Las Vegas, Back From the Bust, Revives Dead Projects
June 11, 2014 —
Brian Louis – BloombergFor almost five years, the desert plot at the western edge of the Las Vegas valley was home to hulking steel skeletons -- ghostly ruins of a construction project halted by the recession.
Now the 106-acre (43-hectare) site bustles with hundreds of workers building the first phase of Downtown Summerlin, an office, entertainment and retail complex that’s scheduled to open in October. Howard Hughes Corp. (HHC) revived the development last year after the previous owner, General Growth Properties Inc., shut it down in 2008.
The commercial real estate market in Las Vegas, littered with vacant buildings and abandoned construction sites by overreaching developers during the U.S. property crash, is coming back to life as the local economy improves and tourists return to the nation’s gambling capital. Blackstone Group LP’s deal to buy the Cosmopolitan resort and Genting Bhd. (GENT)’s proposed resurrection of an abandoned project on Las Vegas Boulevard are further signs of investor confidence in the nascent recovery.
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Brian Louis, BloombergMr. Louis may be contacted at
blouis1@bloomberg.net
Illinois Court of Appeals Addresses Waiver and Estoppel in Context of Suit Limitation Provision in Property Policy
February 05, 2024 —
James M. Eastham - Traub LiebermanIn Naperville Hotel Partners, LLC v. Liberty Mut. Fire Ins. Co., 2023 IL App (3d) 220440-U the Illinois Third District Court of Appeals addressed whether failure to include reference to a limitations provision in reservation of rights correspondence to an insured can be deemed a waiver of the provision or otherwise estop the insurer from relying on the provision.
The claim involved water damage sustained at the Insured’s motel as a result of numerous rain events that occurred between 2015 and 2020. Liberty Mutual issued an insurance policy that covered several buildings including the subject hotel. The policy required that any legal action based on the coverage had to be brought "within two (2) years after the date on which the physical damage occurred, extended by the number of days between the date you submitted the statement of loss to us and the date we deny the claim in whole or in part."
Plaintiffs filed their claim with Liberty Mutual in May 2019. In June of 2019 Liberty Mutual sent a reservation of rights letter to the Insured which requested more information and listed the "immediate written notice of loss" provision as a potential basis for excluding coverage but did not list the two-year time-limitation on legal action. Liberty Mutual also did not mention the provision in subsequent communications with the Insured.
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James M. Eastham, Traub LiebermanMr. Eastham may be contacted at
jeastham@tlsslaw.com
Force Majeure and COVID-19 in Construction Contracts – What You Need to Know
April 06, 2020 —
Brenda Radmacher & Jason Suh - Gordon & Rees Construction Law Blog“Force Majeure” – While most construction contracts contain these provisions, they are often not understood in relation to the implications they may have on construction projects. With the onset of the COVID-19 pandemic, we are all taking a closer look at many portions of our contracts. The following is a brief primer on how to understand your construction contract and its potential implications on your business in this season of change.
What is a Force Majeure?
Construction contracts usually take into consideration that the parties want to agree at the outset on who bears the risk of unforeseen incidents that may affect the project’s progression. These issues are generally handled in a “force majeure” clause. Force majeure, according to Mariam Webster’s Dictionary is a “superior or irresistible force; or an event or effect that cannot be reasonably anticipated or controlled.” To be deemed a force majeure, generally the circumstances must be outside of a party’s control which makes performance impossible, inadvisable, commercially impractical, or illegal. In addition to being unforeseeable, the circumstances must have external causation, and be unavoidable. However, the key to understanding if COVID-19 will be deemed a condition that will excuse a contractor’s performance is the specific language in the provision.
Generally force majeure events are unavoidable events such as “acts of God,” most notably weather conditions including hurricanes, tornadoes, floods, earthquakes, landslides, and wildfires, as well as certain man-made events like riots, wars, terrorism, explosions, labor strikes, and scarcity of energy supplies. However, there is not much case law or specifics on conditions similar to COVID-19.
