Sales of U.S. Existing Homes Rise to One-Year High
October 22, 2014 —
Michelle Jamrisko – BloombergSales of previously owned homes climbed in September to the highest level in a year, pointing to growing confidence in the U.S. economy as employment firms.
Purchases advanced 2.4 percent to a 5.17 million annual rate, the National Association of Realtors reported today in Washington. Demand was up 1.9 percent compared with the same month last year before adjusting for seasonal patterns.
Americans are returning to the real-estate market as employers have added 2 million workers to payrolls so far this year. Sales stand to get an additional boost in the final months of 2014 as the drop in mortgage rates caused by slowing growth in Europe and emerging nations makes properties more affordable for first-time buyers.
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Michelle Jamrisko, BloombergMs. Jamrisko may be contacted at
mjamrisko@bloomberg.net
Need and Prejudice: An Eleventh-Hour Trial Continuance Where A Key Witness Is Unexpectedly Unavailable
July 10, 2018 —
Angela S. Haskins & Allegra Perez - Haight Brown & Bonesteel LLPIn Padda v. Superior Court (GI Excellence), No. E070522, the Court of Appeal, Fourth Appellate District, Division Two, recently held that a trial court abused its discretion in denying Defendants/Cross-Complainants’ request for a trial continuance where their key expert witness suddenly became ill twelve days before trial and before his deposition had been taken.
Reprinted courtesy of
Angela S. Haskins, Haight Brown & Bonesteel LLP and
Allegra Perez, Haight Brown & Bonesteel LLP
Ms. Haskins may be contacted at ahaskins@hbblaw.com
Ms. Perez may be contacted at aperez@hbblaw.com
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Commercial Development Nearly Quadruples in Jacksonville Area
December 04, 2013 —
CDJ STAFFConstruction is up in the Jacksonville area, and no sector is doing better than commercial construction. During the first ten months of 2012, there was $21.2 million of commercial construction, but during the first ten months of 2013, there was been $73.2 million of commercial construction, helped along by a $13.7 million medical complex.
In addition to the massive growth in commercial construction, residential construction is up, but by a comparatively modest 52%.
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Third Circuit Court of Appeals Concludes “Soup to Nuts” Policy Does Not Include Faulty Workmanship Coverage
December 11, 2018 —
Timothy Carroll - White and Williams LLPEarlier this month, in Frederick Mutual Insurance Company v. Hall, the U.S. Court of Appeals for the Third Circuit concluded that coverage for faulty workmanship claims is “simply not the kind of coverage insurance agents and insurance companies expect to provide” to construction industry professionals “unless the insured explicitly requests such coverage.” 2018 U.S. App. LEXIS 31666, at *9 (3d Cir. Nov. 8, 2018). In Hall, a stone masonry contractor was sued by its customer for causing over $350,000 in property damage resulting from “substandard and defective work” performed on the customer’s residence. The insurer sought a declaration that it owed neither a defense nor indemnity for those damages because, under Pennsylvania law, the policy did not cover property damage caused by faulty workmanship.
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Timothy Carroll, White and Williams LLPMr. Carroll may be contacted at
carrollt@whiteandwilliams.com
Maui Wildfire Cleanup Could Cost $1B and Take One Year
September 18, 2023 —
James Leggate - Engineering News-RecordHawaii Gov. Josh Green and Sen. Brian Schatz (D-Hawaii) have estimated at $1 billion the cost of cleanup after the Maui wildfires—which started Aug. 8 and killed at least 115 people and destroyed more than 2,200 structures. Officials planning the rebuilding of the parts of West Maui
devastated by the wildfires are emphasizing safety and residents’ wishes over speed.
Reprinted courtesy of
James Leggate, Engineering News-Record
Mr. Leggate may be contacted at leggatej@enr.com
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Court Rules on a Long List of Motions in Illinois National Insurance Co v Nordic PCL
May 10, 2012 —
CDJ STAFFThe case Illinois National Insurance Co. v Nordic PCL, et al. “involves a dispute about whether insurance benefits are available to a general contractor who built structures that allegedly have construction defects. Plaintiffs Illinois National Insurance Company (‘Illinois National’) and National Union Fire Insurance Company of Pittsburgh, PA (‘National Union’) (collectively, the ‘Insurers’), commenced this action for declaratory relief against Defendant Nordic PCL Construction, Inc., f/k/a Nordic Construction, Ltd. ("Nordic"), on August 23, 2011.”
The court was asked to rule on a long list of motions: “Counterclaim Defendants’ Request for Judicial Notice in Support of Their (1) Motion to Dismiss the Counterclaim and (2) Motion to Strike Portions of the Counterclaim, ECF No. 16 (‘Request for Judicial Notice’); Counterclaim Defendants’ Motion to Dismiss Counterclaim Filed October 24, 2011, ECF No. 14 (‘Motion to Dismiss Counterclaim’); Counterclaim Defendants’ Motion to Strike Portions of the Counterclaim Filed October 24, 2011, ECF No. 15 (‘Motion to Strike’); Third-Party Defendant Marsh USA, Inc.’s Motion to Dismiss or, in the Alternative, Stay Proceedings in Favor of Pending State Action, ECF No. 33 (‘Marsh’s Motion To Dismiss Or Stay’); Defendant and Third-Party Plaintiff Nordic PCL Construction, Inc., f/k/a Nordic Construction Ltd.’s Substantive Joinder to Third-Party Defendant Marsh USA Inc.’s Motion to Dismiss or, in the Alternative, Stay Proceedings in Favor of Pending State Action, ECF No. 36 (‘Nordic’s Joinder’); and Third-Party Defendant Marsh USA, Inc.’s Motion for Judgment on the Pleadings on Counts V and VI of Defendant/Third-Party Plaintiff Nordic PCL Construction, Inc.’s Third-Party Complaint, ECF No. 29 (‘Marsh’s Motion for Judgment on the Pleadings’).”
