Nine ACS Lawyers Recognized by Best Lawyers®
September 02, 2024 —
Ahlers Cressman & Sleight PLLCDeparting from our blog’s typical coverage of construction related issues, Ahlers Cressman & Sleight PLLC is proud to announce that nine members of our firm have been recognized by Best Lawyers® in 2025 in America.
Recognition by Best Lawyers® is based entirely on peer review and is designed to reflect the consensus opinion of leading lawyers about the professional abilities of their colleagues. Lawyers can be nominated by clients and other lawyers. After nomination, ballots are generated and distributed to lawyers. Voters are asked how likely they would be to refer a case to the nominee and to give a rating and additional comments. Ballots are designed based on the voter’s practice area and geographic region. After feedback is analyzed, Best Lawyers® research staff ensures nominees are in good standing with the ethics committee of their state bar and selects lawyers for recognition.
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Ahlers Cressman & Sleight PLLC
Terms of Your Teaming Agreement Matter
July 30, 2019 —
Christopher G. Hill - Construction Law MusingsThese days in construction, and other pursuits, teaming agreements have become a great method for large and small contractors to work together to take advantage of various contract and job requirements from minority participation to veteran ownership. With the proliferation of these agreements, parties must be careful in how they draft the terms of these agreements. Without proper drafting, the parties risk unenforceability of the teaming agreement in the evewnt of a dispute.
One potential pitfall in drafting is an “agreement to agree” or an agreement to negotiate a separate contract in the future. This type of pitfall was illustrated in the case of InDyne Inc. v. Beacon Occupational Health & Safety Services Inc. out of the Eastern District of Virginia. In this case, InDyne and Beacon entered into a teaming agreement that provided that InDyne as Prime would seek to use Beacon, the Sub, in the event that InDyne was awarded a contract using Beacon’s numbers. The teaming agreement further provided:
The agreement shall remain in effect until the first of the following shall occur: … (g) inability of the Prime and the Sub, after negotiating in good faith, to reach agreement on the terms of a subcontract offered by the Prime, in accordance with this agreement.
InDyne was subsequently awarded a contract with the Air Force and shortly thereafter sent a subcontract to Beacon and requested Beacon’s “best and final” pricing. Beacon protested by letter stating that it was only required to act consistently with its original bid pricing. Beacon then returned the subcontract with the original bid pricing and accepting all but a termination for convenience provision. Shortly thereafter, InDyne informed Beacon that InDyne had awarded the subcontract to one of Beacon’s competitors. Beacon of course sued and argued that the teaming agreement required that InDyne award the subcontract to Beacon.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Ninth Circuit Affirms Duty to Defend CERCLA Section 104 (e) Letter
October 10, 2013 —
Tred Eyerly — Insurance Law HawaiiThe Ninth Circuit held there is a duty to defend not only a PRP letter issued by the EPA, but also a section 104 (e) letter. Anderson Brothers, Inc. v. St. Paul Fire and Marine Ins. Co., 2013 U.S. App. LEXIS 18156 (9th Cir. Aug. 30, 2013).
The insured received two letters from the EPA notifying it of potential liability under CERCLA for environmental contamination of the Portland Harbor Superfund Site. The first letter was received in January 2008, and stated that the EPA sought the insured's cooperation in its investigation of the release of hazardous substances at the site. The letter enclosed an extensive, 82-question "Information Request" seeking information about the insured's current and former activities at the site. The letter informed the insured that its voluntary cooperation was sought, but compliance with the Information Request was required by law and failure to respond could result in an enforcement action and civil penalties of $32,500 per day. The insured tendered the 104 (e) letter to St. Paul and requested a defense and indemnity pursuant to the CGL policy. St. Paul declined to provide a defense because the letter did not constitute a "suit," which was required by the policy to trigger the duty to defend.
The second letter from the EPA, received in November 2009, was entitled "General Notice Letter for the Portland Superfund Site" and notified the insured that it was a "potentially responsible party ("PRP").
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Tred EyerlyTred Eyerly can be contacted at
te@hawaiilawyer.com
Contract, Breach of Contract, and Material Breach of Contract
July 05, 2023 —
Wendy Rosenstein - Ahlers Cressman & Sleight PLLCAt its most basic level, a contract is an agreement to make a trade. Parties to a contract agree to perform a specific action on the condition that the other side also performs a specific action. For instance, you and a Girl Scout could create a contract in which the Girl Scout agrees to deliver one box of cookies and you agree to pay her $6.00. In this case, both you and the Girl Scout have obligations under the contract.
If the Girl Scout failed to send you the cookies, what do you do? You send her a note, in writing, telling her that you expect the cookies (or assurance that you will get the cookies) within a certain amount of time—this is notice and the opportunity to cure. Most contracts have a “notice and opportunity to cure” provision, which essentially says that one side must give the other side an opportunity to fix breaches before canceling the contract. Once a party receives a notice to cure, they must either rectify the problem or offer adequate assurances that they will fix the problem. Generally, the party has only a short period of time to address the breach.
