Cambridge Massachusetts Building Expert Directory

Florida Former Public Works Director Fined for Ethics Violation

April 09, 2014 — Beverley BevenFlorez-CDJ STAFF
Hiram Siaba, formerly Miami Lake, Florida’s public works director, has been fined for allegedly violating “an ethics ordinance that prevents public employees from doing business with former employers for a two-year period,” according to the Miami Herald. A few months prior to taking the job with the city, Siaba had worked part-time for Ballarena Construction. Siaba awarded Ballarena Construction “more than 10 projects that fell below the $25,000 threshold for awarding contracts without going to the Town Council for approval.” Ballarena had also been awarded a million-dollar youth center project, which “came to a halt last year” when town officials alleged that structural defects were discovered during an inspection. Miami Lakes is currently negotiating with Ballarena’s surety company to attempt to finish the project. Read the court decision
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Warranty of Workmanship and Habitability Cannot Be Disclaimed or Waived Under Any Circumstance

May 01, 2023 — Jason Feld & Stephanie Wilson - Kahana & Feld LLP
Arizona residential construction and single-family home production is growing at a rapid pace. And just as fast as the homes are sold, homeowners are constantly seeking warranty repairs from their homebuilders. Despite having strong purchase documents with express warranty language, the Arizona Supreme Court in Zambrano v. M & RC, II LLC, 254 Ariz. 53 (2022) adopted a bright line rule that regardless of the contract, the implied warranty of workmanship and habitability (“implied warranty”) cannot be disclaimed or waived under any circumstance. The Arizona Supreme Court opinion provides clear guidance of the law in this area on the scope of the implied warranty in contracts between homebuyers and builder/vendors, specifically on the issue of whether an express warranty can negate and effectively waive the common law implied warranty – which is a definitive violation of public policy. The Zambrano decision involved a licensed real estate broker who bought a new single family home for herself in a newly constructed master planned community in Surprise, AZ. Zambrano entered into a valid sales contract with Scott Homes (homebuilder) which contained a stand-alone 45-page pre-printed form express warranty. The express warranty was to be the “only warranty applicable to the home.” The contract further clarified that the buyer was expressly disclaiming (and, thus, waiving) the implied warranty. The sales documents and express warranty were signed and authorized by Zambrano. A short time later, the home developed alleged “design and construction defects” that were “either time barred or outside the coverage” of the express warranty. Zambrano filed suit for the alleged defects based on the implied warranty. Scott Homes filed summary judgment based on the Zambrano’s waiver and disclaimer of the implied warranty in the purchase agreement. The trial court granted summary judgment and the matter was appealed up to the Arizona Supreme Court. Reprinted courtesy of Jason Feld, Kahana & Feld LLP and Stephanie Wilson, Kahana & Feld LLP Mr. Feld may be contacted at jfeld@kahanafeld.com Ms. Wilson may be contacted at swilson@kahanafeld.com Read the court decision
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Is Performance Bond Liable for Delay Damages?

October 20, 2016 — David Adelstein – Florida Construction Legal Updates
There is an argument that a performance bond is not liable for delay damages UNLESS the bond specifically allows for the recovery of such damages. Keep this in mind when requiring a performance bond so that the bond covers the associated risks (and damages) you contemplate when requiring the bond. This argument is supported by the Florida Supreme Court’s 1992 decision in American Home Assur. Co. v. Larkin General Hosp., Ltd., 593 So.2d 195, 198 (Fla. 1992):

The language in the performance bond, construed together with the purpose of the bond, clearly explains that the performance bond merely guaranteed the completion of the construction contract and nothing more. Upon default, the terms of the performance bond required American [performance bond surety] to step in and either complete construction or pay Larkin [obligee] the reasonable costs of completion. Because the terms of the performance bond control the liability of the surety, American’s liability will not be extended beyond the terms of the performance bond. Therefore, American cannot be held liable for delay damages.

However, the Eleventh Circuit in National Fire Ins. Co. of Hartford v. Fortune Const. Co., 320 F.3d 1260(11th Cir. 2003), also analyzing an issue relating to the recoverability of delay-type damages against a performance bond, did not narrowly interpret the Florida Supreme Court’s decision in Larkin General Hospital. Read the court decision
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Reprinted courtesy of David Adelstein, Katz, Barron, Squitero, Faust, Friedberg, English & Allen, P.A.
Mr. Adelstein may be contacted at dma@katzbarron.com

Investing in Metaverse Real Estate: Mind the Gap Between Recognized and Realized Potential

