Brad Pitt’s Foundation Sues New Orleans Architect for Construction Defects
September 25, 2018 —
David Suggs – Bert L. Howe & Associates, Inc.Brad Pitt’s foundation has sued its architect of New Orleans projects alleging “defective design work led to leaks and other flaws in homes built for residents of an area that was among the hardest hit by Hurricane Katrina,” reported Insurance Journal.
The Make It Right Foundation claims damages of more than $15 million caused by architect John C. Williams. According to Insurance Journal, “The foundation paid Williams’ firm millions of dollars to produce architectural drawings for more than 100 homes under the program, which was supposed to provide Lower 9th Ward residents with sustainable and affordable new homes.”
This lawsuit against the architect is apparently in response to a class-action lawsuit by New Orleans attorney Ron Austin against Pitt’s Make It Right Foundation. Austin’s lawsuit “accused the charity of building substandard homes that are deteriorating at a rapid pace,” Insurance Journal reported.
The 39 homes involved in a previous suit regarding the manufacturer of TimberSIL are excluded from the lawsuit against Williams.
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El Paso Increases Surety Bond Requirement on Contractors
April 25, 2011 —
Beverley BevenFlorez CDJ STAFFThe city of El Paso has recently increased surety bonds required of contractors from $10,000 to $50,000, according to the El Paso Times. Proponents of the increase believe it was necessary to protect homeowners from fly-by-night builders, while opponents argue that the increase will have an adverse effect on an industry in that is already suffering due to the economic slowdown.
Arguments for and against the increase have been flooding the blogosphere with their views. Christian Dorobantescu on the Small Business Entrepreneur Blog claims that “only about 15% of the city’s 2,500 contractors had been able to secure a higher bond to remain eligible for work after the new requirements were announced.” However, insurance companies have a different take. “From a surety broker standpoint, most contractors will be able qualify for the bond; some will just have to pay higher premium rates to obtain it,” a recent post on the Surety1 blog argues.
While the increased bond may help homeowners deal with construction defect claims, it is not clear what effect it will have on builders in El Paso.
Read more from the El Paso Times…
Read more from the Small Business Entrepreneur Blog…
Read more from the Surety1 Blog…
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Rent Increases During the Coronavirus Emergency Part II: Avoiding Violations Under California’s Anti-Price Gouging Statute
April 06, 2020 —
Dan Schneider - Newmeyer DillionIn my earlier article, Profiting From Fear: What You Need to Know About Price Gouging During the Coronavirus Emergency, I discuss price gouging and how the anti-price gouging statute, California Penal Code 396 (“CPC 396”), protects buyers of goods and services deemed vital and necessary for the health, safety and welfare of consumers. Part II of the article provides guidance to landlords on the parameters applicable to acceptable price increases and focuses attention on the application of CPC 396 to rental housing and related issues.
California Penal Code 396
As it pertains to housing, defined as “any rental housing with an initial lease term of no longer than one year,” price gouging occurs when a landlord increases the rent of an existing or prospective tenant by more than 10 percent of the previously charged or advertised price following an emergency or disaster declaration for a period of 30 days.2 A residential landlord is only allowed to increase rent in excess of 10 percent if “the increase is directly attributable to additional costs for repairs or additions beyond normal maintenance that were amortized over the rental term that caused the rent to be increased greater than 10 percent or that an increase was contractually agreed to by the tenant prior to the proclamation or declaration” (CPC 396(e).) Further, landlords are prohibited from evicting a tenant and then re-renting the property at a rate that the landlord would have been prohibited from charging the evicted tenant under the statute (CPC 396(f).)3
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Dan Schneider, Newmeyer DillionMr. Schneider may be contacted at
daniel.schneider@ndlf.com
CGL Policy Covering Attorney’s Fees in Property Damage Claims
December 11, 2018 —
David Adelstein - Florida Construction Legal UpdatesDoes a CGL policy cover attorney’s fees and costs in property damages claims, to the extent there is a contractual or statutory basis to recover attorney’s fees? Naturally, you need to review the policies and this is not a clear-cut issue, but there is law to argue under.
A case I have argued in support of CGL policies providing for coverage for attorney’s fees as a component of property damage claims when there is a contractual or statutory basis is Assurance Co. of America v. Lucas Waterproofing Co., Inc., 581 F.Supp.2d 1201 (S.D.Fla. 2008). In this case, the following applied:
- The policy provided coverage for “those sums that the insured becomes legally obligated to pay as damages of… ‘property damage’….
- Property damage was defined as “physical injury to tangible property, including all resulting loss of use of that property.”
- The term damage, in of itself, was not defined in the policy.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
In Contracts, One Word Makes All the Difference
July 21, 2018 —
Christopher G. Hill - Construction Law MusingsHere at Musings, I sometimes feel as if I am beating the “contract is king” drum to death. However, each time I start to get this feeling, a new case out of either the Virginia state courts or the Fourth Circuit Court of Appeals here in Richmond reminds me that we all, lawyers and contractors alike, need to be reminded of this fact on a regular basis. The terms written into a construction contract (or any other contract for that matter) will control the outcome of any dispute in just about every case.
A recent 4th Circuit case takes this to the extreme in pointing out the the choice which of two tiny words can change the entire set of procedural rules and even the courthouse in which your dispute will be decided. In FindWhere Holdings Inc. v. Systems Env. Optimization LLC, the Fourth Circuit looked at a forum selection clause found in a contract between the parties. In this case, the clause stated that any dispute would be litigated in the courts “of the State of Virginia.” When the defendants tried to remove the case from Virginia state court to the Eastern District of Virginia federal courts, the federal court remanded the case, sending it back to the Circuit Court of Loudoun County, Virginia.
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Christopher G. Hill, The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Largest US Dam Removal Stirs Debate Over Coveted West Water
May 11, 2020 —
Associated Press - Engineering News-RecordKLAMATH, Calif. (AP) — The second-largest river in California has sustained Native American tribes with plentiful salmon for millennia, provided upstream farmers with irrigation water for generations and served as a haven for retirees who built dream homes along its banks.
With so many competing demands, the Klamath River has come to symbolize a larger struggle over the increasingly precious water resources of the U.S. West, and who has the biggest claim to them.
Engineering News-Record
ENR may be contacted at ENR.com@bnpmedia.com
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SkenarioLabs Uses AI for Property Benchmarking
December 04, 2018 —
Aarni Heiskanen - AEC BusinessAI continues to be a hot topic across industries. The PropTech startup SkenarioLabs has a data analytics solution that utilizes AI. The results have been successful from the perspective of property owners: reliable technical surveys that contribute to making smart investment decisions.
Topi TiihonenWhile automatic valuation is not a recent invention for property owners and investors, there has not previously been an available service that combines it with technical surveying. SkenarioLabs has been building a system that digitizes technical surveys in order to help property owners manage their properties. The algorithm extracts a property’s technical risk from the market value.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Boston Tower Project to Create 450 Jobs
November 18, 2011 —
CDJ STAFFContinuing the development of Boston’s Theater District, Millennium Partners broke ground for the building of Hayward Place, a 15-story residential tower with street-level shops. The project is expected to take two years to complete and will employ about 450 construction workers.
Thomas Menino, the mayor of Boston said that the “ground breaking of Hayward Place is another sign of economic growth and forward progress on the revitalization of this area.” The project will be built by Suffolk Construction. John Fish, their CEO, said they were “fortunate as a contractor to be the beneficiary of this.”
The report in the Boston Herald notes that a few blocks away, the site of the former Filenes department store is still “an empty eyesore.” Menino joked, “anyone want to bid for it?” He promised that site would also be developed.
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