California Home Sellers Have Duty to Disclose Construction Defect Lawsuits
October 21, 2013 —
CDJ STAFFIf you’re selling a home in California that has been the subject of a construction defect lawsuit, you probably have to disclose this, according to Steven G. Lee, an attorney at Reid & Hellyer. Mr. Lee notes that California law mandates the disclosure of “any lawsuits by or against the Seller threatening to or affecting the Property, including any lawsuits alleging a defect or deficiency.” He further notes that “for those selling units in a condominium or townhouse development, this includes defects in the common areas.”
He notes that failure to disclose will not invalidate the sale, but the seller may be “liable for actual damages suffered by the buyer.” Merely disclosing the former defect may not be enough. Mr. Lee notes that the California Court of Appeals ruled in one case that although buyers had been informed of past water intrusion, knowledge of the construction defect lawsuit may have affected the buyer’s decision.
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Insurer’s “Failure to Cooperate” Defense
November 14, 2018 —
David Adelstein - Florida Construction Legal UpdatesThe “failure to cooperate” defense is a defense an insurer may raise when its insured fails to cooperate with it in the defense of the claim against the insured. If an insurer takes this position, it will typically be denying both defense and indemnification obligations, meaning the insured could be forfeiting coverage that otherwise exists through his/her/its failure to cooperate with the insurer. This defense by the insurer is not absolute as recently explained by the Fourth District in Barthelemy v. Safeco Ins. Co. of Illinois, 43 Fla.L.Weekly D2379a (Fla. 4th DCA 2018) discussing the elements of this failure to cooperate defense.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Real-Estate Pros Fight NYC Tax on Wealthy Absentee Owners
October 15, 2014 —
Henry Goldman and Allyson Versprille – BloombergA political battle is brewing at the apex of New York’s property market.
The real-estate industry is mobilizing to kill a proposed levy on non-resident owners of apartments valued at more than $5 million, seeking to ensure the world’s biggest city doesn’t follow London, Hong Kong and Singapore in extracting extra cash from trophy properties.
The industry’s lobbying arm, the Real Estate Board of New York, says the measure will scare off investors who fuel a business supporting more than 500,000 jobs and generating 40 percent of the five boroughs’ revenue. Brokers warn of economic calamity if officials slap a luxury tax on apartments owned by someone who lives in the city less than half the year.
Mr. Goldman may be contacted at hgoldman@bloomberg.net; Ms. Versprille may be contacted at aversprille1@bloomberg.net
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Henry Goldman and Allyson Versprille, Bloomberg
America’s Factories Weren’t Built to Endure This Many Hurricanes
November 05, 2024 —
Brooke Sutherland - BloombergAmerica’s factories aren’t built for the current cascade of extreme weather events.
Dozens of
industrial sites were in the zone of impact as Hurricane Milton slammed into Florida’s West Coast this week, including several concrete plants, speed boat manufacturing operations and facilities owned by
Honeywell International Inc., Johnson Controls International Plc,
General Electric Co. and Illinois Tool Works Inc., among others. Meanwhile, a Baxter International Inc. facility in Marion, North Carolina, that makes 60% of the intravenous fluids used in hospitals around the country was
shuttered because of damage from Hurricane Helene just two weeks ago. Mines responsible for producing more than 80% of the world’s supply of commercial high-purity quartz in nearby Spruce Pine
were also affected by severe flooding, raising the risk of disruptions to semiconductor production, which relies on the material.
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Brooke Sutherland, Bloomberg
The Evolution of Construction Defect Trends at West Coast Casualty Seminar
May 03, 2018 —
Don MacGregor - Bert L. Howe & Associates, Inc.Twenty-five years ago. 1993. On January 23rd, Bill Clinton was sworn in as the 42nd President of the United States. The average cost of a gallon of gasoline was $1.16, a movie ticket cost $4.00, and the average cost of a new home was $113,200.00.
1993 also marked the first of what would be a quarter century of annual seminars hosted by West Coast Casualty Service, and provided to the combined professionals within the construction defect community. As the seminar has grown both in attendance and prominence within this community under the watchful stewardship of David and Coral Stern, much has changed both with regard to the content of the seminar and the climate within which it was presented. A quick look at the topics addressed over the past 25 years of the Construction Defect Seminar provides one with a veritable history of construction defect litigation and insurance coverage trends across the United States and beyond.
While the first seminar was hosted in 1993, my first attendance didn’t occur until 1999, and the first time I was honored to be a panelist would have to wait until 2007. In the subsequent years, I’ve had the opportunity to sit on panels an additional three times, and each one I gained rare and valuable insights into the construction defect community, its willingness to challenge itself, and the amazing professionals we all have the distinct pleasure of working with every day (and whom we sometimes take too much for granted).
In the mid to late 90’s, topics at the seminar included such subjects as the Montrose Chemical Corp v. Superior Court decision (Montrose) regarding a carrier’s duty to defend and the subsequent Stonewall Insurance case that examined the duty to indemnify in the context of construction defect claims. The California Calderon Act of 1997, laying out the roadmap for HOA’s filing construction defect lawsuits was also a topic of discussion and debate within the West Coast “arena.”
The new millennium saw the landmark Aas v. William Lyon decision, which disallowed negligence claims for construction defects in the absence of actual resultant damage. This was followed by Presley Homes v. American States Insurance wherein the court ruled that a duty to defend applies where there is mere potential for coverage and the duty to defend applies to the entire action. Each of these bellwether decisions was addressed contemporaneously by panels at the West Coast seminar, contemporaneously bringing additional dialog to the CD community, from within the community.