May 10, 2022 — Robert G. Howard, David W. Wright & Craig A. de Ridder - Gravel2Gavel Construction & Real Estate Law Blog
The Metaverse is an immersive world combining virtual reality and augmented reality, where users are represented by avatars and roam virtual spaces. It comprises a variety of platforms and environments that can be explored, experienced, and developed. Online social games like Second Life, Fortnite and Minecraft are among the first wave of successful Metaverse games. Now, Meta and Microsoft see the Metaverse as a place to play, live, and work. A JP Morgan white paper stated that opportunities in the Metaverse seem “limitless.” The bank predicted that virtual worlds will “infiltrate every sector in some ways in the coming years.” A March 31 report by Citi concluded that the Metaverse has the potential to become a $13 trillion opportunity by 2030, with total global users of between one and five billion. According to Citi, the Metaverse will become a significant part of the next iteration of the internet (referred to as Web3) enabled by a variety of existing and emerging technologies, including 5G connectivity, secure blockchain and payment platforms, crypto assets, cloud computing, artificial intelligence, 3D modeling tools and headset devices. A Land Rush, Virtually Speaking Not surprisingly, investors are speculating regarding the value and potential of “virtual land” within the Metaverse, where land sales in 2021 exceeded $500 million and attracted a lot of attention and hype. The Sandbox, Decentraland, Somnium Space and CryptoVoxels are the most active platforms and owners can build almost anything on their virtual parcels. The open-source Ethereum blockchain, with self-executing smart contract functionality, operates as the foundational layer for most platforms. Parcels of land in The Sandbox and Decentraland are purchased with cryptocurrencies (called SAND and MANA, respectively) on their platforms and can also be sold and purchased on secondary marketplaces like OpenSea. Reprinted courtesy of Robert G. Howard, Pillsbury, David W. Wright, Pillsbury and Craig A. de Ridder, Pillsbury Mr. Howard may be contacted at robert.howard@pillsburylaw.com Mr. Wright may be contacted at david.w.wright@pillsburylaw.com Mr. Deridder may be contacted at craig.deridder@pillsburylaw.com Read the court decision
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Disjointed Proof of Loss Sufficient

June 11, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The court found that when considered as a whole, separately filed proofs of loss and estimates of damage were sufficient to meet the requirements of a flood policy. Young v. Imperial Fire & Cas. Ins. Co., 2014 U.S. Dist. LEXIS 51863 (April 15, 2014). On August 29, 2012, plaintiffs' property sustained flood damage due to Hurricane Isaac. After Imperial's adjustor inspected the property, advance payments were made for $5000 under the building coverage and $5000 under the contents coverage. On October 26, 2012, the plaintiffs' adjustor submitted a proof of loss for building damages, stating the amount of loss was $175,100, which was the policy limit minus the deductible. The insured wife signed the proof of loss. The actual case value, full cost of replacement or repair, and applicable depreciation were listed "undetermined." Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Minnesota Senate Office Building Called Unconstitutional

November 06, 2013 — CDJ STAFF
The state of Minnesota has plans for a $63 million Senate office building. Not so fast, says a former member of the Minnesota House. Jim Knoblach, the former representative for St. Cloud, has filed a lawsuit claiming that the appropriation for the building violated the state’s constitution. Funding for the senate office building was included in a tax bill, and Mr. Knoblach claims that violates the state’s requirement that laws have only a single subject. “It was buried deep in the tax bill and passed on the chaotic last day of session,” said Mr. Knoblach. In Minnesota, public works projects must reach 60% approval in both houses, while the tax bill only required 50% approval. State Republicans oppose the building. Read the court decision
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GE to Repay $87 Million for Scaled-Back Headquarters Plan

February 27, 2019 — Rick Clough - Bloomberg
General Electric Co. will reimburse the state of Massachusetts for funds used to develop the manufacturer’s future headquarters, a project that is now being scaled back under Chief Executive Officer Larry Culp. GE and the state will jointly sell the property in Boston’s Fort Point neighborhood where the company will make its future home, according to an agreement revealed Thursday. GE still plans to move into the campus later this year -- as a tenant rather than owner -- but it’s scrapping plans to build an adjacent 12-story tower. Read the court decision
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Reprinted courtesy of Rick Clough, Bloomberg

Safe and Safer

May 01, 2023 — Grace Austin - Construction Executive
There’s always room for improvement” is a cliché that applies to nothing if not health and safety in the construction industry, where doing things differently—doing them better—means preventing injuries and saving lives. In that spirit, Construction Executive asked five industry safety advocates a simple question: What is one thing about construction safety you’d like to see change? Ranging from sweeping to granular, their answers all focus on the people underneath the hard hats. As Miller & Long’s Frank Trujillo notes: “‘Safety first’ has been a mantra in the industry for decades, but I think companies have forgotten what that means. It’s about people—who they are, what they care about, who they love and their wellness.” But each of our experts—all of them representing companies who participate in ABC’s STEP Safety Management System —has a different idea of how safety in the construction industry can and should evolve, and what needs to change. Their answers below have been condensed and edited for clarity. Reprinted courtesy of Grace Austin, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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