Maine Case Demonstrates High Risk for Buying Home “As Is”
August 27, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to Meredith Eilers of Bernstein Shur, writing in JDSupra Business Advisor, a Boston Appeals court “enforced an 'as is' provision in a purchase and sale agreement and concluded that the sale of a multimillion dollar oceanfront property in Bar Harbor was not accompanied by Maine’s implied warranty of habitability.”
Eilers explained that “the first circuit concluded that the bargained-for ‘as is’ provision that was incorporated into the purchase and sale agreement—in exchange for a reduction in the purchase price—essentially waived any claims from the buyer regarding misrepresentations by the sellers.” This left “the buyer to incur the repair costs without the ability to recover those costs from the seller” and it demonstrated “that agreeing to such a clause when closing a real estate deal has real risks.”
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Georgia Court Rules that Separate Settlements Are Not the End of the Matter
October 14, 2013 —
CDJ STAFFThe Georgia Court of Appeals recently took up the question of how parties in a construction defect settlement relate to one another in terms of apportioning the settlement. Scott Murphy, writing on the Barnes & Thornburg blog clarifies the issues. The underlying construction defect case involved a newly-constructed hotel with mold and mildew problems. The owners sued the contractor (for negligent construction) and the architect (for negligent design). Separately, the owners settled with the contractor for $2.3 million and the architect for $100,000. Subsequently, the contractor sued the architect, attempting to recover part of the settlement the contractors had made with the owners.
At trial, the architect prevailed, obtaining a summary judgment that under Georgia law, “joint-tortfeasors can no longer assert contribution or non-contractual indemnity claims.” This was reversed by the Court of Appeals, determining that the two were not joint tortfeasors. Mr. Murphy notes that “the court rejected the parties’ attempt to disavow joint and several liability in their respective settlement agreements.” The court ruled that the contractor could proceed with their claims against the argument.
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Federal Court Rejects Insurer's Argument that Wisconsin Has Adopted the Manifestation Trigger for Property Policy
April 03, 2013 —
Tred Eyerly - Insurance Law HawaiiThe federal district court disagreed with the insurer's strident claim that Wisconsin followed the manifestation trigger for deciding coverage under a homeowner's policy. Strauss v. Chubb Indem. Ins. Co., 2013 U.S. Dist. LEXIS 224 (E.D. Wis. Jan. 2, 2013).
Several years after their house was constructed, the insureds discovered water damage. Chubb denied the claim. The insureds sued. Chubb moved for summary judgment and argued that the loss first manifested many years after its policy expired. Further, Chubb argued that Wisconsin followed the manifestation trigger for first-party property insurance, meaning that only the insurance policy in effect when the loss manifested was required to respond.
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Tred EyerlyTred Eyerly can be contacted at
te@hawaiilawyer.com
Experts Weigh In on Bilingual Best Practices for Jobsites
February 22, 2018 —
Jim Parsons – ENRIt’s the rare construction firm that doesn’t cite people as its most important resource. And over the past two decades, that asset has become increasingly bilingual. Indeed, more than 27% of workers in construction are Hispanic or of Latino ethnicity, according to the most recent available data from the U.S. Bureau of Labor Statistics (BLS).
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Jim Parsons, Engineering News-Record
SunTrust Will Pay $968 Million to Resolve Mortgage Probes
June 18, 2014 —
Tom Schoenberg – BloombergSunTrust Banks Inc. (STI) agreed to pay $968 million to resolve federal and state claims that a unit misrepresented the quality of mortgages the bank originated and deceived homeowners on loans it serviced.
The agreement covers loans SunTrust Mortgage made from January 2006 through March 2012 that were backed by the Federal Housing Administration even though they didn’t meet agency requirements, the Justice Department said in a statement today. Atlanta-based SunTrust disclosed the agreement in an October regulatory filing and has already accounted for the payment.
“SunTrust’s conduct is a prime example of the widespread underwriting failures that helped bring about the financial crisis,” Attorney General Eric Holder said in a statement. “We will continue to hold accountable financial institutions that, in the pursuit of their own financial interests, misuse public funds and cause harm to hardworking Americans.”
