Blackstone Said in $1.7 Billion Deal to Buy Apartments
January 21, 2015 —
Hui-yong Yu – BloombergBlackstone Group LP (BX), the biggest owner of U.S. single-family houses, agreed to buy 36 apartment properties across the country for about $1.7 billion as it expands its rental business, according to two people with knowledge of the transaction.
The low-rise, garden-style properties are being sold by Praedium Group, a New York-based real estate investment firm, and contain about 11,000 apartments, said the people, who asked not to be identified because the deal is private. About half of the buildings are in California, Washington, D.C., and Boston, with the rest located around the U.S., they said.
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Hui-yong Yu, BloombergHui-yong Yu may be contacted at
hyu@bloomberg.net
Explore Legal Immigration Options for Construction Companies
August 29, 2022 —
Megan R. Naughton - Construction ExecutiveAlthough the visa options are limited, there are some that can be explored by construction companies in the United States, including the following.
H-1B
The H-1B visa category may be available for construction positions that require at least a bachelor’s degree in a specific field such as civil engineering, construction management or accounting. The timing can be challenging if an employer is looking to hire a recent graduate or someone outside of the United States for a role because of the H-1B lottery but can work well if the candidate is already in H-1B status and working for another company. These visas are site-specific, so they may need amending if a worker is moved from one site to another.
H-2B
The H-2B visa category is an option if the construction work is seasonal in nature and recurs each year, and if the company can plan its specific needs sufficiently far in advance. Timing is difficult with these; they require proving a shortage of U.S. workers and are subject to a lottery system like the H-1B.
Reprinted courtesy of
Megan R. Naughton, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Discussion of History of Construction Defect Litigation in California
September 10, 2014 —
William M. Kaufman – Construction Lawyers BlogCalifornia literally wrote the book on construction defect litigation. Construction defects began to surface after World War II due to cheap track homes being constructed haphazardly on a large scale. Throughout the 1960s, developers began utilizing the services of subcontractors to build massive developments. Rather than having their own employees perform the work, developers began relying more heavily on the specialty subcontractors to perform quality control functions. In 1969, the California Supreme Court expanded liability for developers with respect to residential housing through the concept of strict liability for mass produced homes. Strict liability defendants in construction defect cases may include builders of mass-produced homes, building site developers, component part manufacturers, and material suppliers. Courts have noted that there is little distinction between the “mass production and sale of homes and the mass production and sale of automobiles, and the pertinent overriding policy considerations are the same.” Kriegler v. Eichler Homes, Inc. (1969) 269 Cal. App. 2d 224, 227 (1969). Accordingly, developers of mass-produced tract homes may be held strictly liable whether or not there is privity of contract. Ibid. Courts have held, however, that there is no strict liability against contractors or sub-contractors. See Ranchwood Communities v. Jim Beat Construction (1996) 57 Cal.Rptr.2d 386; La Jolla Village Homeowners’ Assn., Inc. v. Superior Court (1989) 261 Cal.Rptr. 146. Within ten years, attorneys in California were using strict liability theories to seek compensation for homeowners. The initial strict liability lawsuits in California in the 70s and 80s generally applied to condominium projects. The Construction defect “industry” began to take off in the 1980s due to the housing boom and the enforcement of strict liability claims by the courts.
Reprinted courtesy of
William M. Kaufman, Lockhart Park LP
Mr. Kaufman may be contacted at wkaufman@lockhartpark.com, and you may visit the firm's website at www.lockhartpark.com
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Shoring of Ceiling Does Not Constitute Collapse Under Policy's Definition
November 12, 2019 —
Tred R. Eyerly - Insurance Law HawaiiDespite the need to shore up the ceiling, the building was not in a state of collapse under the language of the policy. Ravinia Vouge Cleaners v. Travelers Cas. Ins. Co. of Am., 2019 U.S. Dist. LEXIS 123594 (N.D. Ill. July 24, 2019).
Ravinia Cleaners held a property policy issued by Travelers for the building from which it operated its dry-cleaning business. On February 2, 2015, there was heavy snowfall. On February 4, Ravinia reported to Travelers a leak coming from the ceiling. A temporary "shoring " was placed on the ceiling. Ravinia reported to Travelers that there was damage to the roof on February 25, 2015. Travelers hired an engineer who observed a buckling truss and roof displacing downward. The inspector recommended that the building be vacated and not occupied until adequate shoring was in place.
