Real Estate & Construction News Roundup (4/17/24) – Travel & Tourism Reach All-Time High, President Biden Emphasizes Housing in SOTU Address, and State Transportation Projects Under Scrutiny
May 13, 2024 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, Airbnb advocates for new short-term rental rules, the U.S. Supreme Court rules on hefty development fees, loan losses becomes a greater issue for banks, and more!
Read the court decisionRead the full story...Reprinted courtesy of
Pillsbury's Construction & Real Estate Law Team
Material Prices Climb…And Climb…Are You Considering A Material Escalation Provision?
May 31, 2021 —
David Adelstein - Florida Construction Legal UpdatesAs you may know, material prices have been climbing. And they continue to climb based on the volatility of the material market. On top of that, there are lead times in getting material due to supply chain and other related concerns. The question is, how are you addressing these risks? These are risks that need to be addressed in your contract.
As it relates to climbing material prices, one consideration is a material escalation provision. The objective of this provision is to address the volatility of the material market in economic climates, such as today’s climate, where the price of material continues to climb. Locking down a material price today will be different than locking down the same price months from today. This volatility and risk impacts pricing and budgets. Naturally, an owner and contractor would like to be in a position to lock down supplier prices as soon as possible—both to secure pricing and to account for items with long lead times or that recent data forecasts a long lead time due to supply chain concerns. However, this is not always possible or practical and can depend on numerous issues such as when the owner contracts with the contractor, when the owner issues the notice to proceed (and permits are issued), final construction documents and revisions to the construction documents, the type of material, whether there is staging or storage available for the materials, and the current status including climitazation of the project.
Read the court decisionRead the full story...Reprinted courtesy of
David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Construction Halted in Wisconsin Due to Alleged Bid Issues
March 26, 2014 —
Beverley BevenFlorez-CDJ STAFFA $9 million construction project in Middleton, Wisconsin has been halted due to an allegation that the construction company, Newcomb, did not comply with the advertised bid requirements and they were not the lowest bidder, according to the Wisconsin State Journal.
“Dane County Judge Rhonda Lanford issued a temporary restraining order at the request of Associated General Contractors of Wisconsin asking the city to stop work on the…facility,” the Wisconsin State Journal reported.
“We are pleased with the court’s decision. Fairness and transparency in public contracting is critical for the industry,” Robert Barker, Associated’s executive vice president, told the Wisconsin State Journal. “The city must abide by the rules so that all bidders are given a fair shake.”
However, the city stated that Newcomb was the construction company with the lowest bid in that category.
Read the court decisionRead the full story...Reprinted courtesy of
11th Circuit Affirms Bad Faith Judgement Against Primary Insurer
July 24, 2023 —
Ashley Kellgren - Traub Lieberman Insurance Law BlogIn American Builders Insurance Co. v. Southern-Owners Ins. Co., 2023 U.S. Dist. LEXIS 15386, No. 21-13496 (11th Cir. June 20, 2023), the Eleventh Circuit affirmed a bad faith judgment against a primary insurer.
On April 1, 2019, Ernest Guthrie fell from a roof, causing him to became paralyzed from the waist down. At the time of the accident, Guthrie was employed by his own subcontracting company and was performing work for Beck Construction. Beck Construction was insured under a general liability policy issued by American Builders and an excess policy issued by Evanston. Each of those policies provided $1 million in liability limits. Guthrie’s company was insured under a policy issued by Southern-Owners, which provided a per occurrence limit of $1 million. Under the Southern-Owners policy, Beck Construction was an additional insured and coverage was provided to Beck Construction on a primary basis.
Read the court decisionRead the full story...Reprinted courtesy of
Ashley Kellgren, Traub LiebermanMs. Kellgren may be contacted at
akellgren@tlsslaw.com
Candis Jones Named to Atlanta Magazine’s 2021 “Atlanta 500” List
March 01, 2021 —
Candis Jones - Lewis Brisbois NewsroomAtlanta Partner Candis Jones has been named to Atlanta Magazine’s 2021 “Atlanta 500” list of the most powerful business leaders in Atlanta. To compile this list, the publication reviewed nominations from the public and consulted experts across various sectors. The magazine’s editors and writers considered not only the status of the nominees within their respective organizations, but also whether the nominees were visionary by, for example, leading programs for their communities or creating opportunities for employees.
Ms. Jones is a member of Lewis Brisbois’ General Liability Practice. Representing a wide array of clients, including Fortune 500 companies, insurance carriers, and a major metropolitan transit authority, she focuses her practice on insurance defense, premises liability, personal injury, and medical malpractice. She was recently installed as the President of the Gate City Bar Association, the oldest African-American bar association in the state of Georgia, and also serves as a member of the Georgia Defense Lawyers Association and the Georgia Association of Black Women Attorneys.
