Traub Lieberman Partner Michael Logan and Associate Christian Romaguera Obtain Voluntary Dismissal in Favor of Construction Company Under the Vertical Immunity Doctrine
June 21, 2024 —
Christian Romaguera - Traub LiebermanIn a lawsuit filed in Orange County, Traub Lieberman Partner Michael Logan and Associate Christian Romaguera achieved a voluntary dismissal in favor of their Client, a construction company. The Plaintiff claimed that he was seriously and permanently injured, and demanded $1,000,000.00. The Plaintiff turned out to be an employee of our Client’s subcontractor, and the Plaintiff received worker’s compensation benefits from his employer, the subcontractor. Under Florida Statute § 440.11(1), “The liability of an employer . . . shall be exclusive and in place of all other liability, including vicarious liability, of such employer to any third-party tortfeasor and to the employee . . .” When a subcontractor provides workers’ compensation benefits to its injured employee, workers’ compensation immunity would not only apply to the subcontractor but to the general contractor as well. This is also known as “vertical immunity.” The Traub Lieberman team filed a detailed motion and memorandum of law to argue its case, and the Plaintiff voluntarily withdrew the claim against the Client just before that motion was set to be argued before the Judge.
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Christian Romaguera, Traub LiebermanMr. Romaguera may be contacted at
cromaguera@tlsslaw.com
Call Me Maybe? . . . Don’t Waive Your Rights Under the Right to Repair Act’s Prelitigation Procedures
March 22, 2017 —
Garret Murai – California Construction Law BlogWe’ve written before about the Right to Repair Act (Civil Code Sections 895 et seq.). The Act, also commonly known as SB 800 after the bill that established it, applies to newly constructed residential units including single-family homes and condominiums (but not condominium conversions) sold after January 1, 2003.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Land a Cause of Home Building Shortage?
June 17, 2015 —
Beverley BevenFlorez-CDJ STAFFDiana Olick of CNBC reported that builders are not keeping up with the housing demand due to a lack of supply of developed lots as well as the increasing price of available land.
"You have to find the land, you've got to be able to buy it and you've got to persuade someone to let you develop it. The one you hear the most about is the last one," Paul Emrath, vice president of survey and housing policy research at the National Association of Home Builders (NAHB), told CNBC.
Olick wrote that “[l]and prices have actually surpassed their peak values in many markets where builders are particularly active, especially in Texas.”
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Economy in U.S. Picked Up on Consumer Spending, Construction
October 02, 2015 —
Shobhana Chandra – BloombergThe world’s largest economy expanded more than previously forecast in the second quarter, boosted by gains in consumer spending and construction that may help the U.S. withstand a global slowdown.
Gross domestic product rose at a 3.9 percent annualized rate, compared with a prior estimate of 3.7 percent, Commerce Department figures showed Friday in Washington. The median forecast of 76 economists surveyed by Bloomberg called for a 3.7 percent gain.
Strong hiring, cheaper gasoline and higher home prices will probably sustain household purchases, which account for about 70 percent of the economy. That helps bolster Federal Reserve Chair Janet Yellen’s view that the U.S. will overcome any fallout from cooling overseas markets and swings in global financial and commodity markets.
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Shobhana Chandra, Bloomberg
There's No Place Like Home
March 02, 2020 —
Brian Brenner - Engineering News-RecordTwo things that generally do not go well together, bridges and tornadoes, collided with unfortunate results on July 21, 2003. On that date, a tornado struck the Kinzua viaduct in northwestern Pennsylvania. The old bridge structure already had deteriorated foundation supports, which were then under repair. The tornado lifted parts of the bridge off its foundation, and more than half of the structure collapsed.
Brian Brenner, Engineering News-Record
ENR may be contacted at ENR.com@bnpmedia.com
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Court of Appeals Finds Arbitration Provision Incorporated by Reference Unenforceable
September 20, 2021 —
Garret Murai - California Construction Law BlogSubcontractors have gotten accustomed to incorporation clauses in their contracts. While an incorporation clause can incorporate any document, most typically, it’s the prime contract between the general contractor and the project owner. Subcontractors will sometimes even accept these documents sight unseen which can be a recipe for disaster. But not in the next case.
In Remedial Construction Services, LP v. AECOM, Inc., Case No. B303797 (June 15, 2021), the 2nd District Court of Appeal examined whether a subcontractor was bound to an arbitration provision contained in a prime contract that was incorporated by reference into the subcontractor’s contract. In this case, it was the prime contractor who was in for a surprise.
