Columbus Ohio Building Expert Directory

Real Estate & Construction News Round-Up (02/08/23) – The Build America, Buy America Act, ESG Feasibility, and University Partnerships

February 27, 2023 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
This week’s round-up explores President Joe Biden’s recent State of the Union address and plans for the Build America, Buy America Act, the feasibility of real estate companies achieving their ESG goals, and how developers, lenders, and tenants are partnering with universities to solve real estate challenges.

During his annual State of the Union address, President Joe Biden detailed his Build America, Buy America plans and standard to require all construction materials on federal infrastructure projects to be made in the United States. (Jennifer Goodman & Zachary Phillips, Construction Dive)
Speculation surrounding the economic environment and real estate stability is testing the feasibility and resilience of the environmental, social and corporate governance (ESG) framework used by corporations to measure their societal impact. (Anna Staropoli, Commercial Observer)
Adopting Web3 and decentralization in the real estate industry is projected to bring about significant changes and improvements. (David Bitton, Forbes)

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

New York Shuts Down Majority of Construction

March 30, 2020 — Laura Bourgeois LoBue & Matthew D. Stockwell - Gravel2Gavel Construction & Real Estate Law Blog
Due to pressure from construction workers, officials, and some construction workers having tested positive for COVID-19, the Empire State Development Corp. (acting on behalf of Governor Cuomo) has frozen all construction in New York today, with the exception of work on hospitals and health care facilities, transit facilities, roads and bridges, affordable housing and homeless shelters. As a result, commercial construction and condominium projects are on hold, with the exception of work that must be completed to prevent unsafe conditions. Until now, construction has been considered “essential” in New York. Reprinted courtesy of Laura Bourgeois LoBue, Pillsbury and Matthew D. Stockwell, Pillsbury Ms. LoBue may be contacted at laura.lobue@pillsburylaw.com Mr. Stockwell may be contacted at matthew.stockwell@pillsburylaw.com Read the court decision
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Travelers Insurance Sues Chicago for $26M in Damages to Willis Tower

May 15, 2023 — Annemarie Mannion - Engineering News-Record
Travelers Property Casualty Co. is suing the City of Chicago and its water district for $26 million in damages caused when more than 1 million gallons of Chicago River water flooded into a 110-story skyscraper during a 2020 storm. Reprinted courtesy of Annemarie Mannion, Engineering News-Record Ms. Mannion may be contacted at manniona@enr.com Read the full story... Read the court decision
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Industry Practices Questioned After Girder Fractures at Salesforce Transit Center

April 10, 2019 — Nadine M. Post - Engineering News-Record
Attendees of a recent presentation on the earthquake-resistant structure of San Francisco’s Salesforce Transit Center—intended to provide a safe haven when the Big One hits—lauded the engineering of the 4.5-block-long hollow tube that supports the 1.2-million-sq-ft “groundscraper.” But there also was much talk of the project’s black eye, as a consequence of brittle fractures of the bottom flanges of two bridge-like built-up plate girders that span 87 ft over Fremont Street. Read the court decision
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Reprinted courtesy of Nadine M. Post, ENR
Ms. Post may be contacted at postn@enr.com

Did Deutsche Make a Deal with the Wrong Homeowner?

September 03, 2014 — Beverley BevenFlorez-CDJ STAFF
Deutsche Bank wants “to void a loan modification it claims resulted in a $125,000 discount on the wrong homeowners' outstanding mortgage,” according to the New Jersey Law Journal. Furthermore, even though the Deutsche Bank “obtained a default judgment a year ago… a New Jersey federal judge is currently considering the homeowners' motion to vacate it, most recently ordering a hearing to determine whether the couple was properly served.” According to the complaint, the Deutsche Bank claims that “its mortgage servicer, Ocwen Loan Servicing, mistakenly offered the modification to Lorraine and Raymond Lindsey of Franklinville, N.J., though the terms of the deal were intended for other homeowners in connection with a loan held by a different bank.” Read the court decision
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Jinx: Third Circuit Rules in Favor of Teamsters in Withdrawal Case