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Tom Schoenberg, BloombergMr. Schoenberg may be contacted at
tschoenberg@bloomberg.net
Southern California Lost $8 Billion in Construction Wages
August 17, 2011 —
CDJ STAFFLos Angeles and Orange Counties are first on a list no area wants to be on. According to the Sacramento Bee, reporting on data from the U.S. Bureau of Economic Analysis, LA and Orange Counties saw an $8 billion drop in construction wages in 2010, as compared to 2006. In 2006, the region saw payrolls of $26.8 billion, but in 2010, that was reduced to $18.5 billion.
This was not the largest percentage change. Of the metropolitan areas with the largest declines in construction earnings, Las Vegas saw a $3.6 billion drop, however that represented half of their 2006 totals of $7.2 billion. Conversely, a $3.3 billion drop in the New York area represented only 10% of what had been $33.8 billion in payroll in 2006.
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3D Printing Innovations Enhance Building Safety
October 07, 2019 —
Mahmut Ekenel & Melissa Sanchez - Construction ExecutiveThe mention of 3D printing alone is enough to get people excited, often conjuring images of a desktop console that can download and create three dimensional objects such as prototypes, or mechanical parts. And yet, in recent years the technology has given way to a slight impatience, as people begin to wonder how and when it will have a direct impact on both their lifestyles and their businesses.
The construction industry has been quick to take advantage of these innovations, and the effects are tangible, especially regarding building safety. The 3D construction technology allows for several key advantages in terms of faster construction times, uncompromised quality of construction and lower costs—allowing for affordable dwellings to be quickly built for people in need.
These advantages also lead to safety improvements during the building process. The ability to accelerate construction time without requiring an increase in labor results in a fewer construction-related workplace injuries and a reduction in material waste, making it an environmentally friendly construction method as well.
ICC-Evaluation Service (ICC-ES), a subsidiary of the International Code Council (ICC) which develops model codes and standards (i.e. International Building Code, International Residential Code) and delivers a wide array of building safety services, has taken the lead on developing acceptance criteria to address building code compliance of 3D printed construction. Currently, 3D construction technology is not within the provisions of the International Building Code (IBC) or International Residential Code (IRC). The acceptance criteria introduces new compliance measures for interior and exterior 3D printed concrete walls (with and without structural steel reinforcement), load-bearing and non-load-bearing walls, and shear walls in one-story, single-unit, residential dwellings. The 3D walls are constructed by printing two outer layers of 3D concrete and then filling the core with 3D concrete to form a solid wall.
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Mahmut Ekenel & Melissa Sanchez, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Mr. Ekenel may be contacted at mekenel@icc-es.org
Ms. Sanchez may be contacted at msanchez@icc-es.org
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Construction-Industry Clients Need Well-Reasoned and Clear Policies on Recording Zoom and Teams Meetings
June 19, 2023 —
Stu Richeson - The Dispute ResolverThe use of Zoom, Microsoft Teams, and similar communication platforms has become increasingly common in the construction industry. While these platforms can greatly facilitate communication between project participants, they potentially create a source of ESI – electronically stored information – that must be understood and considered by the businesses using those systems.
Businesses using Zoom, Microsoft Teams, and similar platforms should have policies in place to address whether and why to record video conferences, how long to preserve any recorded meetings, and retention policies for instant messaging systems. The failure to adopt appropriate policies could prove quite costly in any future litigation or criminal investigation.
Federal Rule of Civil Procedure 37(e) sets out the duty to preserve ESI and provides significant penalties for failing to do so once litigation is anticipated. It is important to note: there is generally no obligation to create ESI, such as recording Zoom or Teams meetings. At the same time, if the ESI is created but litigation is not anticipated, businesses are generally free to establish their own retention policy for that ESI. However, once litigation is anticipated, potential litigants have the obligation to preserve the ESI and, in connection therewith, to conduct a reasonable search for relevant information (to ensure its proper preservation).
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Stu Richeson, PhelpsMr. Richeson may be contacted at
stuart.richeson@phelps.com