Cambridge Massachusetts Building Expert Directory

Blackstone Suffers Court Setback in Irish Real Estate Drama

August 20, 2014 — Donal Griffin and Dara Doyle – Bloomberg
At 11:15 a.m. on July 29, Irish property developer Michael O’Flynn realized that Blackstone Group LP (BX) was trying to gain control of his real estate empire, which includes the country’s tallest residential tower. Ten weeks earlier, the private equity firm had bought 1.8 billion euros ($2.4 billion) of loans to O’Flynn’s companies and the developer personally. Coming out of a meeting, he learned Blackstone was demanding the immediate repayment of 16 million euros of personal loans secured on his shareholdings -- even though he wasn’t in default. By the end of the day he had lost control of the business he’d spent more than 30 years building. “I was shocked that they’d made this demand,” O’Flynn, 57, said in an interview. “It took time to understand the gravity of it because I’ve never been served with a demand in my 36 years of business. I was very recently transferred to Blackstone and I was doing my damnedest to work with them.” Mr. Doyle may be contacted at ddoyle1@bloomberg.net; Mr. Griffin may be contacted at dgriffin10@bloomberg.net Read the court decision
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Reprinted courtesy of Donal Griffin and Dara Doyle, Bloomberg

Connecticut Court Clarifies Construction Coverage

June 28, 2013 — CDJ STAFF
The Connecticut Supreme Court has recently ruled on a case in which breach of contract and bad-faith claims were made against an insurer in an construction defect case. Joseph K. Scully of Day Pitney LLP discussed the case in a piece on Mondaq. Mr. Scully noted that the background of the case was that Capstone Building was the general contractor and project developer of a student housing complex for the University of Connecticut. Unfortunately, the building had a variety of problems, some of which were violations of the building code. Mr. Scully noted that the building had “elevated carbon monoxide levels resulting from inadequate venting, improperly sized flues.” Capstone entered into mediation with the University of Connecticut. Capstone’s insurer, the American Motorists Insurance Company (AMICO), declined involvement in the participation. Afterward, Capstone sued AMICO. The issues the court covered involved the insurance on this project. The court addressed three questions. The first was “whether damage to a construction project caused by construction defects and faulty workmanship may constitute ‘property damage’ resulting from an ‘occurrence.’” The court concluded that it could “only if it involved physical injury or loss of use of ‘nondefective property.’” The second question dealt with whether insurers were obligated to investigate insurance claims. The court, “agreeing with the majority of jurisdictions,” did not find “a cause of action based solely on an insurer’s failure to investigate a claim.” Under the terms of the contract, it was up to AMICO to decide if it was going to investigate the claim. Thirdly, the court examined whether “an insured is entitled to recover the full amount of a pre-suit settlement involving both covered and noncovered claims after an insurer wrongfully disclaims coverage.” The court concluded that the limits are that the settlement be reasonable, the policy limit, and the covered claims. Mr. Scully concludes that the decision will limit “the scope of coverage for construction defect claims” and “also imposes reasonable requirements on an insured to allocate a settlement between covered and noncovered claims. Read the court decision
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NTSB Outlines Pittsburgh Bridge Structure Specifics, Finding Collapse Cause Will Take Months

February 21, 2022 — Tom Ichniowski - Engineering News-Record
Officials in Pennsylvania are moving forward on building a replacement for the Fern Hollow Bridge in Pittsburgh, which collapsed on Jan. 28, selecting a team of HDR Inc. and Swank Construction to design and construct the new structure, and the approval of $25.3 million in federal funds for the project. Reprinted courtesy of Tom Ichniowski, Engineering News-Record Mr. Ichniowski may be contacted at ichniowskit@enr.com Read the full story... Read the court decision
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Construction Cybercrime Is On the Rise

May 26, 2019 — Tom Sawyer & Jeff Rubenstone - Engineering News-Record
At the end of April, just as St. Ambrose Roman Catholic Church in Brunswick, Ohio, neared the close of a five-month-long, $5.5-million renovation, Father Bob Stec, the parish pastor, was surprised to hear that the contractor, Marous Brothers Construction, Willoughby, Ohio, had not received a $1.7- million payment. Reprinted courtesy of Tom Sawyer, Engineering News-Record and Jeff Rubenstone, Engineering News-Record Mr. Sawyer may be contacted at sawyert@enr.com Mr. Rubenstone may be contacted at rubenstonej@enr.com Read the court decision
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Millennials Want Houses, Just Like Everybody Else

