Housing Starts in U.S. Beat 1 Million Pace for Second Month
June 18, 2014 —
Shobhana Chandra – BloombergBuilders broke ground on 1 million U.S. homes in May, indicating the industry is picking up this quarter after a weather-induced slump to start the year.
The number of housing starts last month was in line with the median forecast of economists surveyed by Bloomberg and followed April’s 1.07 million annualized rate that was the most since November, a Commerce Department report showed today in Washington. Permits, a proxy for future construction, decreased, reflecting a decline in the volatile multi family category.
A strengthening job market and a retreat in mortgage costs in recent weeks is helping support residential real-estate following a lull in building in early 2014. Faster sales will prompt developers to step up construction, given supplies of homes on the market remain lean and property values are rising.
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Shobhana Chandra, BloombergMs. Chandra may be contacted at
schandra1@bloomberg.net
Hunton Insurance Coverage Group Ranked in National Tier 1 by US News & World Report
December 21, 2020 —
Hunton Insurance Recovery BlogThe Hunton Andrews Kurth Insurance Coverage Practice Group has been awarded Tier 1 ranking by US News Media Group and Best Lawyers, placing them among the top practitioners nationally for policyholder insurance coverage representation. In addition to its Tier 1 ranking nationally, the Firm also received a regional Tier 1 ranking in Washington, DC and a Tier 2 ranking in Atlanta, GA.
Reprinted courtesy of
Hunton Andrews Kurth LLP
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No Concrete Answers on Whether Construction Defects Are Occurrences
February 14, 2013 —
CDJ STAFFAaron Mandel and Stevi Raab of Sedgwick Law write Construction Defect Coverage Quarterly addressing the question of “whether defective construction constitutes an ‘occurrence’ (and therefore may be covered) under liability insurance policies.” They note that some courts have held that construction defects are not an occurrence but instead are the “natural consequence of performing substandard work.” Other courts conclude that while construction defects are not occurrences, “the resulting damage may be covered because it was fortuitous and unintended.” And, finally, other courts have concluded that “defective construction work itself is accidental and the inured rarely expects construction defects.” Mandel and Raab put forth that “these decisions essentially provide insured with huge, unintended and unfair windfalls – performance bonds for basically no premium.”
Legislatures have also looked at this issue, passing laws that mandate that construction defects are occurrences. These are all fairly recent and the courts have yet to address these laws, and Mandel and Raab note that “it is unclear what their ultimate effect on the ‘occurrence’ issue will be.” They do not expect the laws to end litigation over whether construction defects are occurrences.
Finally, they discuss what the ultimate results of these court decisions and laws will be. Insurers might write more policy exclusions, or increase premiums, or even cease insuring construction.
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Unit Owners Have No Standing to Sue under Condominium Association’s Policy
February 10, 2012 —
Tred R. Eyerly - Insurance Law HawaiiIf a condominium owner suffers damage caused by a leak from another unit, may it sue the insurer for the Association of Apartment Owner (AOAO) for coverage? The federal district court for Hawaii said "no" in a decision by Judge Mollway. See Peters v. Lexington Ins. Co., 2011 U.S. Dist. LEXIS 148734 (D. Haw. December 27, 2011).
Two cases were consolidated. In each case, Plaintiffs owned condominium units at the Watercrest Resort on Molokai. Water leaking from another unit damaged Plaintiffs’ units.
Watercrest Resort was insured by Lexington pursuant to a policy maintained by the AOAO. Plaintiffs filed claims with Lexington. Lexington hired an adjustor.
Unhappy with the adjustment of their claims, Plaintiffs sued Lexington and the adjustor.
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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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Indemnity Provision Provides Relief to Contractor; Additional Insured Provision Does Not
January 06, 2016 —
Tred R. Eyerly – Insurance Law HawaiiThe court found that the contractor was entitled to relief under the contractual indemnity provision, but not the policy's additional insured clause. Chatelain v. Fluor Daniel Constr. Co., 2015 La. App. LEXIS 2257 (Ct. App. La. Nov. 10, 2015).
