New Households Moving to Apartments
December 20, 2012 —
CDJ STAFFThe New York Times reports that multifamily construction—apartment buildings—is leading the recovery in construction. Construction of single-family homes is only a third of the way up from its fall from its earlier heights, while multifamily construction has recovered two-thirds of its peak. Young adults are moving out of their parents’ homes, but instead of buying homes, they’re renting apartments.
Houston is adding thousands of new units, leading to a fear of overbuilding. Rents have been rising, but as the supply of apartment units rises, higher rents may be unsustainable. However, during the recession, young adults did not move out of their parents’ homes, leading to about two million doubled-up households. David Crowe, the chief economist of the National Association of Home Builders, noted that “all of the net addition to households since 2004 has been in rentals.”
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Developer’s Failure to Plead Amount of Damages in Cross-Complaint Fatal to Direct Action Against Subcontractor’s Insurers Based on Default Judgment
January 21, 2019 —
Christopher Kendrick & Valerie A. Moore - Haight Brown & Bonesteel LLPIn Yu v. Liberty Surplus Ins. Corp. (No. G054522, filed 12/11/18), a California appeals court held that a developer’s failure to allege the amounts of damages sought in its cross-complaint rendered default judgments against a subcontractor void and, therefore, unenforceable against the subcontractor’s insurers in a direct action under Insurance Code section 11580(b)(2).
Yu, the owner, hired ATMI to develop a hotel. ATMI subcontracted with Fitch to perform stucco and paint work. Yu sued ATMI for construction defects and the developer cross-complained against its subcontractors, including Fitch, for breach of contract; warranty; indemnity, etc. Yu’s operative complaint prayed for damages “in an amount not less than $10,000,000, according to proof.” ATMI’s cross-complaint stated that it incorporated the allegations of Yu’s complaint “for identification and informational purposes only,” but “does not admit the truth of any allegations contained therein.” The cross-complaint also prayed for damages with respect to the various causes of action “in an amount according to proof.”
Reprinted courtesy of
Christopher Kendrick, Haight Brown & Bonesteel LLP and
Valerie A. Moore, Haight Brown & Bonesteel LLP
Mr. Kendrick may be contacted at ckendrick@hbblaw.com
Ms. Moore may be contacted at vmoore@hbblaw.com
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New York Assembly Reconsiders ‘Bad Faith’ Bill
May 31, 2021 —
Copernicus T. Gaza, Robert S. Nobel, Craig Rokuson, Eric D. Suben - Traub LiebermanThe New York State Assembly is considering A07285, which creates a private right of action for bad faith “if the insurer unreasonably refuses to pay or unreasonably delays payment without substantial justification.” The bill was first introduced in 2013 but was reintroduced on May 3, 2021 and has received some recent attention. According to the bill, an insurer acts unreasonably when it (among other things):
- Fails to provide the claimant with accurate information regarding policy provisions relating to the coverage at issue; or
- Fails to effectuate in good faith a prompt, fair, and equitable settlement of a claim or portion of a claim and where the insurer failed to reasonably accord at least equal or more favorable consideration to its insured's interests as it did to its own interests, and thereby exposed the insured to a judgment in excess of the policy limits or caused other damage to a claimant; or
- Fails to provide a timely written denial of a claimant's claim, or portion thereof, with a full and complete explanation of such denial, including references to specific policy provisions wherever possible; or
- Fails to act in good faith by compelling such claimant to initiate a lawsuit to recover under the policy by offering substantially less than the amounts ultimately recovered in such suit; or
- Fails to timely provide, on request of the policy holder or the policy holder's representative, all reports or other documentation arising from the investigation of a claim; or
- Refuses to pay a claim without conducting a reasonable investigation prior to such refusal.
Reprinted courtesy of
Copernicus T. Gaza, Traub Lieberman,
Robert S. Nobel, Traub Lieberman,
Craig Rokuson, Traub Lieberman and
Eric D. Suben, Traub Lieberman
Mr. Gaza may be contacted at cgaza@tlsslaw.com
Mr. Nobel may be contacted at rnobel@tlsslaw.com
Mr. Rokuson may be contacted at crokuson@tlsslaw.com
Mr. Suben may be contacted at esuben@tlsslaw.com
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Parol Evidence can be Used to Defeat Fraudulent Lien
March 27, 2019 —
David Adelstein - Florida Construction Legal UpdatesParol or extrinsic evidence can be used to defeat an argument that a lien is a fraudulent lien. And, just because a lien amount exceeds the total contract amount does not presumptively mean the lien is willfully exaggerated or recorded in bad faith. Finally, a ruling invalidating a construction lien can create the irreparable harm required to support a petition for writ of certiorari. All of these issues are important when dealing with and defending against a fraudulent lien and are explained in a recent case involving a dispute between an electrical subcontractor and its supplier.
