Appellate Court of Maryland Construes Notice Conditions of A312 Performance Bond in Favor of Surety
January 02, 2024 —
Joel P. Williams - White and Williams LLPThe Appellate Court of Maryland issued a reported opinion in a case construing an American Institute of Architects (“AIA”) A312 performance bond. In Wildewood Operating Company, LLC v. WRV Holdings, LLC, et al. 2023 Md. App. LEXIS 720 (Oct. 30, 2023), the Appellate Court of Maryland held that a performance bond surety was discharged from liability where the owner/obligee failed to give the surety notice of the contractor’s default termination until after a third party had completed the work.
The project concerned the construction of an assisted living facility in St. Mary’s County, Maryland. The owner, Wildewood Operating Company, LLC, entered into an A312-2010 performance bond with Clark Turner Construction, LLC, as contractor, and First Indemnity of America Insurance Company, as surety. When Clark Turner failed to complete certain stormwater management work adjacent to the site, Wildewood, Clark Turner, and other parties entered into a Work Agreement to address completion of the work. The surety was not a party to the Work Agreement.
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Joel P. Williams, White and Williams LLPMr. Williams may be contacted at
williamsj@whiteandwilliams.com
Home Prices in 20 U.S. Cities Rose at Slower Pace in May
July 30, 2014 —
Victoria Stilwell – BloombergResidential real-estate prices rose in the 12 months ended May at the slowest pace in more than a year as a lull in the U.S. housing market limits appreciation.
The S&P/Case-Shiller index of property values in 20 cities increased 9.3 percent from May 2013, the smallest year-to-year advance since February 2013, after rising 10.8 percent in the year ended in April, the group said today in New York. The median projection of 30 economists surveyed by Bloomberg called for a 9.9 percent year-over-year advance. Compared with the prior month, prices dropped for the first time in two years.
Higher mortgage rates and strict lending requirements are bridling sales, which will probably prompt sellers to lower their expectations of how much they can get for their properties. Continued job growth and greater balance between supply and demand will be needed to bring some potential homebuyers back into the market.
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Victoria Stilwell, BloombergMs. Stilwell may be contacted at
vstilwell1@bloomberg.net
Three Kahana Feld Attorneys Recognized in The Best Lawyers in America® 2025
September 23, 2024 —
Linda Carter - Kahana FeldNEW YORK – Sep. 4, 2025 – Kahana Feld is pleased to announce that Eric Bernhardt and Kraig Kilger were included in the 2025 edition of The Best Lawyers in America® and Alice A. Trueman was included in Best Lawyers: Ones to Watch® in America.
Eric Bernhardt was awarded for his work in Litigation – Insurance. Bernhardt is a partner in the firm’s Buffalo, NY office, admitted in New York and California, and a member of Kahana Feld’s national appellate practice group. His practice encompasses multiple types of litigation including the defense of New York Labor Law, construction, product liability, trucking, professional and medical malpractice, automobile accident, and general negligence cases.
Kraig Kilger was recognized in the areas of Bankruptcy and Creditor Debtor Rights/Insolvency and Reorganization Law, Litigation – Real Estate, and Real Estate Law. Kilger is a partner in Kahana Feld’s Irvine, CA office. His experience spans all phases of residential and commercial real estate development, including acquisitions, financing, planning, entitlement, development, construction, leasing, and sales.
Alice Trueman was recognized by Best Lawyers: Ones to Watch in the field of Personal Injury Litigation – Defendants. She is a litigation attorney in the firm’s Buffalo, NY office who focuses her practice on general liability defense and insurance defense. Ones to Watch recipients typically have been in practice for 5-9 years and are selected for their outstanding professional excellence in private practice.
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Linda Carter, Kahana FeldMs. Carter may be contacted at
lcarter@kahanafeld.com
Biden’s Solar Plans Run Into a Chinese Wall
May 23, 2022 —
Liam Denning - BloombergA new and unexpected obstacle to President Joe Biden’s green ambitions has emerged: a tiny solar-power company based in San Jose.
Auxin Solar Inc., which accounts for all of 2% of U.S. solar-module manufacturing, recently persuaded the Commerce Department to open a potentially devastating trade inquiry. After the U.S. imposed anti-dumping measures against Chinese solar-cell and module manufacturers just over a decade ago, alternative suppliers sprang up in South Korea and Southeast Asia. Auxin now contends that those other Asian suppliers are effectively used by Chinese companies to circumvent the anti-dumping measures.