Following Hurricanes Katrina and Rita, FEMA retained Fluor Enterprises, Inc. as a contractor to transport and install FEMA trailers. Fluor entered a Blanket Ordering Agreement (BOA) with Bobby Reavis Contracting, Inc. to transport and install the trailers. The BOA provided Reavis would defend and indemnify Fluor from all liability arising from the subcontractor's work. Reavis also agreed to name Fluor as an additional insured under its CGL policy.
Reavis installed a FEMA trailer for Connie Chatelain. Ms. Chatelain was injured when she fell exiting her FEMA trailer. She sued Fluor and Reavis. Fluor tendered the suit to Reavis and Reavis' insurer, Guilford Insurance Company. The tender was rejected and Fluor filed a third-party action demanding indemnification, reimbursement of all legal expenses and damages for insurer misconduct.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Real Estate & Construction News Roundup (1/24/24) – Long-Term Housing Issues in Hawaii, Underperforming REITs, and Growth in a Subset of the Hotel Sector
February 19, 2024 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, commercial real estate’s relationship with technology, towns and cities across the country prevent dollar stores from opening, empty offices and other commercial buildings are reused for housing, and more!
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Pillsbury's Construction & Real Estate Law Team
Construction Contract’s Scope of Work Should Be Written With Clarity
March 06, 2023 —
David Adelstein - Florida Construction Legal UpdatesThe scope of work section in your construction contract should never be overlooked. In numerous instances, it is overlooked which leads to a dispute as to the precise nature of the scope of work. This dispute could be the result of an ambiguity in the scope of work section. Or it could be the result of an omission. Or it could be the result of a lack of clarification. Or it could be the result of not properly reviewing and vetting the scope of work section. This is a section—whether included in the body of your contract or attached as an exhibit—you absolutely, positively want clarity. Otherwise, you are potentially setting yourself up for a future dispute that could include (i) an additional work / change order dispute, (ii) an incomplete work dispute, or (iii) a failure to properly perform your work dispute. These are all disputes you want to avoid, and many times can avoid, by going through and negotiating the scope of work section to bring clarity to this section. Remember, clarity is a positive. Ambiguity or uncertainty is a negative.
An example of such an avoidable scope of work dispute can be found in All Year Cooling and Heating, Inc. v. Burkett Properties, Inc., 2023 WL 2000991 (Fla. 4th DCA 2023). Here, an air conditioning contractor was hired to install six new split air conditioning systems. The scope of work provided that there were currently “two split systems that are currently existing, working perfectly and are not to be replaced as part of this contract.” The property manager claimed the air conditioning contractor was required to bring these two existing split air conditioning systems up to code as the contract provided that notwithstanding anything to the contrary, the contractor “will certify and shall ensure that all split systems in the building, upon completion of all the work, will be fully compliant with all codes and regulations and shall be responsible for any costs relates to the implementation and/or remediation of same.”
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
No Interlocutory Appeals of "Garden-Variety" Contract Disputes
March 12, 2015 —
Jesse Howard Witt – Acerbic WittColorado’s new procedure for interlocutory appeals has its limits. In the recent decision of Rich v. Ball Ranch Partnership, ___ P.3d ___, 2014 COA 6 (2015), the Colorado Court of Appeals held that Appellate Rule 4.2 does not permit interlocutory review of questions of law in “garden-variety” or “run-of-the-mill” contract disputes. This resolves a subtle question that has been lingering since Colorado first created the interlocutory appeal process four years ago.
Prior to 2011, Colorado did not permit civil litigants to seek appellate review prior to final judgment, except in a small handful of situations. As I discussed in an article at the time, this changed with the passage of C.R.S. § 13-4-102.1 and the adoption of Rule 4.2, which granted the court of appeals discretion to permit the immediate appeal of certain district court orders. These provisions allowed parties to seek interlocutory review of orders before the conclusion of a case if a district court could certify that (1) immediate review might promote a more orderly disposition or establish a final disposition of the litigation, and (2) the order involved a controlling and unresolved question of law. The rule was patterned after 28 U.S.C. § 1292(b), which provides similar relief in the federal courts.
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Jesse Howard Witt, The Witt Law FirmMr. Witt welcomes comments at www.acerbicwitt.com