SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

New Home Construction Booming in Texas

October 24, 2022 — Jason Daniel Feld & Ron Raydon - Kahana Feld

With the rapid relocation trends of families moving to Texas, it was reported that new residential construction permits in Texas grew to a total value in excess of $2 billion and over 7,500 new construction permits in September 2022 alone. D.R. Horton lead the way with 1,139 new permits, while Lennar Homes clocked 696 new permits. Other leading homebuilders including KB Homes (239 permits) and Pulte Homes (253 permits) remained active heading into the 4th Quarter of 2022. The following is a breakdown of new permits and average home values in the 4 largest cities in Texas (Houston, Dallas, Austin and San Antonio) for September 2022:

Houston

Last month, there were approximately 340 home builders with new permits on record in the Houston area, and the following ranked as the top five total new permits:

Builder	Total Permits	Average Value
1-D.R. Horton	483	$ 129,812.00
2-Camillo Properties	190	$ 147,790.00
3-Lennar Homes	188	$ 195,503.00
4-Meritage Homes	124	$ 248,597.00
5-Wan Pacific Real Estate Development	117	$ 165,044.00

Dallas

In Dallas, there were more than 290 contractors with new residential construction activity on record with HBW last month, and the following ranked as the top five for total new permits:

Builder	Total Permits	Average Value
1-D.R. Horton	555	$ 179,430.00
2-Lennar Homes	232	$ 202,318.00
3-Trophy Signature Homes	111	$ 274,016.00
4-Bloomfield Homes	97	$ 405,235.00
5-Meritage Homes	92	$ 267,425.00

 Austin

Last month, there were nearly 125 home builders with new construction activity on record in the Austin area, and the following ranked as the top five for total new permits for the one-month period:

Builder	Total Permits	Average Value
1-Lennar Homes	150	$ 154,390.00
2-KB Homes	147	$ 253,606.00
3-D.R. Horton	99	$ 200,416.00
4-Taylor Morrison Homes	79	$ 365,183.00
5-David Weekley Homes	64	$ 436,978.00

 San Antonio

In San Antonio, there were nearly 120 contractors with new residential construction activity on record last month, and the following ranked as the top five for total new permits:

Builder	Total Permits	Average Value
1-Lennar Homes	126	$ 174,315.00
2-KB Homes	55	$ 254,109.00
3-Pulte Homes	52	$ 241,012.00
4-M/I Homes	51	$ 237,283.00
5-LGI Homes	30	$ 202,760.00

The residential construction boom is Texas does not appear to be slowing down anytime soon. With new corporations relocating corporate offices to the Lone Star State each year, we expect this trend to continue for the foreseeable future. And with increased home production, we will closely monitor the increase in construction related litigation over the next five to ten years.

The increase in market activity attracts new or inexperienced builders and tradesman, making the importance of a proactive approach to construction management all the more important. Given the labor shortages and supply chain issues. It is imperative that Texas homebuilders take extra precautions to ensure quality construction practices and oversight to minimize potential litigation.

Reprinted courtesy of Jason Daniel Feld, Kahana Feld and Ron Raydon, Kahana Feld

Mr. Feld may be contacted at jfeld@kahanafeld.com

Mr. Raydon may be contacted at rraydon@kahanafeld.com

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Oregon Bridge Closed to Inspect for Defects

February 25, 2014 — Beverley BevenFlorez-CDJ STAFF
According to The Oregonian, the Morrison Bridge in Multnomah county, Oregon will be closed Sunday, February 23rd “so county crews can inspect the decking that has caused problems since it was installed” in 2012. The “southernmost eastbound lane has been closed for weeks while crews conducted inspections.” The defects appeared “almost immediately after the project” was completed, reported The Oregonian. Drivers have “dealt with a bumpy, noisy ride as the loose decking panels flopped beneath them.” Multnomah county has sued “Conway Construction, the company the installed the decking, as well as Strongwell Corp., the company that supplied Conway with the decking materials, and Zellcomp, the company that made the decking materials, to determine who should foot the bill for extensive repairs or outright replacement of the decking.” Read the court decision
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COVID-19 Case Remanded for Failure to Meet Amount in Controversy

September 14, 2020 — Tred R. Eyerly - Insurance Law Hawaii
The federal district court remanded to state court a loss of rent claim because the amount in controversy requirement was not met. Geragos & Geragos Fine Arts Bldg., LLC v. Travelers Indemn. Co., 2020 U.S Dist. LEXIS 127427 (C.D. Cal. July 20, 2020). Geragos suffered loss of rental income due to the COVID-19 tenant relief measures implemented in Los Angeles. The tenant relief orders would remain in effect for the duration of the emergency period, the end date of which was not presently set. Geragos submitted a claim for loss of rental income to Travelers. When the claim was denied, Geragos sued in state court. Travelers removed to federal district court. Geragos moved to remand the case back to state court for lack of subject matter jurisdiction. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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Construction Litigation Roundup: “A Less Than Valiant Effort”

