Colorado Supreme Court to Hear Colorado Pool Systems, Inc. v. Scottsdale Insurance Company, et al.
October 10, 2013 —
David M. McLain — Higgins, Hopkins, McLain & Roswell, LLCThe Colorado Pool case has been featured in two past blog entries, including: “An Arapahoe County District Court Refuses to Apply HB 10-1394 Retrospectively,” which discussed the case at the trial court level, and “Colorado Court of Appeals Finds Damages to Non-Defective Property Arising From Defective Construction Covered Under Commercial General Liability Policy,” which discussed the case at the Court of Appeals level. In both instances, the courts held that retroactively applying C.R.S. C.R.S. § 13-20-808 to policies in effect prior to the date of the statute’s enactment would be impermissibly retrospective because it would change the coverage under the policy for which the parties had originally bargained.
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David M. McLainDavid M. McLain can be contacted at
mclain@hhmrlaw.com
Meritage Acquires Legendary Communities
July 23, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to Big Builder, Meritage entered Atlanta through its acquisition of Legendary Communities for $130 million, “completing a two-year quest.”
“Probably for about two years, we’ve been looking in the market, talking to builders, and studying the geography, and meeting different people to learn who the players are and learn about the area,” Meritage Homes chairman and CEO Steven J. Hilton told Big Builder.
This acquisition makes Meritage Homes “the number one builder in the Greenville-Anderson-Mauldin, S.C. market, owning more than 16 percent of the 2013 market share with 266 closings, according to Metrostudy data. It also owns almost seven percent of the market share in nearby Spartanburg, S.C. with 44 closings.”
Legendary fits “in very nicely with what we do at Meritage,” Hilton said to Big Builder. “We’re a strong first and second move up builder, as are they at Legendary. It’s a very complementary fit between the two companies.”
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Texas Legislative Update
July 19, 2017 —
Matthew S.C. Moore & Justin (JD) D. Holzeauser – Peckar & Abramson, P.C.The marquee fight between Lt. Governor Patrick and Speaker Straus, otherwise known as the 85th Regular Legislative Session, concluded on May 29, 2017. While the political clash over the controversial “bathroom bill” will continue during the special legislative session, this article is intended to provide a brief summary of the construction-related bills that passed during the regular session and a few notable ones that did not pass. A special session has been called by Governor Abbott, but no construction-related bills were included on the agenda.
What Passed?
HB 2121 – Attorney’s fees for state breach of contract claims. A contractor who prevails on a state breach of contract claim pursuant to Chapter 2260 of the Government Code, that is also valued at less than $250,000.00, may recover attorney’s fees. By using the word “may”, the bill implies that the award of attorney’s fees will be at the discretion of the administrative law judge. This bill became law on June 15, 2017.
HB 1463 – Right to cure ADA violations. A person with a disability may assert a claim for discrimination based on a violation of the building and architectural standards established in Chapter 469 of the Government Code. However, this bill requires the claimant to provide the respondent written notice at least sixty (60) days before filing an action for the violation and further gives the respondent an opportunity to cure the alleged violation within the sixty (60) day period. The obvious benefit of this bill is that it allows the respondent, e.g., the owner or potentially the contractor, an opportunity to remediate the violation without incurring litigation costs. This bill becomes effective law on September 1, 2017.
Reprinted courtesy of
Matthew S.C. Moore, Peckar & Abramson, P.C. and
Justin (JD) D. Holzeauser, Peckar & Abramson, P.C.
Mr. Moore may be contacted at mmoore@pecklaw.com
Mr. Holzheauser may be contacted at jdholzheauser@pecklaw.com
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Construction Defect or Just Punch List?
December 11, 2013 —
CDJ STAFFA couple in Dickinson, North Dakota have put big, green “buyer beware” signs on their home. They’re not planning on selling, but just trying to warn prospective neighbors of the problems they’ve had since moving into their new home. Andrea Thermes said her problems included leaking windows and uneven floors. “I absolutely love my house,” she said. “If we didn’t have the issues, I would be the happiest girl in the world.”
