Did the Building Boom Lead to a Boom in Construction Defects?
May 10, 2013 —
CDJ STAFFThe height of the building boom is now almost a decade past but some are saying that the results of the rush to get housing built during the profitable market are still with us. The Wall Street Journal reports on the rise of construction defect lawsuits as these homes have aged, some not too gracefully. One couple thought they were hearing acorns falling on their roof. They were less happy to find that the source of the noises was their house slumping on one end, leading to cracks throughout the house. Their neighbors had similar problems and they are now part of a lawsuit against the builder. The expenses to repair the houses could total millions of dollars.
Some have suggested that during the building boom both building and inspection standards were more lax in order to keep up with the pace of building. Criterium Engineers, a building-inspection firm, estimates that 17% of new homes built in 2006 had at least two significant defect, while only 15% of those built in 2003 fit these criteria. Meanwhile others attribute the rise in construction defect lawsuits to home inspector and construction defect attorneys looking for new territories to exploit.
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Texas Jury Finds Presence of SARS-CoV-2 Virus Causes “Physical Loss or Damage” to Property, Awards Over $48 Million to Baylor College of Medicine
September 26, 2022 —
Michael S. Levine & Kevin V. Small - Hunton Insurance Recovery BlogA Texas jury has found that the presence of SARS-CoV-2 virus on the property of Baylor College of Medicine (BCM) caused “physical loss or damage” and resulting economic loss, triggering coverage under BCM’s commercial property insurance program. The jury awarded BCM over $48 million following a three-day trial; the award consisted of $42.8 million in business interruption, $3.3 million in extra expense, and $2.3 million in damage to research projects.
The verdict came after the court denied the insurers’ pre-trial motion for summary judgment, rejecting the insurers’ contention that a virus cannot—as a matter of law—cause physical loss or damage to property. In denying the motion, the court held that whether the presence of the virus causes physical loss or damage presents a question of fact for the jury to resolve; a copy of the order rejecting the insurers’ summary judgment argument can be found
here.
Reprinted courtesy of
Michael S. Levine, Hunton Andrews Kurth and
Kevin V. Small, Hunton Andrews Kurth
Mr. Levine may be contacted at mlevine@HuntonAK.com
Mr. Small may be contacted at ksmall@HuntonAK.com
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Cause Still Unclear in March Retaining Wall Collapse on $900M NJ Interchange
June 07, 2021 —
Stephanie Loder - Engineering News-RecordA probe continues by construction engineer Hardesty and Hanover LLC into what caused the late March collapse of a retaining wall that is part of one of New Jersey's largest roadbuilding projects—the already late-running effort called Direct Connection, which aims to untangle the convoluted interchange of north-south I-295 and east-west Route 42 in Camden County.
Reprinted courtesy of
Stephanie Loder, Engineering News-Record
ENR may be contacted at ENR.com@bnpmedia.com
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Possible Real Estate and Use and Occupancy Tax Relief for Philadelphia Commercial and Industrial Property Owners
September 07, 2017 —
James Vandermark & Kevin Koscil - White and Williams LLPA recent decision by the Pennsylvania Supreme Court puts in jeopardy all of the recent real estate tax reassessments completed by the City of Philadelphia for tax year 2018 as well as appeals initiated by the School District of Philadelphia in 2016 for tax year 2017.
The City’s current practice is to certify the market values of any reassessed properties to the Board of Revision of Taxes on March 31st prior to the year that the assessment would be implemented. The City then relies on those certified values to determine the applicable tax rate when it creates its budget each summer. Accordingly, the Office of Property Assessment (OPA) submitted the values applicable for the 2018 tax year to the BRT on March 31, 2017. The City set the applicable tax rates during its summer budget sessions. However, unlike prior years, this year the City only reassessed commercial and industrial properties and excluded residential properties. The result was reported to be an increase of over $118 million in new real estate taxes.
Shortly after the City finished its budget, the Pennsylvania Supreme Court decided the case of Valley Forge Towers Apartments N, LP, et al. v. Upper Merion Area School District. The case involved a challenge by property owners to the Upper Merion School District’s practice of only appealing assessments on commercial properties. As with the recent reassessments by the City, Upper Merion was only seeking to increase the real estate tax assessments for high value commercial properties. The Pennsylvania Supreme Court found that the school district’s practice violated the Uniformity Clause in the Pennsylvania Constitution. The court reaffirmed the principle that real estate within a jurisdiction should be treated as a single class and that tax authorities are not permitted to discriminate against commercial and industrial properties in favor of residential properties for purposes of real estate taxation.
