Collapse Claim Dismissed
December 04, 2018 —
Tred R. Eyerly - Insurance Law HawaiiThe complaint alleged collapse, but the claimed cause of the collapse was not a covered cause under the insured's policy, mandating a dismissal of the complaint. Coonce v. CSSA Fire & Cas. Ins. Co., 2018 U.S. App. LEXIS 25010 (10th Cir. Sept. 4, 2018).
The ceiling in the insured's living and dining areas caved in. An engineering survey determined that the nails used in the construction had failed to hold. The insured made a claim on her policy issued by CSAA. Coverage was denied and the insured sued.
The insured was given two opportunities to amend her complaint by the district court, but the motion to dismiss for failure to state a claim was eventually granted.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Hotel Owner Makes Construction Defect Claim
January 28, 2013 —
CDJ STAFFA lawsuit has been filed over the construction of the GrandStay Hotel & Conference Center in Apple Valley Minnesota. Apple Valley GSRS, LLC, who invested in the hotel, has sued Cole Group Architects and Cornerstone Construction, alleging that the architects design was not to industry standards and that the builder used inferior materials and techniques. The lawsuit makes claim of "significant damage."
The hotel hired an engineer who subsequently recommended that all the stucco and the roof should be be replaced. The stucco has shown signs of cracking and crumbling. The hotel states that the roof has problems with leaking.
Cornerstone has denied the hotel's claims. They have also counter-sued their subcontractors.
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Leaning San Francisco Tower Seen Sinking From Space
November 30, 2016 —
The Associated Press (Jocelyn Gecker) – BloombergSan Francisco (AP) -- Engineers in San Francisco have tunneled underground to try and understand the sinking of the 58-story Millennium Tower. Now comes an analysis from space.
The European Space Agency has released detailed data from satellite imagery that shows the skyscraper in San Francisco's financial district is continuing to sink at a steady rate — and perhaps faster than previously known.
The luxury high-rise that opened its doors in 2009 has been dubbed the Leaning Tower of San Francisco. It has sunk about 16 inches into landfill and is tilting several inches to the northwest.
A dispute over the building's construction in the seismically active city has spurred numerous lawsuits involving the developer, the city and owners of its multimillion dollar apartments.
Engineers have estimated the building is sinking at a rate of about 1-inch per year. The Sentinel-1 twin satellites show almost double that rate based on data collected from April 2015 to September 2016.
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Bloomberg
A Few Things You Might Consider Doing Instead of Binging on Netflix
April 13, 2020 —
Garret Murai - California Construction Law BlogGovernments throughout the world have issued “shelter in place” orders requiring that residents stay at home except for “essential” purposes. As a result, in the United States, more than a third of Americans have been ordered to stay at home. This, in turn, has had a direct impact on construction projects which have slowed or have been temporarily shuttered altogether, and it will (not may) have an impact on the flow of project funds. So what can project owners and contractors do? We’ve got a few tips.
1. Read Your Contract, Paying Particular Attention to Force Majeure, No Damages for Delay and Notice Provisions
For the most part, with the exception of statutory rights and remedies which we will discuss below, your contract spells out your rights and remedies should the proverbial “S” hit the fan. It is, in other words, the rules you agreed to, and you should know what those rules provide. Three provisions you should look for, and if they’re in your contract, you should review carefully are: (1) Force majeure provisions; (2) No damages for delay provisions; and (3) notice provisions.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Avoiding Lender Liability for Credit-Related Actions in California
October 27, 2016 —
Anthony J. Carucci – Snell & Wilmer Real Estate Litigation BlogAside from general statutory prohibitions on lender discrimination, there are certain circumstances under California law in which lenders may be held liable for credit-related actions, such as negotiating or denying credit. See generally 11 Cal. Real Est. § 35:3 (explaining that the business of lending money is subject to the Unruh Civil Rights Act, Cal. Civ. Code § 51 et seq., the Fair Employment and Housing Act, Cal. Gov. Code § 12900 et seq., the Federal Fair Housing Act, 42 U.S.C. § 3601 et seq., and the Equal Credit Opportunity Act, 15 U.S.C. § 1691, et seq.). Specifically, lenders have been held liable for credit-related actions where, among other things, the lender (1) breached a loan commitment; (2) committed fraud; or (3) breached a fiduciary duty owed to the borrower.
