NYC Landlord Accused of Skirting Law With Rent-Free Months Offer
October 15, 2024 —
Natalie Wong - BloombergThe opening of Tower 28, one of the tallest residential towers in New York City outside Manhattan, brought rent-stabilized units to Long Island City roughly seven years ago, adding affordable listings to a neighborhood where soaring prices were increasingly squeezing out many renters.
Now, three tenants at the 58-story building have filed a class-action lawsuit alleging the landlord sought to evade New York City rent regulations in order to raise prices even higher over time.
The lawsuit against the limited liability company tied to 42-12 28th St. in Queens claims that the property owner recorded initial rents with the New York State Division of Housing and Community Renewal that were higher than what the first tenant was actually charged and paid. In doing so, any future rent increases were based off a higher figure, according to the lawsuit.
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Natalie Wong, Bloomberg
AB 1701 – General Contractor Liability for Subcontractors’ Unpaid Wages
December 01, 2017 —
Alex Baghdassarian, Eric M. Gruzen, & Kerri Sakaue – Peckar & Abramson, P.C.Contractors will soon find themselves on the frontline of wage disputes on projects if laborers working on behalf of their subcontractors or vendors are unpaid. On October 14, 2017, Governor Jerry Brown signed into law AB 1701, which will allow laborers to seek direct compensation from the general contractors on private projects, if their wages remain unpaid.
The legislative mandate requires direct contractors—defined as contractors who have a direct contractual relationship with an owner—to assume liability for any debt incurred by a subcontractor, at any tier, for a wage claimant’s performance of labor included in the subject of the original contract between the general contractor and the owner. The California bill will apply to all private construction contracts entered into on or after January 1, 2018. Previously, all laborers could maintain a mechanic’s lien claim against private property, without needing to serve a 20-day preliminary notice, but there was no statutory obligation on the “direct contractors” to reimburse the laborers their unpaid wages.
Reprinted courtesy of Peckar & Abramson, P.C. attorneys
Alex Baghdassarian,
Eric M. Gruzen and
Kerri Sakaue
Mr. Baghdassarian may be contacted at abaghdassarian@pecklaw.com
Mr. Gruzen may be contacted at egruzen@pecklaw.com
Ms. Sakaue may be contacted at ksakaue@pecklaw.com
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In Construction Your Contract May Not Always Preclude a Negligence Claim
March 30, 2016 —
Christopher G. Hill – Construction Law MusingsHere at Construction Law Musings I have discussed the interaction of the so called “economic loss rule,” construction contracts and tort claims on numerous occasions. The general rule is that where a duty to perform in a certain way arises from the contract, the Virginia courts will not allow a plaintiff to turn a contract claim into a tort claim such as fraud or negligence.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
University of California Earthquake Report Provides List of Old Concrete Buildings in LA
January 22, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to a list provided to the city of Los Angeles by the University of California, there are “about 1,500 old concrete buildings that are potentially at risk of collapse during an earthquake,” the Los Angeles Times reported. The list can help the city identify “concrete buildings most likely to fail in an earthquake.”
The report, however, “does not amount to a list of dangerous buildings,” the university scientists told the Los Angeles Times. It is a list of concrete buildings built before 1980. Some of the “buildings are vulnerable, others are not.”
Concrete buildings pose a potentially dangerous threat, reported the Los Angeles Times: “After the Northridge earthquake caused two concrete buildings to collapse and severely damaged others, structural engineers warned that the collapse of a single concrete building ‘has the potential for more loss of life than any other catastrophe in California’ since the 1906 San Francisco earthquake.”
Eric Garcetti, Los Angeles Mayor, has asked Lucy Jones, a U.S. Geological Survey seismologist, to act as his science advisor on earthquake issues. Garcetti has asked Jones “to come up with recommendations by the end of the year on retrofitting issues, including how to get privately owned concrete buildings retrofitted.”
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Testing Your Nail Knowledge
September 03, 2014 —
Beverley BevenFlorez-CDJ STAFFTools of the Trade provided “ten things you probably don’t know about nails.” For instance, “[I]n 2013 the U.S consumed 629,716 tons of steel nails.” Frane, the author of the article, said that if that “many nails were melted down and cast into a block of solid steel, the block would cover the area of a football field to a depth of 45’.” Another fact is that only 21% of nails used in the U.S. were made in the U.S. Furthermore, the leading U.S. supplier of nails is Mid Continent Nail Corporation, and they are located in Poplar, Missouri.
