Mold Due to Construction Defects May Temporarily Close Fire Station
October 25, 2013 —
CDJ STAFFFire Station 5 in Chino, California is about to undergo mold remediation. Ruben Martinez, the city’s Public Works Director, expects the station to be closed during remediation. “We’d like to get the firemen out of there so there isn’t any potential infection or worker’s compensation issues,” he said. However, Fire Department Captain Steve Harrison did not think the station needed to be closed. “We are adamant the station stays staffed while the remediation work is completed.”
The mold came about due to problems the station has had with roof leaks since its opening in 1999. The current set of repairs will cost between $12,000 and $25,000, and the city is discussing matters with its insurer to determine who will pay for the repairs. It’ won’t be the original contractor, as the building is past the 10-year limit for construction defect claims. Even if a claim were possible, the contractor who built the building is bankrupt.
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Handling Construction Defect Claims – New Edition Released
February 11, 2013 —
CDJ STAFFA lot has changed in the twenty-seven years since the Miller Law firm first released Handling Construction Defect Claims: Western States, and those changes are reflected in the recent publication of the fourth edition. Frank H. Wu, the Chancellor and Dean of UC Hastings College of Law describes the work as “more than a scholar’s treatise, it is the first resource for construction defect plaintiff and defense attorneys; as well as mediators, arbitrators and judges — or ought to be!” In the time since the first edition, the number of homeowner associations has grown nearly ten-fold. Further, as Rachel M. Miller, a Senior Partner at the firm and one of the authors, notes, “thousands of construction defect claims are filed every year, and in most cases, the developers insurance pick up these claims.”
The book is available at Amazon at a price of $299.
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The NAR asks FAA to Amend their Drone Rules for Real Estate Use
September 24, 2014 —
Beverley BevenFlorez-CDJ STAFFHousing Wire reported that the National Association of Realtors (NAR) “is pushing for an exception for Realtors in the current rules on Unmanned Aerial Vehicle (UAV) technology since their motives don’t disrupt safety concerns, according to a letter sent on Tuesday to the FAA.”
According to Housing Wire, the NAR believes that real estate professionals would benefit from UAV technology, more commonly referred to as drones, in a variety of ways, “including, law enforcement, environmental scanning, geographical surveys and disaster recovery assessments.”
The NAR stated, as quoted in Housing Wire, “Use of UAV technology by the real estate industry is simple compared to other applications such as land surveying or law enforcement. The use of UAV technology would be limited in scope to the property itself. Properly written regulation would permit the use of UAV technology within the real estate industry, while maintaining safety in the NAS and privacy of citizens.”
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What to Look for in Subcontractor Warranty Endorsements
February 03, 2020 —
David M. McLain – Colorado Construction LitigationWith increasing frequency in the construction defect cases we defend, we are seeing commercial general liability insurance policies with “subcontractor warranty” endorsements. Also known as contractor or subcontractor special conditions, these endorsements could have severe and negative consequences for builders that do not comply with their requirements. In researching for this article, I reviewed six different endorsements used by six different carriers, all of which contained some or all of the following requirements:
- The builder must have signed subcontract agreements with its subcontractors that require subcontractors to hold harmless, i.e., defend and indemnify, the builder for “bodily injury” or “property damage” claims caused by their negligence.
- The subcontractors must maintain their own insurance with limits equal to or greater than the limits in the builder’s own policy, with limits of at least $1 million per occurrence.
- The subcontractors’ insurance must not exclude the work being performed for the builder, e.g., the excavator’s policy cannot exclude earth movement claims, the subcontractor’s policy cannot exclude residential construction.
- The subcontractors must maintain their own workers’ compensation and/or employer’s liability insurance.
- The subcontractors must provide the builder with an endorsement or a certificate of insurance indicating that the builder has been added to the subcontractors’ insurance as an additional insured.
- The subcontractors must provide the builder with an endorsement or a certificate of insurance indicating that their insurance carriers have agreed to provide waivers of subrogation in favor of the builder.
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David McLain, Higgins, Hopkins, McLain & RoswellMr. McLain may be contacted at
mclain@hhmrlaw.com
Big Changes and Trends in the Real Estate Industry
February 06, 2023 —
Rachel Mihai - Bremer Whyte Brown & O'Meara LLPIn my practice, I am fortunate enough to attend a real estate conferences on a regular basis. And, without exception, we always get a run down on hot trends/cases from industry leaders. Some issues that are being attacked in hot cases/trends are:
- Are the typical commission structures – e.g., the typical 5% to 6% divided in half – fair or creating an antitrust issue?
