2019 Legislative Session
June 03, 2019 —
Steve Heisdorffer – Colorado Construction LitigationTwo bills under consideration as the end of the session nears contain significant changes to Colorado’s Consumer Protection Act (“CCPA”). The bills broaden remedies, make more conduct a breach of the CCPA, and include purely private transactions in the type of conduct that falls within the scope of the CCPA. The bills are House Bill 19-1289 (“House Bill”) and Senate Bill 19-237 (“Senate Bill”). As of April 29, 2019, the House Bill has passed the House. The Senate Bill has not progressed past introduction. It is unclear if both houses of the legislature will have an opportunity to vote on either or both bills before the session ends.
The House Bill makes a person liable for CCPA violations based on conduct engaged in “recklessly,” not just knowing conduct. No definition of the term “recklessly” is provided in the House Bill, but Colorado’s attorney general testified “recklessly” “means a company or person acted with reckless disregard for the truth.” (Page 2). No explanation was given of what the word “reckless” in the definition of “recklessly” meant in this context.
Another provision of the House Bill adds a “catch all” prohibition that labels as a deceptive trade practice knowingly or recklessly engaging in any unfair, unconscionable, deceptive, deliberately misleading, false or fraudulent act or practice. There is no indication how a person could “recklessly” engage in “deliberately misleading” acts or practices.
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Steve Heisdorffer, Higgins, Hopkins, McLain & RoswellMr. Heisdorffer may be contacted at
heisdorffer@hhmrlaw.com
Sometimes It’s Okay to Destroy Evidence
August 17, 2011 —
CDJ STAFFThe Minnesota Supreme Court has ruled in the case of Miller v. Lankow that Mr. Miller was within his rights to remediate his home, even though doing so destroyed the evidence of water intrusion.
Linda Lankow built a home in 1992. In 2001 or 2002, Lankow discovered a stucco problem at the garage which she attributed to moisture intrusion. She asked the original contractor to fix the wall. In 2003, Lankow attempted to sell her home, but the home inspection revealed fungal growth in the basement. Lankow made further repairs, including alterations to the landscaping.
In 2004, Lankow put her house on the market once again and entered into an agreement with David Miller. Miller declined to have an independent inspection, as the home had been repaired by professional contractors.
In 2005, Miller put the house on the market. A prospective buyer requested a moisture inspection. The inspection firm, Private Eye, Inc. found “significant moisture intrusion problems.”
Miller hired an attorney who sent letters to the contractors and to Lankow and her husband. Lankow’s husband, Jim Betz, an attorney, represented his wife and sent a letter to Miller’s attorney that Miller had declined an opportunity to inspect the home.
In 2007, Miller’s new attorney sent letters to all parties that Miller had decided to begin remediation work on the house. All stucco was removed. Miller then filed a lawsuit against the prior owners, the builders, and the realtors.
Two of the contractors and the prior owners moved for summary judgment on the grounds that Miller had spoliated evidence by removing the stucco. They requested that Miller’s expert reports be excluded. The district court found for the defendants and imposed sanctions on Miller.
The Minnesota Supreme court found that “a custodial party’s duty to preserve evidence is not boundless,” stating that “it may be particularly import to allow remediation in cases such as the one before us.” Their reasoning was that “remediation of the moisture intrusion problem in the home may be necessary, even essential, to address immediate health concerns.”
Given that Miller needed to remediate the problem in order to continue living there, and that he had given the other parties a “full and fair opportunity to inspect,” the court found that he was within his rights. The court reversed the judgment of the lower court and remanded it to them for review.
Read the court’s decision…
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You Have Choices (Litigation Versus Mediation)
December 14, 2020 —
Christopher G. Hill - Construction Law MusingsAs I sit here thinking about an impending trial in the Goochland County General District Court, it hit me that I also serve as a mediator in that court from time to time. Coincidentally, I will be “wearing both hats” (litigator and mediator) this week on back to back days. It will be interesting to have to switch roles so quickly on back to back days.
While I don’t have the results of this thought experiment as I sit here typing this post, the timeline does bring into focus the two possible avenues to resolve a dispute. Neither is perfect and either works in the proper situation. Both lend a final “result” and closure to the dispute, they just each do so in a different manner and with a different role for me, the construction attorney/construction mediator.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
U.K. Construction Growth Unexpectedly Accelerated in January
February 05, 2015 —
Tom Beardsworth – Bloomberg(Bloomberg) -- U.K. construction growth unexpectedly accelerated last month as housing strengthened and civil engineering bounced back from a contraction.
Markit Economics said its Purchasing Managers’ Index rose to 59.1 from 57.6 in December. A reading above 50 indicates expansion. Economists forecast the gauge would fall to 57, according to the median estimate in a Bloomberg News survey.
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Tom Beardsworth, BloombergMr. Beardsworth may be contacted at
tbeardsworth@bloomberg.net
Hawaii Court Looks at Changes to Construction Defect Coverage after Changes in Law
November 06, 2013 —
CDJ STAFFA construction defect case lead at the U.S. District Court for Hawaii involved the insurer’s changed views on what was covered based on court decisions that came after the policy was written. John R. Casciano and Jessica L. Urban of Steptoe & Johnson LLP discuss the case on their firm’s website. They note that in Illinois National Insurance Company v. Nordic PCL Construction, Inc., Nordic built a retail building which soon afterwards had water leaks and property damage, due to alleged defects in the roof construction.
