Cambridge Massachusetts Building Expert Directory

Be Strategic When Suing a Manufacturer Under a Warranty with an Arbitration Provision

October 02, 2023 — David Adelstein - Florida Construction Legal Updates
I’ve said this before, and I’ll say it again: arbitration is a creature of contract. If you don’t want to arbitrate, don’t agree to an arbitration provision as the means to resolve your dispute. Now, with that said, there are times you may not have a choice. An arbitration provision in a warranty from a manufacturer of a product is an example. If you are procuring the product, you are agreeing to the terms of the express warranty. Manufacturers are not negotiating their product warranty on a case-by-case basis considering they are not typically the ones selling the product directly to the end user. This does not mean that is a bad thing. It just means if you elect to sue the manufacturer directly for an alleged product defect or under the terms of the warranty, you should read the warranty and consider the strategic aspect that suing the manufacturer will have on your case. In SICIS North America, Inc. v Sadie’s Hideaway, LLC, 48 Fla.L.Weekly D1581c (Fla. 1st DCA 2023), an owner elected to sue a tile manufacturer, a general contractor, the architect, and a window and door company. One of the arguments the owner raised was that exterior tiles installed were defective. The tiles were procured by the general contractor. The owner sued the general contractor under various theories and sued the tile manufacturer for breaches of warranty and negligence. The general contractor asserted a crossclaim for indemnification against the tile manufacturer. The tile manufacturer moved to compel the owner’s claim and the general contractor’s crossclaim to arbitration since there was an arbitration provision in the warranty documents and the general contractor’s indemnification claim arose from that transaction. The trial court denied the motion to compel arbitration. On appeal, the appellate court reversed:

First, because [the owner] was suing [the tile manufacturer] based upon the written warranty, it was bound by the arbitration provision contained in [the general contractor’s] agreement with [the tile manufacturer]. As the Florida Supreme Court has explained, “[W]hen a plaintiff sues under a contract to which the plaintiff is not a party . . . we will ordinarily enforce an arbitration clause contained in that contract, absent some other valid defense. . . .” . [The owner] had no valid defense against arbitration, a fact which it apparently realized when it voluntarily dismissed its express warranty claim after the notice of appeal and initial brief were filed.

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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

6 Ways to Reduce Fire Safety Hazards in BESS

January 02, 2024 — The Hartford Staff - The Hartford Insights
Renewable energy sources, such as solar and wind, are projected to generate 44% of all power in the U.S. by 2050, which is increasing the need for battery energy storage systems (BESS).1 BESS are electrochemical devices that collect energy from a power grid, power plant or renewable source, hold it, and then discharge that energy later to provide electricity on demand. “A BESS does not itself create or produce energy, it is a storage system. The energy is produced by other means, including different types of renewable sources. Think of a cellphone – you charge it overnight and then it runs throughout the day off that battery power,” says Stacie Prescott, head of energy for middle and large commercial at The Hartford. Read the court decision
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Reprinted courtesy of The Hartford Staff, The Hartford Insights

Former Superintendent Sentenced in Rhode Island Tainted Fill Case

July 05, 2023 — James Leggate - Engineering News-Record
A federal judge sentenced a contractor’s former superintendent June 20 for misleading officials about the source of fill and quality of contaminated fill used on the $410 million Route 6/10 interchange project in Rhode Island. Reprinted courtesy of James Leggate, Engineering News-Record Mr. Leggate may be contacted at leggatej@enr.com Read the full story... Read the court decision
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Colorado Supreme Court Rules that Developers Retain Perpetual Control over Construction Defect Covenants

