Repair of Part May Necessitate Replacement of Whole
February 10, 2012 —
CDJ STAFFJudge Gleuda E. Edmonds, a magistrate judge in the United States District Court of Arizona issued a ruling in Guadiana v. State Farm on January 25, 2012. Judge Edmonds recommended a partial summary judgment in favor of the plaintiff.
Ms. Guandiana’s home had water damage due to pluming leaks in September 2004. She was informed that polybutylene pluming in her house could not be repaired in parts “it must be completely replaced.” She had had the plumbing replaced. State Farm denied her claim, arguing that “the tear-out provision did not cover the cost of accessing and replacing those pipes that were not leaking.”
In September 2007, State Farm filed a motion to dismiss. The court rejected this motion, stating that “If Guadiana can establish as a matter of fact that the system that caused the covered loss included all the pipes in her house and it was necessary to replace all the pipes to repair that system, State Farm is obligated to pay the tear-out costs necessary to replace all the pipes, even those not leaking.”
In March 2009, State Farm filed for summary judgment, which the court granted. State Farm argued that “the tear-out provision only applied to ‘repair’ and not ‘replace’ the system that caused the covered leak.” As for the rest of the piping, State Farm argued that “the policy does not cover defective materials.”
In December 2011, Ms. Guadiana filed for summary judgment, asking the court to determine that “the policy ‘covers tear-out costs necessary to adequately repair the plumbing system, even if an adequate repair requires replacing all or part of the system.”
In her ruling, Judge Edmonds noted that Ms. Guadiana’s claim is that “the water damage is a covered loss and she is entitled to tear-out costs necessary to repair the pluming system that caused that covered loss.” She rejected State Farm’s claim that it was not obligated to replace presumably defective pipes. Further, she rejected State Farm’s argument that they were only responsible for the leaking portion, noting “Guadiana intends to prove at trial that this is an unusual case where repair of her plumbing system requires replacement of all the PB plumbing.”
Judge Edmonds concluded by directing the District Court to interpret the tear out issue as “the tear-out provision in State Farm’s policy requires State Farm to pay all tear-out costs necessary to repair the plumbing system (that caused the covered loss) even if repair of the system requires accessing more than the leaking portion of the system.”
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Broken Buildings: Legal Rights and Remedies in the Wake of a Collapse
October 11, 2021 —
David J. Pfeffer - Construction ExecutiveA tragedy transpired on June 24 in Surfside, Florida, when the Champlain Towers South suddenly fell, becoming one of the country’s most deadly unintentional building collapses. It is imperative that construction industry professionals be aware of the legal issues that are raised by such ill-fated events.
Who Is Held Responsible?
Who can be held responsible for such disasters lies among several possible parties:
- The building’s design professionals, particularly its architects and structural engineers. They are charged with ensuring that the building’s design is safe. They must take many factors into account, including, but not limited to, the materials that are used, the foundation, the weight and the height.
- General contractors and the subcontractors. General contractors implement the design created by the architects and engineers and are responsible for appropriate materials. The general contractor also supervises the subcontractors aiding with multiple areas of the building’s construction and which also share the responsibility of executing the design and maintaining the building’s structural integrity.
Reprinted courtesy of
David J. Pfeffer, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Pfeffer may be contacted at
dpfeffer@tarterkrinsky.com
Real Estate & Construction News Roundup (07/05/23) – A Hospitality Strike in Southern California, Agencies Step in With Lenders and the Social in ESG
August 14, 2023 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, we see promising developments for climate change action in commercial real estate, how homeowners are reacting to new energy concerns, the fallout of the U.S. debt ceiling fight on global M&A deals, and more!
- There are new ways the commercial real estate sector can grow its commitment to climate goals and contributions to reducing its carbon footprint. (Mahesh Ramanujam, Forbes)
- Thousands of hospitality workers in Southern California went on strike to demand higher wages, access to affordable family health care benefits and stronger workplace protections. (Julianne McShane, NBC)
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Pillsbury's Construction & Real Estate Law Team
Canadian Developer Faces Charges After Massive Fire on Construction Site
August 27, 2014 —
Beverley BevenFlorez-CDJ STAFFA fire leveled an apartment construction site in Canada last December, which resulted in almost two dozen charges relating to fire safety precautions and lack of cooperation with the Ministry of Labour’s investigation, according to CKWS TV. The Ministry of Labour has recently “laid 22 charges against three individuals and two companies—Jay Patry Enterprises Inc. and Steimach Property Management Inc.”
CKWS TV reported that “[c]harges include failing to provide adequate space for workers to evacuate during an emergency, failing to protect the health and safety of workers and failing to inspect every fire extinguisher for defects or deterioration.” Jason Patry, Nathan Patry and Troy Stelmach have been charged with “obstructing and providing false information to a ministry of labour inspector, as well as failing to make the inspection process an easy one.”
