Real Estate & Construction News Roundup (06/06/23) – Housing Woes, EV Plants and the Debate over Public Financing
July 10, 2023 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, we look at the increasing difficulty of purchasing a home, potential international fallout from a new trade deal a renewed commitment by one American automaker to electric vehicles, and more!
It’s becoming
increasingly more difficult for house hunters to find homes, specifically in certain major cities. (Khristopher J. Brooks, CBS)
Due to years of overuse and a decades-long drought, Arizona has
halted new housing construction of parts of metro Phoenix. (AP via NBC)
After several claims by the FTC over privacy concerns regarding its voice assistant Alexa and doorbell camera Ring, Amazon has
agreed to pay over $30 million in fines. (Ayana Archie, NPR)
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Pillsbury's Construction & Real Estate Law Team
Who Would Face Liability For Oroville Dam Management: Brett Moore Authors Law360 Article
February 23, 2017 —
Brett G. Moore - Haight Brown & Bonesteel LLPOn February 12, 2017, the Butte County Sheriff ordered the evacuation of more than 180,000 people in the communities surrounding California’s Oroville Dam after officials spotted severe erosion in the dam’s emergency spillway. The Oroville Dam facilities are managed on by the Federal Energy Regulatory Commission, which licenses the project to California’s Department of Water Resources (DWR). In his Law360 article “Who Would Face Liability For Oroville Dam Management,” Attorney Brett Moore discusses the liability of the agencies involved in managing the Oroville facilities should the dam fail again.
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Brett G. Moore, Haight Brown & Bonesteel LLPMr. Moore may be contacted at
bmoore@hbblaw.com
Colorado Supreme Court Weighs in on Timeliness of Claims Against Subcontractors in Construction Defect Actions
March 16, 2017 —
Jean Meyer - Colorado Construction LitigationOn February 27, 2017, the Colorado Supreme Court announced its decision in the Goodman v. Heritage Builders, No. 16SA193, 2017 CO 13 (Colo. February 27, 2017) case. In ten short pages, the Colorado Supreme Court completely reshuffled Colorado construction law with respect to application of the statutes of limitation and repose on third-party claims in construction defect cases. Specifically, the Colorado Supreme Court overruled a series of earlier Court of Appeals' decisions that found C.R.S. § 13-80-104(1)(b)(II) (“104(1)(b)(II)”) had no effect on the six-year statute of repose. For context, 104(1)(b)(II) permitted third-party actions for indemnity and contribution to toll until ninety days after the claims in the underlying action were resolved by settlement or judgment. In the construction context, 104(1)(b)(II) was intended to allow a general contractor’s claims against liable subcontractors to toll for the statutorily defined period. This allowed the general contractor to first focus its attention on defending the claims against and thereafter to pursue its claims against the subcontractors.
However, beginning in 2008, in the Thermo Dev., Inc. v. Cent. Masonry Corp., 195 P.3d 1166 (Colo. App. 2008) case, the Colorado Court of Appeals began chipping away at the force of 104(1)(b)(II). This trend continued in the Shaw Constr., LLC v. United Builder Servs., Inc., 2012 COA 24, 296 P.3d 145 decision, the Sierra Pac. Indus., v. Bradbury, 2016 COA 132, _ P.3d_ decision, and culminating in the Sopris Lodging, LLC v. Schofield Excavation, Inc., 2016 COA 158, reh'g denied (Nov. 23, 2016) decision. Effectively, in these decisions, the Colorado Court of Appeals determined that third-party claims could not be brought beyond Colorado’s six-year statute of repose, regardless if they were brought within the ninety day tolling provision set forth in 104(1)(b)(II).
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Jean Meyer, Higgins, Hopkins, McLain & Roswell, LLCMr. Meyer may be contacted at
meyer@hhmrlaw.com
North Carolina Federal Court Holds “Hazardous Materials” Exclusion Does Not Bar Duty to Defend Under CGL Policy for Bodily Injury Claims Arising Out of Direct Exposure to PFAs
December 07, 2020 —
Paul A. Briganti - White and Williams LLPOn October 19, 2020, the U.S. District Court for the Western District of North Carolina held that a “hazardous materials” exclusion contained in a CGL policy did not preclude a duty to defend the insured against claims alleging bodily injury resulting from direct exposure to perfluorooctane sulfonate (PFOS) and perfluorooctanoic acid (PFOA), which are man-made chemicals within the group of per- and polyfluoroalkyl substances (PFAs).[1]
In Colony Insurance Company v. Buckeye Fire Equipment Company, the insured was named a defendant in hundreds of underlying suits relating to its manufacture of fire equipment containing aqueous film-forming foam (AFFF), a fire suppressant.[2] The underlying plaintiffs alleged that: (a) the AFFF contained PFOS and PFOA; (b) PFOA and PFOS are highly carcinogenic; and (c) exposure to AFFF contained in the defendants’ products caused bodily injury or property damage. Around a third of the underlying complaints alleged harm from both direct exposure to the foam and exposure through the environment. Representative language from those complaints was: “[d]uring [underlying plaintiff’s] employment as a firefighter and firefighter instructor, he was significantly exposed to elevated levels of PFOS and PFOA in their concentrated form as a result of regular contact with [d]efendant’s AFFF products and through PFOS and PFOA having contaminated the FireCollege well system.”
