Hong Kong Buyers Queue for New Homes After Prices Plunge
July 09, 2014 —
Michelle Yun – BloombergOn a Saturday morning in mid-June, thousands wait, crammed into Hong Kong’s Fortune Metropolis mall, across Victoria Harbor from the main business district, their eyes locked on large elevated screens. Cheers erupt when numbers flash, indicating the lucky ticket holders in the crowd.
They have paid HK$150,000 ($19,354) to enter a lottery that prioritizes buyers of apartments at City Point, a seven-tower development that billionaire Li Ka-shing’s Cheung Kong Holdings Ltd. (1) is building. More than 5,000 homebuyer-hopefuls are vying for 442 units, or about 11 for every home that went on sale the weekend of June 14.
Housing sales in Hong Kong are rising after government efforts to cool soaring prices led transactions to plunge last year to the lowest since at least 2002. A drop in mortgage rates and discounts from builders are luring back buyers of new homes after their price fell as much as 20 percent since October.
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Michelle Yun, BloombergMs. Yun may be contacted at
myun11@bloomberg.net
Developer Pre-Conditions in CC&Rs Limiting Ability of HOA to Make Construction Defect Claims, Found Unenforceable
August 16, 2021 —
Garret Murai - California Construction Law BlogThe Davis-Stirling Common Interest Development Act (Civ. Code §4000, et seq.), also known simply as “Davis-Stirling,” is a statute that applies to condominium, cooperative and planned unit development communities in California. The statute, which governs the formation and management of homeowners associations or HOAs, also governs lawsuits filed by HOAs for construction defects.
In the next case,
Smart Corners Owner Association v. CJUF Smart Corner LLC, Case No. D076775 (May 20, 2021), the 4th District Court of Appeal addressed the pre-litigation voting requirements of Davis-Stirling and the impact of recent amendments to the Act.
The Smart Corners Case
In 2004, CJUF Smart Corner LLC contracted with Hensel Phelps Construction Company for the construction of the Smart Corner condominium project, a 19-story mixed-use development with 301 residential units and common areas, in San Diego, California. As part of the development an HOA was formed, the Smart Corner Owner Association.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Two Things to Consider Before Making Warranty Repairs
January 21, 2019 —
David McLain - Colorado Construction Litigation BlogIn my last article, “What a construction defect ‘win’ looks like for a builder,” I made the point that builders should go to great lengths to work with homeowners to resolve legitimate problems through the entire statute of repose, in order to prevent the homeowners from involving attorneys. Again, happy homeowners do not call attorneys and do not bring construction defect claims. In this article, I want to address the ramifications of this strategy that builders should consider.
First, builders must be aware that any repairs performed will likely start anew the statutes of limitation and repose for the repairs. Second, builders should inform and involve their insurers in this process so as to avoid running afoul of their carriers’ “voluntary payments” clauses. In the long run, keeping homeowners happy is well worth the cost, especially if you keep in mind these additional considerations.
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David McLain, Higgins, Hopkins, McLain & Roswell, LLCMr. McLain may be contacted at
mclain@hhmrlaw.com
First-Party Statutory Bad Faith – 60 Days to Cure Means 60 Days to Cure
October 19, 2020 —
David Adelstein - Florida Construction Legal UpdatesIn a first party bad-faith lawsuit, such as a bad faith claim against an insured’s property insurer, there are three requirements that must be met before the bad faith lawsuit is filed: “‘(1) determination of the insurer’s liability for coverage; (2) determination of the extent of the insured’s damages; and (3) the required notice must be filed under section 624.155(3)(a).’” Fortune v. First Protective Ins. Co., 45 Fla. L. Weekly D2092a (Fla. 2d DCA 2020) (citation omitted).
The third requirement is for the insured to file a Civil Remedy Notice (known as a “CRN”) as a condition precedent to filing a statutory bad faith lawsuit giving the insurer 60 days’ notice of the bad faith violation and to cure the violation, i.e., pay the claim if the violation is payment.
