California Senator Proposes Bill to Require Contractors to Report Construction Defect Cases
January 04, 2018 —
David Suggs - Bert L. Howe & Associates, Inc.According to Renne Schiavone’s of Patch.com in her article “Sen. Hill Wants Contractors to Report Construction Defect Cases”, Senator Jerry Hill of San Mateo County proposed a bill on December 21st, 2017 requiring construction defect settlements to be reported by contractors to the licensing board. This proposal comes after the tragic incident that took place back on June 16, 2015 during which a balcony on the fifth floor of a Berkeley apartment complex collapsed. This resulted in the death of six students and serious injuries for an additional seven individuals.
An investigation revealed that three years prior to the balcony collapse, Segue Construction, who built the apartment complex, had paid $26.5 million in construction defect lawsuit settlements. Since the law doesn’t require these settlements to be reported by contractors, the Contractors State License Board (CSLB) wasn’t aware of the case.
"Working together we can take even stronger steps to protect the public by ensuring that this critically important data is accessible to the Contractors State License Board," said Senator Hill. Senate Bill 465 will aim to protect consumers with more regulation and transparency. Senator Hill is also working on Senate Bill 721 which would require periodic condo and apartment building inspections of exterior elevated walking surfaces, stairwells, and balconies.
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Taking Care of Infrastructure – Interview with Marilyn Grabowski
February 06, 2019 —
Aarni Heiskanen - AEC BusinessMarilyn Grabowski leads Atlantic Infrared with a mission to protect and improve infrastructure. In this interview, we discuss her professional background, the technologies that her team uses, and why more women should consider construction as a career.
Marilyn Grabowski, known as “The Lady in Red”, and her team Atlantic Infra employees dubbed “The Red Crew” have been seamlessly filling potholes across the state of New Jersey since 2002. Under her leadership, The Red Crew uses infrared technology and unfailing attention to detail to expertly repair potholes, failed utility cuts and sunken trenches with no break in the road – creating safe and aesthetically pleasing repairs statewide, at a clip of 15,000 potholes per year.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Become Familiar With Your CGL Policy Exclusions to Ensure You Are Covered: Wardcraft v. EMC.
December 31, 2014 —
Heather M. Anderson – Colorado Construction LitigationIn a recent case arising out of a denial of coverage for alleged construction defect claims concerning a pre-fabricated home, the U.S. District Court for the District of Colorado applied the 10th Circuit’s determination of what can constitute an “occurrence” under a commercial general liability (“CGL”) policy. See Wardcraft Homes, Inc. v. Employers Mutual Cas. Co., 2014 WL 4852117 (D. Colo. September 29, 2014). William and Grace Stuhr sued Wardcraft, which manufactured pre-fabricated homes at a facility in Fort Morgan, Colorado, because their home was not completed as scheduled and contained various defects. The Stuhrs filed suit against Wardcraft alleging negligence, breach of warranty, and deceptive trade practices in violation of the Colorado Consumer Protection Act.
Wardcraft tendered the Stuhrs’ complaint to Employers Mutual Casualty Company (“EMC”), which denied coverage under its policy and denied any duty to defend. According to EMC, the Stuhrs’ alleged construction defects were not property damages and there was no occurrence in connection with faulty workmanship. Approximately two and a half years after they filed their initial complaint, the Stuhrs filed an amended complaint. Wardcraft did not tender this amended complaint to EMC, and first informed EMC about the amended complaint about a year after it was filed. A month prior, Wardcraft settled with the Stuhrs.
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Heather M. Anderson, Higgins, Hopkins, McLain & Roswell, LLCMs. Anderson may be contacted at
Anderson@hhmrlaw.com
California Booms With FivePoint New Schools: Real Estate
May 13, 2014 —
John Gittelsohn – BloombergFivePoint Communities Management Inc. is already constructing a school at its Great Park Neighborhoods project in Irvine, California, for 1,000 elementary and middle school students even as it’s still building the first 700 homes.
“We build the schools ahead of time,” said Emile Haddad, chief executive officer of Aliso Viejo, California-based FivePoint, which has permits for about 10,000 homes at Great Park. “That way we always have them ready.”
Local schools, along with parks and recreation facilities, have long been draws for buyers in new communities. Now, as school districts face tight construction budgets and homebuilders compete to attract families able to qualify for mortgages, developers are taking the lead on school construction instead of waiting for local governments to do the job.
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John Gittelsohn, BloombergMr. Gittelsohn may be contacted at
johngitt@bloomberg.net
Solar Power Inc. to Build 30-Megawatt Project in Inner Mongolia
October 15, 2014 —
Justin Doom – BloombergSolar Power Inc. (SOPW), a renewable-energy developer backed by China’s LDK Solar Co., has agreed to build a solar farm with 30 megawatts of capacity in Inner Mongolia.
