Detroit Craftsmen Sift House Rubble in Quest for Treasured Wood
March 19, 2015 —
Chris Christoff and Alexandra Mondalek – Bloomberg(Bloomberg) -- Detroit’s 70,000 abandoned homes are proving to be a trove for entrepreneurs who recycle century-old lumber, glass and brick into everything from terrariums to $4,500 guitars.
“It’s like a treasure hunt,” said Craig Varterian, executive director of Reclaim Detroit, a nonprofit group that’s stripped and sold materials from almost 70 demolished homes. Floorboards and joists of early 20th century maple, walnut, hickory, fir and even chestnut are prized for their density and fine grain.
As Detroit ramps up demolitions of vacant dwellings, Mayor Mike Duggan plans a reclamation center in a city-owned building to keep tons of rubble out of landfills and create jobs and merchandise. Recycling would become a centerpiece of the city’s blight-removal effort, which is struggling to maintain funding.
Reprinted courtesy of
Chris Christoff, Bloomberg and
Alexandra Mondalek, Bloomberg
Mr. Christoff may be contacted at cchristoff@bloomberg.net
Ms. Mondalek may be contacted at amondalek@bloomberg.net
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Construction Jobs Keep Rising, with April Gain of 33,000
June 10, 2019 —
Tom Ichniowski - Engineering News-RecordThe construction employment picture continues to brighten, as the industry gained 33,000 jobs in April and its jobless rate improved, the federal Bureau of Labor Statistics has reported.
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Tom Ichniowski, ENRMr. Ichniowski may be contacted at
ichniowskit@enr.com
Is It Time to Revisit Construction Defects in Kentucky?
December 11, 2013 —
CDJ STAFFThe Kentucky Supreme Court ruled in 2010 that faulty workmanship on a construction project could not be considered an accident under a commercial general liability policy. The first reason they cited, according to Carl A. Salisbury of Kilpatrick Townsend & Stockton LLP, was that a majority of states had concluded that “claims of faulty workmanship, standing alone, are not ‘occurrences’ under CGL policies.” Mr. Salisbury points out a problem with that: “an overwhelming majority of state Supreme Courts that have considered the question have held that faulty workmanship can be (and usually is) accidental and, therefore, is a covered ‘occurrence.’’ He also notes that in four states, the legislatures have passed laws confirming that faulty workmanship is an occurrence.
The “majority viewpoint” cited by the Kansas Supreme Court is currently held by four other states, while twenty states hold the view that construction defects are accidents and thus occurrences. Since 2010, five states have reversed their stance, coming to what is now the clear majority view, including South Carolina. The Kansas court relied on a South Carolina decision that Mr. Salisbury described as “since repudiated” by “both the legislature and Supreme Court of that state.”
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Real Estate & Construction News Round-Up 04/20/22
May 02, 2022 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogConstruction defects emerge in pandemic-era buildings, investor confidence is improving in China’s real estate market, the proptech field continues to show significant signs of growth, and more.
- Investor confidence in China’s real estate market is improving, with bond trading volumes and prices rising over the last few weeks, but the market is not projected to resume its high growth rate of the past. (Weizhen Tan & Evelyn Cheng, CNBC)
- The economic shock caused by soaring mortgage rates over the past few weeks has dramatically increased mortgage payments for new homebuyers. (Lance Lambert, Fortune)
- With the metaverse economy projected to be worth between $8 and $13 trillion by 2030, blockchain technology serves as a key driver for virtual real estate sales, allowing for “true” ownership of a property. (Robert Koonin, Dan Jasnow, & Kinnon McDonald, TFL)
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Pillsbury's Construction & Real Estate Law Team
Former UN General Assembly President Charged in Bribe Scheme
October 21, 2015 —
Patricia Hurtado & Greg Farrell – BloombergA former president of the United Nations General Assembly and a billionaire Macau developer were accused of taking part in a four-year corruption scheme that included bribes to help fund a campaign for the post at the organization in exchange for the promotion of Chinese businesses.
John Ashe, president of the UN General Assembly from September 2013 to September 2014, accepted more than $1 million in payoffs from developer Ng Lap Seng and an associate to help persuade the international body to build a multibillion-dollar conference center in Macau and promote Chinese businesses, including a bank, in Antigua, according to the U.S.
The new charges, announced Tuesday, relate to an earlier case against Ng, 68, who has a personal net worth of about $1.8 billion. He’s been held in a federal jail in Manhattan since he was arrested Sept. 19, accused of bringing $4.5 million into the country and lying about its purpose to U.S. authorities.
