Manhattan Condo Resale Prices Reach Record High
September 03, 2014 —
Oshrat Carmiel – BloombergPrices for previously owned Manhattan condominiums rose to a record last month even as an increase in the supply of units eased competition among buyers.
An index of resale prices climbed 1.1 percent from June to reach the highest level in data going back to 1995, StreetEasy.com, a New York real estate website, said in a report today. The inventory of condos on the market grew 5.4 percent from a year earlier, the biggest annual gain since October 2009.
The market is still tight, with the number of available condos about 16 percent below the five-year average for Manhattan. That will continue to drive up prices, according to StreetEasy, which projects a 0.4 percent increase for August.
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Oshrat Carmiel, BloombergMs. Carmiel may be contacted at
ocarmiel1@bloomberg.net
Hurricane Damage Not Covered for Home Owner Not Named in Policy
March 20, 2023 —
Tred R. Eyerly - Insurance Law HawaiiThe court granted the insurer's motion to dismiss because, although there was coverage for the property under the mortgagee's policy, the home owner was not a named or additional insured under the policy. Cart v. Great Am. Assur. Co., 2023 U.S. Dist. LEXIS 6207 (W.D. La. Jan. 12, 2023).
Plaintiffs' property was damage by Hurricanes Laura and Delta. Because Plaintiff failed to maintain homeowner's hazard insurance subject to the mortgage, Rushmore Management Services procured a force-placed lender policy on the property through Great American. Plaintiffs filed suit asserting breach contract claims. Great American moved to dismiss.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Does Your 998 Offer to Compromise Include Attorneys’ Fees and Costs?
June 15, 2017 —
Anthony J. Carucci - Snell & Wilmer Real Estate Litigation BlogIn California, the “prevailing party” in litigation is generally entitled to recover its costs as a matter of law. See Cal. Code Civ. Proc. § 1032. But under California Code of Civil Procedure section 998, a party may make a so-called “offer to compromise,” which can reverse the parties’ entitlement to costs after the date of the offer, depending on the outcome of the litigation. Cal. Code Civ. Proc. § 998. The potential payoff of a 998 offer to compromise is explained in section 998(c)(1):
If an offer made by a defendant is not accepted and the plaintiff fails to obtain a more favorable judgment or award, the plaintiff shall not recover his or her postoffer costs and shall pay the defendant’s costs from the time of the offer.
Cal. Code Civ. Proc. § 998(c)(1) (emphasis added).
The Basic Requirements for a Valid 998 Offer
Pursuant to section 998(b), a 998 offer must satisfy three principal conditions: (1) it must be contained in a writing; (2) it must state the terms and conditions of the proposed judgment or award; and (3) it must contain a provision allowing the offeree to accept the offer by signing a statement to that effect. Cal. Code Civ. Proc. § 998(b).
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Anthony J. Carucci, Snell & WilmerMr. Carucci may be contacted at
acarucci@swlaw.com
Appeals Court Affirms Civil Engineer Owes No Duty of Care to General Contractor
August 20, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to Shareholder Karen Holmes and Law Clerk Justin Reid of Balestreri Potocki & Holmes, in Atlas-Allied v. SD Community College District, the California Court of Appeal “confirmed that a civil engineer owes no duty of care to the General Contractor absent privity of contract.” The Appellate court considered Beacon Residential Community Association v. Skidmore, Owings & Merrill LLP to reach that conclusion.
Holmes and Reid commented that the Atlas-Allied decision “can assist in clarifying the extent liability is owed when no contract exists. Here, while unpublished, the 4th District clearly refused to extend a duty by the civil engineer to the general contractor on a public works project, giving counsel guidance on the application of Beacon and prior decisions on design professionals’ liability.”
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Gloria Gaynor Sues Contractor over Defective Deck Construction
October 22, 2013 —
CDJ STAFFGloria Gaynor, known for her 1978 disco hit, “I Will Survive” is suing the firm that renovated her second-floor deck, alleging that the work lead to water intrusion into her home. Ms. Gaynor also accuses the company of consumer fraud, alleging that Diaz Landscape Design & Tree Service LLC lacked registration as a home improvement contractor and failed to obtain a building permit for the structure.