Reprinted courtesy of
Brenda Radmacher, Gordon & Rees and
Jason Suh, Gordon & Rees
Ms. Radmacher may be contacted at bradmacher@grsm.com
Mr. Suh may be contacted at jwsuh@grsm.com
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Contractor Entitled to Defense for Alleged Faulty Workmanship of Subcontractor
February 10, 2020 —
Tred R. Eyerly - Insurance Law HawaiiApplying Nevada law, the Federal District Court in Florida found that the general contractor was entitled to a defense of claims based upon alleged faulty workmanship of a subcontractor. KB Home Jacksonville LLC v. Liberty Mutual Fire Ins. Co, 2019 U.S. Dist. LEXIS 151235 (M.D. Fla. Sept 5, 2019).
KB Home completed six residential developments utilizing various subcontractors. One subcontractor was Florida State Plastering, LLC (FSP) for installing stucco. Eighty-eight complaints against KB Home implicated FSP's stucco work. Plaintiffs alleged that the stucco subcontractor's work suffered from construction defects, causing damages not only to the exterior stucco, but also the underling wire lath, paper backing, house wrap, wood sheathing, interior walls, interior floors and other property.
Ironshore insured FSP under a CGL policy. KB Home was an additional insured for liability for property damage caused by "your work." KB Home was also insured under its own CGL policy with Liberty Mutual. Both insurers refused to defend.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
‘The Ground Just Gave Out’: How a Storm’s Fury Ravaged Asheville
October 07, 2024 —
Michael Smith, Devon Pendleton, Claire Ballentine & Michael Sasso - BloombergEric Becker was at his vacation home in western North Carolina, in a community bordering the Pisgah National Forest and Blue Ridge Parkway, when the rain began to pour.
Becker, co-founder of the private wealth management firm Cresset, lives in Florida for most of the year. He had lived through a hurricane — but nothing like what he saw during Helene.
“Mud was liquefying around tree bases. You could see the root systems,” said Becker, who first began visiting the Asheville area 20 years ago and was smitten by its natural scenery, excellent food and lively arts and music scene. “The ground just gave out.”
Becker is part of a wave of affluent homebuyers who have flocked to the southern Appalachian region. Transplants from wealth managers and retirees to artists and young outdoors enthusiasts have helped create a real estate goldrush in cities including Asheville, where home prices have climbed 69% in the past five years.
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Michael Smith, Bloomberg,
Devon Pendleton, Bloomberg,
Claire Ballentine, Bloomberg and
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UK Agency Seeks Stricter Punishments for Illegal Wastewater Discharges
August 07, 2022 —
Peter Reina - Engineering News-RecordBosses of U.K. water and wastewater utilities that are responsible for illegal, serious pollution should be jailed, said Emma Howard Boyd, head of the government's Environment Agency. She made the recommendation along with release of the agency’s annual report on the nine major companies, which recorded the worst environmental performance in a decade.
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Peter Reina, Engineering News-Record
Mr. Reina may be contacted at reina@btinternet.com
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California Posts Nation’s Largest Gain in Construction Jobs
March 28, 2012 —
CDJ STAFFCalifornia added about 8,900 construction jobs in January, 2012, as compared to December, 2011, leading the nation in the number of added construction jobs. Thirty-four other states also saw added construction jobs. A year prior, only twenty-eight states added construction jobs. The Associated General Contractors of America analyzed the monthly report from the Labor Department. Ken Simonson, the chief economist for the Associated General Contractors of America noted that “the gains this January partly reflect very mild weather this winter and exceptionally cold and snowy conditions a year before.”
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Florida Chinese drywall, pollution exclusion, “your work” exclusion, and “sistership” exclusion.
May 26, 2011 —
CDCoverage.comIn Auto-Owners Ins. Co. v. American Building Materials, Inc., No. 8:10-CV-313-T-24-AEP (M.D. Fla. May 17, 2011), insured drywall supplier ABM was sued by general contractor KB Homes seeking damages because property damage to houses built by KB Homes using defective Chinese drywall supplied by ABM. ABM’s CGL insurer Auto-Owners defended ABM under a reservation of rights and filed suit against ABM and KB Homes seeking a judicial declaration of no to duty to defend or indemnify ABM against the KB Homes lawsuit. On cross motions for summary, the federal district trial court directed entry of judgment in favor of ABM and KB Homes and against Auto-Owners, holding that Auto-Owners had a duty to defend and indemnify ABM against the KB Homes lawsuit.
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