Perez Broke Records … But Should He Have Settled Earlier?
February 19, 2024 —
Sofya Uvaydov & John F. Watkins - Kahana FeldIn 2021, Mark Perez’ Labor Law 240(1) lawsuit made legal news by breaking the record of the highest appellate-sustained pain and suffering award in New York history. While that record was short-lived, it still maintains its place as New York’s highest-ever pain and suffering award for a brain injury. This January 17th, the Appellate Division, First Department revisited the litigation but, this time, in a dispute between Perez and his then-lawyer, Ben Morelli and the Morelli Law Firm. Mr. Perez claims breach of contract over a 10% additional contingency fee charge related to the Perez v. Live Nation appeal and breach of fiduciary duty by his counsel in failing to convey settlement offers during the lifetime of the case. The Morelli firm counters, among other things, that the prior settlement offers – a $30 million offer during the 2019 trial and intermediate sums during the appellate stage – were still lower than the ultimate $55 million settlement. No harm, Mr. Morelli argues, and thus no foul in failing to convey the offers.
But is that so? Did Mark Perez ultimately receive more money in his $55 million settlement than from the $30 million settlement offer mid-trial? Despite the glaring $25 million difference, the surprising calculations show that Perez would have been financially better off taking the $30 million mid-trial settlement.
Reprinted courtesy of
Sofya Uvaydov, Kahana Feld and
John F. Watkins, Kahana Feld
Ms. Uvaydov may be contacted at suvaydov@kahanafeld.com
Mr. Watkins may be contacted at jwatkins@kahanafeld.com
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Are Millennials Finally Moving Out On Their Own?
July 16, 2014 —
Beverley BevenFlorez-CDJ STAFFBrad Hunter of Big Builder reported that there is “some evidence that young people who had moved in with their parents or relatives are now finding the means and the motivation to move out and get their own place.”
According to the 2013 Current Population Survey (as quoted by Big Builder), there was “a drop in the percentage of twenty-somethings living with parents. This was the first decline since 2005, back when the speculative foundations of the housing market started to crumble.” However, a study by the Harvard Joint Center on Housing found that “2.1 million more people between in their 20's lived with their parents than would have typically been the case based on normal headship rates.” This demonstrates that demand for housing should increase as this group gets older and decides to break out on their own.
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Hawaii Supreme Court Finds Subcontractor Has No Duty to Defend Under Indemnity Provision
July 14, 2016 —
Tred R. Eyerly – Insurance Law HawaiiThe Hawaii Supreme Court vacated the decision of the Intermediate Court of Appeals [see prior post here] and determined that a subcontractor did not have a duty to defend the developer upon tender under an indemnify provision in the parties' contract. Arthur v. State of Hawaii, 2016 Haw. LEXIS 155 (June 27, 2016).
A simplified version of the detailed facts and procedural history follows. The case involved the wrongful death of Mona Arthur. Mona typically gardened on the hillside behind her home. She would cross a concrete drainage ditch and climb over a two-foo-high chain length fence to reach the hillside.
Mona was found lying in a concrete ditch with severe head injuries, which ultimately led to her death. Her husband and estate sued for her wrongful death. Claims were asserted for negligence in failing to build a fence higher than two feet, which would have prevented Mona from having access to the garden. Defendants included the Department of Hawaiian Home Lands; Kamehameha Investment Corporation ("KIC"), the developer; Design Partners, Inc., the architect; Coastal Construction Company, the general contractor; and Sato and Associates, the civil engineer. The second amended complaint sought punitive damages against KIC.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Affordable Harlem Housing Allegedly Riddled with Construction Defects
July 09, 2014 —
Beverley BevenFlorez-CDJ STAFFA family in Harlem, New York has demanded that Abyssinian Development Corporation pay $250,000 to fix the construction defects in their newly-purchased townhouse, according to The Daily News.
Allegedly, “[i]nterior walls, bamboo-tiled floors and windowsills began to crack shortly after they moved in, and an improperly installed gas boiler system” stopped working, while “rain has caused cellar walls to deteriorate.”
The townhouse is part of the “Harlem Village Homes II initiative that offers affordable houses in Harlem to those making below $130,000.”