Ms. Gaynor paid about $38,000 for the replacement of her deck and other renovations to her property in 2007. Subsequently, the singer noticed “ponding of water on the deck, water damage to wood sills and supports, and the formation of mold,” according to the lawsuit. Diaz Landscape attempted repairs, but “the problems persisted and continue to persist causing further damage.”
The lawsuit claims that the cost of replacing the defective deck construction would cost about $120,000.
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Duty to Defend Construction Defect Case Triggered by Complaint's Allegations
August 20, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe subcontractor's insurer could not escape contributing to defense costs of its insured when coverage was possible based upon the underlying complaint's allegations. Seneca Ins. Co. v. James River Ins. Co., 2014 U.S. Dist. LEXIS 97156 (D. Ore. July 17, 2014).
The underlying action alleged construction defects in a 60-unit complex located in Seaside, Oregon. S.D. Deacon Corp. was the general contractor and contracted with the owners association to reconstruct portions of the building, including the curtain wall. Deacon subcontracted with Superwall Design, LLP for work on the curtain wall renovation.
At some point not specified in the underlying complaint, the Association notified Deacon of construction defects in the curtain wall renovation. Deacon investigated and concluded that the alleged property damage was the result of inadequate usage of materials, violations of state and local building codes, and violations of relevant industry standards relating to the work performed by Superwall. Deacon contended that the problems were caused by Superwall's faulty workmanship.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Be Careful When Walking Off of a Construction Project
November 24, 2019 —
Christopher G. Hill - Construction Law MusingsI am truly grateful that my buddy Craig Martin (@craigmartin_jd) continues his great posts over at The Construction Contractor Advisor blog. He is always a good cure for writer’s block and once again this week he gave me some inspiration. In his most recent post, Craig discusses a recent Indiana case relating to the ever present issue of termination by a subcontractor for non-payment. In the Indiana case, the court looked at the payment terms and determined that the subcontractor was justified in walking from the project when it was not paid after 60 days per the contract.
This result was the correct, if surprising. Why do I say surprising? Because I am always reluctant to recommend that a subcontractor walk from a job for non payment if it is possible to continue. This is not so much for legal reasons (not paying a sub is a clear breach of contract by a general contractor) but practical ones. The practical effect of walking from the job is that the subcontractor is put on the defensive. Instead of arguing later that it performed but was not paid, that subcontractor is put in the position of arguing that the general contractor cannot collect its completion related and other damages because it breached first. This is a more intuitively difficult argument and one that is not as strong as the first.
Of course, all of this is contingent on the language in your contract (is there a “pay if paid” or language like that in the Indiana case?).
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Use It or Lose It: California Court of Appeal Addresses Statutes of Limitations for Latent Construction Defects and Damage to Real Property
August 02, 2017 —
Omar Parra & Jesse M. Sullivan - Haight Brown & Bonesteel LLPThe First Appellate District of the California Court of Appeal recently confirmed California’s latent defect statute of limitations, codified in California Code of Civil Procedure section 337.15, bars only claims based on construction defects. Estuary Owners Association v. Shell Oil Company, No. A145516, (Cal. Ct. App. July 26, 2017). The Court also reemphasized that under California’s three-year statute of limitations for damage to real property, delineated in California Code of Civil Procedure section 338(b), the actual and constructive knowledge of the prior landowner is imputed to the current landowner.
Estuary Owners Association concerned the development and construction of a 100-unit condominium by Signature at the Estuary, LLC (“Signature”) on land Shell Oil Company (“Shell”) previously used as a fuel distribution terminal. Construction of the condominiums was completed in 2006. In 2008, it was discovered that residual concentrations of petroleum related chemicals remained in the soil, soil gas, and groundwater beneath the development. Later that year, Signature revealed that the condominiums had been constructed with moisture barriers beneath the building slabs instead of the vapor/gas barriers called for in the corrective action plan.
Reprinted courtesy of
Omar Parra, Haight Brown & Bonesteel LLP and
Jesse M. Sullivan, Haight Brown & Bonesteel LLP
Mr. Parra may be contacted at oparra@hbblaw.com
Mr. Sullivan may be contacted at jsullivan@hbblaw.com
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