Mega-Consulate Ties U.S. to Convicted Billionaire in Nigeria
May 30, 2022 —
Neil Munshi & William Clowes - BloombergOn March 31, billionaire Gilbert Chagoury stood atop the plot of land he’d dredged from the sea around Lagos, beaming in the sweltering heat alongside U.S. Consul-General to Nigeria Claire Pierangelo, as they broke ground for America’s largest consulate in the world.
As a cool spring rain fell on Washington that day, Republican Congressman Jeff Fortenberry, of Nebraska, resigned from the House of Representatives after a conviction announced a week earlier. His crime: lying to the Federal Bureau of Investigation about illegal campaign contributions he’d received from Chagoury.
The pageantry in Lagos obscured the uncomfortable fact that by placing its $537 million consulate on Chagoury’s Eko Atlantic development, the U.S. government was becoming the anchor tenant for a project run by a man who was once convicted of laundering money for a Nigerian dictator and who’s admitted to making illegal campaign contributions in the U.S. Ethics groups and Nigeria experts aren’t pleased with the choice.
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Neil Munshi, Bloomberg and
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Three Attorneys Named Among The Best Lawyers in America 2018
August 24, 2017 —
Haight Brown & Bonesteel LLPPartners
Denis Moriarty and
Mark VonderHaar, and Of Counsel
William Baumgaertner were selected by their peers for inclusion in The Best Lawyers in America 2018. This marks the twelfth consecutive year Mr. Baumgaertner has been listed for his defendants’ and plaintiffs’ work in personal injury and product liability litigation, and the sixth consecutive year Mr. Moriarty has been listed for his work in insurance law. Mr. VonderHaar was listed for the first time for his work in insurance law.
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Real Estate & Construction News Round-Up (06/29/22)
July 11, 2022 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogHousing market activity is on the downtick, the Partnership for Global Infrastructure and Investment launches, the SEC proposes a climate rule that signals a new era for real estate, and more.
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Pillsbury's Construction & Real Estate Law Team
The World’s Largest 3D-Printed Neighborhood Is Here
March 20, 2023 —
Todd Woody - BloombergAmid the tech boom-fueled sprawl in Austin, Texas, Wolf Ranch at first appears to be another colorfully named but architecturally unimaginative suburban subdivision. Until, that is, you turn a corner and stumble across giant robots building homes resembling waves frozen in concrete.
This 100-house addition to the 2,500 homes planned for Wolf Ranch is called “the Genesis Collection,” and as the world’s largest 3D-printed community, it is indeed sui generis. A collaboration between Lennar Corp., the US’s second-biggest home builder, and 3D-printing startup Icon, Genesis represents perhaps the most significant innovation in residential construction in decades. If it can scale, 3D-printed construction promises to deliver energy-efficient homes that can be built faster and more affordably, in novel designs and with minimal waste. The concrete structures are also more resilient to increasingly intense climate-driven hurricanes, wildfires and heat waves.
“I think we'll look back and say this was a pretty pivotal moment in the history of construction,” says Jason Ballard, Icon’s cowboy hat-wearing co-founder and chief executive officer. “I do think 3D printing and robotic construction are necessary to end the global housing crisis.”
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Todd Woody, Bloomberg
A Year-End Review of the Environmental Regulatory Landscape
January 11, 2022 —
Anne Idsal Austin & Joel Simon - Gravel2Gavel Construction & Real Estate Law BlogOur guest today is Anne Idsal Austin, a nationally recognized environmental lawyer who has held several high-profile federal and state regulatory roles. As a partner who recently joined Pillsbury’s environmental and natural resources practice, she provides strategic consulting and policy advice, helping clients navigate the dynamic regulatory and legal waters in an era of energy transition, decarbonization and an emphasis on ESG principles. Prior to joining Pillsbury, Anne was the Principal Deputy Assistant Administrator for the U.S. Environmental Protection Agency’s Office of Air and Radiation, known as OAR or OAR, where she had primary oversight over United States clean air policy and regulation. Prior to that, she served as the EPA regional administrator for Region 6, overseeing all federal environmental programs in Texas, Louisiana, New Mexico, Oklahoma and Arkansas. Prior to joining EPA, Anne held several positions where she shaped environmental and energy policy at the highest levels of government in the state of Texas. Welcome to our podcast, Anne.
Anne Austin: Thanks so much. It’s great to be here today, Joel.
Joel Simon: Anne, I’m really excited for this chance to speak with you because there’s so much going on at the federal environmental policy level, and it would be great to have someone really knowledgeable present this to us in an organized fashion. So with that minor task ahead of you, could you start us off with a brief overview of the environmental regulatory landscape?