In result, the court reached the following decisions: “The court GRANTS IN RELEVANT PART the Insurers’ Request for Judicial Notice to the extent it covers matters relevant to these motions; GRANTS IN PART the Insurers’ Motion to Dismiss Counterclaim, but gives Nordic leave to amend the Counterclaim in certain respects; DENIES the Insurers’ Motion to Strike; DENIES Marsh’s Motion To Dismiss Or Stay and Nordic’s Joinder; and GRANTS Marsh’s Motion for Judgment on the Pleadings.”
The court provides a bit of background on the case: “This action arises out of alleged construction defects involving two projects on which Nordic acted as the general contractor. Nordic is a defendant in a pending state court action with respect to one of the projects and says it spent more than $400,000 on repairs with respect to the other project. Nordic tendered the defense of the pending state court action to the Insurers and sought reimbursement of the cost of repairs already performed. The Insurers responded by filing this action to determine their rights under the insurance policies issued to Nordic.”
Furthermore, the court presented a brief procedural history: “The Insurers commenced this declaratory action in this court on August 23, 2011. The Complaint asserts two claims, one seeking a declaration that the Insurers have no duty to provide a defense or indemnification regarding the Safeway Action, the other seeking such a declaration regarding the Moanalua Claims. Along with its Answer, Nordic filed a Counterclaim against the Insurers. The Counterclaim asserts breach of contract, breach of the covenant of good faith and fair dealing, misrepresentations and omissions of material fact, and bad faith, and seeks declaratory relief against the Insurers.”
The procedural history continues: “Nordic also filed a Third-Party Complaint against Marsh, the broker that had procured the Policies from the Insurers for Nordic. Nordic alleges that it reasonably believed that the Policies would provide completed operations insurance coverage for the types of construction defects alleged in the Safeway Action and Moanalua Claims. The Third-Party Complaint asserts breach of contract, negligence, promissory estoppel, breach of fiduciary duties, implied indemnity, and contribution and equitable subrogation.”
In conclusion, “The court GRANTS IN RELEVANT PART the Insurers’ Request for Judicial Notice. With regard to the Insurers’ Motion to Dismiss Counterclaim, the court GRANTS the motion as to Count I (breach of contract), Count II (duty of good faith and fair dealing), Count III (fraudulent and negligent misrepresentation), the portion of Count IV (bad faith) premised on fraud, and Count IV (declaratory relief). The court DENIES the motion as to Count IV (bad faith) that is not premised on fraud. Except with respect to the "occurrence" issue, which the court disposes of here on the merits, and Count V, which concerns only a form of relief, Nordic is given leave to amend its Counterclaim within three weeks of the date of this order. The court DENIES the Insurers’ Motion to Strike, DENIES Marsh’s Motion to Dismiss or Stay and Nordic’s Joinder, and GRANTS Marsh’s Motion for Judgment on the Pleadings with respect to Counts V and VI of the Third-Party Complaint.”
Read the court’s decision…
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Arbitration is Waivable (Even If You Don’t Mean To)
February 16, 2016 —
Christopher G. Hill – Construction Law MusingsBe careful with how you act with arbitration clauses in your contracts. If you are not careful in how you act to enforce these clauses, you could find yourself stuck in court whether you like it or not.
As I stated in a recent update to a post last month, the Fourth Circuit Court of Appeals recently weighed in on the issue of a contractor’s waiver of its rights to arbitration under a contract. Briefly, the facts of Forrester v. Penn Lyon Homes, et. al., No. 07-2171 are as follows. The Forrester’s sued Penn Lyon and its warranty company alleging among other things a breach of express warranty based upon a warranty contract containing a mandatory arbitration clause. Instead of immediately alleging an affirmative defense based upon the arbitration clause, the defendants removed the case to federal court and litigated for 18 months before raising the arbitration defense for the first time.
The 4th Circuit (correctly in my opinion) affirmed the lower court and held that the defendants defaulted their right to arbitration because of their actions in defense of the court action and the prejudice to the plaintiffs caused by those actions.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Proposed Changes to Federal Lease Accounting Standards
January 19, 2017 —
Susan Elliott & Lori A. Lange - Peckar & Abramson, P.C.The Federal Accounting Standards Advisory Board (FASAB) has proposed amendments to federal lease accounting standards found within Statement of Federal Financial Accounting Standard (SFFAS) 5, ‘Accounting of Liabilities of the Federal Government,’ and SFFAS 6, ‘Accounting for Property, Plant, and Equipment,’ promulgated by FASAB. The proposals would require entities leasing property to the federal government, such as private landlords, to recognize a lease receivable and deferred revenue at the beginning of the lease term (except on intragovernmental or short-term leases). The proposals are slated to take eff ect in reporting periods following September 30, 2018.
PUBLIC COMMENTS ARE DUE JANUARY 6, 2017.
The federal government is one of the largest tenants in the country. The General Services Administration (GSA) alone leases space to house over 600,000 government workers. GSA has over 8,000 leases throughout the U.S.
Reprinted courtesy of
Susan Elliott, Peckar & Abramson, P.C. and
Lori A. Lange, Peckar & Abramson, P.C.
Ms. Elliott may be contacted at selliott@pecklaw.com
Ms. Lange may be contacted at llange@pecklaw.com
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