Read the court decisionRead the full story...Reprinted courtesy of
Candis Jones, Lewis BrisboisMs. Jones may be contacted at
Candis.Jones@lewisbrisbois.com
The Results are in, CEO/Founding Partner Nicole Whyte is Elected to OCBA’s 2024 Board of Directors!
October 09, 2023 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPBremer Whyte Brown & O’Meara, LLP is excited to share that CEO/Founding Partner Nicole Whyte has been elected to the Orange County Bar Associations (“OCBA”) slate of four open Board of Directors for a three-year term beginning January 2024, alongside Casey Johnson (Aitken Aitken Cohn LLP), William O’Neill (Ross, Wolcott, Teinert & Prout LLP), and Lesley Young (Orange County District Attorney’s Office).
“It is one of the greatest honors of my career to have been elected to the OCBA board of directors. Thank you to all those who supported me; I will work tirelessly as your representative to serve our bar and community. I am especially excited to work alongside President Elect Christina Zabat-Fran and the other esteemed members of the board. I look forward to applying my skills and knowledge to serve our legal community as we work to promote excellence, integrity and honor in our profession, and to improve the practice for all.” – Nicole Whyte
Nicole is honored to have the opportunity to continue her support with the OC legal community. For over two decades, she has served on various OCBA legal committees and boards. Nicole currently serves on the board of OCBA Master’s Division and is the 2023 Board President of the Public Law Center, the largest pro-bono law firm in Orange County. She is also a current board member of the Sonenshine Pro Bono Committee. Nicole is a founding fellow of the OC Bar Foundation and served as secretary for the Robert Banyard Inn of Court for eight years. Nicole plans to call upon her experience serving on various boards, and her many years of law practice and management experience, to help identify and support the needs of the OCBA and its thriving and diverse OC legal community.
Read the court decisionRead the full story...Reprinted courtesy of
Bremer Whyte Brown & O'Meara LLP
The Murky Waters Between "Good Faith" and "Bad Faith"
September 30, 2019 —
Theresa A. Guertin - Saxe Doernberger & VitaIn honor of Shark Week, that annual television-event where we eagerly flip on the Discovery Channel to get our fix of these magnificent (and terrifying!) creatures, I was inspired to write about the “predatory” practices we’ve encountered recently in our construction insurance practice. The more sophisticated the business and risk management department is, the more likely they have a sophisticated insurer writing their coverage. Although peaceful coexistence is possible, that doesn’t mean that insurers won’t use every advantage available to them – compared to even large corporate insureds, insurance companies are the apex predators of the insurance industry.
In order to safeguard policyholders’ interests, most states have developed a body of law (some statutory, some based on judicial decisions) requiring insurers to act in good faith when dealing with their insureds. This is typically embodied as a requirement that the insurer act “fairly and reasonably” in processing, investigating, and handling claims. If the insurer does not meet this standard, insureds may be entitled to damages above and beyond that which they could otherwise recover for breach of contract.
Proving that an insurer acted in “bad faith,” however, can be like swimming against the riptide. Most states hold that bad faith requires more than just a difference of opinion between insured and insurer over the available coverage – the policyholder must show that the insurer acted “wantonly” or “maliciously,” or, in less stringent jurisdictions, that the insurer was “unreasonable.”
Read the court decisionRead the full story...Reprinted courtesy of
Theresa A. Guertin, Saxe Doernberger & VitaMs. Guertin may be contacted at
tag@sdvlaw.com
New York Court Rules on Architect's Duty Under Contract and Tort Principles
November 05, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to Traub Lieberman Straus & Shrewsberry LLP's blog, in a recent case, "which involved a five story expansion/conversion of an existing one story commercial building located in Brooklyn, New York," the architect was retained with obligations among five construction phases. Later, the condominium board alleged that construction defects existed and filed suit against contractors, engineers, and the architect.
The Court granted the Architect's motion to dismiss the complaint, holding "that the allegations of negligence under the circumstances were based on construction defects and 'as such, sound in breach of contract rather than tort.' This was so, even though plaintiff alleged 'breach of a duty of care,' a traditional tort liability concept. The Court dismissed the breach of contract claim as well, holding that a 'successor in interest' argument should not be permitted to erode the firmly established privity requirement for an architect’s contract-based liability."
Read the court decisionRead the full story...Reprinted courtesy of