Fairfield Connecticut Building Expert Directory

Real Estate & Construction News Roundup (7/2/24) – Increase in Commercial Property Vacancy Rates, Trouble for the Real Estate Market and Real Estate as a Long-Term Investment

July 31, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, the evolution of stadium construction, an increase in legal and legislative action affecting the multifamily sector, and growing concerns for owners of office space.

The work-from-home trend will likely push up the commercial property vacancy rate in 2026 to a peak average of 24%, or 4 percentage points higher than the first quarter of this year. (Jim Tyson, CFO Dive)
In recent years, stadium construction has evolved to focus more on cultivating the game day experience with some multibillion-dollar projects breaking ground, as existing venues get renovations. (Zachary Phillips, Construction Dive)
A number of prominent issues affecting the multifamily industry, including rent control, fees and antitrust concerns, have been subject to increasing levels of legal and legislative action over the past year. (Mary Salmonsen, Multifamily Dive)

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

Landmark San Diego Hotel Settles Defects Suit for $6.4 Million

March 04, 2011 — Beverley BevenFlorezCDJ STAFF

After five years of legal battles, the condo owners of the El Cortez Hotel building in downtown San Diego settled for $6.4 million, as reported by The San Diego Union-Tribune on March 28, 2011. The Homeowners Association will net just over $3 million from the settlement.

The litigation may have had an adverse effect on the value of the condos within the El Cortez Hotel building. According to an article by Kelly Bennett of Voice of San Diego, “Many condos in the building originally sold for more than $600,000. Currently, the three units on the market are asking for just more than $200,000, the U-T said.”

Andrew Berman, the owners’ attorney, told The San Diego Union-Tribune that the five years of litigation included six lawsuits, 200 depositions, and multiple construction tests.

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The Miller Act Explained

May 21, 2014 — Beverley BevenFlorez-CDJ STAFF
Garret Murai, on his California Construction Law Blog, goes over the nuances of the Federal Miller Act. Murai explained, “Named after John E. Miller, former Arkansas Congressman, later U.S. Senator and still later federal judge, the Miller Act was enacted in 1935 in the middle of the Great Depression, to help ensure that subcontractors and material suppliers working on federal projects get paid, by requiring contractors who contract directly with the federal government on federal construction projects furnish payment and performance bonds.” Murai answered questions such as what is required under the act, who is protected, how a general contractor could protect itself from a Miller Act claim, as well as others. Read the court decision
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Firm Leadership – New Co-Chairs for the Construction Law Practice Group

July 02, 2024 — Haight Brown & Bonesteel LLP
Partners Yvette Davis and Beth Obra-White have been named co-chairs for the firm’s Construction Law Practice Group. Yvette, Beth and other diverse leaders within the firm play an integral role in the firm’s Diversity, Equity & Inclusion initiatives. Congratulations to Yvette & Beth for their new roles as practice group leaders! Reprinted courtesy of Haight Brown & Bonesteel LLP Read the full story... Read the court decision
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Contract Change # 10: Differing Site Conditions (law note)

March 28, 2018 — Melissa Dewey Brumback - Construction Law in North Carolina
Previously, the A201 required a Contractor to provide notice to the Owner and Architect within 21 days after discovery of unforeseen site conditions. This notification is required prior to the conditions being disturbed, so as to allow the Design Team the ability to evaluate the site and determine the compensability of any such differing conditions. Read the court decision
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Reprinted courtesy of Melissa Dewey Brumback, Construction Law in North Carolina

Updates to the CEQA Guidelines Have Been Finalized

February 06, 2019 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
The California Natural Resources Agency (CNRA) recently posted final adopted text for amendments to the CEQA Guidelines. The result of over five years of development efforts by the Governor’s Office of Planning & Research and CNRA, the amendments are the most comprehensive update to the CEQA Guidelines since 1998. In “Natural Resources Agency Finalizes Updates to the CEQA Guidelines,” Pillsbury environmental attorneys Norman F. Carlin, Kevin Ashe and Eric Moorman explore the wide range of issues covered in the amendments, including the new Vehicle-Miles-Traveled (VMT) methodology for analyzing transportation impacts; use of regulatory standards as significance thresholds; environmental baselines; and numerous procedural and technical improvements. Read the court decision
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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

Traub Lieberman Partner Kathryn Keller and Associate Steven Hollis Secure Final Summary Judgment in Favor of Homeowner’s Insurance Company

April 02, 2024 — Kathryn Keller & Steven A. Hollis - Traub Lieberman
Traub Lieberman Partner Kathryn Keller and Associate Steven Hollis obtained summary judgment on behalf of a major homeowners’ insurer in a breach of contract action in the Ninth Judicial Circuit in and for Osceola County, Florida. The underlying claim involved a water loss in a bathroom of the Plaintiff’s property allegedly resulting in substantial damage to the home. The claim had been reported by Plaintiff’s counsel. The Plaintiff had retained counsel and two vendors before giving notice to the insurer. In addition, the insurer’s field adjuster was not provided the opportunity to inspect the plumbing parts that had been allegedly damaged. Specifically, the drainage system had been completely removed and replaced. The insurer retained an engineer, who concluded that the removal of the original plumbing components hindered the ability of the engineer to determine their conditions prior to removal. Meanwhile, the surface conditions of the white PVC pipe appeared bright and shiny as compared to other piping. The insured had also failed to provide a signed, sworn proof of loss within sixty days after the loss. Reprinted courtesy of Kathryn Keller, Traub Lieberman and Steven A. Hollis, Traub Lieberman Ms. Keller may be contacted at kkeller@tlsslaw.com Mr. Hollis may be contacted at shollis@tlsslaw.com Read the court decision
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Insurer Motion to Intervene in Underlying Case Denied

August 10, 2021 — Tred R. Eyerly - Insurance Law Hawaii
The Colorado Supreme Court determined that the insurer defending under a reservation of rights could not intervene in the underlying case after the insured assigned its rights to any bad faith claim against the insurer. Auto-Owners Ins. Co. v. Bolt Factory Lofts Owners Ass'n, Inc., 2021 Colo. LEXIS 365 (Colo. May 24, 2021). Bolt Factory initiated a construction defects lawsuit against various contractors. Several defendants filed third-party complaints against subcontractors, including Sierra Glass Company. Auto-Owners agreed to defend its insured, Sierra Glass, under a reservation of rights. Auto-Owners declined to settle with Bolt Factory for $1.9 million, within policy limits. Sierra Glass then retains independent counsel and entered into a settlement with Bolt Factory. The settlement allowed Sierra Glass to assign its bad faith claims to Bolt Factory in exchange for the right to pursue the insurer for payment of the excess judgment rather than Sierra Glass. Instead of entering into a stipulated judgment, Bolt Factory and Sierra Glass proceeded to an abbreviated trial. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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