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On Rehearing, Fifth Circuit Finds Contractual-Liability Exclusion Does Not Apply
November 26, 2014 —
Tred R. Eyerly – Insurance Law HawaiiOn rehearing, the Fifth Circuit determined that the contractual-liability exclusion did not apply to bar coverage for damage caused by the insured contractor to the home it constructed. Crownover v. Mid-Continent Cas. Co., 2014 U.S. App. LEXIS 20727 (5th Cir. Oct. 29, 2014).The court withdrew its prior opinion, summarized here.
Arrow Development, Inc. contracted with the Crownovers to construct a home. The contract had a warranty-to-repair clause, which, in paragraph 23.1, provided that Arrow would "promptly correct work . . . failing to confirm to the requirements of the Contract Documents." After the Crownovers moved in, cracks began to appear in the walls and foundation of the home. Additional problems with the heating, ventilation, and air conditioning ("HVAC") caused leaking in the exterior lines and air ducts inside the home. To compensate for defects in the HVAC system, the system's mechanical units ran almost continuously in order to heat or cool the home. Because they were overburdened, the mechanical units had to be replaced. The Crownovers paid several hundred thousand dollars to fix the problems with the foundation and HVAC system.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Lewis Brisbois Appellate Team Scores Major Victory in Bad Faith Insurance Action
May 24, 2021 —
Raul Martinez & Elise Klein - Lewis Brisbois NewsroomAppellate Partner Raul L. Martinez and Los Angeles Partners Elise D. Klein and Celia Moutes-Lee recently secured a major win in an appeal of a bad faith insurance action. In Wexler v. California Fair Plan Association (Apr. 14, 2021, B303100) __Cal.App.5th__, Division Eight of the Second Appellate District (Los Angeles), the court held that the plaintiff, the daughter of insurance policy holders, had no standing to pursue bad faith allegations against her parents’ insurer for smoke damage to her personal possessions.
The daughter’s parents owned a home in the mountains where there was a heightened risk of fires. The parents insured their home with a California FAIR Plan Association (FAIR Plan) owner-occupied dwelling policy (the FAIR Plan Policy). The FAIR Plan Policy only insured the dwelling and its contents against damage from fire, lightning, and internal explosion with limited coverage for smoke damage. The FAIR Plan Policy also expressly disclaimed coverage for individuals not specifically named in the policy. Furthermore, the plaintiff’s name did not appear in any of her parents’ insurance documents.
Reprinted courtesy of
Raul Martinez, Lewis Brisbois and
Elise Klein, Lewis Brisbois
Mr. Martinez may be contacted at Raul.Martinez@lewisbrisbois.com
Ms. Klein may be contacted at Elise.Klein@lewisbrisbois.com
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Gene Witkin Celebrates First Anniversary as Member of Ross Hart’s Mediation Team
May 23, 2022 —
AMCCLOS ANGELES, California, May 18, 2022 – With a near perfect record of resolving cases, Gene is particularly passionate about helping parties get closure and minimize the significant costs of civil discovery and trial. He attributes the high success rate to empathy for all sides from his diverse prior experience representing both plaintiffs and defendants in civil litigation, as well as his extensive past experience as insurance coverage counsel for both insureds and insurers.
In recent months, two cases in particular were at an impasse due to insurance issues. The parties were able to bridge the gap and resolve the disputes, with mediator help on subtle coverage issues in one case (working through technical policy provisions together) and a creative settlement structure in the other (involving allocation of payments under the insurance policy). Gene also credits the successful resolutions in part to pre-mediation calls with the parties to better define the obstacles to resolution.
Gene, along with Ross Hart and several AMCC neutrals were thrilled to see many of their colleagues and construction defect stakeholders earlier this month at the West Coast Casualty seminar, which certainly heralded a successful return to in person events.
For more information or to schedule a mediation, please contact case administrator Stephanie Felton at admin@amccenter.com.
About AMCC
For more than 30 years the principals of AMCC have been serving the construction, real estate and insurance industries as a full service ADR firm. In addition to administering multiple terms of the CSLB contract for the state, AMCC is the recognized leader in California for administering insurance appraisals under Insurance Code 2071, as well as numerous other related ADR services such as partnering and dispute review boards. For more information please visit www.amccenter.com.
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