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Homeowner’s Policy Excludes Coverage for Loss Caused by Chinese Drywall

November 18, 2011 — Tred R. Eyerly - Insurance Law Hawaii

Exclusions barred the homeowners from recovering for losses caused by Chinese drywall in their home. Ross v. C. Adams Const. & Design, L.L.C., 2011 La. App. LEXIS 769 (La. Ct. App., released for publication Oct. 5, 2011).

Two years after purchasing their home, the Rosses began experiencing chronic malfunctions in the heating, ventilation and air conditioning system. After discovering the presence of gypsum drywall, or "Chinese drywall", they submitted a claim to their insurer, Louisiana Citizens Property Insurance Company, for damages caused by the Chinese drywall. Louisiana Citizens denied the claim.

The Rosses sued. The trial court granted summary judgment to Louisiana Citizens based upon exclusions in the policy.

On appeal, the appellate court first agreed the Rosses had sustained a direct physical loss. The inherent qualities of the Chinese drywall created a physical loss to the home and the drywall had to be removed and replaced.

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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com

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Pending Home Sales in U.S. Increase Less Than Forecast

October 29, 2014 — Michelle Jamrisko – Bloomberg
The number of contracts to buy existing homes rose less than forecast in September, signaling demand will probably plateau heading into the end of 2014. The pending home sales index increased 0.3 percent after dropping 1 percent in August, the National Association of Realtors said today in Washington. The median projection in a Bloomberg survey of economists called for a 1 percent gain. Home resales have yet to regain last year’s peak as still-tight credit and low inventories remain hurdles for the industry, which means residential real estate will make a limited contribution to the expansion. The recent drop in mortgage rates and pickup in hiring will probably help underpin demand, even as first-time buyers struggle to enter the market. Read the court decision
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Reprinted courtesy of Michelle Jamrisko, Bloomberg
Ms. Jamrisko may be contacted at mjamrisko@bloomberg.net

Haight Ranked in 2018 U.S. News - Best Lawyers "Best Law Firms" List

November 02, 2017 — Haight Brown & Bonesteel LLP
Haight Brown & Bonesteel LLP is listed in the 2018 U.S. News – Best Lawyers "Best Law Firms" list with five metro rankings in the following areas: Los Angeles

Tier 1 in Insurance Law
Tier 1 in Personal Injury Litigation - Defendants
Tier 1 in Product Liability Litigation - Defendants
Tier 2 in Personal Injury Litigation - Plaintiffs
Tier 2 in Product Liability Litigation - Plaintiffs

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Architect Responds to Defect Lawsuit over Defects at Texas Courthouse

October 08, 2013 — CDJ STAFF
Lee County, Texas has sued the architect responsible for designing the drainage system at its historic courthouse. The suit seeks $1.7 million in damages to pay for replacing the defective system and repairing the building from damage sustained due to soil saturation. Dale A. Rabe responds that the county commissioners were more concerned with “beautifying the building” than on needed foundation repairs. Further, Mr. Rabe notes that “Lee County contracted directly with a civil engineering firm to design a drainage system.” But according to Mr. Rabe what they used instead was “a cheaper pump-based design to save money.” And even there, “Lee County failed to maintain the drainage system properly. Read the court decision
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Previously Owned U.S. Home Sales Rise to Eight-Month High

July 23, 2014 — Victoria Stilwell – Bloomberg
Sales (ETSLTOTL) of previously owned U.S. homes climbed in June to an eight-month high as more listings helped prices cool, luring buyers into the market. Sales increased 2.6 percent to a 5.04 million annual rate last month, led by gains in all four U.S. regions, figures from the National Association of Realtors showed today in Washington. The median forecast of 78 economists surveyed by Bloomberg projected sales would rise to a 4.99 million rate. Prices advanced at the slowest pace since March 2012 and inventories rose to an almost two-year high. Historically low interest rates and smaller price increases are helping bring homeownership within reach for more Americans. A pickup in employment opportunities that lead to faster wage growth would provide an added spark for a residential real-estate market that began to soften in the middle of 2013. Read the court decision
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Reprinted courtesy of Victoria Stilwell, Bloomberg
Ms. Stilwell may be contacted at vstilwell1@bloomberg.net

Disruption: When Did It Start and Where Will It End?

June 25, 2019 — Brian Gallagher - Construction Executive
If change is the only constant—as was famously observed by a Greek philosopher circa 500 B.C.—then why single out some changes as “disruption”? Disruption is about more than just technology; it’s about more, even, than the rapid rollout and development of technology in the past couple of decades. The word disruption refers to processes or products that are fundamentally different from what is currently in use and that render unforeseen, large-scale changes. Early discussions of disruption (the term was coined by Harvard Business School professor Clayton M. Christensen in a 1995 Harvard Business Review article) compared incremental change in existing systems, which are usually supported by established corporations, to innovations that start out as something completely fresh, limited in their appeal and flawed in initial iterations. The construction industry was—and still is—late to adopt most technologies and late in experiencing overall disruption. It also lags behind other industries when it comes to efficiency and productivity. McKinsey reported that construction is one of the “least digitized industries in the world,” despite employing approximately 7% of the world’s working-age population and representing one of the world economy’s largest sectors. Disruption is likely to be fast approaching now, even for the construction industry. But its delay may confer the benefit of allowing construction companies to learn from other industries’ mistakes. Reprinted courtesy of Brian Gallagher, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Court Holds That One-Year SOL Applies to Disgorgement Claims Under B&P Section 7031

November 23, 2020 — Garret Murai - California Construction Law Blog
We’ve talked before about Business and Professions Code section 7031 which courts have referred to as “harsh[ ],” “unjust[ ]” and even “draconian.” Under Section 7031, a contractor performing work requiring a contractor’s license, but who doesn’t: (1) is prohibited from suing to recover payment for work performed; and (2) is required to disgorge all money paid by the project owner for work performed. This is true even if the project owner knew that the contractor was unlicensed, the contractor was only unlicensed during part of the time it performed work requiring a license, and even if the work performed by the contractor was free of defects. In short, it’s the nuclear bomb of remedies against a contractor. However, until now, no court has addressed when a project owner is permitted to raise a Business and Professions Code section 7031 claim against a contractor. In the next case, Eisenberg Village of the Los Angeles Jewish Home for the Aging v. Suffolk Construction Company, Inc., Case No B297247 (August 26, 2020), the 2nd District Court Appeal finally answers this question. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

New Utah & Colorado Homebuilder Announced: Jack Fisher Homes

July 23, 2014 — Beverley BevenFlorez-CDJ STAFF
Henry Walker Homes announced the creation of Jack Fisher Homes, “a new venture that will continue their tradition of homebuilding excellence in Northern Utah, Southern Utah and Colorado,” according to a press release on PR Web. “Colin Wright, Owen Fisher, Chad Bessinger and Steve Sandholtz founded Jack Fisher Homes to focus on areas of their proven expertise in real estate, including residential land development and homebuilding, commercial assets in multifamily development and seniors’ housing,” PR Web reported. Jack Fisher has “1,300 single-family residential units in its pipeline” and “anticipates closing more than 230 homes in the remainder of 2014 with sales expected to exceed $70 million.” The homebuilder expects those numbers to double in 2015. “All of the original elements that made Henry Walker great are incorporated and improved upon with Jack Fisher Homes,” Wright said, according to the press release. “The influx of new capital, our years of experience, and the improved real estate landscape have us very excited about the future of Jack Fisher Homes.” Read the court decision
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