Seattle Washington Building Expert Directory

AI Systems and the Real Estate Industry

April 03, 2023 — Robert G. Howard & Craig A. de Ridder - Gravel2Gavel Construction & Real Estate Law Blog
Artificial intelligence (AI) systems captured considerable attention with the release of a large language chatbot, ChatGPT, by OpenAI, in November of last year. On March 14, OpenAI unveiled GPT-4, a more powerful “multimodal” chatbot responding to both text and images. And, on March 21, Google launched its conversational computer program, Bard, to compete with GPT-4. These chatbots allow users to initiate detailed queries or requests and receive prompt responses in complete sentences. Users are not forced to scroll through a list of results like those produced by search engines and follow-up questions can be asked. AI systems have been touted for many years and these new breakthroughs may drastically change the way that we create content. Notwithstanding their unprecedented capabilities, AI systems can produce imperfect results. New chatbots, for example, can generate plausible-sounding but nonsensical, biased or false responses. Accordingly, heavy fact-checking is necessary. OpenAI has warned that ChatGPT is prone to filling in replies with incorrect data if there is not enough information available on the topic on the internet. Bard includes a website disclaimer that it “may display inaccurate or offensive information that doesn’t represent Google’s views.” On March 20, a breach at OpenAI allowed users to see other people’s chat histories before the service was shut down. Further, there is a real risk that courts will rule that certain content generated by these systems infringes the copyright or database rights of the owner of the materials and data that the technologies relied on. When entering into agreements with AI software providers, companies should also be concerned about other risks, including misappropriation of data, security, confidentiality, privacy and third-party claims. Reprinted courtesy of Robert G. Howard, Pillsbury and Craig A. de Ridder, Pillsbury Mr. Howard may be contacted at robert.howard@pillsburylaw.com Mr. de Ridder may be contacted at craig.deridder@pillsburylaw.com Read the court decision
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Federal District Court Addresses Material Misrepresentation in First Party Property Damage Claim

August 26, 2024 — James M. Eastham - Traub Lieberman
In Pittsfield Dev. LLC v. Travelers Indem. Co., 2024 U.S. Dist. LEXIS 117530 (N.D. Ill. July 3, 2024), the United States District Court for the Northern District of Illinois addressed an alleged material misrepresentation by an insured during the course of the adjustment of a water loss claim at an insured property. Subsequent to a pipe burst event which caused damage to a number of the floors in the insured building, the insured submitted a claim to Travelers and also submitted, with the assistance of a retained public adjuster, a damage estimate of the damages at the property. Included within the estimate submitted by the insured was a line item for "Lead Paint & Asbestos Removal" with a corresponding dollar amount of $1,140,000. It was this line item which formed the basis of Travelers' claim of misrepresentation. At his deposition, the public adjuster testified that the $1,140,000 figure was an oral estimate received over the phone from an asbestos remediation company. Travelers disputed the testimony and contended that no such estimate was ever provided. For support, Travelers pointed to deposition testimony from a remediation company employee that while rough estimates were occasionally given verbally, the largest over the phone estimate she could recall was in the $20,000-$25,000 range. It was also disputed that the company would ever provide an oral quote of that magnitude sight unseen, especially since the largest project the remediation company had ever completed was less than $250,000. Read the court decision
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Reprinted courtesy of James M. Eastham, Traub Lieberman
Mr. Eastham may be contacted at jeastham@tlsslaw.com

Update Regarding New York City’s Climate Mobilization Act (CMA) and the Reduction of Carbon Emissions in New York City

July 05, 2021 — Caroline A. Harcourt, Natalie S. Starkman & Nika Bederman - Gravel2Gavel Construction & Real Estate Law Blog
In a previous post, we described how the New York City Climate Mobilization Act, 2019 (the CMA, or Local Laws 92, 94, 95, 96, 97, and 147 enacted in 2019) was passed with the goal of reducing New York City’s carbon emissions by 40 percent by 2030 and by 80 percent by 2050 (as against a 2005 baseline as provided for in item 3 of Local Law 97). It is the most ambitious building emissions law to be enacted by any city in the world. The CMA impacts “Covered Buildings” (described below) and, besides contemplating the retrofitting of Covered Buildings to achieve energy efficiency and establishing a monitoring program for Covered Buildings, the CMA contemplates compliance by means of the purchase of carbon offset credits or renewable energy. (Note the new NYC Accelerator program, launched in 2012 by the Mayor’s Office of Sustainability, provides guidance regarding energy-efficient upgrades to properties and emission reductions.) Pursuant to the CMA:

Beginning in 2024, Covered Buildings will have to meet the first emission targets, which are calculated by multiplying the gross floor area of each Covered Building by the occupancy classification as set forth in Local Law 97; and
In 2025, owners of Covered Buildings will need to establish compliance by submitting a report establishing such compliance (prepared by a certified design professional) to the newly created Office of Building Energy and Emissions Performance.

