Construction Updates

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No CGL Coverage for Faulty Workmanship Under Pennsylvania Law

In State Farm Fire & Casualty Co. v. McDermott, 2014 WL 5285335 (E.D. Pa. Oct. 15, 2014), a federal court recently held that an insurer has no duty to defend or indemnify its insured against an underlying construction defect...more

DOE Issues Final Rule on Federal Green Building Standards

The Federal government has long been a leader in constructing green buildings, and LEED has been the Federal standard of choice. The Department of Energy issued a final rule updating its recommended certification standards...more

High Court Clarifies Duties To Subsequent Purchasers – Brookfield Multiplex v Owners Corporation

The duty of care owed by a builder to subsequent purchasers of a building has long been a source of contention. In a decision handed down on 8 October 2014, the High Court in Brookfield Multiplex Limited v Owners Corporation...more

U.S. District Court of Hawaii Holds That Claims Arising From Contractors Failure To Provide Metal Framing and Installation of...

In State Farm Fire & Cas. Co. v. RK Wooten, 2014 U.S. Dist. LEXIS 146196 (D. Haw. Oct. 14, 2014), the U.S. District Court of Hawaii recently determined that State Farm Fire & Casualty Insurance Company (“State Farm”) had no...more

Lincoln Road Property Prices Soar

Lincoln Road property values are soaring to new heights with tenant rents and property prices at record highs. Dating back to the 1920s, Lincoln Road has seen its share of transitional decades, but experts say this time it’s...more

Editorial: Court Gives Nod to 1932 Florida Supreme Court Case, Blocking Developers’ Ability to Avoid Additional Payments

We are often asked when representing a client in defense of a claim whether the client could avoid the liability asserted by the claimant by potentially buying the cause of action out from under the claimant. The most common...more

FDOT Announces Apparent Best Value Proposer for I-4 Managed Lanes Project

The Florida Department of Transportation (FDOT) announced today that it has selected I-4 Mobility Partners as the apparent best value proposer to design, build, finance, operate and maintain the I-4 Ultimate project. ...more

CRS Report on the Production Tax Credit

On October 2, the Congressional Research Service (CRS) published an overview of the production tax credit (PTC). The report is available below. It contains a helpful summary of the history of the PTC and an insightful...more

Construction Case Law Update - October 2014 #2

Disputes over a mediation agreement’s validity must be resolved prior to a court ruling on discovery requests regarding matters potentially settled by the agreement. A dispute arose after Jilco, Inc. (“Jilco”) subleased a...more

Enforcing Notice Provisions in Construction Contracts in the United States

Notice provisions are a key part of construction contracts. These provisions typically require a contractor to notify the owner of the project (or an owner-designated representative) when the contractor believes that it is...more

Final Rule Issued for $10.10 Minimum Wage for Federal Contractors

In February 2014, President Obama issued Executive Order 13658 to raise the minimum wage for federal construction and service contractors to $10.10 for all employees. Executive Order 13658 instructed the Department of Labor...more

Property Owners' Alert: Newly Effective Statutory Requirements for Installation of Water-Conserving Plumbing Fixtures

The real estate industry and the media recently have been focused on the updates to the Title 24 energy regulations (24 California Code of Regulations, Part 5) that became effective on July 1, 2014, and the increased costs in...more

Update on the California High Speed Rail System

James Andrew, Assistant Chief Counsel for the California High-Speed Rail Authority (“CHSRA”), spoke Tuesday, October 14, at the Sacramento County Bar Association, Environmental Law Section Luncheon. He stated that High-Speed...more

High Court Finds No Duty of Care From Builder to Owners Corporation

The High Court has held that a builder of a serviced apartment complex does not owe a duty of care in negligence for financial loss arising from defects in common property to an owner's corporation (Brookfield...more

Minimum Wage for Federal Contract Workers Will Increase to $10.10 on January 1

The U.S. Department of Labor (DOL) has raised the minimum wage for federal service and construction contract workers to $10.10, in a final rule that takes effect January 1, 2015. This final rule implements Executive Order...more

When Your General Contractor Files Bankruptcy

The case is Branch Banking & Trust Co. v. Construction Supervision Services Inc. (In re Construction Supervision Services Inc.), 753 F.3d 124 (4th Cir. 2014). After a general contractor filed bankruptcy, several of its...more

Mechanic’s Lien Reigns Supreme in the Battle of a Project Default? Not for a Waiving General

In what can only be described as a devastating result for a general contractor, the Fourth Appellate District held that a general contractor may prospectively waive the priority of a mechanic’s lien to the owner’s...more

Enactment of SB 785 Clears Caltrain Electrification for Design-Build

California Governor Edmund G. Brown, Jr., has signed California Senate Bill (SB) 785. As my colleague Nancy Smith has observed, enactment of SB 785 is a major step forward for the State of California, because now many more...more

Certificates of Insurance: What’s in Your Portfolio?

On September 24, 2014, a New Jersey appellate court decided Selective Ins. Co. v. Hospicomm, Inc., 2014 WL 4722776 (N.J. Super., September 24, 2014). The dispute in that case arose out of a nursing home construction project...more

Dr. Seuss Explains "Zoning Reform"

It's not every day that an adult discussion about zoning reform begins with a reference to children's poetry, but so be it. Most [Real Estate Bar Association for Massachusetts] REBA members have at least a passing...more

Illinois Court Holds Insurer Estopped from Relying on Coverage Defenses

In its recent decision in Mt. Hawley Ins. Co v. Certain Underwriters at Lloyd’s, 2014 Ill. App. LEXIS 655 (Ill. App. Ct. Sept. 9, 2014), the Appellate Court of Illinois, First District, had occasion to consider whether...more

Condominium Law Alert: Condominium Units Now Exempt from ILSA Registration

On September 26, 2014, President Obama signed H.R. 2600, which amends the Interstate Land Sales Full Disclosure Act (“ILSA”) to exempt condominium pre-sales from the registration requirements of the ILSA. ...more

California District Court Errs in Dismissing Insurer’s Equitable Reimbursement Claim without Leave to Amend

In the contentious matter of Travelers Indemnity Company of Connecticut, et al. v. Centex Homes, et al., 2014 U.S. Dist. LEXIS 115598 (E.D. Cal. 2014), the Eastern District of California recently reconsidered its July 30,...more

Contractors: Beware the Subordination Clause

Did you know that California is the only state in the country in which mechanics liens are a constitutional right? Tis true. Article XIV of the California Constitution states: Mechanics, persons furnishing...more

Federal Contractor Minimum Wage Provisions Finalized

In July, we alerted government contractors and subcontractors to the Department of Labor’s (DoL) Proposed Rule to implement Executive Order (EO) 13658, which raises the minimum wage for covered employees working directly on,...more

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