July 28, 2018 — Wally Zimolong - Supplemental Conditions
Bad omen. Last week, I wrote about a Appeals Court decision that affirmed a contractor’s escape from an over $600,000 withdrawal liability assessment from the Laborers Union. The next day the Third Circuit (which covers PA, NJ, and DE) handed down a decision affirming a federal court’s decision to assess withdraw liability. This one shows the dark side of not reading and understanding your CBA. The belligerents in the litigation were, Penn Jersey, a construction material supplier, and Teamsters Local 676. Their collective bargaining agreement contained a clause purportedly covering withdrawal liability. Specifically, the clause stated “should the Employer withdraw from the Agreement in the future, there will be no withdrawal liability. The CBA expired and Penn Jersey did not renew its agreement with the Teamsters. Read the court decision
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Reprinted courtesy of Wally Zimolong, Zimolong LLC
Mr. Zimolong may be contacted at wally@zimolonglaw.com

Proving Contractor Licensure in California. The Tribe Has Spoken

October 21, 2015 — Garret Murai – California Construction Law Blog
As I mentioned in an earlier post, in California you must “prove” you’re a licensed contractor in a construction case. But in whose hands are you entitled to place your fate – the judge or the jury? Well, the tribe has spoken. Jeff Tracy, Inc. v. City of Pico Rivera In Jeff Tracy, Inc. v. City of Pico Rivera, Case Nos. B258563 and B258648, California Court of Appeals for the Second District (September 15, 2015), general contractor Jeff Tracy, Inc. doing business as Land Forms Construction (“Land Forms”) was walloped with a nearly $5.5 million judgment for being improperly licensed on a park project owned by the City of Pico Rivera (“City”). The judgment followed a bench trial over Land Form’s objection that it was entitled to a jury trial. 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

Keep it Simple with Nunn-Agreements in Colorado

June 28, 2021 — Jean Meyer - Colorado Construction Litigation
On May 24, 2021, the Colorado Supreme Court published its decision in Auto-Owners Ins. Co. v. Bolt Factory Lofts Owners Ass'n.[1] There, the Colorado Supreme Court was tasked with answering whether an insurer, who is defending its insured under a reservation of rights, is entitled to intervene as of right under C.R.C.P. 24(a)(2) where the insured enters into a Nunn agreement with a third-party claimant, but rather than entering into a stipulated judgment, agrees with the third party to proceed via an uncontested trial to determine liability and damages. Interestingly, however, while the Court ultimately answered the above question in the negative, the real lesson from the Colorado Supreme Court’s decision is that Colorado litigants should not seek a trial court’s blessing as to liability and damages through non-adversarial proceedings when using Nunn-Agreements. Or, as articulated in Justice Carlos Samour’s vociferous dissenting opinion, Colorado litigants desiring to enter into a Nunn-Agreement should not proceed with a non-adversarial hearing, as doing so is “offensive to the dignity of the courts,” constitutes a “bogus,” “faux,” “sham” and “counterfeit” proceeding, and the hearing provides “zero benefit.” By way of background, the case arrived in front of the Colorado Supreme Court based on the following fact pattern. A homeowner association (Bolt Factory Lofts Owners Association, Inc.) (“Association”) brought construction defect claims against a variety of prime contractors and those contractors subsequently brought third-party construction defect claims against subcontractors. One of the prime contractors assigned their claims against a subcontractor by the name Sierra Glass Co., Inc. (“Sierra”) to the Association. The other claims between the additional parties settled. On the eve of trial involving only the Association’s assigned claims against Sierra, the Association made a settlement demand to Sierra for $1.9 million. Sierra asked its insurance carrier, Auto-Owners Insurance, Co. (“AOIC”), which had been defending Sierra under a reservation of rights letter, to settle the case for that amount, but AOIC refused. This prompted Sierra to enter into a “Nunn-Agreement” with the Association whereby the case would proceed to trial, Sierra would refrain from offering a defense at trial, the Association would not pursue any recovery against Sierra for the judgment, and Sierra would assign any insurance bad faith claims it may have had against AOIC to the Association. Read the court decision
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Reprinted courtesy of Jean Meyer, Higgins, Hopkins, McLain & Roswell, LLC
Mr. Meyer may be contacted at meyer@hhmrlaw.com

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