Developers Celebrate Arizona’s Opportunity Zones
May 24, 2018 —
Patrick J. Paul - Snell & Wilmer Real Estate Litigation BlogPresident Trump’s Tax Cuts and Jobs Act passed by Congress in December included a new community development program designed to promote investment in low income urban and rural communities. These “Opportunity Zones” provide that every Governor may nominate up to 25% of qualifying low-income Census tracts for consideration in the program which provides substantial reductions on capital gains taxes with the greatest benefits to those holding their investments for a period of at least 10 years.
States were required by March 21st to submit nominations or request a 30 day extension to subsequently submit. The Treasury Department in turn has 30 days from the date of submission to designate the nominated zones. On April 9, 2018, the Treasury Department and the IRS formally dedicated opportunity zones in 18 states including Arizona. The Department will make future designations as submissions by the states that have requested an extension are received and certified.
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Patrick J. Paul, Snell & WilmerMr. Paul may be contacted at
ppaul@swlaw.com
Agree to Use your “Professional Best"? You may Lose Insurance Coverage! (Law Note)
March 01, 2017 —
Melissa Dewey Brumback - Construction Law in North CarolinaYesterday, I was part of a panel at the NC Bar Association Construction Law Winter Meeting, discussing insurance issues for design professionals.
One topic we touched on was how to avoid invalidating your insurance. As most of you know, Errors & Omissions insurance (“E&O” coverage) is meant to provide coverage for mistakes you may make in performing your professional architecture or engineering services. E&O coverage is important to protect you in the event of a lawsuit because, as you know, no set of plans is perfect (nor is perfection the standard of care).
Be careful, though. Do not promise to provide a higher standard of care than the “professional standard“.
If you are asked to sign a contract that states you will use your “professional best,” “best efforts”, “highest care” or similar, you are being asked to sign something that could cost you your E&O coverage.
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Melissa Dewey Brumback, Ragsdale Liggett PLLCMs. Brumback may be contacted at
mbrumback@rl-law.com
NAHB Speaks Out Against the Clean Water Act Expansion
March 26, 2014 —
Beverley BevenFlorez-CDJ STAFFThe National Association of Home Builders (NAHB) published a news release that declared that the Environmental Protection Agency’s (EPA) proposal to expand the Clean Water Act “goes too far.” The EPA’s proposed expansion of the act would “increase the cost of new homes without a corresponding benefit to America’s lakes, rivers and other water bodies,” NAHB alleged.
Kevin Kelly, NAHB president and a home builder and developer from Wilmington, Del., stated that the “EPA has added just about everything into its jurisdiction by expanding the definition of a ‘tributary’ – even ditches and manmade canals, or any other feature that a regulator determines to have a bed, bank and high-water mark. It’s a waste of taxpayer resources to treat a rainwater ditch with the same scrutiny as we would the Delaware Bay.”
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Between Scylla and Charybids: The Mediation Privilege and Legal Malpractice Claims
August 19, 2015 —
Garret Murai – California Construction Law BlogI attended a mediation earlier this month in a real estate case. I won’t say more through because . . . well . . . it’s confidential.
The confidentiality of mediations and of settlement discussions generally – the idea being that parties are more likely to resolve their differences if they can speak honestly and frankly with one another without fear that their words or actions can later be used against them in trial – has long been a hallmark of California law.
But that may not be the case for long. In 2012, the California State Legislature directed the California Law Review Commission (“Commission”), the state agency responsible for recommending reforms to California law, to review and make recommendations regarding the relationship between California’s laws which make mediation discussions confidential and attorney malpractice. And it appears that the Commission will be reaching a recommendation soon.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Wells Fargo, JPMorgan Vexed by Low Demand for Mortgages
April 15, 2014 —
Zachary Tracer – BloombergSlack demand for home loans continued to drag on earnings at Wells Fargo & Co. (WFC) and JPMorgan Chase & Co. (JPM) as the two largest U.S. mortgage lenders grappled for pieces of a shrunken market.
Even as interest rates hovered near historically low levels, new home loans tumbled 67 percent to $36 billion in the first quarter at San Francisco-based Wells Fargo, the biggest originator. JPMorgan posted a 68 percent drop to $17 billion, and the bank predicted it would lose money on mortgage production for the full year.