One problem was a leaking picture window in her living room. The builder replaced it, but the first window that arrived was the wrong size. The new home is still under a warranty and the builder has been fixing issues as they arise. “They are upset with some of the problems they have had,” said William Henry, president of B-Dev, the builder of the home. Since Ms. Thermes’s window wasn’t repaired in time for Thanksgiving, Mr. Henry sent wine and beer to her home. “Not that that makes up for not having their window, but we’re trying to make this work and trying to appease them,” he said.
But Mr. Henry said that some of the problems “are not really material defects,” characterizing them as “punch-list and warranty items.”
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PAGA Right of Action Not Applicable to Construction Workers Under Collective Bargaining Agreement
December 26, 2022 —
Garret Murai - California Construction Law BlogCalifornia is one of the most employee-friendly states in the country. From strict hiring laws (don’t think about asking about an applicant’s criminal, credit or even salary history), to generous benefits (minimum wage, overtime, meal and rest breaks, family medical leave, etc.) and strict anti-harassment laws (if you have to think about it, even for a second, don’t do it), to protections for terminated workers (whistle blower protections, WARN notices, non-compete restrictions), California workers enjoy protections that many others do not.
This includes PAGA, or the Private Attorneys General Act, which authorizes aggrieved employees to file lawsuits against their employers to recover civil penalties on behalf of themselves, other employees, and the State of California for Labor Code violations. In general, the right of an employee to file a PAGA action cannot be waived by contract. However, Labor Code section 2699.6 which was enacted in 2018 provides an exception for construction workers who perform work under certain collective bargaining agreements.
In the next case, Oswald v. Murray Plumbing and heating Corporation, 82 Cal.App.5th 938 (2022), the 2nd District Court of Appeal examined whether collective bargaining agreement with a retroactive date, signed after an employee was terminated, precluded an employee from bringing a PAGA action.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
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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“Based On”… What Exactly? NJ Appellate Division Examines Phrase and Estops Insurer From Disclaiming Coverage for 20-Month Delay
August 20, 2019 —
Anthony L. Miscioscia and Timothy A. Carroll - White and Williams LLPOn May 28, 2019, the New Jersey Superior Court, Appellate Division examined the phrase “based on” in an assault-and-battery exclusion, finding that the phrase means “to make, form, or serve as the foundation of any claim, demand or suit.” C.M.S. Investment Ventures, Inc. v. American European Insurance Company, No. A-2056-17T3, 2019 N.J. Super. Unpub. LEXIS 1215, at *8-9 (N.J. Super. Ct. App. Div. May 28, 2019) (CMS). The CMS case is also notable because the Appellate Division held that a 20-month delay in disclaiming coverage was unreasonable and therefore warranted estoppel.
In CMS, the insured was allegedly warned by its tenant about a faulty ground-floor window that failed to lock properly. Afterward, an intruder broke into the tenant’s apartment and sexually assaulted the tenant, who sued the insured on a premises liability claim. Before she filed suit, the tenant sought payment from the insured’s CGL insurer directly. The insurer denied coverage based on the assault-and-battery exclusion and closed the file, but never informed the insured. Later, the tenant sued the insured, which sought a defense and indemnity from its insurer, which again denied coverage based on the exclusion. The insured then sought a declaration of coverage on grounds that the exclusion was ambiguous, and the insurer “was estopped from denying coverage, because it waited [20] months to inform CMS of its coverage decision.” The trial court ruled in the insured’s favor which led to the appeal in CMS.
Reprinted courtesy of
Timothy Carroll, White and Williams LLP and
Anthony Miscioscia, White and Williams LLP
Mr. Miscioscia may be contacted at misciosciaa@whiteandwilliams.com
Mr. Carroll may be contacted at carrollt@whiteandwilliams.com
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Senate Overwhelmingly Passes Water Infrastructure Bill
November 06, 2018 —
Tom Ichniowski – Engineering News-RecordCongress has approved major water infrastructure legislation that authorizes $3.7 billion for new Army Corps of Engineers civil-works projects and $4.4 billion for the Environmental Protection Agency drinking-water program.
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Tom Ichniowski, ENRMr. Ichniowski may be contacted at
ichniowskit@enr.com