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Anne Idsal Austin, Pillsbury and
Joel Simon, Pillsbury
Ms. Austin may be contacted at anne.austin@pillsburylaw.com
Mr. Simon may be contacted at joel.simon@pillsburylaw.com
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Are COVID-19 Claims Covered by Builders Risk Insurance Policies?
May 04, 2020 —
Jason M. Adams, Gibbs Giden Locher Turner Senet & Wittbrodt LLP and Cheryl L. Kozdrey, Saxe Doernberger & Vita, P.C.If you are an attorney, insurance broker, or other professional representing developers and contractors, then your clients have likely reached out with concerns about losses related to COVID-19. One common question is whether there is potential coverage under builders risk insurance policies.
The short answer is: It depends. As with most questions pertaining to insurance coverage, the answers depend on the specific policy language and underlying facts required to trigger coverage. Builders risk policies are even more fact specific due to the lack of uniformity of base policy forms and endorsements between insurance carriers.
The first step in any analysis is to gather facts and carefully document any impending and potential damages or delays. The facts are crucial because the coverage analysis may vary depending on the specific reason the project was shut down. For example, the analysis would be different if the project was shut down as a result of an express government order, such as those in Northern California and Washington, versus the project shutting down as a result of workers testing positive for COVID-19. Properly analyzing builders risk coverage involves a granular account of the facts and damages, and can require a great deal of hair splitting with respect to specific policy language.
Regardless of the strength of the insured’s facts and damages, or the breadth of its policy language, the policyholder still likely faces an uphill battle in finding coverage for COVID-19 related claims. The unfortunate reality of most builders risk policies is that they are property policies that require some evidence of physical loss or damage to trigger coverage. Whether or not COVID-19 claims constitute property damage will be the subject of great debate and litigation over the coming months and years. The outcome will likely depend on how the insured’s jurisdiction ultimately rules on the litany of COVID-19 cases that have already been filed – specifically, how broadly each court interprets the meaning of “physical loss or damage.”
Although these key issues have yet to be clearly defined by the courts, some policies are better than others and there are specific variables that could affect the likelihood of coverage. For example, some of the more policyholder-friendly insurance programs may contain coverage extensions for delay in completion, business interruption, loss of rental income, or civil authority that may not be tied to the property damage requirement, and which would tend to support coverage for COVID-19 claims.
Even if the insured crosses the initial threshold and can demonstrate a covered claim, the following common endorsements and exclusions may require additional analysis depending on the facts.
- Virus or Pandemic Exclusions: Virus or pandemic exclusions are not as common on builders risk policies as they may be on other forms of coverage. However, they do exist and, if present, result in a significant barrier to coverage. As with the policy itself, every endorsement is different and should be analyzed in terms of the express language contained in the endorsement and the facts.
- Abandonment or Cessation of Work: Most builders risk policies include provisions that preclude coverage in the event of the abandonment of the project or a lengthy cessation of work. As a result, the insured should take steps to articulate to the carrier that the project has not been abandoned, and that there exists an intent to return as soon as possible. The insured should also maintain a record of ongoing project oversight and protection efforts taken during the period when construction operations are suspended.
- Security and Safety Requirements: Many builders risk policies contain provisions requiring the insured to maintain protective safeguards and security protocols throughout the pendency of the project. Safety fencing, lighting and security guards are common examples. The policy should be analyzed to ensure that the policyholder can meet any such requirements during a COVID-19 related shutdown. For example, can the insured continue to staff a security guard? If not, arrangements will likely need to be made with the carrier depending on the language of the policy.
- Insurable Limits: Builders risk policies are typically underwritten based upon the total completed value of the structure, including materials and labor. The insured will need to analyze the policy to consider whether increased material or labor costs as a result of COVID-19 will alter the terms of coverage, trigger any escalation clauses, or result in an increase in premium due. If increased cost projections become apparent, the insured should report these changes to the carrier immediately.
- Extensions of Coverage: The insurance industry was facing a hard market even before the COVID-19 pandemic, which resulted in higher premiums and limited coverage options. The COVID-19 pandemic has only exacerbated these issues and it may be difficult to obtain coverage extensions on projects that have been shut down. The insured should work with its risk management team (risk manager, insurance broker and lawyer) to engage the carriers to negotiate any necessary coverage extensions resulting from COVID-19 related project delays.