September 17, 2014 — Peter Coy – Bloomberg
The proportion of homeownership among young adults has fallen from a third to a quarter over the past half-century. But the idea that today’s millennials are allergic to deeds and mortgages is a myth, says a report based on a survey of more than 1,000 Americans aged 18-29 by the Demand Institute, a nonprofit jointly operated by the Conference Board and Nielsen (NLSN). “Like most myths, there is some truth here—but only some,” says the report’s introduction. The true part is that millennials are financially squeezed because of “graduating into a weak job market with growing student loan debt,” Jeremy Burbank, a Demand Institute vice president, said in a statement. The false part, the report says, is that millennials don’t want to own their homes. Read the court decision
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Reprinted courtesy of Peter Coy, Bloomberg
Mr. Coy may be contacted at pcoy3@bloomberg.net

Florida Supreme Court Adopts Federal Summary Judgment Standard, Substantially Conforming Florida’s Rule 1.510 to Federal Rule 56

June 07, 2021 — Lewis Brisbois
Effective May 1, 2021, the Florida courts will transition to a new summary judgment standard meant to “align Florida’s summary judgment standard with that of the federal courts and of the supermajority of states that have already adopted the federal summary judgment standard.” In re Amends. to Fla. Rule of Civ. Pro. 1.510, 309 So. 3d 192, 192 (Fla. 2020). Consistent with this amendment, Florida Rule of Civil Procedure 1.510 has been amended to adopt the federal summary judgment rule, with exceptions for timing-related issues. The Florida Supreme Court’s most recent opinion on rule 1.510 and the text of new rule 1.510 can be found here. As background, on December 31, 2020, the Florida Supreme Court adopted the federal summary judgment standard by amending Florida Rule of Civil Procedure 1.510(c) to include the following sentence: “The summary judgment standard provided for in this rule shall be construed and applied in accordance with the federal summary judgment standard articulated in Celotex Corp. v. Catrett, 477 U.S. 317 (1986); Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (1976); and Matsushita Electric Industrial Co. v. Zenith Radio Corp., 475 U.S. 574 (1986) [(the ‘Celotex trilogy’)].” In re Amends. to Fla. Rule of Civ. Pro. 1.510, 309 So. 3d at 196. The court’s amendment was slated to take effect on May 1, 2021, subject to a public comment period. The court also sought guidance from the Florida Bar’s Civil Procedure Rules Committee. After careful consideration of numerous responses, the court ultimately chose to adopt the substance of the text from federal rule 56. Along with its amendments, the court provides substantial guidance as to how the Florida courts and practitioners should interpret the new rule. A summary of the court’s thorough discussion follows. Read the court decision
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Reprinted courtesy of Lewis Brisbois

Interior Designer Licensure

October 11, 2017 — David Adelstein - Florida Construction Legal Updates
An interior designer that provides residential interior design services does NOT need to be registered or licensed with the state. On this point, Florida Statute s. 481.229(6)(a) specifies: (6) This part shall not apply to: (a) A person who performs interior design services or interior decorator services for any residential application, provided that such person does not advertise as, or represent himself or herself as, an interior designer. For purposes of this paragraph, “residential applications” includes all types of residences, including, but not limited to, residence buildings, single-family homes, multifamily homes, townhouses, apartments, condominiums, and domestic outbuildings appurtenant to one-family or two-family residences. However, “residential applications” does not include common areas associated with instances of multiple-unit dwelling applications. Read the court decision
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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at dadelstein@gmail.com

Why Employees Are Taking Ownership of Their Architecture Firms

January 22, 2024 — Kriston Capps - Bloomberg
The architecture firm BNIM has always been a leader on sustainable design. In the late 1980s, principal emeritus Bob Berkebile was one of the first architects to push the industry to take the idea of green buildings seriously. Then-President Bill Clinton even recruited him to lead a climate-minded restoration of the White House. Berkebile and his Kansas City, Missouri–based firm — he’s the “B” in BNIM, alongside Tom Nelson, David Immenschuh and Steve McDowell — received top honors from the American Institute of Architects in 2011, among many other accolades. Now the firm behind such projects as the US Embassy expansion in Kampala, Uganda, and a proposed South Loop park to deck over a highway in downtown Kansas City hopes to stand out in another way. In October, BNIM announced its transition to an employee stock ownership plan, or ESOP. The firm is one of a handful in the industry to recently embrace the employee-ownership model, following similar moves in 2021 by SHoP Architects and Zaha Hadid Architects. Read the court decision
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Reprinted courtesy of Kriston Capps, Bloomberg

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