- Is MLS commission anti-competitive and artificially inflates commission rates?
- Can a buyer’s agent advertise/represent that it is working for its client for free, as generally happens and has been allowed?
- What is the impact of agent only showing their clients houses with higher typical commissions, like 6%? And how is this being advertised, pushed for and manipulated contrary to the interests of consumers?
There are currently some big, national cases that will likely bring about big changes in the entire national real estate community with regard to how real estate brokers’/agents’ commissions are determined, explained and advertised. These cases revolve around antitrust and alleged conspiracy claims – asserting that the use of commissions in today real estate markets are creating an overcharging to consumers and artificially manipulation of the market.
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Rachel Mihai, Bremer Whyte Brown & O'Meara LLPMs. Mihai may be contacted at
rmihai@bremerwhyte.com
Fannie Overseer Moves to Rescue Housing With Lower Risk to Lenders
May 21, 2014 —
Kathleen M. Howley – BloombergMelvin Watt, the overseer of Fannie Mae and Freddie Mac, broke five months of silence to help boost lending as slowing sales threatens the housing recovery.
Watt, 68, in his first speech as director of the Federal Housing Finance Agency, announced new rules to reduce the risk that lenders will have to repurchase bad mortgages. The changes, designed to allow banks to relax credit standards, probably will increase housing sales by 5 percent this year, said Stephanie Karol, an economist at Englewood, Colorado-based research firm IHS Inc.
“It means a restart for the real estate recovery,” said Mark Zandi, chief economist of Moody’s Analytics Inc. “We’re not going to get back on track until we start making credit more available to potential buyers.” He said he expects Watt’s moves to spur “meaningful” sales growth.
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Kathleen M. Howley, BloombergMs. Howley may be contacted at
kmhowley@bloomberg.net
Be Sure to Dot All of the “I’s” and Cross the “T’s” in Virginia
August 02, 2017 —
Christopher G. Hill - Construction Law MusingsAs a construction company from outside of Virginia that wants to work here in the Commonwealth, there are numerous “hoops” that you need to jump through to be able to perform work and most importantly get paid. Among these are obtaining a Virginia contractors license, find a registered agent here in Virginia, hopefully find a local construction lawyer to help with your contracts, and (the subject of this post), register with the Virginia State Corporation Commission for the authority to do business in the Commonwealth of Virginia.
Aside from it being a requirement of state law, the real world consequence of failing to register to do business is that, while you could file a lawsuit to enforce a claim (such as a mechanic’s lien), failure to register could cost you the ability to enforce or obtain any judgment on that lien. In other words, you could go through the costly litigation process, “win” and then be barred from any recovery simply because you did not follow this step.
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Christopher G. Hill, The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Window Installer's Alleged Faulty Workmanship On Many Projects Constitutes Multiple Occurrences
May 10, 2017 —
Tred R. Eyerly - Insurance Law HawaiiLawsuits filed for recovery due to the faulty design and installation of doors and windows by homeowners across the country were found to allege multiple occurrences. Pella Corp. v. Liberty Mut. Ins. Co., 2017 U.S. Dist. 53631 (C.D. Iowa March 31, 2017).
The underlying lawsuits alleged that Pella Corporation's windows were defectively designed, manufactured, or installed, and allowed water intrusion to buildings that resulted in third-party property damage or personal injury.
Pella sued Liberty Mutual for declaratory judgment and filed a motion for partial summary judgment to determine how many occurrences the underlying cases presented. Pella sought a determination that each of the 15 underlying cases presented one "occurrence" as the term was defined in the CGL policies issued by Liberty Mutual. Liberty Mutual argued that only three or four occurrences were presented, relying on common fact patterns.
Pella argued that there were separate and distinct causes of different injuries and damage and thus, each underlying case constituted a separate occurrence. Liberty Mutual, on the other hand, highlighted language within the definition of "occurrence," which stated that an "occurrence" included "continuous or repeated exposure to the same general harmful conditions." The "substantially the same general harmful conditions" language dictated that the scope of "occurrence" be understood to be broad, such that various instances of damage-causing water intrusion in different times and places constituted "substantially the same general harmful conditions."
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Tred R. Eyerly - Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com