The Lender-Borrower Relationship
As a general rule, a lender does not owe a duty of care to a borrower when the lender’s involvement in a transaction does not exceed the scope of its conventional role as a lender of money. Oaks Management Corp. v. Superior Court (2006) 145 Cal.App.4th 453, 466 (“[I]t is established that absent special circumstances . . . a loan transaction is at arms-length and there is no fiduciary relationship between the borrower and lender.”); Nymark v. Heart Fed. Savings & Loan Assn. (1991) 231 Cal.App.3d 1089, 1096 (holding lender owed no duty of care to a borrower in preparing an appraisal of the real property that was security for the loan when the purpose of the appraisal is to protect the lender by satisfying it that the collateral provided adequate security for the loan, and noting that “as a general rule, a financial institution owes no duty of care to a borrower when the institution’s involvement in the loan transaction does not exceed the scope of its conventional role as a mere lender of money”).
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Anthony J. Carucci, Snell & WilmerMr. Carucci may be contacted at
acarucci@swlaw.com
3D Printing: A New Era in Concrete Construction
April 11, 2022 —
Zoey Zhao - Construction ExecutiveThe construction of buildings using concrete has been around since the time of the Romans. In all those centuries, concrete structures have been built using essentially the same method: forms, reinforcement, mixing, pouring, setting, repeat.
The process is costly and time-consuming. The construction of the forms alone demands dozens of workers and requires a substantial amount of lumber, keeping labor and materials costs high. Builders might save some time using prefabricated concrete blocks, but such materials are not appropriate for every construction project and carry their own expenses.
For the first time in history, builders have an alternative to traditional concrete construction methods that are more cost-effective, less expensive, more environmentally friendly and allow for a wide range of possible construction projects. Three-dimensional concrete printing for construction has emerged in the building field as a viable and efficient alternative.
Reprinted courtesy of
Zoey Zhao, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Ms. Zhao may be contacted at
zoey@aictbuild.com
Supreme Court of Oregon Affirms Decision in Abraham v. T. Henry Construction, et al.
April 20, 2011 —
Beverley BevenFlorez CDJ STAFFAfter reviewing the decision in Abraham v. T. Henry Construction, et al., the Oregon Supreme Court affirmed that a tort claim for property damage arising from construction defects may exist even when the homeowner and the builder are in a contractual relationship.
When the case was initially filed, the plaintiffs alleged breach of contract and negligence. The defendants moved for summary judgment arguing that one, the claim was barred by the six-year statute of limitations and two, no special relationship (such as one between a doctor and patient) existed. The court agreed with the defendants. However, the Court of Appeals while affirming the trial court’s decision on breach of contract reversed the decision on negligence. The Court of Appeals stated that an administrative or statute rule could establish a standard of care independent from the contract.
The Oregon Supreme Court gave an example of cases where a tort claim could exist when a contract is present: “If an individual and a contractor enter into a contract to build a house, which provides that the contractor will install only copper pipe, but the contractor installs PVC pipe instead (assuming both kinds of pipe comply with the building code and the use of either would be consistent with the standard of care expected of contractors), that failure would be a breach of contract only. […] If the failure to install the copper pipe caused a reduction in the value of the house, the plaintiff would be able to recover that amount in an action for breach of contract. […] On the other hand, if the contractor installed the PVC pipe in a defective manner and those pipes therefore leaked, causing property damage to the house, the homeowner would have claims in both contract and tort. […] In those circumstances, the obligation to install copper instead of PVC pipe is purely contractual; the manner of installing the pipe, however, implicates both contract and tort because of the foreseeable risk of property damage that can result from improperly installed pipes.”
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Georgia Legislature Passes Additional Procurement Rules
May 30, 2018 —
David R. Cook Jr. - Autry, Hall & Cook, LLPOn May 3, 2018, Governor Nathan Deal signed HB 899 into law, officially making it Act 389. Act 389 modifies O.C.G.A. § 13-10-4 and § 36-91-23 relating to public works bidding and contracts of state and local governments, respectively. Both sections are modified in the same bill because they contain the same language. The bill prohibits the disqualification of bidders based upon lack of previous experience with the project’s desired construction delivery method.
Before the modifications, the code protected a contractor from disqualification only for lack of previous experience on a job of comparable size. After the modification, the law expands to prohibit disqualification based on lack of previous experience with comparable job size and lack of previous experience with the construction delivery method.
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David R. Cook Jr., Autry, Hall & Cook, LLPMr. Cook may be contacted at
cook@ahclaw.com