Fairfield Connecticut Building Expert Directory

Real Estate & Construction News Roundup (9/4/24) – DOJ Sues RealPage, Housing Sales Increase and U.S. Can’t Build Homes Fast Enough

October 07, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, environmental regulations tighten for commercial properties, Wells Fargo sells most of its commercial mortgage services business, first-time home buyers struggle with housing affordability, and more!

The U.S. Department of Justice announced that it is suing the real estate company RealPage, saying it engaged in a price-fixing scheme to drive up rents. (Jennifer Ludden, NPR)
As environmental regulations for commercial buildings and properties tighten across the U.S., green leases and technologies offer owners and operators opportunities to reduce their portfolios’ carbon footprints, generate cost savings and further align with ESG goals. (Nish Amarnath, Construction Dive)
Wells Fargo & Co. agreed to sell most of its commercial mortgage servicing business to Trimont LLC, ceding the title of biggest US commercial and multifamily mortgage servicer to the Atlanta-based firm. (Hannah Levitt and Scott Carpenter, Yahoo)

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

Five-Year Statute of Limitations on Performance-Type Surety Bonds

December 01, 2017 — David Adelstein - Florida Construction Legal Updates
The statute of limitations on a claim against a performance-type bond is 5 years from the breach of the bond, i.e., the bond-principal’s default (based on the same statute of limitations that governs written contracts / obligations). See Fla. Stat. s. 95.11(2)(b). This 5-year statute of limitations is NOT extended and does NOT commence when the surety denies the claim. It commences upon the default of the bond-principal, which would be the act constituting the breach of the bond. This does not mean that the statute of limitations starts when a latent defect is discovered. This is not the case. In dealing with a completed project, the five-year statute of limitations would run when the obligee (beneficiary of the bond) accepted the work. See Federal Insurance Co. v. Southwest Florida Retirement Center, Inc., 707 So.2d 1119, 1121-22 (Fla. 1998). This 5-year statute of limitations on performance-type surety bonds has recently been explained by the Second District in Lexicon Ins. Co. v. City of Cape Coral, Florida, 42 Fla. L. Weekly D2521a (Fla. 2d DCA 2017), a case where a developer planned on developing a single-family subdivision. 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

New York's Highest Court Says Asbestos Causation Requires Evidence Of Sufficient Exposure To Sustain Liability

May 10, 2022 — Rafael Vergara & Jhonattan N. Gonzalez - White and Williams
On April 26, 2022, the New York Court of Appeals described that in toxic tort cases a plaintiff can only establish liability-creating causation for an adverse health effect with “expert testimony based on generally accepted methodologies.” See Francis Nemeth v. Brenntag North America (N.Y. Apr. 26, 2022). The suit involved alleged asbestos exposure from talc. The plaintiff alleged liability for talc contaminated with asbestos that was ultimately used in a commercial talcum powder, Desert Flower, which the decedent applied daily from 1960 to 1971. At trial, the plaintiff proffered two expert witnesses, a geologist, Sean Fitzgerald, who testified about the “glove box test” and a doctor of internal medicine, Dr. Jacqueline Moline. Fitzgerald’s glove box test consisted of agitating a sample of Desert Flower in a Plexiglas chamber. Fitzgerald concluded that the asbestos fibers in the sample of Desert Flower were “significantly releasable” and that the decedent was exposed to thousands to trillions of fibers through repeated use. Dr. Moline concluded Desert Flower was “a substantial contributing factor” to the decedent’s peritoneal mesothelioma. The jury returned a verdict in the plaintiff’s favor. Reprinted courtesy of Rafael Vergara, White and Williams and Jhonattan N. Gonzalez, White and Williams Mr. Vergara may be contacted at vergarar@whiteandwilliams.com Mr. Gonzalez may be contacted at gonzalezj@whiteandwilliams.com Read the court decision
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A General Contractors Guide to Bond Thresholds by State

June 13, 2018 — Wally Zimolong – Supplemental Conditions
Author: Eric Weisbrot is the Chief Marketing Officer of JW Surety Bonds. With years of experience in the surety industry under several different roles within the company, he is also a contributing author to the surety bond blog. For general contractors in construction, there are many facets of business management that must be considered and then accomplished over time. Operating a successful general contractor business regardless of size or niche requires an understanding of bookkeeping, personnel management, regulatory compliance, as well as revenue potential for each project. However, one often overlooked aspect of being a general contractor – having the appropriate contractor license and minimum surety bond – correlates to each of these required fragments of the business from the start. Read the court decision
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Reprinted courtesy of Wally Zimolong, Zimolong LLC
Mr. Zimolong may be contacted at wally@zimolonglaw.com

