Tokyo Building Flaws May Open Pandora's Box for Asahi Kasei
October 28, 2015 —
Kathleen Chu, Joji Mochida & Katsuyo Kuwako – BloombergJapanese real estate investment trusts are joining apartment owners and regulators in pushing Asahi Kasei Corp. for answers on an apartment building sagging sideways on the outskirts of Tokyo, as concerns are mounting that it may not be an isolated case.
REITs including Advance Residence Investment, Nippon Accommodation Fund Inc., Daiwa House Residential Investment Corp. and Japan Rental Housing Investment Inc. have all asked Asahi Kasei for details on what other buildings might be flawed, according to the trusts. Asahi Kasei disclosed on Thursday the names of prefectures where the company has undertaken work in the past 10 years on more than 3,000 buildings, after the land ministry requested the data. The sites include 342 schools, 257 medical and health-care facilities, 696 housing complexes and 217 office buildings, the firm said.
Asahi Kasei, the subcontractor of the project, said a unit didn’t properly install foundation piles at an apartment building in Yokohama, and the division falsified data on the work. The scandal has sent Asahi Kasei’s shares down more than 21 percent since Oct. 13, when news of the flawed building first emerged. Shares of Sumitomo Mitsui Construction Co., the contractor, plunged 25 percent and those of Mitsui Fudosan Co., which sold units at the Yokohama project in 2006, have tumbled 5 percent since then. All three companies said that the impact of the incident on their earnings is not yet clear.
Reprinted courtesy of Bloomberg reporters
Kathleen Chu,
Joji Mochida and
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California Governor Signs SB 496 Amending California’s Anti-Indemnity Statute
June 05, 2017 —
William S. Bennett - Saxe Doernberger & Vita, P.C.The bill amends Cal. Civ. Code § 2782.8 as it applies to indemnity agreements with design professionals. The pre-existing § 2782.8 prohibited public agencies from requiring indemnity from design professionals for anything other than claims arising out of, pertaining to, or relating to the negligence, recklessness, or willful misconduct of the design professional.
Under the newly passed bill, the indemnity restrictions imposed on public agencies when contracting with design professionals will now apply to all parties contracting with design professionals for professional services (effective Jan. 1, 2018). These restrictions also apply to a party contractually imposing a defense obligation on the design professional.
The revised statute specifically identifies architects, landscape architects, professional engineers, and professional land surveyors as included within the meaning of “design professional,” however it is unclear whether that is the extent of the phrase’s meaning.
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William S. Bennett, Saxe Doernberger & Vita, P.C.Mr. Bennett may be contacted at
wsb@sdvlaw.com
Michael Baker Intl. Settles Federal Pay Bias Allegations
February 26, 2024 —
James Leggate - Engineering News-RecordMichael Baker International Inc. agreed to pay $122,299 in back wages as part of an agreement with the U.S. Dept. of Labor to resolve allegations that the engineer-consultant paid women in four job titles less than their male counterparts.
Reprinted courtesy of
James Leggate, Engineering News-Record
Mr. Leggate may be contacted at leggatej@enr.com
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Risk Management for Condominium Conversions
July 31, 2013 —
David McLain, Higgings, Hopkins, McLain & Roswell, LLCOne of the bright spots in the Colorado construction industry over the last few years has been the construction of for-rent apartments. It seems as though apartments are going up everywhere you look along the Front Range. As market forces change, it will be interesting to see whether these units will remain apartments or whether they will be converted into for-sale condominiums or townhouses. One of the risk management strategies we have recently discussed with our general contractor clients who have been asked to build apartments is to ensure that the project remains a for-rent apartment project through the applicable statute of repose, conservatively assumed to be eight years. Unfortunately this is not always feasible, usually because the owner and/or lender are not interested in encumbering the property for such a long period of time, and want to retain the ability to convert the project if and when market forces allow, even if that is before the running of the statute of repose. The purpose of this article is to discuss the insurance and risk management ramifications of converting a project too early.
I have recently heard from several sources in the insurance industry that there are owners and contractors who are currently building apartments with the idea that they will be held as apartments for two to three years and then converted to for-sale condominiums or townhomes. While this strategy may have great appeal from a business point of view, it has a very serious risk management downside. Apparently, these owners and contractors are operating under the mistaken belief that they will have no liability exposure to the ultimate purchasers of the converted units or to the homeowners association for construction defects. This is an incorrect belief.
