What Rich Millennials Want in a Luxury Home: 20,000 Square Feet
February 15, 2018 —
Patrick Clark – BloombergA new generation of affluent homebuyers powered by a surge in inherited wealth is driving the luxury-home market, demanding larger spaces and fancier finishes, according to a report heralding “the rise of the new aristocracy.”
Prospective homebuyers under 50 account for most of those shopping for homes priced at $1 million or more, according to the
report. Nearly a quarter of high-net-worth consumers between 25 and 49 said they would look for at least 20,000 square feet when they made their next home purchase; it was just 6 percent for respondents 50 or older. The report is based on a survey of more than 500 consumers with at least $1 million in investable assets, conducted last month on behalf of Luxury Portfolio International, a network of real estate brokerages.
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Patrick Clark, Bloomberg
Are Proprietary Specifications Illegal?
April 11, 2018 —
Wally Zimolong – Supplemental Conditions A friend came to me with a question regarding a case he was working: “can a public owner require that bidders use a specific brand name product?” “Of course not,” I said “proprietary specifications are illegal.” Or, at least that’s what I assumed. To my surprise, the law in the Commonwealth of Pennsylvania is not as clear as it is in other jurisdictions.
What is a proprietary specification?
A proprietary specification lists a product by brand name, make, model and/model that a contractor must (shall) utilize in construction. A basic example of a proprietary specification would state:
“Air Handlers shall be “Turbo Max” as manufactured by Chiller Corp.”
There are two problems with a proprietary specification (other than potentially being illegal): (a) they limit competition, and (b) invite steered contract awards. They limit competition because it limits the type of material that can be used on the project. In the example above, there could be equivalent air handlers available at a better price but the contractor could not use that lower priced product in its bid. Thus, the taxpayers end up paying more for tile. Also, contractors may not be able to secure a certain brand name product because of exclusive distribution agreements. Again, using the example above, contractor A’s competitor may have the exclusive distribution agreement with Chiller Corp.
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Wally Zimolong, Zimolong LLCMr. Zimolong may be contacted at
wally@zimolonglaw.com
Texas Shortens Cut-Off Date for Suits Against Homebuilders Who Provide a 6-Year Written Warranty
June 26, 2023 —
Kim Altsuler - Peckar & Abramson, P.C.Summary of the new law as it pertains to builders of new homes:
The existing 10-year statute of repose for builders of new homes (the ultimate cut-off date for filing suit) has been shortened to 6 years if the builder provides a 1-2-6 written warranty (1-year workmanship and materials; 2-year plumbing, electrical and HVAC; 6-year structural).
Extended time to bring suit if written claim presented during the period of repose:
If a written claim for damages, contribution, or indemnity is presented to the builder during the applicable limitations period and the 6-year statute of repose applies, the time to sue is extended one year from the date the claim is presented. In practical effect, this means that if a written claim is presented and the statute of repose expires before suit is filed, suit may still be filed provided it is within one year of the date the written claim was made.
When the new law goes into effect:
The new law is effective as of June 9, 2023 and applies to suits commenced on or after that date. However, if the contract under which the claim is brought was entered into before June 9, 2023, the former 10-year version of the statute of repose applies. In other words, the statute applies to contracts entered into on or after June 9, 2023, if the contract has at least a 1-2-6 warranty.
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Kim Altsuler - Peckar & Abramson, P.C.Ms. Altsuler may be contacted at
kaltsuler@pecklaw.com
SunCal Buys Oak Knoll Development for the Second Time
May 19, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to the San Francisco Business Times, “Irvine-based SunCal has now bought the same site twice: once in 2005 for $100.5 million and again last week from the Lehman Brothers estate.” Suncal’s original plan to develop the 167-acre Oakland Hills, California project “fell apart after Lehman declared bankruptcy in 2008.”
The San Francisco Business Times reported that the “former naval hospital site” has “the potential for more than 900 homes.” The former design included “960 homes, 82,000 square feet of commercial and retail space, and 50 acres of parks and open space.”