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Wendy Rosenstein, Ahlers Cressman & Sleight PLLC
Apartment Construction Ominously Nears 25-Year High
August 27, 2014 —
Karen Weise – BloombergIf you live in a major U.S. city and look out over the skyline, chances are good you’ll see construction cranes. Lots of them. Only twice in the past 25 years have new apartment buildings been going up as fast as they are right now. That’s not necessarily a good omen. The first time, in February 2000, was right before the dot-com bubble burst. The second time, January 2006, came right before the housing bubble burst. Now we learn that builders broke ground on 423,000 new multifamily units in July, right before … who knows what?
Monthly building data released earlier this week by the Census Bureau and the Department of Housing and Urban Development showed that new home construction overall posted strong gains in July, with the highest number of new home starts in eight months. The comeback largely manifested in an uptick in apartment buildings with five or more units, which saw an almost 50 percent increase in new starts in July over a year earlier. By comparison, starts on single-family homes were up only about 10 percent over the same period.
That’s part of the reason that the Northeast, with its large, dense cities, saw the biggest monthly increase, up 44 percent from June. That matches the analysis by Trulia (TRLA) Chief Economist Jed Kolko, who found that among metro areas, Boston and New York are building more than in the past.
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Karen Weise, BloombergMs. Weise may be contacted at
kweise@bloomberg.net
California Expands on Scope of Coverage for Soft Cost Claims
February 14, 2023 —
Caitlin N. Rabiyan - Saxe Doernberger & Vita, P.C.The California federal district court case of KB Home v. Illinois Union Insurance Co., No. 8:20-cv-00278-JLS-JDE, (C.D. Cal. August 23, 2022), provides much needed guidance for cases involving builder's risk insurance claims for soft cost coverage.
The case stems from damage to several of KB Home’s residential building sites caused by a severe rainstorm in January 2017. Each home site was a smaller part of a large housing development project. The damage caused significant delay in the completion of some individual home sites, although there was limited evidence of delay to the overall housing development project.
As a result, KB Home sought coverage under a builder’s risk policy purchased from Illinois Union for both hard costs and soft costs. “Hard costs” are the costs directly associated with repairing property damage to the sites. Conversely, “soft costs” are indirect expenses associated with project delays caused by such property damage and repair efforts. For example, hard costs would include labor and materials, whereas the soft costs claimed by KB Home included additional real estate taxes, construction loan interest, and advertising and promotional expenses incurred because of the delays. Illinois Union paid the claim for the hard costs, but denied the soft costs claim. KB Home filed suit and Illinois Union eventually filed a motion for summary judgment.
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Caitlin N. Rabiyan, Saxe Doernberger & Vita, P.C.Ms. Rabiyan may be contacted at
CRabiyan@sdvlaw.com
Real Estate & Construction News Roundup (5/22/24) – Federal Infrastructure Money, Hotel Development Pipelines, and Lab Space Construction
June 17, 2024 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, Virginia’s governor signs two bills into law, $929 billion in outstanding commercial mortgages come due, banks prepare for delinquencies related to office space, and more!
- Demand for lab space is set to ramp up, with market activity expected to increase in the coming months. (Joe Burns, Construction Dive)
- Federal infrastructure money is keeping the country’s infrastructure woes from getting worse, but that progress will be lost when that funding ends. (Julie Strupp, Construction Dive)
- In the first quarter of 2024, several major hotel companies saw their revenues down—or lower than expected—but their development pipelines were up. (Jenna Walters, Hotel Dive)
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Pillsbury's Construction & Real Estate Law Team
Nebraska Joins the Ranks—No CGL Coverage for Faulty Work
September 17, 2014 —
Craig Martin – Construction Contractor AdvisorThe Nebraska Court of Appeals has ruled that a home builder that fails to adequately compact the soil does not have insurance coverage to repair damages to the home caused by the settling soil. In “insurance speak”, there was no occurrence to trigger coverage.
In this case, Cizek Homes, Inc. v Columbia National Insurance Company, a home builder contracted with a buyer to build a house. A lot was selected and the home was built. After the buyer moved in, the house started to settle, causing damage to the house. The buyer told the builder about these problems and the builder agreed to fix the problems. The builder also contacted its insurance company and requested coverage for the buyer’s claim. The insurer rejected the claim, determining that the buyer’s claim was not covered by the builder’s Commercial General Liability (CGL) insurance.
The insurer then filed suit asking the court to interpret the insurance policy and to determine whether the CGL insurance covered the claim. The court looked to the buyer’s allegations that the builder failed to construct the home in accordance with accepted construction and industry standards and that the builder was negligent in designing and constructing the home. The builder admitted that it was obligated to pay for the costs of repairs, but denied that it was negligent in constructing the home.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com