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David M. McLainDavid M. McLain can be contacted at
mclain@hhmrlaw.com
Dallas Home Being Built of Shipping Containers
October 22, 2013 —
CDJ STAFFSome people wonder what it is. Others think it’s an eyesore. A Dallas architect is constructing a home using shipping containers for the upper story. Matt Mooney is using fourteen in all, with seven running across the front of the building. Mr. Mooney intends to have glass doors at the front back. Most of the home’s living area will be constructed in the shipping containers. The bottom floor will be for storage and garage.
Mr. Mooney says that “30 or 40 times a day” people are stopping to look at the house. He also said that the delivery of the shipping containers brought some attention. “People call these things shipping containers, but technically they are prefabricated steel modules.”
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COVID-19 Response: Key Legal Considerations for Event Cancellations
March 30, 2020 —
Michael G. Platner, Solomon B. Zoberman, & Jane C. Luxton - Lewis BrisboisEvery passing day brings stark new reports of novel coronavirus (COVID-19) cases and increasing numbers of cancelled conventions, concerts, and other major events. Both the hospitality and travel industry on the one hand, and organizations that are canceling events on the other, are scrambling to understand the legal consequences of these costly terminations. Cancellation fees can be breathtaking, and affected parties are quickly learning that there are no simple answers as to whether a disease outbreak of this scope and scale falls within force majeure (or Act of God) clauses that either do not explicitly list, or arguably may never have contemplated, circumstances of this type.
Generally, force majeure clauses excuse parties’ performance under a contract when circumstances that are beyond their control arise and prevent them from fulfilling their obligations. The party electing to enforce its rights under the force majeure clause must show that the triggering event qualifies as a force majeure event, and that the event has rendered the party’s performance impossible or impracticable.
Reprinted courtesy of Lewis Brisbois attorneys
Michael G. Platner,
Solomon B. Zoberman and
Jane C. Luxton
Mr. Platner may be contacted at Michael.Platner@lewisbrisbois.com
Mr. Zoberman may be contacted at Solomon.Zoberman@lewisbrisbois.com
Ms. Luxton may be contacted at Jane.Luxton@lewisbrisbois.com
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2017 California Construction Law Update
December 15, 2016 —
Garret Murai – California Construction Law BlogTo say it’s been an exciting year in politics would be an understatement.
While most of the nation’s attention was focused on the presidential election, state legislatures, including California’s, were busy at work. The California State Legislature introduced 3099 bills during the second session of the 2015-2016 session of which 808 bills were signed into law. 2016 saw the enactment of several bills of interest to the construction industry including bills related to alternative project delivery methods, prevailing wages, and licensing. Each of the bills discussed below takes effect on January 1, 2017.
Project Delivery
AB 2126 – Amends Public Contract Code section 6701 to increase the number of projects the Department of Transportation may use the construction manager/general contractor method of project delivery from no more than 6 projects, to 12 projects, of which 8 of the 12 projects would be required to use Department employees or consultants under contract with the Department to perform all project design and engineering services.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
New York Office Secures Appellate Win in Labor Law 240(1) Fall in Basement Accident Case
March 20, 2023 —
Nicholas P. Hurzeler & Gregory S. Katz - Lewis BrisboisNew York, N.Y. (March 14, 2023) – New York Appellate Partner Nicholas P. Hurzeler and Managing Partner Gregory S. Katz recently prevailed when the New York Appellate Division, Second Department affirmed the dismissal of a Labor Law 240(1) claim involving an accident that occurred in the basement of a house under construction. Balfe v. Graham, ___ AD3d ___ (2d Dept. 2023), decided March 8, 2023.
In this matter, the plaintiff was installing ductwork in the basement of a house that had been stripped down to its foundation when he stepped backwards into an open hole that had been dug out of a concrete floor to accommodate the installation of an ejector pump. The lower court dismissed the plaintiff’s claim based on Labor Law 240(1), and he appealed. The plaintiff argued that he fell into an unprotected opening that should have been covered or barricaded. He further claimed the accident qualifies as a typical “falling worker” case within the scope of Labor Law 240(1), citing the depth of the hole needed to accommodate the ejector pump, and the size of the pump. Under the case law, a worker who falls into an uncovered opening on a construction site will typically be covered by Labor Law 240(1).
Reprinted courtesy of
Nicholas P. Hurzeler, Lewis Brisbois and
Gregory S. Katz, Lewis Brisbois
Mr. Katz may be contacted at Greg.Katz@lewisbrisbois.com
Mr. Hurzeler may be contacted at Nicholas.Hurzeler@lewisbrisbois.com
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