If Commerce ultimately agrees, then more than four-fifths of solar-module imports to the U.S. and half of all cells could suddenly be subject to steep tariffs, perhaps levied retroactively. The Solar Energy Industries Association warns of dire consequences for U.S. solar-power development — critical to Biden’s decarbonization targets — claiming that some suppliers are already backing away because of the risk. Heavyweight NextEra Energy Inc. warns that the investigation may delay 2.8 gigawatts of projects slated for this year. Timothy Fox of ClearView Energy Partners, a Washington-based analysis firm, says Commerce’s “structural” inclination toward protectionism may lead it to concur with Auxin.
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Liam Denning, Bloomberg
Bankrupt Canada Contractor Execs Ordered to Repay $26 Million
April 25, 2022 —
Scott Van Voorhis - Engineering News-RecordJohn Aquino, the former president of a major and now bankrupt Ontario construction contractor, plans to appeal a provincial court ruling that puts him and his associates on the hook for $26.2 million drained from the company, according to his attorney.
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Scott Van Voorhis, Engineering News-Record
ENR may be contacted at enr@enr.com
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Court Finds That $400 Million Paid Into Abatement Fund Qualifies as “Damages” Under the Insured’s Policies
November 21, 2022 —
Lorelie S. Masters & Yaniel Abreu - Hunton Insurance Recovery BlogIn
Sherwin-Williams Co. v. Certain Underwriters at Lloyd’s London, et al., the Court of Appeals for Ohio’s Eighth District reversed the lower court, finding that money paid by the insured into an abatement fund was “damages” as that undefined term was used in the policyholder’s insurance policies. 2022-Ohio-3031, ¶ 1. Sherwin-Williams is a cautionary tale about how insurers may try to narrow the meaning of undefined terms in their insurance policies.
The dispute in Sherwin-Williams focused on coverage for $400 million that the policyholder and other defendants were ordered to pay into an abatement fund to be used by California cities and counties to mitigate the hazards caused by lead paint in homes. Id. ¶ 1. Although the underlying litigation proceeded in California, Ohio law governed coverage, which raised issues of first impression in Ohio. Id. Among other things, the insurers argued that the money paid into the abatement fund did not qualify as “damages” under the policies. Id. ¶ 57. The insured argued that, because the insurers did not define “damages” in the policies, the term had to be given its ordinary meaning. Id. ¶ 56.
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Lorelie S. Masters, Hunton Andrews Kurth and
Yaniel Abreu, Hunton Andrews Kurth
Ms. Masters may be contacted at lmasters@HuntonAK.com
Mr. Abreu may be contacted at yabreu@HuntonAK.com
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Structural Problems May Cause Year-Long Delay Opening New Orleans School
January 29, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to the Uptown Messenger, structural issues found at Audubon Charter School’s Broadway campus in New Orleans, Louisiana, will require “selective demolition” and “could delay students’ return by as much as a full year.”
Late September of last year, “officials discovered that some of the steel supports around the stair towers were not level—some of the steel beams lean out several inches, so that the floors are not parallel.” Discovering the problem will require some demolition, according to Chris Young of Blitch Knevel architects as quoted in the Uptown Messenger: “…we’re going to have to tear down a lot of this construction to expose that steel frame to make sure that every steel beam is straight and true and not deformed.”
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Real Property Alert: Recording Notice of Default as Trustee Before Being Formally Made the Trustee Does Not Make Foreclosure Sale Void
February 18, 2015 —
Krsto Mijanovic and Annette F. Mijanovic – Haight Brown & Bonesteel LLPIn Ram, et al. v. OneWest Bank, FSB, et al. (filed 2/6/15, No. A139055), the California Court of Appeal held that a nonjudicial foreclosure sale is not void merely because the notice of default was recorded by an entity who had not yet been substituted as trustee. The court also held that because the sale was voidable, rather than void, the plaintiffs were required to allege an ability and willingness to tender their debt in addition to alleging that they were prejudiced by the irregularity in the foreclosure process.
Plaintiffs were borrowers who purchased a home subject to a deed of trust. After they defaulted on their loan, nonjudicial foreclosure proceedings were initiated, and the beneficiary of the deed of trust, OneWest Bank, FSB ("OneWest"), purchased the property at the foreclosure sale. Plaintiffs sued OneWest and other entities for wrongful foreclosure, alleging that the sale was void because the entity identified as the trustee on the notice of default, Aztec Foreclosure Corporation ("Aztec"), had not been formally substituted as trustee until after the notice of default was recorded. The trial court sustained OneWest's demurrer and plaintiff appealed.
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Krsto Mijanovic, Haight Brown & Bonesteel LLP and
Annette F. Mijanovic, Haight Brown & Bonesteel LLP
Mr. Mijanovic may be contacted at kmijanovic@hbblaw.com
Ms. Mijanovic may be contacted at amijanovic@hbblaw.com
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