Both lenders are paring staff to keep expenses in line with demand for loans, which has waned as investors and cash buyers dominate some sales. New York-based JPMorgan said jobs at its mortgage business declined 14,000, or 30 percent, since the start of last year. Wells Fargo set plans to cut 1,100 positions in the most recent three months, which ranked as its worst first quarter for mortgage revenue since 2008.
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Zachary Tracer, BloombergMr. Tracer may be contacted at
ztracer1@bloomberg.net
The International Codes Development Process is Changing to Continue Building Code Modernization
March 06, 2023 —
The International Code CouncilWashington D.C., March 02, 2023 (GLOBE NEWSWIRE) -- The International Code Council is revising its rigorous code development process. The changes will take effect in 2024-2026 for the development of the 2027 International Codes (I-Codes) and will move the development process to an integrated and continuous three-year cycle.
In the new timeline, year one will include two Committee Action Hearings for Group A Codes; year two will include two Committee Action Hearings for Group B Codes; and year three will be the joint Public Comment Hearings and Online Governmental Consensus Vote for both Group A and B Codes.
The addition of the second Committee Actions Hearings in year one and two will foster a more in-depth vetting of code change proposals, allowing an opportunity for the committee members to review and evaluate the original proposals and consider the submitted responses. This also provides more opportunity for proponents to build consensus for their code change proposal and ensure the best version of their intended improvement to the existing codes.
Additionally, with combined Public Comment Hearings in the third year, voting members are able to vote on all suggested changes to the next edition of the I-Codes at one time. The updated process also provides more opportunity for proposed new referenced standards to be developed and finalized on a consistent timeline regardless of the group (Group A or B) with which they are associated.
About the International Code Council
The International Code Council is the leading global source of model codes and standards and building safety solutions. Code Council codes, standards and solutions are used to ensure safe, affordable and sustainable communities and buildings worldwide.
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There is No Presumptive Resumption!
January 21, 2025 —
Daniel Lund III - LexologyA Louisiana school board filed suit in court in 2018 on a construction project but was rebuffed based upon arguments by the general contractor and surety defendants. Those defendants asserted that the court filings were premature, based upon an arbitration clause in the general contract. The trial court agreed and stayed the litigation, “pending completion of arbitration.”
Arbitration was never filed. Interestingly, within the arbitration clause, the following language existed: “For statute of limitations purposes, receipt of written demand for arbitration shall constitute the institution of legal or equitable proceedings based upon the Claim.”
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
Faulty Workmanship may be an Occurrence in Indiana CGL Policies
April 07, 2011 —
Beverley BevenFlorez CDJ STAFFThe question of whether construction defects can be an occurrence in Commercial General Liabilities (CGL) policies continues to find mixed answers. The United States District Court in Indiana denied the Plaintiff’s Motion for Summary Judgment in the case of General Casualty Insurance v. Compton Construction Co., Inc. and Mary Ann Zubak stating that faulty workmanship can be an occurrence in CGL policies.
Judge Theresa L. Springmann cited Sheehan Construction Co., et al. v. Continental Casualty Co., et al. for her decision, ”The Indiana Supreme Court reversed summary judgment, which had been granted in favor of the insurer in Sheehan, holding that faulty workmanship can constitute an ‘accident’ under a CGL policy, which means any damage would have been caused by an ‘occurrence’ triggering the insurance policy’s coverage provisions. The Indiana Supreme Court also held that, under identically-worded policy exclusion terms that are at issue in this case, defective subcontractor work could provide the basis for a claim under a CGL policy.”
As we reported on April 1st, South Carolina’s legislature is currently working on bill S-431 that would change the wording of CGL policies in their state to include construction defects. Ray Farmer, Southwest region vice president of the American Insurance Association spoke out against the bill. “CGL policies were never meant to cover faulty workmanship by the contractor,” he said. “The bill’s supplementary and erroneous liability provisions will only serve to unnecessarily impact construction costs in South Carolina.”
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Read the American Insurance Association statement...
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