Gravel2Gavel Construction & Real Estate Law BlogOn March 23, President Trump signed into law the Consolidated Appropriations Act, 2018, a $1.3 trillion spending package that includes a 12.5% increase in low-income housing tax credit allocations over the next four years, along with funding increases for several affordable housing programs. This is welcome news to affordable housing developers who have been facing funding gaps as a result of reductions in the corporate tax rate under the Tax Cuts and Jobs Act enacted in late 2017, which led to reduced pricing from equity investors.
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Emily Bias, Pillsbury Winthrop Shaw Pittman LLPMs. Bias may be contacted at
emily.bias@pillsburylaw.com
Indemnity: What You Don’t Know Can Hurt You!
September 19, 2022 —
Caitlin Kicklighter & Bill Shaughnessy - ConsensusDocsRisk allocation between the parties is a critical component of any construction contract. Indemnity obligations can be some of the important risk-shifting provisions of any design or construction contract. Indemnity provisions typically require one party, the Indemnitor, to agree to “hold harmless,” and/or reimburse another party, the indemnitee, from claims and liability arising out of the party’s work. Considering the financial consequences that an indemnity provision can have on a construction project, it is critical that all parties to a construction contract know the legal implications of the contract indemnity provisions and understand any limitations in enforcing the indemnity provisions depending on the controlling jurisdiction. While most indemnity clauses and obligations are enforceable, many states have enacted anti-indemnity statutes prohibiting or restricting specific indemnification provisions. These anti-indemnity statutes afford protection to contractors and subcontractors not generally in a position to protect themselves from overly extensive indemnity obligations.
This article highlights several examples of indemnity provisions typically seen in construction contracts, the measures are taken by a growing number of states to protect parties with less bargaining power in the form of anti-indemnity statutes, and offers practical considerations when negotiating or drafting indemnity provisions.
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Reprinted courtesy of
Caitlin Kicklighter, Emory Law Student (2024 Graduate), (ConsensusDocs) and
Bill Shaughnessy, Jones Walker LLP (ConsensusDocs)
Mr. Shaughnessy may be contacted at bshaughnessy@joneswalker.com
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Contracts and Fraud Don’t Mix (Even for Lawyers!)
August 24, 2020 —
Christopher G. Hill - Construction Law MusingsIn prior posts here at Construction Law Musings, I have discussed how fraud and contracts are often like oil and water. While there are exceptions, these exceptions are few and far between here in Virginia. The reason for the lack of a mix between these two types of claims is the so-called “source of duty” rule. The gist of this rule is that where the reason money is owed from one party to another (the source of the “duty to pay”) is based in the contract, Virginia courts will not allow a fraud claim. The rule was created so that all breaches of contract, claims that are at base a failure to fulfill a prior promise and could, therefore, be considered to be based on a prior “lie,” would not be expanded to turn into tort claims. This rule has been extended to claims that most average people (read, non-lawyers) would consider fraud because there was no intent to fulfill the contract at the time it was signed.
Just so you don’t think that lawyers are exempt from this legal analysis, I point you to a recent case where a law firm sued a construction client of theirs for failure to pay legal fees. In EvansStarrett PLC v. Goode & Preferred General Contracting, the Fairfax County Circuit Court considered a motion by the Plaintiff law firm seeking to add a count of fraud to its breach of contract lawsuit. The Court considered the following facts.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Termination for Convenience Clauses: Maybe More Than Just Convenience
June 06, 2022 —
Robert C. Shaia - ConsensusDocsA contractor begins work on a project and everything is going well, until one day the owner informs the contractor that it is being terminated for convenience. Possibly, there is no discussion about alleged defects, reasons for the termination, or any damages the owner might seek against the contractor. In that moment, the contractor may be unaware of any perceived wrongdoing or problems with its work.
The industry has typically accepted that, in this scenario, the owner implicitly waives the right to any remedies against the contractor, except those expressly set forth in the contract. Reasonable minds might assume that, if the owner believed it needed to seek further remedies, it would terminate the contractor for cause instead of convenience. And often overlooked during contract negotiations are the benefits of including an express “waiver of remedies” in the termination for convenience section.
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Robert C. Shaia, Watt, Tieder, Hoffar, & Fitzgerald, LLP (ConsensusDocs)Mr. Shaia may be contacted at
rshaia@watttieder.com
Homeowner’s Claims Defeated Because “Gravamen” of Complaint was Fraud, not Breach of Contract
September 29, 2021 —
Garret Murai - California Construction Law BlogBe careful what you wish for or, as in the next case, what you plead. In Vera v. REL-BC, LLC, Case Nos. A155807, A156823, and A159141 (June 30, 2021) 1st District Court of Appeal, a the buyer of a remodeled home who asserted breach of contract and fraud claims against a developer discovered that her claims, including her breach of written contract claim, was subject to a shorter 3 year statute of limitations because the “gravamen” of her complaint was fraud.
The REL-BC Case
Homeowner Adriana Vera purchased a remodeled home in Oakland, California from developers REL-BC, LLC and SNL Real Estate Solutions, LLC. The developers had purchased the home in July 2011, remodeled it, and sold it to Vera in November 2011.
As is typical in such transactions, the purchase agreement for the house required that the sellers disclose known material facts and defects affecting the property. In their disclosure, the sellers stated that they were not aware of any significant defects or malfunctions with respect to the property. The disclosure also stated that the sellers were not aware of any water intrusion issues with respect to the property.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com