In Farrey’s Wholesale Hardware Co., Inc. v. Coltin Electrical Services, LLC, 44 Fla.L.Weekly D130a (Fla. 2d DCA 2019), there were various revisions to the supplier’s initial purchase order, both from a qualitative and quantitative perspective, and a ninth-revised purchaser order was issued and accepted. The electrical subcontractor claimed that deliveries were late, unassembled, and did not include the required marking (likely the UL marking), to pass building inspections. As a result, the subcontractor withheld money from the supplier and the supplier recorded a lien in the amount of $853,773.16 and filed a foreclosure lawsuit.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Revolutionizing Buildings with Hybrid Energy Systems and Demand Response
January 08, 2024 —
Aarni Heiskanen - AEC BusinessA recent study conducted by the Finnish Building Services 2030 group explores the potential technologies and business prospects for adaptable energy systems within buildings.
Building Services 2030 is a Finnish consortium of Aalto University, Tampere University, and 14 industry partners. The consortium has defined a shared vision for the Finnish building service sector and researches topics that help reach the vision. My company is responsible for the group’s communication, so I eagerly read the research reports as they come out.
One of the new reports I found very timely is about the energy flexibility of buildings. The authors are Senior Researcher Juha Jokisalo and Professor Matti Lehtonen from Aalto University. They highlight how the contemporary energy landscape is undergoing a significant transformation.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
As Natural Gas Expands in Gulf, Residents Fear Rising Damage
July 11, 2022 —
The Associated Press (Cathy Bussewitz & Martha Irvine) - BloombergLake Charles, Louisiana (AP) -- The front lawn of Lydia Larce’s home is strewn with debris: Remnants of cabinets and chunks of pink shower marble lie between dumpsters. She lives in a FEMA trailer out back, her home in shambles more than a year after Hurricane Laura tore through Lake Charles.
Larce, like many in Southwest Louisiana, has what she calls “storm PTSD.” Tornado warnings trigger anxiety. She fidgets and struggles to sleep.
"The fear and the unknown — it has me on an edge,” Larce said. “I’m scared.”
A string of devastating hurricanes has torn through this region in recent years. Nationally, too, there have been more Category 4 and 5 hurricane landfalls in the past five years than in the previous 50 years combined. Larce and her neighbors know they are on the front lines of climate change.
Her region is now the epicenter of a trend that she fears will make those disasters even more destructive.
Developers plan to build a series of liquefied natural gas export facilities across Southwest Louisiana, already the heart of the industry. Even in a state with a heavy industrial base, these facilities are among the largest emitters of greenhouse gases in Louisiana.
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Bloomberg
Taking Service Network Planning to the Next Level
July 22, 2019 —
Aarni Heiskanen - AEC BusinessCities and municipalities are basically systems for delivering services for the benefit of their citizens. An experimental project demonstrated how improving the flow of data between these services could save a lot of time and taxpayer money.
Emilia Rönkkö is an architect who worked for the Finnish city of Kuopio. Besides that, she is a Docent of Urban Planning at the University of Oulu.
“In Kuopio, my job included doing architectural programming for public investments and service network reviews. More specifically, surveys about Growth and Learning Services that were focused on daycares and schools,” Rönkkö explains. “Typically, a service network review with manual data collection procedures takes place every three to five years. I and other functionaries involved in the process wondered if there might be a better, more efficient way to do the reviews.”
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Damages or Injury “Likely to Occur” or “Imminent” May No Longer Trigger Insurance Coverage
January 05, 2017 —
Masaki J. Yamada – Ahlers & Cressman PLLCWashington Courts allow an insurer to determine its duty to defend an insured against a lawsuit based only on the face of the complaint and the limitations of the insurance policy. This is otherwise known as the “eight corners” rule (four corners of the complaint plus the four corners of the policy). In other words, the insurance company is not permitted to rely on facts extrinsic to the complaint in order to deny its duty to defend an insured. See Truck Ins. Exch. v. VanPort Homes, Inc., 147 Wn.2d 751, 763 (2002). The laws in Washington provide greater protection to the insured over the insurer when it comes to the insurer’s duty to defend. The duty to defend a claim is triggered if a claim could “conceivably” be covered under the policy. See Woo v. Fireman’s Insurance, 161 Wn.2d 43 (2007). If there is any ambiguity in a policy with regard to coverage, the ambiguity is interpreted in favor of the insured.
As a result, contractors in Washington regularly tender claims or potential claims to their insurers even when damage has not occurred but will occur in the imminent future. Especially in the context of construction defect cases, a contractor will tender such a claim to its insurer to trigger the broad duty of the insurer to provide a defense. We also regularly recommend this to our contractor clients. For example, if a building owner serves a contractor with a claim that the construction and installation of a window system will imminently cause leaks and corrosion, we would recommend that the contractor tender the claim to its commercial general liability insurer. Washington courts have found a duty to defend when there are allegations in the complaint that covered damages will occur in the imminent future.
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Masaki J. Yamada, Ahlers & Cressman PLLCMr. Yamada may be contacted at
myamada@ac-lawyers.com