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Reprinted courtesy of Caroline A. Harcourt, Pillsbury
Ms. Harcourt may be contacted at caroline.harcourt@pillsburylaw.com

Substantial Completion Explained: What Contractors & Owners Should Know

January 17, 2022 — Travis Colburn - Ahlers Cressman & Sleight
A project’s Substantial Completion date is a critical construction milestone for contractors and owners. Depending on the contract, the date of Substantial Completion has project-specific contractual and statutory consequences. Substantial Completion is an “event” – there is no universal definition of the term. It is generally understood to be (1) a point in time (2) when work performed by the contractor is sufficiently complete (3) where it can be used or occupied for the owner’s intended purpose. The date of Substantial Completion is generally established at the time of contract formation (either as a negotiated or a contract set date), and that date may be adjusted over the course of a project to account for excusable delays. As a construction professional, your attorney should review and tailor any written agreement to your project-specific needs and risk tolerances prior to execution. Savvy construction professionals often start with standard form agreements promulgated by the American Institute of Architects (“AIA”), the Design-Build Institute of America (“DBIA”), or the Engineers Joint Contract Document Committee (“EJCDC”) as the basis for their construction contracts. The AIA, DBIA, and EJCDC standard forms each contains contract provisions relating to when and what happens once Substantial Completion has occurred, subject to any agreed-to, project-specific deviations. Read the court decision
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Reprinted courtesy of Travis Colburn, Ahlers Cressman & Sleight
Mr. Colburn may be contacted at travis.colburn@acslawyers.com

Insurer's Motion in Limine to Dismiss Case for Lack of Expert Denied

June 26, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The court denied the insurer's motion in limine seeking to dismiss the insureds' complaint due to the absence of expert testimony. Fabozzi v. Lexington Ins. Co., 2014 U.S. Dist. LEXIS 74069 (E.D. N.Y. May 30, 2014). During the policy period, the insureds noticed their house had serious structural problems, including cracks in the walls and floors that were pitched toward the rear of the house. The insureds had to move from their house. When they submitted a claim, it was denied by Lexington because the losses were caused by "wear and tear, deterioration, earth movement, settlement, shrinking, bulging or expansion of the property leading to cracking of structural components." The insureds sued. Lexington filed a motion in limine to preclude the testimony of the insureds' expert and to dismiss the complaint for inability to offer prima facie proof of a covered loss absent such expert testimony. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

A Landlord’s Guide to the Center for Disease Control’s Eviction Moratorium

October 05, 2020 — Colton Addy - Snell & Wilmer Real Estate Litigation Blog
The Center for Disease Control and Prevention (the “CDC”) and the Department of Health and Human Services (the “HHS”) has issued an order to temporarily halt a landlord’s right to evict certain residential tenants to prevent the further spread of COVID-19 (the “CDC Order”). The CDC Order is effective through December 31, 2020. Applicability of the CDC Order. The CDC Order does not apply in jurisdictions that have a moratorium on residential evictions in effect that provides the same or greater level of protection than the CDC Order, and the CDC Order permits local jurisdictions to continue to pass more restrictive eviction moratoriums. To invoke the protection provided by the CDC Order, a landlord’s tenants must deliver an executed declaration (a “CDC Declaration”) form to the landlord that includes the following statements: (i) the tenant has used best efforts to obtain all available government assistance for rent or housing; (ii) expects to earn no more than $99,000 in annual income in 2020 (or $198,000 if filing joint tax returns), was not required to report income in 2019, or received an Economic Impact Payment under the CARES Act; (iii) the tenant is unable to pay the full rent due to substantial loss of household income, loss of work or wages, or extraordinary out-of-pocket medical expenses; (iv) the tenant is using best efforts to make partial payments that are as close to the full rental payments as the tenant’s circumstances permit; and (v) the eviction would likely render the individual homeless or force the individual to move into and live in close quarters or shared living space. Effect of the CDC Order The CDC Order prevents landlords from evicting tenants for the non-payment of rent or similar housing-related payments that have sent their landlord a CDC Declaration. The CDC Order does not relieve tenants of the obligation to pay rent or other charges owed under their leases and does not preclude a landlord from charging late fees, penalties, or interest for missed payments. Read the court decision
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Reprinted courtesy of Colton Addy, Snell & Wilmer
Mr. Addy may be contacted at caddy@swlaw.com

Failure to Comply with Sprinkler Endorsement Bars Coverage for Fire Damage

July 31, 2013 — Tred Eyerly, Insurance Law Hawaii
Despite its application stating otherwise, the insured's failure to install a sprinkler system in its building barred coverage for extensive damage caused by fire.American Way Cellular, Inc. v. Travelers Prop. Cas. Co. of Am., 2013 Cal. App. LEXIS 425 (Cal. Ct. App. May 30, 2013). American Way contacted a broker, A&J, regarding liability and property coverage. A&J sent American Way an application for a policy with Travelers. The application indicated American Way had a sprinkler system and fire detectors in its building. Travelers issued a policy with a Protective Safeguards Endorsement For Sprinkler Locations and Restaurants. The endorsement stated that as a condition of the insurance, the insured was required to maintain a sprinkler system. An exclusions section said the insurer would not pay for loss caused by fire if there was no sprinkler system. Read the court decision
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Reprinted courtesy of Tred Eyerly
Tred Eyerly can be contacted at te@hawaiilawyer.com

Illinois Non-Profit Sues over Defective Roof

November 27, 2013 — CDJ STAFF
Coordinated Youth and Human Services (CYHS), a family services organization hired Honey-Do Home Repair to design and install a new roof for its building in Granite City, Illinois. Honey-Do removed portions of the roof for testing. A few day later during a rainstorm, a tarp failed, leading to water intrusion and damage to the building. The CYHS is suing the contractor for $400,000. It is claiming that repairing the damage cost the organization $200,000, and it seeks additional damage and court costs. Read the court decision
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