June 21, 2017 — Jesse Witt - The Witt Law Firm
The Colorado Supreme Court ruled today that developers can retain control over community covenants in perpetuity by recording a covenant that requires declarant consent to any amendments. Although the Colorado Common Interest Ownership Act (CCIOA) states that such controls should be void, the court nevertheless ruled that a declarant may veto amendments that alter the dispute resolution procedures for construction defect actions at any time. The case of Vallagio at Inverness Residential Condominium Ass’n v. Metropolitan Homes, Inc., __ P.3d __, 15CO508, arose when the community’s members discovered widespread construction defects. When the declarant developed the project, it had recorded a declaration of covenants that purported to waive the homeowners’ right to a jury trial and instead require that any construction defect disputes be resolved by a private arbitration panel. The declaration also prohibited the homeowners from recovering attorney fees and costs, and it limited the declarant’s liability for damages. Consistent with CCIOA, the declaration allowed the homeowners to amend their covenants by a 67% vote, but it recited that the declarant could veto any such amendment prior to the sale of the last unit to a homeowner. The covenants further stated that the declarant must consent to any amendment that altered the construction defect restrictions. Reprinted courtesy of Jesse Howard Witt, Acerbic Witt Mr. Witt may be contacted at www.witt.law Read the full story... Read the court decision
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Microsoft Said to Weigh Multibillion-Dollar Headquarters Revamp

September 17, 2015 — Dina Bass & Hui-Yong Yu - Bloomberg
Microsoft Corp. is considering a multibillion-dollar revamp of its headquarters campus in suburban Seattle, seeking to foster more collaboration among employees and attract young engineers, according to people with knowledge of the plans. The software giant has hired architecture firm Skidmore, Owings & Merrill LLP as part of the effort at its Redmond, Washington, offices, said the people, who asked not to be named because the plans aren’t public. Skidmore Owings designed Dubai’s Burj Khalifa, the world’s tallest building, and is helping Microsoft with a makeover of its much smaller campus in Mountain View, California. Microsoft hasn’t yet decided whether to move forward with the Redmond overhaul, said one of the people familiar with the matter. Reprinted courtesy of Dina Bass, Bloomberg and Hui-Yong Yu, Bloomberg Read the court decision
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Real Estate & Construction News Roundup (8/21/24) – REITs Show Their Strength, Energy Prices Increase Construction Costs and CRE Struggles to Keep Pace

October 01, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, UBS to liquidate $2 billion real estate fund, hotel workers in San Francisco vote to strike, housing market to change after blockbuster settlement, and more!

When it comes to buying and selling homes, new rules are about to be put in play, five months after the National Association of Realtors agreed to a settlement over how its 1.5 million agents across the U.S. are paid commissions. (Kate Gibson, CBS)
Project abandonments tumbled in July in one of the largest monthly declines ever due to the anticipated interest rate cut. (Sebastian Obando, Construction Dive)
Increases in energy prices drove most of the total rise in construction input costs over the past month. (Sebastian Obando, Construction Dive)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

$5 Million Construction Defect Lawsuit over Oregon Townhomes

January 06, 2012 — CDJ STAFF

A homeowners’ association in Lake Oswego, Oregon has filed a $5 million lawsuit against the developers of the luxury townhomes. The homeowners of Sunset Crossing are suing Centurion Homes and Aspen Townhomes over claims that construction defects have lead to water intrusion and structural damages. The townhomes were built in 2005.

Andy Burns, the lawyer for Phillip and Patricia Gentelmann, the owners of both Centurion Homes and Aspen Townhomes, said the Gentelmanns were “taking these allegations very seriously.” The suit says that the construction violated state and local building codes and that the firms did not repair damage caused by water intrusion.

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Construction Companies Must Prepare for a Surge of Third-Party Contractors

February 08, 2021 — Kim Holly - Construction Executive
Economists agree that the trajectory of the current recession has been different from any other. Looking back at the 2008 economic crisis, there are noticeable trends in the construction space that indicate a surge in third-party contractor hiring could be coming in 2021. The demand for more contract work will come as no surprise for seasoned construction executives—the share of contractors at U.S. businesses has increased by 15% in the last decade. Contractors are a valuable asset in the construction industry, but organizations will need to prepare for the coming influx to ensure third-party contractors and full-time employees are set up for success to keep operations running smoothly. THE CONTRACTOR SURGE BLUEPRINT Managing a substantial influx of contractors on construction worksites can be an overwhelming task. However, with guiding principles in place, construction executives can successfully incorporate more contractors into their operations and effectively manage associated risks. Reprinted courtesy of Kim Holly, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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