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Paul A. Briganti, White and Williams LLPMr. Briganti may be contacted at
brigantip@whiteandwilliams.com
Herman Russell's Big Hustle
May 20, 2024 —
Maggie Murphy - Construction Executive“Any person that I knew of in the city of Atlanta who did anything ran it by Herman before they did anything else.”
These are the words of Anthony Dixon, senior project manager and 47-year veteran employee with H. J. Russell & Company. But ask anyone who knows anything about H. J. Russell, and they’ll say the same thing: The story of the company is the story of Herman J. Russell himself.
From humble beginnings in Atlanta’s Summerhill neighborhood came a young man with an unbreakable entrepreneurial spirit, who used that drive to forge an unlikely path to success in the Jim Crow–era South. What began as a plastering company in 1952 is today one of the largest Black-owned contractors in the United States, with Herman’s children—Donata Russell Ross, H. Jerome Russell and Michael B. Russell Sr.—at the helm (a natural fit for the family-focused firm).
Over its 72-year history, H. J. Russell has grown exponentially, contracted when necessary and persevered through segregation, the turbulence of the Civil Rights Movement and multiple economic downturns. Now, in the next five years, they’re poised to become a billion-dollar company.
But long before any of that, there was just a boy and a dream.
Reprinted courtesy of
Maggie Murphy, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Is the Event You Are Claiming as Unforeseeable Delay Really Unforeseeable?
September 26, 2022 —
David Adelstein - Florida Construction Legal UpdatesIs the item or event you are claiming as an unforeseeable, excusable delay really unforeseeable? This is not a trick question.
Just because your construction contract identifies items or events that constitute unforeseeable, excusable delay does not mean those items can be used as a blanket excuse or crutch for the contractor. That would be unfair.
For instance, it is not uncommon for a construction contract to list as unforeseeable, excusable delay the following events or items: “(i) acts of God or of the public enemy, (ii) act of the Government in either its sovereign or contractual capacity, (iii) acts of another Contractor in the performance of a contract with the Government, (iv) fires, (v) floods, (vi) epidemics, (vii) quarantine restrictions, (viii) strikes, (ix) freight embargoes, (x) unusually severe weather, or (xi) delays of subcontractors or suppliers at any tier arising from unforeseeable causes beyond the control and without the fault or negligence of both the Contractor and the subcontractors or suppliers.” See, e.g., F.A.R. 52.249-10(b)(1). While the itemization of excusable delay may be worded differently, the point is there may be a listing as to what items or events constitute excusable delay. An excusable delay would justify additional time and, potentially, compensation to the contractor.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Alabama Supreme Court Finds No Coverage for Construction Defect to Contractor's own Product
October 21, 2013 —
Tred Eyerly — Insurance Law HawaiiThe Alabama Supreme Court followed prior precedent and found that the contractor's faulty workmanship causing damage to his own product did not arise from an occurrence. Owners Ins. Co. v. Jim Carr Homebuilder, LLC, 2013 Ala. LEXIS 122 (Ala. Sept. 20, 2013).
The plaintiffs contracted with Carr to construct a new home. After completion of the home and taking occupancy, the plaintiffs noted several problems with the house related to water leaking through the roof, walls and floors, resulting in water damage to various areas of the house. The plaintiffs sued Carr and the case eventually went to arbitration. The arbitrator entered an award in favor of plaintiffs for $600,000.
Owners filed an action against Carr for a declaratory judgment seeking to establish there was no coverage because the property damage did not arise from an occurrence. The trial court granted summary judgment to Carr.
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Tred EyerlyTred Eyerly can be contacted at
te@hawaiilawyer.com
Saving Manhattan: Agencies, Consultants, Contractors Join Fight to Keep New York City Above Water
November 27, 2023 —
Pam McFarland & Corinne Grinapol - Engineering News-RecordIn densely populated cities surrounded on all sides by water—the borough of Manhattan in New York City as a prime example—the risks from sea level rise and climate change are not just hypotheticals; they are existential threats.
Reprinted courtesy of
Pam McFarland, Engineering News-Record and
Corinne Grinapol, Engineering News-Record
Ms. McFarland may be contacted at mcfarlandp@enr.com
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