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Don MacGregor of Bert L. Howe & Associates Awarded Silver Star Award at WCC Construction Defect Seminar
May 24, 2018 —
CDJ STAFFThe staff of the Construction Defect Journal would like to extend their congratulations to Don MacGregor of Bert L. Howe & Associates, Inc., in recognition of his receipt of the Silver Star Award as “Best Expert” at the 25th Anniversary of the West Coast Casualty Construction Defect Seminar, hosted at the Disneyland Resort Hotel, in Anaheim CA.
Recipients of the Silver Star Awards were nominated and voted on by their peers, colleagues, and the Construction Defect Community at large, as represented by the 25,000 members who received emails on the subject.
Along with “Best Expert,” recognition was also given to the best judge, mediator, plaintiff attorney, developer attorney, subcontractor attorney, coverage counsel, and insurance claims professional. Awards were handed out last Thursday during a special ceremony at this year’s Seminar.
To Don, and all the worthy awardees, congratulations again!
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Subsequent Owners of Homes Again Have Right to Sue Builders for Construction Defects
October 07, 2016 —
Mark L. Parisi – White and Williams LLPOwners of homes with damage from construction defects have long had the standing to sue the builders of their homes using the legal theories of 1) breach of contract, 2) breach of implied warranty, and 3) breach of Pennsylvania’s consumer fraud statute, the Unfair Trade Practices and Consumer Protection Law (UTPCPL).
Before the 2014 decision of the Pennsylvania Supreme Court in Conway v. Cutler, even owners who were not the original purchasers of their homes, so-called subsequent owners, had a right to sue the builder of their homes using implied warranty as the legal theory. But the Supreme Court in Conway said in 2014 that even though an implied warranty theory is not based on a written contract, it is a quasi contract theory and because subsequent owners never had a contractual relationship with the builder of their home, the implied warranty cause of action was not available. Subsequent purchasers were thus left without a remedy for damage from defective construction in their homes and builders had a second safe harbor from claims regarding homes they built. The first safe harbor is Pennsylvania’s Statute of Repose. If the home was completed more than 12 years before a lawsuit was filed, the Statute of Repose bars the claim. But after Conway, if the home was sold, this also cut off a builder’s potential liability for construction defects in the home.
ENTER THE UTPCPL
On July 26, 2016 the Pennsylvania Superior Court in the case of Adams v. Hellings Builders issued a non-published (and therefore non-precedential) decision in a stucco construction defect case that held that subsequent purchasers could sue their home’s builder under the UTPCPL because the Act had no requirement that the purchaser of a product, or home, be the original purchaser. The decision cites several other appellate cases not involving construction defect claims that held that the UTPCPL was a valid legal theory for claims regarding products purchased second hand by the plaintiffs in those other cases. The court in Adams held that there was no reason that a suit regarding construction defects in a home should be treated any differently.
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Mark L. Parisi, White and Williams LLPMr. Parisi may be contacted at
parisim@whiteandwilliams.com
4 Ways to Mitigate Construction Disputes
March 20, 2023 —
Bill Shaughnessy - ConsensusDocsResolving construction disputes in litigation (court or arbitration) can be expensive and may drag on for years. Most disputes could have been avoided, or at least mitigated, had the parties (both owners and contractors) identified contract risks during negotiations and been more proactive in communicating the risks during execution of the work. This article highlights four practical risk management approaches that help all parties focus on their mutual interest in close coordination and clear communication at the beginning of the project as well as throughout performance:
- Identifying and allocating risks;
- Accurate scheduling;
- Clear project documentation and communication; and
- Real-time dispute resolution.
The intent of these techniques is not to shift legal obligations or risks. Rather, the intent is to keep project personnel and project management for all the participants focused on communicating and working together, including responsibly confronting real problems to avoid or mitigate their impact. Allocating risks, scheduling, project documentation and communication, and real-time dispute resolution are independently relevant on a bilateral basis between the owner, designer, and the various contractors. These approaches and their diligent execution by the parties during construction contribute far more to a successful project than anything lawyers and claims consultants can contribute in after-the-fact legal proceedings.
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Bill Shaughnessy, Jones Walker LLP (ConsensusDocs)Mr. Shaughnessy may be contacted at
bshaughnessy@joneswalker.com
How to Build Climate Change-Resilient Infrastructure
July 20, 2020 —
Aarni Heiskanen - AEC BusinessOhio University has released a guide titled, An Engineer’s Guide to Building Climate Change-Resilient Infrastructure. It was created for engineers, environmentalists, climate change communities, and construction organizations who are looking to share information about the importance of building cities that are able to fight growing climate threats.
Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi
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