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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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Convictions Obtained in Las Vegas HOA Fraud Case

March 19, 2015 — Beverley BevenFlorez-CDJ STAFF
The Las Vegas Review-Journal reported that a jury “convicted four defendants charged in the massive scheme to take over and defraud homeowners associations.” Convicted defendants included former Benzer attorney Keith Gregory, Benzer’s half-sister Edith Gillespie, Salvatore Ruvolo, and David Ball. According to the Las Vegas Review-Journal, “Prosecutors contended the multimillion-dollar scheme was carried out between 2003 and 2009 by former construction company boss Leon Benzer and the late construction defects lawyer Nancy Quon. Benzer has since pleaded guilty. Quon committed suicide in 2012 under the weight of the high-profile investigation.” Read the court decision
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As Evidence Grows, Regions Prepare for Sea Level Rise

July 02, 2018 — Pam Radtke Russell - Engineering News Record
Cities, states and regions are taking steps to prepare their buildings, infrastructure and homes for the impacts of climate change as bad news continues to mount about rising sea levels. Read the court decision
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Reprinted courtesy of Pam Radtke Russell, ENR
Ms. Russell may be contacted at Russellp@bnpmedia.com

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Unfinished Building Projects Litter Miami

November 18, 2011 — CDJ STAFF

Buildings born in ambitious development plans that were never brought to completion form a grim reminder of the building bust in Miami, according to an article in the Miami Herald. One project started in 2007 as a residential project, later there were hopes to develop it as a hotel. These plans are ten months old with no work done.

Another project was projected as a 30-story office and commercial tower. Four were built before the project was abandoned. The article describes the site as “squalid.” Another project completed the planned 17 stories, but no work has been done beyond constructing the shell. Once planned as luxury condos, the owner owes more than $30,000 in property taxes.

Each of the three sites profiled in the Miami Herald have become dumping grounds for trash. The building skeletons have also become damaged by the elements. Some abandoned projects have been taken over by homeless people. Businesses near the abandoned properties have been hurt. The buildings also represent failed obligations to subcontractors who have put liens on the properties for work they performed but were never paid for.

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Environmental Roundup – May 2019

July 09, 2019 — Anthony B. Cavender - Gravel2Gavel
Federal Courts of Appeal Dam Claims Collapse On May 7, 2019, the U.S. Court of Appeals for the Eleventh Circuit decided the case of Navelski, et al. v. International Paper Company. After a major storm, a dam constructed by International Paper to serve the operations of its local paper mill, was breached, releasing millions of gallons of water into a nearby creek resulting in the flooding of many homes located downstream from the creek. IP was sued by the homeowners in a class action, alleging negligence and strict liability for conducting an abnormally dangerous activity. The trial court dismissed the strict liability claim, and the jury found IP was not negligent in the operation of the dam. On appeal, the court upheld the jury verdict, agreeing that the verdict was supported by the evidence heard by the jury. The appeals court also agreed that the strict liability claim was properly dismissed as a matter of law because the operation of this dam was not an abnormally dangerous activity under Florida law. The plaintiffs had also argued that the jury should not have been advised that the home county, Escambia County, has applied for a FEMA grant which apparently made the case that some of the downstream homes were naturally prone to flooding. A redacted version of the application was allowed to be shown to the jury, but the appeals court held that the plaintiffs had not demonstrated that the court ruling was prejudicial. Read the court decision
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Reprinted courtesy of Anthony B. Cavender, Pillsbury
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com

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Vegas Hi-Rise Not Earthquake Safe

July 12, 2011 — CDJ STAFF

If an earthquake hit Las Vegas, the Harmon Tower would not withstand it. A report from Weidlinger Associates told MGM Resorts that “in a code-level earthquake, using either the permitted or current code specified loads, it is likely that critical structural members in the tower will fail and become incapable of supporting gravity loads, leading to a partial or complete collapse of the tower.” The inspection came at the request of county officials, according to the article in Forbes.



According to Ronald Lynn, directory of the building division in the county’s development services division, “these deficiencies, in their current state, make the building uninhabitable.” The county is concerned about risks to adjacent buildings.



MGM Resorts is currently in litigation, separate from the stability issues, with Perini Corp., the builders of Harmon Tower.



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White and Williams Earns Tier 1 Rankings from U.S. News "Best Law Firms" 2020

December 22, 2019 — White and Williams LLP
White and Williams has achieved national recognition from U.S. News and World Report as a "Best Law Firm" in the practice areas of Insurance Law and Media Law. Our Boston, New York and Philadelphia offices have also been recognized in their respective metropolitan regions in several practice areas. Firms included in the “Best Law Firms” list are recognized for professional excellence with persistently impressive ratings from clients and peers. Achieving a tiered ranking signals a unique combination of quality law practice and breadth of legal experience. National Tier 1 Insurance Law National Tier 3 Media Law Metropolitan Tier 1 Boston Product Liability Litigation – Defendants Delaware Product Liability Litigation – Defendants New Jersey Labor Law – Management Philadelphia Commercial Litigation Insurance Law Medical Malpractice Law – Defendants Personal Injury Litigation – Defendants Personal Injury Litigation – Plaintiffs Metropolitan Tier 2 Boston Insurance Law Delaware Medical Malpractice Law – Defendants New Jersey Employment Law - Management Litigation - Labor & Employment Philadelphia Bet-the-Company Litigation Legal Malpractice Law – Defendants Media Law Real Estate Law Tax Law Trusts & Estates Law Metropolitan Tier 3 New York City Bankruptcy and Creditor Debtor Rights / Insolvency and Reorganization Law Philadelphia Appellate Practice Construction Law First Amendment Law Litigation – Construction Litigation – Labor & Employment Patent Law Read the court decision
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Power & Energy - Emerging Insurance Coverage Cases of Interest

November 30, 2020 — David G. Jordan & Tiffany Casanova - Saxe Doernberger & Vita, P.C.
The Power & Energy sector faces a multitude of risks that impact output and profitability, requiring sound risk management and robust insurance programs. As of recent, like most industries, there have been significant challenges facing the industry in light of COVID-19. These issues, including decreased product demand as well as supply- side issues, have been well documented. However, other issues continue to impact Power & Energy providers, with significant insurance coverage implications that are worthy of note. Below is a summary of three open cases of interest, where declaratory relief has been sought by energy providers’ insurance carriers, seeking an avoidance of coverage. 1. Fracking Dispute and “Intentional Acts” In the Texas case of The James River Insurance Co. v. Clearpoint Chemicals LLC et al., No. 4:20-cv-0076 (N.D.Tex), James River Insurance Company (“James River”) is asking a federal district court to declare that it does not owe defense or indemnity to its insured for acts it defines as both intentional and/or malicious acts. Reprinted courtesy of David G. Jordan, Saxe Doernberger & Vita, P.C. and Tiffany Casanova, Saxe Doernberger & Vita, P.C. Mr. Jordan may be contacted at DJordan@sdvlaw.com Ms. Casanova may be contacted at TCasanova@sdvlaw.com Read the court decision
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