A very common bad faith payment violation is the assertion that the insurer did NOT attempt “in good faith to settle claims when, under the circumstances, it could and should have done so, had it acted fairly and honestly towards its insured and with due regard for his or her interests.” Fla. Stat. s. 624.155(1)(b)(1).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Ethical Limits on Preparing a Witness for Deposition or Trial
October 28, 2024 —
Stu Richeson - The Dispute ResolverIn this week’s blog post, we are going to take a brief look at ethical issues associated with preparing a witness for a deposition or to testify at trial. Most attorneys would agree that it is permissible to meet with a witness before the witness’s deposition to discuss what to expect. On the other hand, there is no question that advising a witness to provide false testimony would be improper. But what about the area in between those two extremes? For instance, can an attorney suggest to a witness how to phrase answers to anticipated questions that, while true, might not be the way the witness would have answered the question absent the attorney’s coaching?
A little over a year ago, the American Bar Association Standing Committee on Ethics and Professional Responsibility issued ABA Formal Opinion 508: The Ethics of Witness Preparation. The opinion provides certain examples of things that are and are not permissible in preparing a witness for a deposition or trial.
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Stu Richeson, PhelpsMr. Richeson may be contacted at
stuart.richeson@phelps.com
Homeowner Who Wins Case Against Swimming Pool Contractor Gets a Splash of Cold Water When it Comes to Attorneys’ Fees
February 05, 2024 —
Garret Murai - California Construction Law BlogLooking outside as of late it seems like the glorious, sun-drenched days of Summer are just a nostalgic memory of days long gone. So, to bring back some of those warm-weather memories, I have a swimming pool case for you. Although, like most of the things we write about here on the California Construction Law Blog it’s not all fun-in-the-sun.
The Lee Case
In Lee v. Cardiff, 94 Cal.App.5th 398 (2023), Homeowner Dianne Lee entered into a construction contact with contractor David Brian Cardiff doing business as Advantage Pools Bay Area for a swimming pool and landscaping project totaling $231,500. It must have been quite a pool.
As these things sometimes go, a dispute arose and Cardiff left the job before its was finished. Lee later sued alleging breach of contract, negligent construction and violation of the Contractor State License Law.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
What Should Be in Every Construction Agreement
November 04, 2019 —
Patrick Barthet - Construction ExecutiveA detailed and coherent construction agreement in place on every job minimizes confusion, makes clear everyone’s respective responsibilities and reduces disputes. There are six things that should be addressed in every construction agreement.
DEFINE THE SCOPE
Define what the scope of work is that will be provided. Will it be only materials; will it be materials and labor; or will it be just labor? Be very clear and specific in how the scope of work is spelled out. Many contracts state that the contractor is responsible for all work that’s shown on the plans and specifications, as well as that which is reasonably inferable. While subjective—even if not actually on the plans or specifications, someone may believe that something should be part of the contractor’s work. This could expand what has to be done beyond what was understood or priced.
LIST ALL THE EXCLUSIONS
Do the parties each have the same understanding as to what is covered in the contract? How often are contractors faced with customers thinking something was included as part of the work? The contractor may have believed that task, or that material, or that specially fabricated item was excluded. But was it? Did the contractor articulate what was and was not in the scope and price? Specifically listing what is excluded can obviate this problem. Articulate what is not in the price or scope and reduce the chance of one party believing that something is to be done when it isn't.
Reprinted courtesy of
Patrick Barthet, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Barthet may be contacted at
pbarthet@barthet.com
Broker's Motion for Summary Judgment on Negligence Claim Denied
July 30, 2018 —
Tred R. Eyerly - Insurance Law HawaiiAfter being sued for negligence for failing to secure proper coverage, the broker was unsuccessful in seeking dismissal by way of summary judgment. Liverman Metal Recycling, Inc. v. Arthur J. Gallagher & Co., 2018 U.S. Dist. LEXIS 87957 (E.D. N.C. May 25, 2018).
Plaintiffs were two companies, Empire and Liverman, that processed scrap metal. They were in the process of merging under a management plan by which Empire would acquire Liverman. As part of the plan, Empire's employees were moved on to Liverman's payroll processing system. Concurrently, Liverman renewed its workmen's compensation policy. Defendant Arthur J. Gallagher & Company, an insurance broker, handled the renewal with the insurer, Bridgefield Insurance Company.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com