Equitable Lien Designed to Prevent Unjust Enrichment
November 09, 2020 —
David Adelstein - Florida Construction Legal UpdatesThere are instances where a party does not have construction lien rights but, nevertheless, feels the need to pursue an equitable lien against the real property.
No different than a construction lien, an action to enforce an equitable lien has a one-year limitations period if it arises from the “furnishing of labor, services, or material for the improvement of real property.” Fla. Stat. s. 95.11(5)(b). In other words, an equitable lien–not nearly as powerful as a construction lien because a construction lien is recorded in the official public records whereas an equitable lien is not–is tied to an analogous one-year limitations period for those liening for construction improvements. (Notably, if the equitable lien arises outside of the construction improvement context, the one-year statute of limitations would not apply. See Gabriji, LLC v. Hollywood East, LLC, 45 Fla. L. Weekly D2251a (Fla. 4th DCA 2020) (one-year statute of limitations period does not apply to all equitable liens such as those that do not arise from furnishing labor, services, or material for the improvement of real property)).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Massachusetts Pulls Phased Trigger On Its Statute of Repose
December 21, 2020 —
Kyle Rice - The Subrogation SpecialistIn D’Allesandro v. Lennar Hingham Holdings, LLC, 486 Mass 150, 2020 Mass. LEXIS 721, the Supreme Judicial Court of Massachusetts answered a certified question regarding how to apply the Massachusetts statute of repose, Mass. Gen. Laws ch. 260, § 2B, in regards to phased construction projects. The court held that, in this context, the completion of each individual “improvement” to its intended use, or the substantial completion of the individual building and the taking of possession for occupancy by the owner or owners, triggers the statute of repose with respect to the common areas and limited common areas of that building. Additionally, the court held that where a particular improvement is integral to, and intended to serve, multiple buildings (or the development as a whole), the statute of repose is triggered when the discrete improvement is substantially complete and open to its intended use.
In D’Allesandro, the action arose out of the construction, marketing, sale and management of the Hewitts Landing Condominium (the Condominium) project. Ultimately, 150 units were constructed over 24 phases of construction, enclosed in 28 different buildings. Throughout construction, the project’s architect submitted declarations to the Town of Hingham swearing that the individual units were “substantially complete” and could be occupied for their intended use. The Town of Hingham then issued certificates of occupancy for the unit or building.
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Kyle Rice, White and WilliamsMr. Rice may be contacted at
ricek@whiteandwilliams.com
BHA has a Nice Swing Benefits the Wounded Warrior Project
May 20, 2015 —
Beverley BevenFlorez-CDJ STAFFBert L. Howe & Associates (BHA) would like to congratulate the winners of the BHA Has a Nice Swing golf game for charity at the 2015 West Coast Casualty Construction Defect Seminar. With the help of the participants, BHA was able to raise $1925 to benefit the Wounded Warrior Project. BHA would also like to congratulate the raffle winners. Prizes included a DJI Phantom 2 Vision+ Drone and Dodger baseball tickets.
The Wounded Warrior Project’s purpose is to raise awareness and enlist the public’s aid for the needs of injured service members; to help injured service members aid and assist each other; and to provide unique, direct programs and services to meet the needs of injured service members.
Learn more about the Wounded Warrior Project...
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School District Client Advisory: Civility is not an Option, It is a Duty
May 13, 2014 —
Gregory J. Rolen - Haight Brown & Bonesteel LLP“I could not but wonder at the Queen’s unprecedented civility, until I realized with a flush of shame that it was my own improved behavior that motivated hers. So it is that we in life determine our own treatment.” - Catherine Gilbert Murdock
I. We Must Actively Encourage Board Civility
Over 20 years of experience representing public entities has taught me there is nothing more important than civility. On April 11, 2014, I was a featured presenter on, "How to Keep School Boards Out Of Trouble!" My initial focus was to educate the board members about open meeting laws, public records, and conflict provisions. Instead, I began by addressing board "civility." The discussion became animated. The audience was transfixed, appalled, and even amused at my examples of how uncivilized board behavior led to lawsuits, bad press, wasted resources and low morale. One attendee asked me to define civility. I meekly responded, "The Golden Rule?" "Disagreeing without being disagreeable?" My answers were inadequate. I then had a humbling epiphany. As an education law specialist, and the General Counsel of one of the largest, most diverse school districts in California, I needed to do more to foster civility among the board members I served. I had underestimated the destructive effects of incivility on my district, my colleagues, and my community.
On some level I realized that the coarsening of the discourse was taking its toll. However, I was so involved in performing my duties; I forgot to do my job. I should have taken a step back and implemented training, policies, initiatives and protocols to promote civility. I realize that it is unfortunate that we have to establish standards for adult interactions, especially for people who have promised to place service over self. As I learned, you can never fully anticipate human interactions or the complexities of the human condition. That is why I believe proactive measures to promote civility are so critical. This is not being nice for the sake of being nice. But instead, it is an absolutely vital component of effective governance. Therefore, in this essay I will discuss civility and its importance to school boards and districts. I will address the deleterious effects of board incivility. More importantly, I hope to present no-nonsense methods to cultivate civility. It is my sincere desire that others will learn from my experiences, and this time I want to do better!
