US Homes Face Costly Retrofits for Induction Stoves, EV Chargers
May 20, 2024 —
Kendra Pierre-Louis - BloombergBuyers of new homes in the US may find themselves saddled with electrical systems better suited to the 20th century than the 21st.
The International Code Council, which sets model construction standards for new homes, was expected to include building electrification measures in its 2024 energy code on March 20. But following appeals lodged by industry groups, the ICC board moved the measures to the code’s appendices, effectively making them optional, as first reported by the Huffington Post.
If new homes aren’t wired for increasing power needs from electric appliances and car chargers, it will bump the effort and cost of making such upgrades onto homeowners — a deterrent to going electric. Energy efficiency advocates say this could slow the pace of the energy transition, costing both jobs and the planet.
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Kendra Pierre-Louis, Bloomberg
Contractor Gets Green Light to Fix Two Fractured Girders at Salesforce Transit Center
January 28, 2019 —
Nadine M. Post - Engineering News-RecordThe Transbay Joint Powers Authority announced Jan. 10 that procurement has begun for the repair of the two fractured bottom flanges of the twin parallel girders that span 80 ft across Fremont Street in the 4.5-block-long Salesforce Transit Center in San Francisco. TJPA shuttered the transit center on Sept. 25, less than six weeks after it had opened, after a ceiling installer noticed a crack in one of the bridgelike spans.
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Nadine M. Post, ENRMs. Post may be contacted at
postn@enr.com
Court Orders House to be Demolished or Relocated
April 26, 2011 —
Beverley BevenFlorezCDJ STAFFDecision Affirmed in Central Arkansas Foundation Homes, LLC v. Rebecca Choate
The Arkansas Court of Appeals affirmed the decision by the trial court in Central Arkansas Foundation Homes, LLC v. Rebecca Choate. In the trial case, Central Arkansas Foundation Homes (CAFH) sought payment for a home built for Choate, while Choate alleged that the builders committed multiple construction defects including using the wrong foundation materials and positioning the house in the wrong direction.
After the house was built, CAFH contacted Choate regarding payment, however, Choate alleged that the finished product did not match the contract. “ After CAFH completed construction, it obtained permanent home financing for Choate and tried to contact her to close the transaction. Choate did not respond until October 2005, when she sent CAFH a list of alleged construction defects, including that the house was facing in the wrong direction; that it was not built on a slab; and that the fireplace, garbage disposal, driveway, and storage area were missing. CAFH replied to Choate in writing, telling her that she had until January 6, 2006, to close on the house or CAFH would sell it. The correspondence enclosed worksheets showing that the amount Choate would owe at closing exceeded $94,000, which included interest that had accrued on the as-yet unpaid construction loan.”
Initially, the court found in favor of CAFH. “On April 18, 2007, Choate’s attorney withdrew from representing her. Soon thereafter, CAFH’s attorney asked the court to set a final hearing on the case. The attorney purportedly sent Choate a letter by regular mail on May 15, 2007, advising her that the case was set for trial on July 9, 2007. Choate, however, did not appear. CAFH did appear, and its general manager, John Oldner, testified to events leading up to the case and the amount of damages claimed. According to Oldner, the interest on the construction loan had accrued to the point that CAFH now sought $104,965.88 from Choate. The court found in favor of CAFH and entered judgment for that amount, plus attorney fees, on July 18, 2007. The court ruled that CAFH could sell the house and either remit any excess to Choate or look to Choate for the deficiency if the sales price did not cover the judgment.”
However, Choate successfully argued that she did not receive notice of the trial. A new trial was ordered, and the outcome was quite different. “On June 6, 2008, the circuit court entered judgment for Choate, ruling that the house was not in substantial compliance with the parties’ contract and that the contract should be rescinded. The court found that the house suffered from numerous construction defects, that the contract contemplated a slab rather than a concrete-pier foundation, and that CAFH ignored Choate’s complaints that the house was facing the wrong way. The judgment directed CAFH to hold Choate harmless on the construction loan, to deed Choate’s two acres back to her, and to remove the house from Choate’s property.”
The Court of Appeals “found that Choate would be unjustly enriched by retaining the benefit of the septic systems and utility lines that CAFH installed on her land. The court therefore awarded $5340 to CAFH as a quantum-meruit recovery for the value of that work. CAFH contends that the award is not sufficient, but we see no clear error.” In the end, the Court of Appeals provided this reason for declining to reverse the trial court’s decision: “The court in this case apparently concluded that the house constructed by CAFH was so fundamentally at odds with Choate’s contractual expectations that she was not unjustly enriched and should simply be, as nearly as possible, returned to the status quo ante. Accordingly, the court ordered the house removed from her property and permitted CAFH to either relocate the house or salvage the house’s materials and unused appliances. We decline to reverse the court’s weighing of the equities in this manner.”
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NAHB Examines Single-Family Detached Concentration Statistics
April 01, 2014 —
Beverley BevenFlorez-CDJ STAFFIn the National Association of Builders’ (NAHB) publication Eye on Housing, the NAHB examined “the share of homeowners living in single-family detached housing” statistics as reported in the 2012 American Community Survey (ACS).
Wausau, Wisconsin had the highest share of homeowners living in single-family detached housing within a metropolitan area. Interestingly, NAHB found that “[w]ith the exception of Modesto, CA, all of the metropolitan areas in the top ten [were] located in the Midwest.”
The New York-White Plains-Wayne (New York) division had the lowest share of homeowners living in single-detached housing.
