L.A. Makes $4.5 Billion Bet on Olympics After Boston Backs Out
August 26, 2015 —
James Nash – BloombergLos Angeles’s dreams of hosting the Olympic Games for a third time could get a boost from the City Council this week, even as officials try to assure taxpayers that they won’t be forced to bail out a botched effort.
The council is expected to vote Wednesday on giving Mayor Eric Garcetti power to negotiate with the U.S. Olympic Committee to bring the 2024 games to Los Angeles and require the city to pay for cost overruns.
Los Angeles emerged as the U.S. contender for the games after Boston withdrew from consideration in July. Opponents there warned that taxpayers were on the hook if the nearly month-long sporting event lost money.
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James Nash, Bloomberg
Foundation Arbitration Doesn’t Preclude Suing Over Cracks
March 28, 2012 —
CDJ STAFFThe Louisiana Court of Appeals has reversed the decision of a lower court, allowing a construction defect case to go through. In Greer v. Town Construction Company, the Greers hired Town Construction to build a home in Baton Rouge. The business relationship went sour, with disputes over “costs, change orders, workmanship, and timeliness issues.”
Town Construction filed an arbitration claim for the unpaid contract balance. In the counterclaim, the Greers made claims of mold and mildew problems, and wall cracks that they attributed to a “structural defect in the foundation.” In arbitration, Town Construction was awarded the full contract balance plus extra costs and interest, while the Greers were awarded for their structural claims.
Three years later, the Greers found additional cracks and filed a suit against Town Construction. Town Construction argued that the Greer’s lawsuit should be dismissed, as the claims had already been through the arbitration process. The district court agreed with Town Construction and dismissed the suit.
The appeals court noted that the Greers would have no ground for a suit if the arbitration was a “valid and final judgment,” and went on to note that there was no evidence in the trial record that the arbitration met this qualification. The court noted that although it was clear that both parties had agreed to the decisions of the arbiter, under Louisiana law, arbitration is not final until it has been “rendered by a court with jurisdiction over subject mater and over parties.”
The court remanded the case to the lower court, noting that “the district court is obligated to first determine whether a valid arbitration award is in existence and had been confirmed before considering the merits of the exception. The court noted that their decision “should not be read to express any opinion as to the merits of the claims or as to the propriety of damages sought in the Greer’s lawsuit.”
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KB to Spend $43.2 Million on Florida Construction Defects
August 27, 2013 —
CDJ STAFFIn their second quarter filing with the SEC, KB Homes estimates that repairing damage caused by defects in framing, stucco, roofs, and sealant will cost it $43.2 million. That estimate includes homes that are yet to be identified. KB had estimated lower costs earlier, but subsequently determined it was necessary to increase the funds by $15.9. As a result, the firm showed a loss in the second quarter. The company hopes to recover some funds in insurance settlements.
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Microsoft Said to Weigh Multibillion-Dollar Headquarters Revamp
September 17, 2015 —
Dina Bass & Hui-Yong Yu - BloombergMicrosoft Corp. is considering a multibillion-dollar revamp of its headquarters campus in suburban Seattle, seeking to foster more collaboration among employees and attract young engineers, according to people with knowledge of the plans.
The software giant has hired architecture firm Skidmore, Owings & Merrill LLP as part of the effort at its Redmond, Washington, offices, said the people, who asked not to be named because the plans aren’t public. Skidmore Owings designed Dubai’s Burj Khalifa, the world’s tallest building, and is helping Microsoft with a makeover of its much smaller campus in Mountain View, California.
Microsoft hasn’t yet decided whether to move forward with the Redmond overhaul, said one of the people familiar with the matter.
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Dina Bass, Bloomberg and
Hui-Yong Yu, Bloomberg
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Housing Sales Hurt as Fewer Immigrants Chase Owner Dream
July 01, 2014 —
Kathleen M. Howley – BloombergAfter decades of factory shutdowns and population loss, the city of Dayton, Ohio, has found a fix for its housing market hard-hit by foreclosures -- immigration.
The rust-belt city of 140,000 has been encouraging immigrants from Mexico, Nigeria and Turkey to move there since 2011, after its population hit a 90-year low, by offering to help with resettlement and starting businesses. Dayton’s foreign population grew and so did its housing sales, rising last year at almost twice the national rate.
