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Real Estate & Construction News Roundup (5/29/24) – Megaprojects on the Rise, Agency Guidance for CRE, and an Upbeat Forecast for Commercial Real Estate Investment

June 21, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, summer travelers seek alternative lodging options, purpose-built wellness real estate investments grow, bonds backed by CRE debt hit are hit with losses, and more!

Across all property types, purpose-built wellness real estate investment has grown dramatically in recent years, including properties with wellness features as a focus. (Mary Salmonsen, Multifamily Dive)
The travelers on the road this summer will have different demographics, budgets and reasons for travel and different preferences on accommodations, with more travelers opting for alternative housing options. (Noelle Mateer, Hotel Dive)
Megaprojects are on the rise, with massive projects, from rail tunnels to computer chip factories, having myriad stakeholders and lengthy timelines that span political administrations. (Julie Strupp, Construction Dive)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

Traub Lieberman Attorneys Lisa Rolle and Christopher Acosta Win Summary Judgment in Favor of Property Owner

February 20, 2023 — Lisa M. Rolle & Christopher D. Acosta - Traub Lieberman
Traub Lieberman Attorneys Lisa Rolle and Christopher Acosta obtained summary judgment in favor of Defendant, the owner of a premises located in Bronx, New York, in a personal injury case brought before the Supreme Court of the State of New York, Bronx County. The Plaintiff alleged that while leaving the Defendant’s premises, she unexpectedly fell. It is undisputed that the Plaintiff does not know why she fell or identify any defect that may have caused her fall. The Defendant’s witness testified that the route taken by the Plaintiff was free of any defect prior to and on the date of the incident. The witness further testified that the site was also subject to routine inspection leading up to the incident, in which no tripping hazards were observed. Reprinted courtesy of Lisa M. Rolle, Traub Lieberman and Christopher D. Acosta, Traub Lieberman Ms. Rolle may be contacted at lrolle@tlsslaw.com Mr. Acosta may be contacted at cacosta@tlsslaw.com Read the full story... Read the court decision
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Spearin Doctrine 100 Years Old and Still Thriving in the Design-Build Delivery World

January 09, 2019 — John P. Ahlers - Ahlers Cressman & Sleight PLLC
The Supreme Court’s ruling in United States v. Spearin, [1] also referred to as the Spearin doctrine, is a landmark construction decision.[2] The Spearin doctrine provides that the Owner impliedly warrants the information, plans and specifications which an Owner provides to a General Contractor. If a Contractor is bound to build according to plans and specifications prepared by the Owner, the Contractor will not be responsible for the consequences of defects in the plans and specifications. Read the court decision
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Reprinted courtesy of John P. Ahlers, Ahlers Cressman & Sleight PLLC
Mr. Ahlers may be contacted at john.ahlers@acslawyers.com

Jarred Reed Named to the National Black Lawyers’ “Top 40 Under 40” List for Second Consecutive Year

August 07, 2023 — Lewis Brisbois
Madison County, Ill. (July 21, 2023) – Madison County Associate Jarred Reed was named to The National Black Lawyers (NBL) “Top 40 Under 40” list for the second year in a row. The NBL “Top 40 Under 40” recognizes the most talented Black attorneys under the age of 40 who have an outstanding reputation among peers, the judiciary, and the public. The honorees on this list are nominated from leading lawyers, current members, and Executive Committee members. “We feel so blessed to be able to call Jarred our colleague," said Madison County Managing Partner Jeffrey Bash. "He is a joy to work with and our clients are well served with him as part of their defense team.” Read the court decision
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Reprinted courtesy of Lewis Brisbois

Recent Federal Court Decision Favors Class Action Defendants

October 26, 2020 — Amber Karns & Dan Pipitone - Construction Executive
The commercial construction contracting and subcontracting industry in general is unique under the law for industry professionals, as they’re typically limited to wage and hour litigation under provisions of the Fair Labor Standards Act. The majority of FLSA cases seek class action status or collective classification, while other FLSA litigation is initiated by individuals seeking damages. For the former, past and current employees can opt into class action litigation and seek collective damages against a construction company. The looming financial burden of class action or collective litigation against construction companies consume time, money and resources to the extent it’s often advisable for Defendants to negotiate an unfair settlement. Yet, thanks to a recent federal court decision on March 27, 2020, the legal maneuvering behind unreasonable Plaintiff demands may soon be counter-balanced by the class action Defendants’ right to due process review. A recent legal opinion in a recent FLSA case has potentially wide-ranging implications for Defendant employers mired in future class action litigation. Moreover, as the FLSA applies to all employers, this decision potentially applies to all ownership groups representing the commercial construction industry, extending to partners, contractors and subcontractors. Reprinted courtesy of Amber Karns & Dan Pipitone, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Mr. Pipitone may be contacted at dpipitone@munsch.com Ms. Karns may be contacted at akarns@munsch.com Read the court decision
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Consumer Prices Rising as U.S. Housing Stabilizes: Economy

June 18, 2014 — Jeanna Smialek and Shobhana Chandra – Bloomberg
Consumer prices rose in May by the most in more than a year, showing U.S. companies are gaining some pricing power as the economy strengthens, and the homebuilding industry stabilized after a first-quarter swoon. The cost of living increased 0.4 percent, the biggest advance since February 2013, according to Labor Department data released today in Washington. Other figures showed builders broke ground on 1 million homes at an annualized rate after 1.07 million in April, the best two-month reading since late 2013. The reports will be welcome news to Federal Reserve policy makers meeting today and tomorrow as the pickup in inflation lessens the threat of a prolonged drop in prices that hurts economic growth. Central bankers are projected to continue scaling back their bond-buying program, while an increase in interest rates is delayed until well into 2015. Ms. Smialek may be contacted at jsmialek1@bloomberg.net; Ms. Chandra may be contacted at schandra1@bloomberg.net Read the court decision
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Reprinted courtesy of Jeanna Smialek and Shobhana Chandra, Bloomberg

Monitoring Building Moisture with RFID – Interview with Jarmo Tuppurainen

February 22, 2018 — Aarni Heiskanen – aec business
I met Jarmo, the Technology Manager at Helsinki Metropolia University of Applied Sciences, at the leading event for housing markets in Helsinki (Asuntomarkkinat). He and his team had set up an impressive display of devices and structures in the KIRA-digi showroom. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, aec business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

Flood Sublimit Applies, Seawater Corrosion to Amtrak's Equipment Not Ensuing Loss

November 10, 2016 — Tred R. Eyerly – Insurance Law Hawaii
The insurers were granted summary judgment on three issues regarding Amtrak's claim for damages caused by Hurricane Sandy. Amtrak v. Aspen Sec. Ins. Co., 2016 U.S. App. LEXIS 16074 (2nd Cir. Aug. 31, 2016). Hurricane Sandy caused flooding which damaged two of Amtrak's tunnels under the East and Hudson Rivers. Seawater from the flooding caused extensive damage to equipment in the tunnels. The district court granted summary judgment to the insurers on the following issues: (1) the damage caused by an inundation of water in the tunnels was subject to the policies' $125 million flood sublimit; and (2) the corrosion of equipment after Amtrak pumped out the seawater was not an "ensuing loss" and therefore was also subject to the flood sublimit. 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

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