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$24 Million Verdict Against Material Supplier Overturned Where Plaintiff Failed To Prove Supplier’s Negligence Or Breach Of Contract Caused A SB800 Violation
June 05, 2017 —
Jon A. Turigliatto & Chelsea L. Zwart - CGDRB News & PublicationsThe Fourth District California Court of Appeal published its decision, Acqua Vista Homeowners Assoc. v. MWI, Inc. (2017) 7 Cal.App.5th 1129, holding that claims against a material supplier under SB800 (Civil Code §895, et. seq.) require proof that the SB800 violation was caused by the supplier’s negligence or breach of contract.
In this case, Acqua Vista Homeowners Association (“the HOA”) sued MWI, a supplier of Chinese pipe used in the construction of the Acqua Vista condominium development. The HOA’s complaint asserted a single cause of action for violation of SB800 standards, and alleged that defective cast iron pipe was used throughout the building. At trial, the HOA presented evidence that the pipes supplied by MWI contained manufacturing defects, that they leaked, and that the leaks had caused damage to various parts of the condominium development. The jury returned a special verdict against MWI, and the trial court entered a judgment against MWI in the amount of $23,955,796.28, reflecting the jury’s finding that MWI was 92% responsible for the HOA’s damages.
MWI filed a motion for a directed verdict prior to the jury’s verdict and motion for judgment notwithstanding the verdict following the entry of judgment, both on the grounds that the HOA had failed to present any evidence that MWI had caused a SB800 violation as a result of its negligence or breach of contract, and had therefore failed to prove negligence and causation as required by SB800. MWI relied on the Fourth District’s prior decision in Greystone Homes, Inc. v. Midtec, Inc. (2008) 168 Cal.App.4th 1194, and its interpretation therein of Civil Code §936, which states, in relevant part, that the statute applies “to general contractors, subcontractors, material suppliers, individual product manufacturers, and design professionals to the extent that the general contractors, subcontractors, material suppliers, individual product manufacturers, and design professionals caused, in whole or in part, a violation of a particular standard as the result of a negligent act or omission or a breach of contract….” (emphasis added.) However, the trial court denied both motions, relying on the last sentence of Civil Code §936, which states in part, “[T]he negligence standard in this section does not apply to any…material supplier…with respect to claims for which strict liability would apply.”
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Jon A. Turigliatto, Chapman Glucksman Dean Roeb & Barger and
Chelsea L. Zwart, Chapman Glucksman Dean Roeb & Barger
Mr. Turigliatto may be contacted at jturigliatto@cgdrblaw.com
Ms. Zwart may be contacted at czwart@cgdrblaw.com
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“I Didn’t Sign That!” – Applicability of Waivers of Subrogation to Non-Signatory Third Parties
September 30, 2019 —
Rahul Gogineni - The Subrogation StrategistIn Gables Construction v. Red Coats, 2019 Md. App. LEXIS 419, Maryland’s Court of Special Appeals considered whether a contractual waiver of subrogation in the prime contract for a construction project barred a third party – a fire watch vendor hired to guard the worksite – from pursuing a contribution claim against the general contractor. The court concluded that the general contractor could not rely on the waiver of subrogation clause to defeat the contribution claim of the vendor, who was not a party to the prime contract. As noted by the court, holding that a waiver of subrogation clause bars the contribution claims of an entity that was not a party to the contract would violate the intent of the Maryland Uniform Contribution Among Tortfeasors Act (UCATA).
When dealing with claims involving construction projects, there may exist multiple contracts between various parties that contain waivers of subrogation. The enforceability of such waivers can be limited by several factors, including the jurisdiction of the loss, the language of the waiver and the parties to the contract.
In Gables Construction, Upper Rock, Inc. (Upper Rock), the owner, contracted with a general contractor, Gables Construction (GCI) (hereinafter referred to as the “prime contract”), to construct an apartment complex. After someone stole a bobcat tractor from the jobsite, Gables Residential Services Incorporated (GRSI), GCI’s parent company, signed a vendor services agreement (VSA) with Red Coats to provide a fire watch and other security services for the project.
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Rahul Gogineni, White and Williams LLPMr. Gogineni may be contacted at
goginenir@whiteandwilliams.com
Claims Against Broker Dismissed
June 20, 2022 —
Tred R. Eyerly - Insurance Law HawaiiClaims that the broker failed to secure adequate coverage for condominium owners were dismissed. Ting Lin v. Mountain Valley Indemn. Co., 2022 N.Y. Misc. LEXIS 1254 (N.Y. Sup. Ct. March 10, 2022).
The amended complaint alleged the agent, Century Max Inc., breached its duty to advise and sell to plaintiffs a homeowners and fire policy far in excess of $100,000 for their condominium unit, which was worth in excess of $600,000. Century moved to dismiss
A fire in the building forced all owners to vacate their units. The entire building was thereafter declared unsafe for habitation by the City of New York. The condominium owners met and voted to not restore the building, but to sell the burnt-out shell and distribute the sales proceeds and the condominium's insurance among the unit owners. There was no indication that the owners would not be made whole once the funds were distributed.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Grupo Mexico Spill Sparks Public Scrutiny of $150 Million Mop-Up
September 17, 2014 —
Nacha Cattan – BloombergMexico is sending federal officials to Sonora state to oversee Grupo Mexico SAB (GMEXICOB)’s $150 million cleanup of a copper mine spill that the government says contaminated the water supplies of at least 24,000 people.
The special commission of environmental and agriculture ministry officials will monitor the company’s pledge to clean Mexico’s worst mining spill, which occurred Aug. 6 in the northern state that borders Arizona.
Grupo Mexico said last week it would create a $150 million trust after its Buenavista del Cobre operation dumped 11 million gallons of copper sulfate solution into two Sonora rivers. Industrias Bachoco SAB de CV and Ford Motor Co. (F) operate plants in Hermosillo, south of the contaminated waterways.
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Nacha Cattan, BloombergMs. Cattan may be contacted at
ncattan@bloomberg.net