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Real Estate & Construction News Roundup (04/26/23) – The Energy Transition and a Bit of Brick-and-Mortar Blues

May 01, 2023 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In today’s roundup, Americans can buy homes with bitcoin, new tech aims to engineer a novel building material, federal investments boost the coastline (and construction sales), and more.

• A bitcoin real estate marketplace, claiming it can close deals within one business day, made its U.S. debut. (Carla Mozée, Markets Insider)
• Amid record-setting real estate prices in Dubai, the $34 million sale of a parcel of empty land on a luxury island marks a new high. (Megan Cerullo, CBS)
• Analysts at Goldman Sachs and UBS weigh in on a predicted commercial real estate downturn. (Alena Botros, Fortune)

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

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COVID-19 Impacts on Subcontractor Default Insurance and Ripple Effects

April 20, 2020 — Smith Currie
Subcontractor default insurance (“SDI”) may be described as an alternative to bonding subcontractors. SDI is first-party insurance that compensates the general contractor insured in the event a covered subcontractor fails to fulfill its contractual obligations. Under SDI policies, general contractor insureds are obligated to develop and implement rigorous subcontractor prequalification procedures. Basic questions and answers about how SDI might come into play and impact the construction industry in response to COVID-19 follow: Who may make a claim on an SDI policy? The general contractor may make a claim. An Owner may make a claim if the general contractor becomes insolvent in many cases. Subcontractors may not make claims on SDI policies. Read the court decision
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Reprinted courtesy of Smith Currie
The Smith Currie firm may be contacted at info@smithcurrie.com

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NYC-N.J. Gateway Rail-Tunnel Work May Start in 2023

March 28, 2022 — Elise Young - Bloomberg
The $12.3 billion Gateway rail tunnel linking New York City and New Jersey has reached a major preconstruction milestone with the completion of geotechnical studies necessary for the engineering phase. The analysis of rock and silt from 75 earth samples on both sides of the Hudson River marks the latest in a series of swift leaps toward a potential 2023 start date. The project had been delayed years by former President Donald Trump, who had argued that costs should be covered solely by the states, not U.S. taxpayers. The samples, from depths of 48 feet to 505 feet (14.6 meters to 154 meters), will guide design, according to the Gateway Development Commission, the project’s overseer. Some areas of particular interest to the researchers were on Manhattan’s West Side, parts of which were underwater before landfill was added many years ago. Read the court decision
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Reprinted courtesy of Elise Young, Bloomberg

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Construction Injuries Under the Privette Doctrine. An Electrifying, but Perhaps Not Particularly Shocking, Story . . .

January 05, 2017 — Garret Murai – California Construction Law Blog
We’ve talked about the Privette doctrine before (see here, here, and here). The Privette doctrine, named after the court case Privette v. Superior Court (1993) 5 Cal.4th 689, provides in general that project owners and contractors are not responsible for worksite injuries suffered by employees of lower-tiered contractors they have hired, the rationale being that such workers should already be covered under their employers’ workers’ compensation insurance policies. In the twenty years since Privette was decided, however, several exceptions have evolved that have narrowed the doctrine. One exception, known as the retained control exception, allows a contractor’s employees to sue the “hirer” of the contractor (that is, the higher-tiered party who “hired” the lower-tiered party whose employee is injured) when the hirer retains control over any part of the work and negligently exercises that control in a manner that affirmatively contributes to the employee’s injury. Hooker v. Department of Transportation (2002) 27 Cal.4th 198. Another exception, known as the nondelegable duty exception, permits an injured worker to recover against a hirer when the hirer has assumed a nondelegable duty, including statutory and regulatory duties, that it breaches in a manner that affirmatively contributes to the injury. Padilla v. Pomona College (2008) 166 Cal.App.4th 661. In a recently decided case, Khosh v. Staples Construction Company, Inc., Case No. B268937 (November 17, 2016), the California Court of Appeals for the Second District examined the application of the Hooker and Padilla exceptions where a general contractor was contractually responsible for overall site safety. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

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How You Plead Allegations to Trigger Liability Insurer’s Duties Is Critical