Nordic had purchased comprehensive general liability and umbrella polices, with coverage that included property damage. Mr. Casciano and Ms. Urban note that “at the time of contracting, the Ninth Circuit had predicted that, ‘if the Hawaii Supreme Court examined the matter, it would rule that, for purposes of insurance coverage, construction defects were “not occurrences.”’” After the policy was written, the Hawaii Intermediate Court of Appeals did rule that “construction defect claims do not constitute an ‘occurrence’ under a CGL policy.” On the basis of this, Illinois National determined that they had no duty to defend or indemnify their client.
Nordic made a claim of bad faith, but the court determined that “an insurer that denies coverage based on an open question of law does not act in bad faith, an insurer that actually relies on governing law, even if the insurer only belatedly learns of the law, cannot be said to thereby act in bad faith.”
However, the court denied a summary judgment of Nordic’s claim of negligent misrepresentation, determining that there was “a question of fact as to whether the Policies covered [or were represented as covering] only damage to third parties caused by subcontractors’ defective work.” Finally, the court found that “a reasonable jury could infer that, at the time the Polices were issued, the insurers meant to cover claims arising out of the defective work” of Nordic’s subcontractors.
They conclude that the Nordic decision “recognizes the varying consequences for coverage claims when post-contracting changes to the law may not coincide with the expectations of at least one of the parties at the time of contracting.”
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Google’s Biggest Moonshot Is Its Search for a Carbon-Free Future
November 15, 2021 —
Mark Bergen - BloombergGoogle Bay View, the company’s newest campus, consists of three squat buildings nestled near the San Francisco Bay shoreline a few miles east of its headquarters in Mountain View, Calif. The first things visitors notice are the roofs.
They curve down gently from pinched peaks, like circus tents, sloping almost to the ground. Each roof is blanketed with overlapping solar panels that glisten with a brushed metal sheen on the edges. Google calls this design Dragonscale, and indeed it looks as if a mystical beast is curled up by the water in Silicon Valley.
Google envisions its latest campus as the embodiment of a grander ambition to run its operations entirely free of carbon. The company plans to open Bay View in January to “a limited number” of employees, depending on the pandemic. Beneath the buildings, thousands of concrete pillars plunged into the ground will serve as a sort of geothermal battery, storing heat to warm the building and water supply without natural gas. The roof panels were constructed with a unique textured glass to prevent glare and with canopies that emit a soft, glowing light into the spacious atria inside. “We call this the Cathedral of Work,” says Asim Tahir, who oversees energy decisions in Google’s real estate division. He stands by the southern entrance in a hard hat, mask, and safety vest.
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Mark Bergen, Bloomberg
Municipal Ordinances Create Additional Opportunities for the Defense of Construction Defect Claims in Colorado
August 22, 2022 —
Ricky Nolen - Colorado Construction Litigation BlogMunicipal ordinances may provide additional defenses for construction professionals where state law does not provide sufficient protection for Colorado’s builders. Colorado state law can be a minefield of potential liability for construction professionals. Even though the state legislature has stated that it must “recognize that Construction defect laws are an existing policy issue that many developers indicate adds to for-sale costs,” the legislature has remained hesitant to provide any meaningful protection from construction defect claims, resulting in almost unlimited exposure for Colorado’s construction professionals.
Given this background of state laws that do not go far enough in protecting Colorado’s construction professionals, it may be fruitful to review municipal ordinances for new defenses and to temper state law developments applicable to construction defect claims. This is an area of law that is only just developing in Colorado. In fact, the ordinances discussed in this article were only passed in the last two years with many cities only adopting the present versions of the ordinances in 2021. The two model ordinances discussed below are potentially helpful in three ways. The first model ordinance gives construction professionals a right to repair defects in the multi-family construction and in the common interest community context. The second model ordinance is helpful in two ways. First, it establishes that homeowners associations may not unilaterally circumvent ADR protections included in the original declarations for such communities.[1] Second, the ordinance reduces the risk that strict liability will be imposed on a construction professional where a building code is violated.
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Ricky Nolen, Higgins, Hopkins, McLain & Roswell, LLCMr. Nolen may be contacted at
nolen@hhmrlaw.com
Chinese Billionaire Developer Convicted in UN Bribery Case
August 02, 2017 —
Bob Van Voris - BloombergA Chinese developer was convicted of charges he paid bribes to win backing for a United Nations conference center that he hoped to build in Macau.
A jury in Manhattan on Thursday found the developer, billionaire Ng Lap Seng, guilty of all six charges he faced, including conspiracy, bribery and money laundering, in the biggest UN corruption scandal since the oil-for-food program in the early 2000s. Prosecutors claimed Ng funneled hundreds of thousands of dollars to former UN General Assembly President John Ashe and other officials.
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Bob Van Voris, Bloomberg