2002 brought what has become the defining legislation in California regarding construction defect litigation and a builder’s right to repair. Senate Bill 800 (SB800), and its subsequent codification as Title 7, Part 2 of Division 2 of the California Civil Code, Sections 895 through 945.5 would become the defining framework for similar legislation across the United States. During the course of its drafting, movement through the legislature, and final adoption in January of 1993, many of the questions raised and debated in committees in Sacramento, had already been and were continuing to be addressed by panelists at the West Coast Seminar. How does SB800 work with Calderon? How does it affect the prior Aas decision? What now constitutes a defect, and what are timeframes established within the complex pre-litigation process? Open the pages of the 2002 – 2004 seminar invitations and you’ll see panels comprised of the finest members of the insurance law and coverage communities addressing those very questions (and more)!
As the first decade of the new century drew to a close, a brief review of the WCC invitations from that period suggests a trend towards programmatic analyses of key themes selected for the seminar. In 2008, my second opportunity as a guest speaker, topics included a review of the state of construction defect litigation in a post-SB 800 environment. Panelists offered retrospective insight into the state of right to repair statutes in multiple states, while others offered a glimpse at where the industry might be headed, as similar legislation was enacted across the country. As always, pertinent court decisions bearing on construction defect, both in California, and elsewhere were given unique perspective and additional clarity by multiple panels of gifted speakers. In 2009, claims and coverage were examined from multiple unique perspectives, including that of plaintiff, the policyholder, and the insurer. Wrap policies and the gaps in due to self-insured retention obligations were examined.
As we rapidly approach the end of the second decade of the 21st Century, West Coast Casualty’s Construction Defect Seminar continues to lead the construction defect community as the premier source for information and peer dialog on all matters relating to construction law, coverage, and emerging trends. In 2017, the Seminar tackled such broad subjects as the role of women in the construction industry, claims management, and risk management, challenges raised by wrap versus non-wrap litigation, and the emergent trend of apartment to condo conversions (and the attendant coverage challenges).
This month, beginning on May 16th at the Disneyland Resort, in Anaheim California, America’s largest Construction Defect event kicks off its 25th Anniversary celebration. As has been every year since 1993, the seminar invitation promises insurance, legal, and industry professionals an exciting and informative array of salient and timely panel topics, as well as a stellar faculty of gifted panelists. If this year’s seminar is anything like the past 25 years, this edition of West Coast Casualty’s Construction Defect Seminar will not only be informative and educational, but also a promise for another 25 years of peerless service to the construction defect community.
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Temporary Obstructions Are a Permanent Problem Under the Americans with Disabilities Act
March 12, 2015 —
Max W. Gavron and Keith M. Rozanski – Haight Brown & Bonesteel LLPBoxes, ladders, furniture or other objects commonly placed in aisles, walkways or paths may not be temporary obstructions and may be actionable under the Americans with Disabilities Act (ADA) according to a recent ruling by the Ninth Circuit Court of Appeals in Chapman v. Pier 1 Imports (U.S.), Inc. DBA Pier 1 Imports #1132, No. 12-16857 (filed March 5, 2015).
Many property and business owners have long operated under the assumption that they are not violating ADA regulations requiring minimum clear widths for accessible routes (“[t]he minimum clear width of an accessible route shall be 36 in[ches]” (28 C.F.R. pg. 36, app. A, § 4.3.3)) when they place objects that can easily be removed in aisles or pathways such as trash cans, ladders, plants, signs and the like because temporary obstructions are not considered violations of the ADA (28 C.F.R. § 36.211(b)).
Reprinted courtesy of
Max W. Gavron, Haight Brown & Bonesteel LLP and
Keith M. Rozanski, Haight Brown & Bonesteel LLP
Mr. Gavron may be contacted at mgavron@hbblaw.com
Mr. Rozanski may be contacted at krozanski@hbblaw.com
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Drug Company Provides Cure for Development Woes
November 18, 2011 —
CDJ STAFFVertex Pharmaceuticals is poised to become the holder of Boston’s biggest commercial lease, paying $72.5 million for 1.1 million square feet on Boston’s waterfront. Vertex’s new buildings are still under construction, but the plans have spurred other development in the Fan Pier area, according to the New York Times. The Times quotes Mary A. Burke, a senior economist at the Federal Reserve Bank of Boston that the Vertex project gives “a big push” to the “momentum for economic growth.”
The Fallon Company is building Vertex’s new laboratory and office space. They are separately planning to build a high-rise with 150 luxury condominium units. According to Joseph Fallon, the chief executive and president of the Fallon Company, there is already a waiting list of 50 buyers for the condominiums.
Across the street from the Vertex site, a group including Morgan Stanley and Boston Global Investors is planning a 23-block mixed use project that would include 1.2 million square feet of retail space. Additionally, the New England Development and the Hanover Group is building a 356-unit apartment building at the adjacent Pier 4.
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Not All Work is Covered Under the Federal Miller Act
May 24, 2021 —
David Adelstein - Florida Construction Legal UpdatesThe recent opinion out of the Eastern District Court of Virginia, Dickson v. Forney Enterprises, Inc., 2021 WL 1536574 (E.D.Virginia 2021), demonstrates that the federal Miller Act is not designed to protect ALL that perform work on a federal construction project. This is because NOT ALL work is covered under the Miller Act.
In this case, a professional engineer was subcontracted by a prime contractor to serve on site in a project management / superintendent capacity. The prime contractor’s scope of work was completed by January 31, 2019. However, the prime contractor was still required to inventory certain materials on site, which was performed by the engineer. The engineer claimed it was owed in excess of $400,000 and filed a Miller Act payment bond lawsuit on February 5, 2020 (more than a year after the project was completed).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