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Gregory J. Rolen, Haight Brown & Bonesteel LLPMr. Rolen may be contacted at
grolen@hbblaw.com
Sales Pickup Shows Healing U.S. Real Estate Market
June 26, 2014 —
Shobhana Chandra – BloombergAmericans snapped up previously owned homes in May in the biggest monthly sales gain in almost three years, a sign the residential real estate market is regaining its footing after a stumble early in the year.
Purchases climbed 4.9 percent, the biggest increase since August 2011, to a 4.89 million annualized rate, figures from the National Association of Realtors showed today in Washington. The level was the strongest since October. The report also showed price appreciation is slowing as more homes become available.
A more balanced market, including a wider selection of properties, smaller price gains and still-low borrowing costs, may encourage more Americans to buy as employment strengthens. Improving demand will probably spur a pickup in construction, and builders such as Hovnanian Enterprises Inc. (HOV) are optimistic.
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Shobhana Chandra, BloombergMs. Chandra may be contacted at
schandra1@bloomberg.net
Illinois Appellate Court Addresses Professional Services Exclusion in Homeowners Policy
August 03, 2022 —
James M. Eastham - Traub LiebermanIn Stonegate Ins. Co. v. Smith, 2022 IL App (1st) 210931, the Insured was performing plumbing work at a multi-story townhouse when a fire ensued causing damage to the second story unit. Although a carpenter by trade, the Insured was performing plumbing work consisting of the replacement of a shower valve as a favor for a friend. To accomplish the task, the Insured utilized a small propane torch to attempt to remove the old water piping to the shower. In doing so, the insulation behind the bathroom wall caught fire and the flame spread upward to the neighboring unit. Stonegate had issued a homeowner’s policy to the Insured during the relevant time period. The homeowner's policy excluded coverage for property damage "[a]rising out of the rendering of or failure to render professional services." Subsequent to tender of the loss, Stonegate initiated a declaratory judgment action seeking a declaration that it owned no duty to defend or indemnity pursuant to the professional services exclusions.
In finding in favor of the Insured, the Court began its analysis by noting that the homeowner's policy did not define the term "professional services" such that it was the Court’s task to determine whether the Insured’s work qualified as a "professional service" for purposes of the exclusion. The Court further prefaced its holding by stating that for an exclusionary clause to effectively deny coverage, its applicability must be clear and free from doubt because any doubts as to coverage will be resolved in favor of the insured. Looking to Illinois case precedent, the Court found that the term "professional service" is not limited to services for which the person performing them must be licensed by a governmental authority. Rather, "professional services" encompass any business activity conducted by an insured that (1) involves specialized knowledge, labor, or skill, and (2) is predominantly mental or intellectual as opposed to physical or manual in nature.
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James M. Eastham, Traub LiebermanMr. Eastham may be contacted at
jeastham@tlsslaw.com
Wall Street’s Favorite Suburban Housing Bet Is Getting Crowded
February 15, 2021 —
Patrick Clark - BloombergWall Street’s zest for a corner of suburban real estate long left to small landlords is reaching new heights, attracting institutional investors, homebuilders and apartment managers during a pandemic that has ignited demand for larger homes.
The pension manager for the Canadian Mounties is the latest investor in single-family rentals, joining JPMorgan Chase & Co.’s asset-management arm and Nuveen Real Estate in a bet that there are lots of Americans who want spare bedrooms and backyards, but don’t have cash for down payments.
“It’s really an inflection point in SFR,” said Michael Carey, a senior director for Altus Group, an advisory firm. “It used to be an alternative asset class. Now people look at it as a solution.”
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Patrick Clark, Bloomberg
Defining Constructive Acceleration
March 22, 2021 —
David Adelstein - Florida Construction Legal UpdatesWhen it comes to the definition of “constructive acceleration,” the case of Fraser Const. Co. v. U.S., 384 F.3d 1354 (Fed.Cir. 2004) is a cited case and contains an instructive definition, quoted below, for proving a constructive acceleration claim.
In a nutshell, a constructive acceleration claim is when the contractor incurs added costs for trying to complete the contract on time when it should be provided extensions of time to perform based on excusable delay (i.e., delay not caused by the contractor). These added costs could be bringing in additional supervision to manage the work, adding manpower to perform the work, working overtime, working weekends, adding more shift work, stacking trades, etc. However, just because a contractor claims they have been constructively accelerated does not make it so. The contractor has to actually ask for an extension of time based on an excusable delay and the owner either denied the extension or unreasonably sat on the request for an extension of time; thus, the contractor incurred significant costs to accelerate in order to finish the project on time because it was deprived of a requested time extension for excusable delay.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com