Travelers denied coverage because the building was in a state of imminent collapse which was caused by the weight of ice and snow, and defective construction of the truss system. The policy excluded damage relating to a "collapse of a building." Collapse was defined by the policy as "an abrupt falling down or caving in of a building or any part of a building," such that the building could not be occupied for its intended purpose. There were exceptions to the exclusion, however, if the cause of the collapse was: (1) weight of snow; or (2) use of defective materials or methods in construction if the collapse occurred after construction. The policy also excluded damage from a building being in a state of imminent collapse unless the damage was caused by: (1) weight of snow; or (2) use of defective materials or methods in construction if the collapse occurred during construction.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Georgia Supreme Court Rules Construction Defects Can Constitute an Occurrence in CGL Policies
April 05, 2011 —
Beverley BevenFlorez CDJ STAFFRecently, the Supreme Court of Georgia reversed the decision in American Empire Surplus Lines Insurance Company v Hathaway Development Company, Inc. stating that because Whisnant’s faulty workmanship caused damage to the surrounding properties, the construction defects constituted “occurrences” under the Commercial General Liability (CGL) policy. Unlike the South Carolina Supreme court ruling in the case of Crossman Communities v Harleysville Mutual, the Georgia Supreme Court stated that an accident can happen intentionally if the effect is not the intended result.
Interestingly, the only dissenting judge, J. Melton, disagreed with his colleagues on the basis that “although the term ‘accident’ is not specifically defined in the policy, it is axiomatic that an ‘accident’ cannot result from ‘intentional’ behavior.” It is clear that what constitutes an occurrence in CGL policies is still being hotly debated.
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HOA Foreclosure Excess Sale Proceeds Go to Owner
August 15, 2022 —
Ben Reeves - Snell & Wilmer Real Estate Litigation BlogOver the last few years, the Arizona Court of Appeals wrestled with the question of who should receive the excess proceeds from a foreclosure sale. We’ve blogged about some these past unreported decisions
here and
here. Those decisions, somewhat inexplicably, required excess sale proceeds to be paid to senior creditors. As we noted at the time, these unreported (and non-precedential) decisions did not seem to make much sense in the context of debtor/creditor rights. Thankfully, a reported opinion finally sets the record straight. Excess sale proceeds should be paid downstream.
In
Tortosa Homeowners Assoc. v. Garcia, et al., No. 2 CA-CV 2021-0114 (Ct. App. Aug. 1, 2022), the Court of Appeals held that after the foreclosing lienholder is paid in full, then the excess sale proceeds should be paid to claimants in the order of their priority after the foreclosing lienholder. In other words, if a junior lienholder forecloses, then any creditors behind (i.e., junior to) the foreclosing creditor should be paid, and if all such creditors are paid, then the rest should be given to the owner. Creditors senior to the foreclosing creditor should not be paid anything from the foreclosure sale. This makes sense from a policy perspective, because the senior creditor retains its lien against the property and the bidder presumably took the presence of the senior lien into account when it made its bid for the foreclosed property.
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Ben Reeves, Snell & WilmerMr. Reeves may be contacted at
breeves@swlaw.com
Settlement Reached in Bridge Failure Lawsuit
December 11, 2013 —
CDJ STAFFOfficials claimed the failure of a bridge in Afton Township, Illinois was because trucks owned by Welded Construction used the bridge despite exceeding the bridge’s weight limit of 36.5 tons. The firm argued that they should be responsible for the depreciated cost of the bridge, not its replacement cost. Welded Construction had been using the bridge to get to the site of an oil pipeline construction project for Enbridge Energy.
Replacement of the bridge was initially estimated at $933,000, but that was in advance of any design work. Enbridge Energy settled the case at $900,000, which should cover most or all of the cost of repair or replacement. Some federal funds may also be available for repairing or constructing a new bridge.
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Alexis Crump Receives 2020 Lawyer Monthly Women in Law Award
August 31, 2020 —
Alexis Crump - Lewis BrisboisLos Angeles Partner Alexis G. Crump has been recognized with a 2020 Lawyer Monthly "Women in Law Award." In receiving this honor, Ms. Crump joins an elite group of women from around the world who have influenced the legal profession with their experience and expertise.
Lawyer Monthly’s "Women in Law Awards" emerged as one of the first industry awards to celebrate the achievements and contributions made by women working globally in the legal sector and in business. Recognizing women at all levels of seniority, the publication seeks to acknowledge the challenges that female legal professionals regularly overcome to serve their clients and perform at their best.
“It is an honor to be recognized alongside so many outstanding and accomplished women. I look forward to continuing to support my colleagues in their work and participating in the global network of female attorneys,” Ms. Crump said.
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Alexis Crump, Lewis BrisboisMs. Crump may be contacted at
Alexis.Crump@lewisbrisbois.com