As the housing recovery nationwide sputters, the story of Dayton reveals a reason why: the U.S. market is missing the sales jolt provided by immigration. Last year, the number of immigrants granted U.S. residency -- typically a requirement to get a mortgage -- hit a nine-year low, according to government data. Immigrants, deterred by a weak American labor market since 2008, aren’t likely to get encouragement from Congress, where support for a reform bill has mostly evaporated.
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Kathleen M. Howley, BloombergMs. Howley may be contacted at
kmhowley@bloomberg.net
You Cannot Arbitrate Claims Not Covered By The Arbitration Agreement
March 16, 2020 —
David Adelstein - Florida Construction Legal UpdatesRegardless of the type of contract you are dealing with, “[a]rbitration provisions are contractual in nature, and therefore, construction of such provisions and the contracts in which they appear is a matter of contract interpretation.” Wiener v. Taylor Morrison Services, Inc., 44 Fla. L. Weekly D3012f (Fla. 1st DCA 2019). This means if you want to preserve your right to arbitrate claims you want to make sure your contract unambiguously expresses this right. Taking this one step further, if you want to make sure an arbitrator, and not the court, determines whether the claim is arbitrable if a dispute arises, you want to make sure that right is expressly contained in the arbitration provision.
For example, in Wiener, a homeowner sued a home-builder for violation of the building code – a fairly common claim in a construction defect action. The homeowner’s claim dealt with a violation of building code as to exterior stucco deficiencies. The home-builder moved to compel the lawsuit to arbitration based on a structural warranty it provided to the homeowner that contained an arbitration provision. The structural warranty, however, was limited and did not apply to non-load-bearing elements which, per the warranty, were not deemed to have the potential for a major structural defect (e.g., a structural defect to load-bearing elements that would cause the home to be unsafe or inhabitable). The trial court compelled the dispute to arbitration pursuant to the arbitration provision in the structural warranty.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
The ARC and The Covenants
May 30, 2018 —
Christopher G. Hill - Construction Law MusingsFor this week’s Guest Post Friday here at Musings, we welcome back Mike Collignon. Mike is a co-founder of the Green Builder Coalition. The Green Builder® Coalition amplifies the voice of green builders and professionals to drive advocacy and education for more sustainable building practices.
As we start to see signs of a housing recovery, slow as it may be, I feel the industry is in a great position. All the effort put in by so many to improve our energy codes, green building programs & rating systems will finally be able to bear fruit. We can start to build homes that are much more environmentally responsible. Sure, we can have a lengthy debate about implementation and adoption rates, but you’ve got to walk before you can run. Unfortunately, I can see that progress getting shackled by an unexpected impediment: the architectural review committee (ARC; sometimes called “architectural committee” or “architectural control authority”) and the covenants of a homeowners’ association.
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Christopher G. Hill, The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Allegations Versus “True Facts”: Which Govern the Duty to Defend? Bonus! A Georgia Court Clears Up What the Meaning of “Is” Is
December 11, 2023 —
Rachel E. Hudgins & Syed S. Ahmad - Hunton Insurance Recovery BlogCourts scrutinize a complaint’s factual allegations to decide whether the allegations trigger a duty to defend.
[1] If the facts unambiguously exclude coverage, there is no duty to defend.
[2] But what if the factual allegations fall within a policy exclusion, but the allegations are untrue or questionable? What if the true facts would mean the exclusion doesn’t apply? In that case, many courts have found that the insurer should base its decision on the policyholder’s version of the “true facts.”
[3] An insurer can’t rely on the complaint’s allegations to deny coverage when the facts that the insurer knows or can ascertain show that the claim is covered.
[4]
A recent case,
United Minerals & Properties Inc. v. Phoenix Insurance Co., No. 4:23-cv-00050 (N.D. Ga.), illustrates these policy interpretation principles.
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Rachel E. Hudgins, Hunton Andrews Kurth and
Syed S. Ahmad, Hunton Andrews Kurth
Ms. Hudgins may be contacted at rhudgins@HuntonAK.com
Mr. Ahmad may be contacted at sahmad@HuntonAK.com
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