June 21, 2024 — Daniel Lund III - Lexology
A Miller Act claimant in federal court in New Jersey in relation to a VA medical center project found itself on the wrong end of the law and was sent packing by the court. The claimant had supplied products for the project to general contractor Valiant Group, LLC, pursuant to a purchase order from the GC. The general contractor allegedly refused to pay the supplier, leading to the claim against the GC and its payment bond surety in the amount of $126,900. The supplier also sought recovery under the federal Prompt Payment Act, 31 U.S.C. §§ 3901-07. State law claims were asserted as well. Chipping away at the federal law claims – the claims forming the asserted basis for federal court jurisdiction for the case – the court first dispensed with the Prompt Payment Act claim. According to the court, allegations that the general contractor had “wrongfully and improperly withheld remuneration… despite [having] ‘received payment from the U.S. Department of Veterans Affairs’" – whether or not accurate – did not trigger the Act. The court wrote: “The Prompt Payment Act was enacted ‘to provide the federal government with an incentive to pay government contractors on time by requiring agencies to pay penalties . . . on certain overdue bills . . . [and] was later amended to include provisions applicable to subcontractors.’… Absent from the Act, however, are ‘any explicit provisions for subcontractor enforcement if the prime contractor fails to make timely payment.’… This is because the Act ‘merely requires that the prime contractor's contract with the subcontractor include the specified payment clause. [It] does not require the prime contractor to actually make payments to the subcontractor[.]’… The Act, therefore, does not ‘give subcontractors an additional cause of action for an alleged breach by a general contractor of a subcontract.’” Read the court decision
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Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

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Bright-Line Changes: Prompt Payment Act Trends

September 16, 2024 — Stephanie L. Cooksey - Peckar & Abramson, P.C.
Untimely payment by the owner for contract work and additional work on construction projects can place an unfair financial burden on contractors and subcontractors. Most states have attempted to eliminate or mitigate this inequity in construction contracting through Prompt Payment Acts that govern payment deadlines and provide remedies for untimely payment. This article addresses the legislative trends aimed at minimizing the risk of non-payment, overdue payment, and withholding retainage in favor of downstream parties to a construction contract. Fortifying Contractor Protections with “Bright-Line” Language Over the last decade, states have been tightening prompt payment laws by replacing broad, general statutory language with bright-line rules. What is a bright-line rule? A specific or definite figure, a quantifiable marker—i.e., something owners, contractors, subcontractors, and suppliers should be aware of. Practically speaking, the more bright-line a prompt payment statute is, the greater the likelihood it will affect a construction project in your state. A standard form construction contract, if not reviewed carefully, can create conflicts or confusion if it gives a party more leeway on payment deadlines than the applicable Prompt Payment Act. For example, consider an owner-issued Construction Change Directive (“CCD”) that requires a contractor to commence additional work immediately while a formal change order is negotiated. Consequently, a CCD can push financial burdens downstream, whether inadvertently or not, and may conflict with statutory payment deadlines. Nevertheless, an owner can be justified in its utilization of a CCD to maintain the project schedule. How should the parties competing interests be resolved? Read the court decision
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Reprinted courtesy of Peckar & Abramson, P.C.

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Massive Fire Destroys Building, Firefighters Rescue Construction Worker

March 26, 2014 — Beverley BevenFlorez-CDJ STAFF
A “5-alarm fire burned down a residential building under construction in the Montrose area” of Houston, Texas, reported Click 2 Houston. Almost 200 emergency personnel were on the scene. Captain Ruy Lozano told Click 2 Houston that “firefighters worked to contain the blaze, before the imminent collapse because the fire suppression systems were not yet in place for the under-construction building.” ABC News reported that fire fighters rescued Curtis Reissig, a construction worker from the fire. “It’s burning my eyes, my throat. I can’t breathe and I can’t hardly see anything,” Reissig told ABC News. “I could see a window. I went to that window. Trying to open that window in a panic. I couldn’t get the thing open. Smoke was getting heavier, just trying to get some air.” ABC News reported that Reissig jumped down from a fifth story balcony to a ledge below, where “firefighters pulled him to safety.” Read the full story at Click 2 Houston... Read the full story at ABC News... Read the court decision
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Hunton Andrews Kurth’s Insurance Recovery Practice, Partners Larry Bracken and Mike Levine Receive Band 1 Honors from Chambers USA in Georgia

June 14, 2021 — Walter J. Andrews - Hunton Insurance Recovery Blog
The 2021 Chambers and Partners rankings for Georgia insurance recovery practices and lawyers are out and Hunton Andrews Kurth has received top honors. The rankings include Hunton Andrews Kurth’s Insurance Recovery practice and partners Lawrence J. Bracken II and Michael S. Levine, with all receiving Band 1 honors – the organization’s top-tier ranking. “The top-level ranking of our practice in Georgia, and the work that Larry and Mike bring to our clients in Georgia, specifically, is emblematic of the work our team is doing nationwide,” said Insurance Recovery Practice Head, Walter J. Andrews. “The Firm and I could not be more proud,” he added. Chambers and Partners is an independent research company operating across more than 200 jurisdictions delivering detailed rankings and insight into the world’s leading lawyers. Its rankings are viewed as one of the most credible and reliable industry benchmarks. Read the court decision
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Reprinted courtesy of Walter J. Andrews, Hunton Andrews Kurth
Mr. Andrews may be contacted at wandrews@HuntonAK.com

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Insureds' Summary Judgment Motion on Mold Limitation Denied

November 10, 2016 — Tred R. Eyerly – Insurance Law Hawaii
The insureds' motion for partial summary judgment on the applicability of the homeowner's mold limitation was denied. R.W.& R. v. Liberty Mutual Fire Ins. Co., 2016 U.S.Dist. LEXIS 131586 (W.D. Wash. Sept. 26, 2016). The policy imposed a $5,000 limit on losses caused by mold. Plaintiffs discovered that their dishwasher was leaking and reported the loss to Liberty. Liberty's contractor concluded that the bottom of the dishwasher had rusted out, causing water to seep into parts of the kitchen and the laundry/utility room below. The contractor used dehumidifiers to extract moisture from the affected areas and removed damaged cabinetry, drywall and tiling. The contractor discovered mold that it believed predated the dishwasher leak. Although the contractor took steps to remove the mold, its dehumidification efforts exacerbated the problem by dispersing mold spores throughout portions of the house. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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