To summarize, builders risk coverage for COVID-19 claims is far from certain, but not impossible. Insureds should provide notice of a claim to all potentially applicable carriers in order to preserve their rights. The insured should also report increased construction cost and articulate its intent to return to the project to preserve their escalation clause and avoid arguments that they have abandoned the project. The insured should continue to document its claims and damages, and be ready to substantiate its claims and push back on any coverage denial. Throughout the entirety of this process, the insured should work with its risk management team to get out in front of any extensions it may need to complete the project. In a climate where insurance carriers are receiving an insurmountable number of claims, the insured should be prepared to fight for coverage and not simply throw up its hands in the face of a denial. Given the intense social, legislative and executive pressure to cover COVID-19 claims, there may be a tendency for the courts to find coverage in gray areas, particularly if the insured was fortunate enough to have purchased one of the broader coverage forms referenced above.
About the Authors
Jason M. Adams, Esq. (jadams@gibbsgiden.com) is a partner at Gibbs Giden representing construction professionals in the areas of Construction Law, Insurance Law and Risk Management and Business/Civil Litigation. Adams is also a licensed property and casualty insurance broker and certified Construction Risk & Insurance Specialist (CRIS). Jason represents developers, contractors, public entities, investors, lenders, REITs, design professionals, and other construction professionals at all stages of the construction process. Jason is a published author and sought-after speaker at seminars across the country regarding high level construction risk management and insurance topics. Gibbs Giden is nationally and locally recognized by U. S. News and Best Lawyers as among the “Best Law Firms” in both Construction Law and Construction Litigation. Chambers USA Directory of Leading Lawyers has consistently recognized Gibbs Giden as among California’s elite construction law firms.
Cheryl L. Kozdrey, Esq. (clk@sdvlaw.com) is an associate at Saxe Doernberger & Vita, P.C., a national insurance coverage law firm dedicated exclusively to policyholder representation and advocacy. Cheryl advises insurance brokers, risk managers, and construction industry professionals regarding optimal risk transfer strategies and insurance solutions, including key considerations for Builder’s Risk, Commercial General Liability, D&O, and Commercial Property policies. She assists clients with initial policy reviews, as well as renewals and modification(s) of existing policies to ensure coverage needs are satisfied. Cheryl also represents policyholders throughout the claims process, and in coverage dispute litigation against insurance carriers. She is currently working on some of the largest construction defect cases in the country. Cheryl is a published author and is admitted to practice in the State of California and all federal district courts within the State.
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Employees Versus Independent Contractors
February 23, 2017 —
Chadd Reynolds – Autry, Hanrahan, Hall & Cook, LLPAre the workers you employ on the job site considered employees or independent contractors? This is an important distinction that contractors and subcontractors must understand for many purposes, including federal taxes. The classification of your workers can affect their federal income, social security, and Medicare taxes, and the type of benefits they can receive.
When determining whether workers should be classified as employees or independent contractors, courts generally look at three key factors: behavioral control, financial control, and the relationship of the parties.
Behavior Control
Behavior control concerns the business’s right to direct or control how the worker does its work. A worker is likely to be considered an employee when the business maintains behavior control. Such control can be exercised by giving instructions. This would include instructions on how, when, or where to do the work, what tools or equipment to use, who to hire to help with the work, or where to purchase the supplies to be used. Behavioral control can also occur through training. If the business provides training to tell the worker to do the work in a certain manner then the worker is more likely to be an employee.
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Chadd Reynolds, Autry, Hanrahan, Hall & Cook, LLPMr. Reynolds may be contacted at
reynolds@ahclaw.com
Here's How Much You Can Make by Renting Out Your Home
August 20, 2014 —
Suzanne Woolley – BloombergOklahoma City and San Jose, California, top lists of cities where homeowners deciding to rent rather than sell their homes could see the biggest gains.
That's according to real estate information website Zillow Inc., which ran data to see what current homeowners could make if they became mom-and-pop landlords. The Okies in their state's capital city win when it comes to monthly profits: $536, or $6,431 annually.
For long-term gains, the top 10 cities are those where homeowners would lose money every year by renting -- until the big payoff when they sell. Zillow translates that gain, looking back, into monthly and yearly profits. So fast-appreciating Californian cities win big, led by San Jose. (Scroll down to see the Top 10 lists; the entire list is here.) The top 10 short-term gainers range geographically from Rochester, N.Y., to Dallas-Fort Worth, Texas. Monthly rental profits there are $349 and $264, respectively, or annual income of $4,182 and $3,166.
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Suzanne Woolley, BloombergMs. Woolley may be contacted at
swoolley2@bloomberg.net