The Remedial Construction Case
In 2015, Shell Oil Products US, LLC entered into a prime contract with AECOM Technical Services, Inc. for the demolition, remediation and restoration of the Gaviota oil terminal in Goleta, California. AECOM in turn entered into a subcontract with Remedial Construction Services, LP to perform portions of the work. When AECOM refused to pay Remedial for delay costs asserted by Remedial, Remedial filed suit.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Arizona Court of Appeals Upholds Judgment on behalf of Homeowners against Del Webb Communities for Homes Riddled with Construction Defects
February 26, 2015 —
Law Offices of Kasdan Weber Turner LLPARIZONA COURT OF APPEALS UPHOLDS LOWER COURT DECISION APPROVING $13,703,039 JUDGMENT ON BEHALF OF 460 SUN CITY GRAND HOMEOWNERS AGAINST DEL WEBB COMMUNITIES, INC., A SUBSIDIARY OF PULTEGROUP, INC., FOR HOMES RIDDLED WITH CONSTRUCTION DEFECTS
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In a separate case, an Arizona Superior Court awards $10,619,640 to another 279 Sun City Grand homeowners who sued Del Webb over construction defects, which Del Webb has appealed--
PHOENIX, Arizona – The Arizona Court of Appeals, Division One, [on Tuesday] issued a unanimous ruling upholding a lower court decision awarding $13,703,039 to 460 Sun City Grand homeowners who sued developer Del Webb Communities, Inc., a subsidiary of PulteGroup, Inc., for numerous construction defects that severely damaged the plaintiffs’ homes. Sun City Grand is an age-restricted community located in Surprise.
In a separate case, an Arizona Superior Court awarded $10,619,640 to another group of 279 Sun City Grand homeowners for multiple construction defects in their homes.
Stephen Weber, the managing partner in the Phoenix office of Kasdan Weber Turner LLP, which represents the homeowners, said that the case is based on construction defects that damaged the plaintiffs’ homes and took several years to resolve. The defects include defective windows, poorly installed stucco, expansive soil conditions that resulted in cracking of drywall, and deteriorating concrete foundation systems, among other problems.
“Del Webb placed an arbitration clause in the sales contracts and the homeowners honored it. The binding arbitration that includes the owners of 460 homes in Sun City Grand was completed in late 2011 when the arbitration panel unanimously awarded the homeowners $13,703,039. Del Webb then challenged the award in Superior Court and the Superior Court confirmed the award in full,” Weber explained. “Del Webb did not like the Superior Court ruling either and challenged it in the Court of Appeals. And now three justices of the Arizona Court of Appeals have unanimously affirmed the Superior Court order and the arbitration award stands. Now they will have the funds to repair their homes, restore their value, and live in comfort,” Weber said.
The $13,703,309 award includes amounts for home repairs, attorney fees, expert fees, court costs and pre-judgment interest. An additional $1,401,236 in post-judgment interest also accrued while the case was on appeal. The other construction defect case that awarded $10,619,640 to homeowners was not covered by binding arbitration.
Del Webb has also appealed that case which will now go through the appeals process. That could take two to three years and again the homeowners will have to wait for the final judgment, Weber noted.
Ken Kasdan, senior and managing partner of the Kasdan Weber Turner firm and one of the nation’s leading experts on construction defect litigation, said the defects are egregious. “The multiple defects rob them of pride of ownership,” he said. “A home is something that a homeowner wants to be proud of. Unfortunately, defective workmanship and poor construction have caused damage to the homes. Now these homes can be repaired and the homeowners will no longer have to deal with defective windows and cracked slabs. Developers need to understand that arbitration awards are final and binding,” Kasdan noted.
The Kasdan Weber Turner law firm has offices in Phoenix, Arizona and in Irvine, California and Walnut Creek, California. The firm represents property owners in major construction defect litigation. For more information on the firm, visit www.kasdancdlaw.com. Stephen Weber may be contacted at (602) 224-7800.
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Toronto Skyscraper With $1.2 Billion of Debt Has Been Put in Receivership
November 16, 2023 —
Ari Altstedter - BloombergA landmark condominium project in one of Toronto’s ritziest neighborhoods has been put into receivership after construction delays and cost overruns.
Construction of the 85-story tower will be taken over by a court-appointed receiver after its owners, developer Sam Mizrahi and investor Jenny Coco, defaulted on part of the project’s nearly C$1.7 billion in debt ($1.2 billion), according to a Wednesday order from the Ontario Superior Court of Justice.
Two funds run by South Korea-based IGIS Asset Management Co. applied for the receivership. Another IGIS fund will extend at least another C$315 million to continue work on the project, court documents said.
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Ari Altstedter, Bloomberg