November 01, 2021 — David Adelstein - Florida Construction Legal Updates
How you plead allegations in your lawsuit to trigger duties of a liability insurance carrier is a critical consideration. If the complaint is not pled appropriately, it can result in the carrier NOT owing a duty to defend its insured, which is the party(ies) you are suing. If there is no duty to defend, there will be no duty to indemnify the insured to cover your damages. For this reason, in a number of circumstances, this is NOT what you want because you want to trigger insurance coverage and potential proceeds to be paid by a carrier to cover your damages. There are times when you are confronted with a case that just is not a good insurance coverage case. This may result in you coming up with creative arguments to maximize insurance coverage. Even in these times, you want to plead the complaint to best maximize coverage under the creative arguments you have developed. An example of not pleading allegations in a complaint to trigger an insurer’s duties can be found in the Eleventh Circuit Court of Appeal’s decision in Tricon Development of Brevard, Inc. v. Nautilus Insurance Co., 2021 WL 4129373 (11th Cir. 2021). This case involved a general contractor constructing condominiums. The general contractor hired a subcontractor to fabricate and install metal railings. The subcontractor had a commercial general liability (CGL) policy that named the general contractor as an additional insured with respect to liability for property damage “caused in whole or in part” by the subcontractor’s direct or vicarious acts or omissions. (This is a good additional insured endorsement.) Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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The Final Nail: Ongoing Repairs Do Not Toll the Statute of Repose

November 07, 2022 — Kyle Rice - The Subrogation Strategist
In Venema v. Moser Builders, Inc., 2022 PA Super. 171, 2022 Pa. Super. LEXIS 414, the Superior Court of Pennsylvania (Superior Court) upheld an award of judgment on the pleadings from the Court of Common Pleas of Chester County (Trial Court). The Superior Court found that Pennsylvania’s 12-year Statute of Repose for improvements to real property (Statute of Repose) began to run upon the issuance of the certificate of occupancy following original construction of the home in 2003—not from the completion of repairs to the home that continued through 2008. The underlying cause of action involved a home constructed by Moser Builders, Inc. (Moser) in 2003. The certificate of occupancy for the home was issued on August 13, 2003. Matthew Venema and Liza Squires (collectively, Venema) purchased the property from the original owners in 2004. Read the court decision
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Reprinted courtesy of Kyle Rice, White and Williams
Mr. Rice may be contacted at ricek@whiteandwilliams.com

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Kadeejah Kelly Named to The National Black Lawyers’ “Top 40 Under 40” List

October 17, 2022 — Lewis Brisbois
New York, N.Y. (October 6, 2022) – New York Associate Kadeejah J. Kelly was recently named to The National Black Lawyers (NBL) “Top 40 Under 40” list. The NBL “Top 40 Under 40” recognizes the most talented black attorneys under the age of 40 who have an outstanding reputation among peers, the judiciary and the public. The honorees on this list are nominated from leading lawyers, current members, and Executive Committee members. Ms. Kelly is a member of the General Liability and Professional Liability Practices. She has extensive experience defending owners, contractors, developers and corporations in high exposure construction cases including New York Labor Law matters, premises liability and construction defect claims. She also has experience defending malpractice claims against attorneys, accountants, architects, engineers, funeral home directors and other miscellaneous professionals. Read the court decision
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Reprinted courtesy of Lewis Brisbois

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China Bans Tallest Skyscrapers Following Safety Concerns

July 25, 2021 — Bloomberg News
China is prohibiting construction of the tallest skyscrapers to ensure safety following mounting concerns over the quality of some projects. The outright ban covers buildings that are taller than 500 meters (1,640 feet), the National Development and Reform Commission said in a notice Tuesday. Local authorities will also need to strictly limit building of towers that are more than 250 meters tall. The top economic planner cited quality problems and safety hazards in some developments stemming from loose oversight. A 72-story tower in Shenzhen was closed in May for checks following reports of unexplained wobbling, feeding concern about the stability of one of the technology hub’s tallest buildings. Construction of buildings exceeding 100 meters should strictly match the scale of the city where they will be located, along with its fire rescue capability, the commission said. “It’s primarily for safety,” said Qiao Shitong, an associate law professor at the University of Hong Kong who studies property and urban law. Extremely tall buildings “are more like signature projects for mayors and not necessarily efficient.” Read the court decision
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Reprinted courtesy of Bloomberg

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