Reprinted courtesy of
Patricia Hurtado, Bloomberg and
Greg Farrell, Bloomberg
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New York Court of Appeals Addresses Choice of Law Challenges
August 20, 2018 —
Grace V. Hebbel - Saxe Doernberger & Vita, P.C.In June, the New York Court of Appeals examined the application of a New York Choice of Law provision in a contract – a determinative issue for the case. In Ontario, Inc. v. Samsung C&T Corp., the issue was whether the plaintiff’s claims were subject to Ontario, Canada’s 2-year statute of limitations or New York’s 6-year statute of limitations for breach of contract where the contract contained a broad New York Choice of Law provision. The court found that pursuant to New York’s borrowing statute, Ontario’s more restrictive statute of limitations applied. The action was dismissed as time-barred, serving as a harsh reminder of the potential effects of choice of law and limitations periods.
The suit arose out of the following facts. In 2008, an Ontario renewable energy developer, SkyPower Corp. (“SkyPower”), entered into a Non-Disclosure Agreement (NDA) with the defendants which allowed the defendants to review SkyPower’s confidential and proprietary information. The review was conditioned on restricted disclosure and the requirement that the information would be destroyed after review.
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Grace V. Hebbel, Saxe Doernberger & Vita, P.C.Ms. Hebbel may be contacted at
gvh@sdvlaw.com
Damage Control: Major Rebuilds After Major Weather Events
October 21, 2024 —
David McMillin - Construction ExecutiveMore than two feet of rain drenching Fort Lauderdale in a day, baseball-sized hail chunks falling on Minneapolis and the deadliest wildfire in more than a century destroying more than 2,100 acres of Maui—2023 was a stark reminder that Mother Nature is a force to be reckoned with. In total, $28 billion dollars’ worth of extreme weather and climate-related disasters ripped across the U.S. last year—a new record, according to the National Oceanic and Atmospheric Administration. And there’s no relief in sight: 2024 is already the second-busiest tornado season on the books, and wildfires were burning in Oregon, California, Montana and Texas as this issue went to print.
Part of dealing with disasters is preparing for their impact to infrastructure, and Roland Orgeron Jr.—who co-founded New Orleans-based Legacy Industries with business partner Blake Couch in 2016—has been helping clients do just that. “We do a lot of consulting to identify vulnerabilities, and we offer action plans for companies based on potential storm scenarios,” Orgeron Jr. says.
Some of those clients include large oil and gas companies with operations along the Mississippi River that cannot afford to be shut down for any extended period. “Before Hurricane Ida hit, we pre-positioned equipment inside some facilities, and we had guys responding the day after the storm to clear the area and assess the damage,” Orgeron Jr. says. During the immediate response to Hurricane Ida in 2021, the company’s work involved more than keeping the business locations up and running; they needed to help a business’ employees find a place to live. “We have a home stabilization contract with one oil and gas company designed to make sure their employees can get back to work as comfortably and quickly as possible,” Orgeron Jr. says.
Reprinted courtesy of
David McMillin, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Pennsylvania Federal Court Finds No Coverage For Hacking Claim Under E&O Policy
July 25, 2022 —
Celestine Montague & Paul A. Briganti - White and Williams LLPOn June 9, 2022, the U.S. District Court for the Eastern District of Pennsylvania held, on summary judgment, that an insured was not entitled to coverage under a Professional Errors and Omissions (E&O) policy for loss allegedly resulting from a hacking incident. See Construction Fin. Admin. Servs., Inc. v. Federal Ins. Co., No. 19-0020, 2022 U.S. Dist. LEXIS 103042 (E.D. Pa. June 9, 2022). Applying North Carolina and Pennsylvania law, the court reasoned that: (1) coverage was barred by the policy’s unauthorized computer access, or “breach,” exclusions; and (2) the insured violated a condition in the policy that required the insurer’s consent to settlements and the violation prejudiced the insurer.
The insured, Construction Financial Administration Services, Inc. (CFAS), was a third-party fund administrator for construction contractors. In April 2018, the CFAS received email requests from what it believed to be one of its clients, SWF Constructors (SWF), to disburse $1.3 million from an SWF account to a foreign company. CFAS authorized the payments, despite not having received a copy of any executed agreement between SWF and the foreign company. After the funds were disbursed, SWF advised that it had not authorized or requested the payments to the foreign company. In response, CFAS placed approximately $1.2 million of recovered and borrowed funds into the SWF disbursement account. SWF then sent a letter advising CFAS that the requests from the foreign company did not include documentation required under the contract between SWF and CFAS. It was later determined that the emails had been initiated by a fraudster who had gained unauthorized access to the sender’s email account.
Reprinted courtesy of
Celestine Montague, White and Williams LLP and
Paul A. Briganti, White and Williams LLP
Ms. Montague may be contacted at montaguec@whiteandwilliams.com
Mr. Briganti may be contacted at brigantip@whiteandwilliams.com
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