Solar Power’s Xinyu Xinwei New Energy unit signed a construction agreement with Alxa League ZhiWei PV Power Co., the Roseville, California-based company said today in a statement. The project is expected to connect to the power grid by the end of March. Financial terms weren’t disclosed.
It’s Solar Power’s second accord this month to build a project in China’s Inner Mongolia Region. Solar Power also is building a 20-megawatt power plant in Wulaichabu City.
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Justin Doom, BloombergMr. Doom may be contacted at
jdoom1@bloomberg.net
Texas Shortens Its Statute of Repose To 6 Years, With Limitations
October 02, 2023 —
Jason Daniel Feld & Roni Most - Kahana FeldEffective June 9, 2023, Texas has shortened its statute of repose from the existing 10-year statute for builders of new homes to 6-years under specific conditions. The significantly shorter statute of repose bars suits against construction contractors of detached one-and two-family homes and townhomes, filed six years after the substantial completion of such homes, where the contractor also furnished a written warranty in compliance with the statute. Notably, projects including apartments, mixed-use, and hotels are not covered by the new law. It is also noted that a grey area in the law exists as to whether condominiums will be covered by the statute. The statute of repose strictly bars the filing of any action, claim or arbitration demand regardless of when the injury was actually discovered (latent defects) and is separate and distinct from any applicable statute of limitations.
The New Texas Statute of Repose Law
Under the
Texas Civil Practice & Remedies Code § 16.009, persons who construct or repair improvements to real property cannot be sued for defective or unsafe conditions of the property or deficiencies in the construction or repair of the improvement later than 10 years after substantial completion of the improvement, except in certain narrow circumstances. This statute is known as the “statute of repose.” The statute applies not only to suits for construction defects, but also personal injury, wrongful death, contribution, and indemnity.
Reprinted courtesy of
Jason Daniel Feld, Kahana Feld and
Roni Most, Kahana Feld
Mr. Feld may be contacted at jfeld@kahanafeld.com
Mr. Most may be contacted at rmost@kahanafeld.com
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New York Appellate Division: Second Department Contradicts First Department, Denying Insurer's Recoupment of Defense Costs for Uncovered Claims
March 01, 2021 —
Jasjeet K. Sahani - Saxe Doernberger & Vita, P.C.New York law has historically allowed insurers to recoup defense costs paid on behalf of an insured if there is ultimately no coverage for the underlying action, provided that the insurer reserved its rights to seek reimbursement. On December 30, 2020, the New York Appellate Division, Second Department declined to follow this longstanding principle in American Western Home Insurance Co. v. Gjonaj Realty & Mgt. Co.,1 by holding that the insurer was not entitled to recoup defense costs, even where it was determined that the claim was not covered under the insurance policy.
In American W. Home Ins. Co., the insureds were named as defendants in an underlying personal injury action. More than four years after the accident, and a $900,000 default judgment against the insureds, they tendered the lawsuit to their commercial general liability insurer, American Western Home Insurance Company (“American”). American denied coverage based on untimely notice, but after the default judgment was subsequently vacated, it agreed to defend the underlying action subject to a reservation of rights. The reservation of rights specifically reserved American’s right to deny coverage if the vacatur of the default judgment against the insureds was reversed. Further, American reserved its right to recover the costs of defending the underlying litigation.
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Jasjeet K. Sahani, Saxe Doernberger & Vita, P.C.Mr. Sahani may be contacted at
JSahani@sdvlaw.com
California’s Wildfire Dilemma: Put Houses or Forests First?
November 29, 2021 —
Jim Hinch - BloombergAs record-breaking fires blacken millions of acres in California and elsewhere in the West this year, politicians are mostly sticking to a standard script in response. President Joe Biden’s proposed budget this year includes a $500 million boost to what the White House calls “forest management” and other efforts to reduce wildfire risk. In July, California lawmakers approved $1.5 billion in similar prevention spending.
The funds are in addition to the $2 billion the federal government spends each year fighting fires — a figure twice what it was 10 years ago and roughly five times more than in the 1980s and 1990s. A study last year found that in 2018, wildfires in California caused $148.5 billion in economic damage, including $46 billion outside the state.
Roughly one in three American houses is now in what forest scientists call the wildland-urban interface, where growing cities, remote workers, second-home buyers and commuters priced out of other housing markets are often pushing into fire-prone regions. A 2017 study found that 900,000 homes in the Western U.S. worth a combined $237 billion were “at high risk for fire damage.”
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Jim Hinch, Bloomberg