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General Contractor/Developer May Not Rely on the Homeowner Protection Act to Avoid a Waiver of Consequential Damages in an AIA Contract
August 04, 2011 —
Higgins, Hopkins, McLain & Roswell, LLCRecently, in Caribou Ridge Homes, LLC v. Zero Energy, LLC, et al., Case No. 10CV1094, Boulder County District Court Judge Ingrid S. Bakke entered a ruling and order on the Plaintiff’s Motion for Determination of Question of Law Pursuant to C.R.C.P. 56(h) on Issue of Damages. The Order found that the Plaintiff was not a homeowner intended to be protected by the Homeowner Protection Act (the “HPA”) and thus could not pursue its claims for consequential damages against Defendant.
By way of background, on June 18, 2008, Plaintiff Caribou Ridge Homes, LLC (“Caribou”) entered into a Standard Form Agreement Between Owner and Contractor AIA Document A114-2001 (the “Contract”) with Defendant Zero Energy, LLC (“Zero Energy”). Plaintiff hired Zero Energy to serve as a general contractor for the construction of a single-family home in the Caribou Ridge subdivision in Nederland, Colorado. A provision in the contract contained a mutual waiver of consequential damages (“Waiver”).
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Reprinted courtesy Higgins, Hopkins, McLain & Roswell, LLC
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Cameron Pledges to Double Starter Homes to Boost Supply
March 05, 2015 —
Svenja O’Donnell – Bloomberg(Bloomberg) -- Prime Minister David Cameron pledged to double the number of homes built for first-time buyers by the end of the next parliamentary term in a bid to tackle Britain’s housing shortage.
In a speech in Colchester, Essex, on Monday setting out the final part of his Tory party’s six-point campaign platform for the May 7 election, Cameron said 200,000 properties will be built by 2020 under his starter-homes plan. Prices of the homes, only available to first-time buyers under the age of 40, will be capped at 450,000 pounds ($692,000) in London and 250,000 pounds outside the capital. Reduced planning constraints will make it easier for developers to cut building costs, allowing the homes to be sold at a 20 percent discount.
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Svenja O’Donnell, BloombergMs. O’Donnell may be contacted at
sodonnell@bloomberg.net
Anatomy of a Construction Dispute- A Wrap Up
November 15, 2022 —
Christopher G. Hill - Construction Law MusingsOver the past four weeks, I’ve “mused” on the “stages” of a construction dispute. What started as a kernel of thought in my mind turned into what has seemed to be a popular set of four posts that I hope were both informative and interesting. Because of the great feedback I’ve gotten, I thought that I’d consolidate the posts into one so that my readers (thank you, by the way) will have them all in one place. Here they are:
The Anatomy of a Construction Dispute- The Claim– This post discussed the steps for setting out a claim under your construction contract and the steps to lay the groundwork should you need to move forward with a more formal means of collection.
The Anatomy of a Construction Dispute Stage 2- Increase the Heat– This post discussed various methods to increase the heat on the party with whom you have a claim prior to litigation or arbitration.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
NLRB Hits Unions with One-Two Punch the Week Before Labor Day
November 18, 2019 —
John Baker & Robert Pettigrew - White and Williams LLPThe National Labor Relations Board (the Board) continues to modify the way employers, unions and employees view and relate to each other in the workplace. In two decisions right before Labor Day, the Board strengthened employer rights in their workplaces, while at the same time making life for their union counterparts more difficult.
On August 23, 2019, the Board revisited the issue of whether an employer must grant access to the off-duty employees of an onsite contractor so they can engage in Section 7 activities on the employer’s property. In general, Section 7 activities consist of employees acting together to improve their pay and working conditions, which constitute fundamental rights under the National Labor Relations Act (the Act). In Bexar County Performing Arts Center Foundation d/b/a Tobin Center, the San Antonio-based performing arts center, the Tobin Center, owned the Center as well as grounds that abutted the famed San Antonio River Walk. The Tobin Center housed three resident companies, one of which was the Ballet San Antonio with whom it had a licensor-licensee agreement.
In addition to plays, movies and other productions, the Tobin Center hosted the San Antonio Symphony (the Symphony) to perform for 22 weeks of the year. The Ballet San Antonio also occasionally utilized the Symphony for live musical performances at its ballets. When, however, the Ballet San Antonio decided to use recorded music for a particular production, off-duty employees of the Symphony protested by leafletting the public on the Tobin Center property. The leaflets advised the public of this decision and urged that they “DEMAND LIVE MUSIC!” Their protests were not directed at the property owner, who denied them access to its property.
Reprinted courtesy of
John Baker, White and Williams LLP and
Robert Pettigrew, White and Williams LLP
Mr. Baker may be contacted at bakerj@whiteandwilliams.com
Mr. Pettigrew may be contacted at pettigrewr@whiteandwilliams.com
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