Toll Brothers Snags Home Builder of the Year Honors at HLS

May 13, 2014 — Beverley BevenFlorez-CDJ STAFF
Builder magazine named Toll Brothers as their Builder of the Year during their Housing Leadership Summit in Laguna Niguel, California, according to Big Builder: “The Builder of the Year, BUILDER’s highest honor each year, is recognized for its excellence in successful business strategy, its achievements, and its corporate leadership.” “The company’s up-market price-point, lifestyle segmentation positions, and its best-of-breed execution set it apart from competitors in production home building and development as one of housing’s most powerful and promising brands,” BUILDER editorial director John McManus said while presenting the award, as quoted by Big Builder. “Toll Brothers one day will be a globally recognizable luxury housing and hospitality trademark along the lines of Four Seasons or Ritz-Carlton.” Read the court decision
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Mortgage Whistleblower Stands Alone as U.S. Won’t Join Lawsuit

April 28, 2014 — Jef Feeley and David McLaughlin – Bloomberg
Two years after Lynn Szymoniak helped the U.S. recover $95 million from Bank of America Corp. and other lenders for mortgage-fraud tied to the housing bubble, the whistle-blower said the government is ignoring a chance to collect more money for identical claims against other banks. Szymoniak got $18 million when the U.S. Justice Department intervened in her foreclosure-fraud lawsuit. The government negotiated a settlement with five lenders including Bank of America and JPMorgan Chase & Co. (JPM) The other banks accused of the same behavior, including Deutsche Bank AG (DBK) and HSBC Holdings Plc (HSBA), are still fighting Szymoniak’s suit, saying she isn’t a true whistle-blower. And the U.S., while continuing its crackdown on banks that packaged risky loans for sale as securities, hasn’t joined with her this time, leaving her to fight the banks alone. U.S. District Judge Joseph Anderson in Columbia, South Carolina, today is set to consider their bid to throw the case out. Mr. Feeley may be contacted at jfeeley@bloomberg.net; Mr. McLaughlin may be contacted at dmclaughlin9@bloomberg.net Read the court decision
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Reprinted courtesy of Jef Feeley and David McLaughlin, Bloomberg

Illinois Appellate Court Affirms Duty to Defend Construction Defect Case

August 04, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The Illinois Appellate Court affirmed the trial court's ruling that the insurer had a duty to defend a construction defect case. West Bend Mut. Ins. Co. v. Pulte Home Corp., 2015 Ill App. Unpub. LEXIS 1039 (Ill. Ct. App. May 15, 2015). Pulte Home Corporation was a developer who developed and constructed a residential condominium development known as The Reserve of Elgin (The Reserve). G.H. Siding was subcontracted by Pulte to work on the development, including the installation of exterior siding. The Reserve Homeowners Association (HOA) filed suit against Pulte and James Hardie Building Products Inc., the company that manufactured the exterior siding. The complaint alleged that Pulte developed, designed, constructed and sold the units and common areas. Pulte installed siding manufactured by Hardie on the exterior of the units. The siding was allegedly defective. The HOA alleged breach of implied warranty of habitability and breach of contract by Pulte. Hardie was sued for breach of express warranty and breach of implied warrant of habitability. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Winners Announced in Seattle’s Office-to-Residential Call for Ideas Contest

July 10, 2023 — Ryanne Mathisen - Ahlers Cressman & Sleight PLLC
On June 7, 2023, the City of Seattle announced three winners of its Office to Residential: Call for Ideas contest for which it received a total of 13 submissions. Hybrid Architecture, LLC, took first place; Gensler, Seattle Office Project Team took second; and the Miller Hull Partnership took third. Seattle’s Department of Construction and Inspections will study the submissions and determine what legislative and regulatory modifications would be necessary to support and further these proposals and other future office-to-residential conversion projects. Seattle will also be holding a series of exhibitions over the coming weeks where project submissions will be available to the public. On June 14, 2023, from 5:30 PM to 7:30 PM, a reception will be hosted by the Seattle Architecture Foundation and the City at the American Institute of Architects. The gallery will also be open to the public from 10:00 AM to 5:00 PM on June 21, 28, and July 5. After June 14, 2023, those interested can access contest submissions at the project website. Seattle’s primary goal with this contest was to provide a vision for the future of downtown and begin charting a concrete path to getting there. Since working from home has become more common following the COVID-19 pandemic, vacancy rates in many office buildings have risen sharply, while housing availability and affordability remain ongoing issues. If Seattle can show a realistic—and profitable—path to converting commercial office spaces into residences, it would be addressing both problems, killing two birds with one stone. Read the court decision
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Reprinted courtesy of Ryanne Mathisen, Ahlers Cressman & Sleight PLLC
Ms. Mathisen may be contacted at ryanne.mathisen@acslawyers.com

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