Reprinted courtesy of
James Vandermark, White and Williams LLP and
Kevin Koscil, White and Williams LLP
Mr. Vandermark may be contacted at vandermarkj@whiteandwilliams.com
Mr. Koscil may be contacted at koscilk@whiteandwilliams.com
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Illinois Lawmakers Approve Carpenters Union's Legislation to Help Ensure Workers Are Paid What They're Owed
April 19, 2022 —
Mid-America Carpenters Regional CouncilCHICAGO — Workers around the state have new protections to help ensure they are paid what's owed to them under new legislation that passed the Illinois General Assembly last week.
HB5412 makes a primary contractor liable for the failure of a subcontractor to pay wages owed to its workers. The subcontractor would in turn be required to compensate the primary contractor for any wages, damages, interest, penalties or attorneys' fees as a result of the subcontractor's failure to pay wages.
"All of us in the Carpenters Union are thrilled to see the Legislature take action on this landmark legislation," said Gary Perinar, Executive Secretary-Treasurer of the Mid-America Carpenters Regional Council. "We have been leading the fight against worker exploitation in every state, and Illinois is showing that hardworking men and women are valued and protected here. When workers are getting ripped off and not paid what they are owed, that should outrage every single person on a job site. I thank Senate President Don Harmon, Speaker Emanuel "Chris" Welch, Leader Evans, and Senator Castro for their unwavering commitment throughout this process to support working families."
About the Mid-America Carpenters Regional Council
The Mid-America Carpenters Regional Council represents over 52,000 working men and women across 324 counties in Illinois, Missouri, Kansas and Eastern Iowa. The Mid-America Carpenters Regional Council provides the construction and maintenance industries with productive, competitive and certified professionals, encompassing a wide variety of crafts and skills.
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John O’Meara is Selected as America’s Top 100 Civil Defense Litigators
December 02, 2019 —
John O'Meara - Bremer Whyte Brown & O'Meara LLPBremer Whyte Brown & O’Meara, LLP is proud to announce that Partner John V. O’Meara has been selected as a member of America’s Top 100 Civil Defense Litigators. This invitation resulted from a national selection process and is intended to honor the best defense attorneys in the Country. Mr. O’Meara was selected to join a group of lawyers which include past and current state bar presidents, national ABOTA Presidents, ABOTA Masters in Trial and International Academy of Trial Lawyer presidents.
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John O'Meara, Bremer Whyte Brown & O'Meara, LLPMr. O'Meara may be contacted at
jomeara@bremerwhyte.com
Construction Defects could become Issue in Governor’s Race
October 22, 2014 —
Jesse Howard Witt – Acerbic WittAccording to today’s Denver Business Journal, construction defects have emerged as a potential issue in Colorado’s gubernatorial race. During last night’s debate, Republican challenger Bob Beauprez criticized incumbent Democrat John Hickenlooper for failing to help senators with a last-minute push to enact a bill stripping away homeowner protections in construction disputes. Republicans had argued that the bill was needed to appease apartment developers who claim that quality control and insurance costs are too high on condominium projects.
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Jesse Howard Witt, The Witt Law FirmMr. Witt welcomes comments at www.wittlawfirm.net
Courthouse Reporter Series: Louisiana Supreme Court Holds Architect Has No Duty to Safeguard Third Parties Against Injury, Regardless of Knowledge of Dangerous Conditions on the Project
July 31, 2024 —
Stu Richeson - The Dispute ResolverIn Bonilla v. Verges Rome Architects, 2023-00928 (La. 3/22/24); 382 So.3d 62, the Louisiana Supreme Court held because the terms of the agreement between the architect and the public owner did not give the architect responsibility for the means and methods of construction or for safety on the project, the architect did not have a duty to safeguard third parties against injury, regardless of whether the architect may have had knowledge of dangerous conditions on the project.
In Bonilla, the City of New Orleans entered into a contract for the renovation of a building owned by the city. The city also entered into an agreement with Verges Rome Architects (“VRA”) to serve as the project architect. The general contractor on the project subcontracted the demolition work to Meza Services, Inc. (“Meza”).
An employee of Meza was injured while attempting to demolish a “vault” on the project. The vault was a ten-foot by ten-foot cinderblock room with a nine-foot-high concrete slab ceiling located on the second floor of the building. The walls of the vault had been partially demolished when one of the employees of Meza was directed by his supervisor to stand on the ceiling of the vault with a jackhammer to continue the demolition. Shortly after beginning the task, the vault structure collapsed and caused the employee to suffer significant injury.
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Stu Richeson, PhelpsMr. Richeson may be contacted at
stuart.richeson@phelps.com