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Federal Court Opinion Has Huge Impact on the Construction Industry
July 06, 2020 —
Wally Zimolong - Supplemental ConditionsThe United States District Court for the Eastern District of Pennsylvania in Philadelphia recently issued an opinion that should get the attention of any contractor or subcontractor performing work on a federal funded construction project. In U.S. ex rel IBEW Local 98 v. The Fairfield Company, the federal court held that a contractor on a SEPTA project could be held liable under the False Claims Act for failing to pay its workers under the Davis Bacon Act. The court found that liability was appropriate under the FCA even through the contractor did not knowingly violate the Davis Bacon Act. The court awarded the plaintiff over $1,000,000 in damages and an additional over $1,000,000 in attorneys fees.
An Extremely Brief Primer on the FCA
A full discussion of the FCA is beyond the realm of this blog post and you could write a book on FCA cases. But in a nutshell, the FCA prohibits a contractor from knowingly submitting a claim for payment to the federal government (or an entity receiving funding from the federal government, like SEPTA) that is false. Importantly, knowingly does not equal actual knowledge of the falsity of the claim. Rather, “reckless disregard of the truth or falsity” of the submission is sufficient. As explained below, this standard played an important role in the court’s decision and should give contractors performing work on federally funded projects pause.
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Wally Zimolong, Zimolong LLCMr. Zimolong may be contacted at
wally@zimolonglaw.com
Golden Gate Bridge's $76 Million Suicide Nets Near Approval
June 30, 2014 —
Alison Vekshin – BloombergOfficials of the agency that runs San Francisco’s Golden Gate Bridge today approved a $76 million funding plan to erect a suicide barrier along the span, where people plunge to their deaths at a rate of about once a week.
The Golden Gate Bridge Highway and Transportation District’s 19-member board voted unanimously to approve the funding, which includes $20 million from district reserves.
“We must fight mental illness on many fronts and this budget action is a critical component of saving the lives of people who might not see that their brightest days are ahead of them,” Senator Mark Leno, a Democrat from San Francisco, said in a news release yesterday ahead of the meeting.
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Alison Vekshin, BloombergMs. Vekshin may be contacted at
avekshin@bloomberg.net
Getting U.S to Zero Carbon Will Take a $2.5 Trillion Investment by 2030
December 29, 2020 —
Will Wade & Eric Roston - BloombergIt’s going to take $2.5 trillion in spending over the next decade to get the U.S. on a path to a carbon-free economy, but the transition will help to pay for itself, Princeton University researchers say.
Achieving net-zero emissions by 2050 -- a central goal of President-elect Joe Biden’s climate plan -- would require expanding renewable-energy systems, building more efficient homes and putting 50 million electric cars on the road, according to a report released Tuesday.
The effort, two years in the making, is the first major assessment since the election detailing how the U.S. can transition to an energy system that satisfies scientific guidance for keeping the climate livable. While the upfront costs are significant, they would be offset by savings associated with switching to cheaper electricity and the creation of as many as 1 million new jobs, according to the researchers, who shared an earlier draft with Biden’s transition team.
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Will Wade & Eric Roston, Bloomberg
Ignoring Employee ADA Accommodation Requests Can Be Costly – A Cautionary Tale
March 29, 2021 —
Peter Shapiro - Lewis BrisboisAs all employers should well know by now, the Americans with Disabilities Act (ADA) and many state and local counterparts may require employers to engage in an interactive process in response to a disabled employee’s request for a workplace accommodation. A recent ruling by the First Circuit Court of Appeals illustrates why employers have a very strong financial incentive to be proactive in adopting and rigorously enforcing their disability accommodation policies.
In Burnett v. Ocean Properties, decided on February 2, 2021, a wheelchair user employed by a hotel chain call center complained internally that the office’s entrance was not accessible to him. It had heavy doors beyond which was a downward slope that caused the plaintiff’s wheelchair to roll backwards as the door closed on him, requiring him to exert greater force as he struggled to enter. He asked that push-button automatic doors be installed. The employer did not take any meaningful steps to address the complaint with the plaintiff. Eventually he was injured as he tried to open the door. Still, the employer did not follow up on his accommodation request. The plaintiff eventually filed an administrative charge with the Maine Human Rights Commission. The employer met with the plaintiff at that time, but claimed lack of familiarity with ADA compliance requirements and took no action to address the complaint. The plaintiff eventually resigned and filed suit in federal court when the administrative process was completed.
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Peter Shapiro, Lewis BrisboisMr. Shapiro may be contacted at
Peter.Shapiro@lewisbrisbois.com