Sustainability Puts Down Roots in Real Estate
January 27, 2020 —
Stephanie Amaru - Gravel2Gavel Construction & Real Estate Law BlogSustainability has evolved from a passing trend or niche preference into an undeniable, growing driver of the real estate market. This is particularly true as millennials comprise an increasing proportion of the workforce, home-buying population, and individuals influencing the future of real estate development in the United States.
If anything illustrates the significance of younger generations’ increasing interest in sustainability, it is the Global Climate Strike that drew participation of many thousands of young people, with 2,500 events scheduled in over 150 countries. In New York City, 1.1 million public school students were excused from school to join the strike in an event planned to precede the UN Summit, which itself was intended to push countries toward a commitment to faster transition to renewable energy and stricter climate targets. While both policymakers and citizens of previous generations have been split on their willingness to address global climate change with urgency, younger generations are feeling a stronger sense of responsibility for curbing the world’s trajectory towards a climate catastrophe, which will be inherited by them and their children. This has manifested in action that promotes awareness of and political action with respect to these issues—such as the Global Climate Strike—as well as evolving habits and preferences in both consumer goods and real estate.
Greener Space
In recent years, real estate developers have recognized that there is a market for “greener” developments that reduce annual expenditures on buildings, whether it be through small spaces requiring less electricity and promoting energy efficiency, or through renewable energy options such as solar photovoltaic power. Some real estate developers have chosen to install these options themselves, while others seek out sustainable financing options to cover the costs of renewable energy. If installing renewable energy is too costly, real estate developers will seek out more cost-effective locations for their brick-and-mortar operations.
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Stephanie Amaru, PillsburyMs. Amaru may be contacted at
stephanie.amaru@pillsburylaw.com
The Architecture of Tomorrow Mimics Nature to Cool the Planet
January 31, 2022 —
Damian Shepherd - BloombergThere’s a new climate push in the building industry: regenerative architecture.
The sector has been trying for years to cut its sizeable carbon footprint, which was responsible for 38% of the world’s energy-related greenhouse gases in 2019. But developers need to go beyond preventing pollution if they want to help avoid catastrophic climate change, according to Sarah Ichioka and Michael Pawlyn, co-authors of a new book titled Flourish: Design Paradigms for Our Planetary Emergency.
They argue that buildings should be designed in a regenerative way — a process that mimics nature by restoring its own materials and sources of energy. It goes further than sustainable design, which seeks to reduce harm to the environment and use only essential materials.
“More than half of humanity’s total historic greenhouse-gas emissions have occurred since the concept of ‘sustainability’ entered the mainstream,” Ichioka and Pawlyn write. “It is now time to embrace a new regenerative approach to design and development.”
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Damian Shepherd, Bloomberg
Mediation in the Zero Sum World of Construction
September 26, 2022 —
Christopher G. Hill - Construction Law MusingsConstruction is a zero sum game. What do I mean by that? I mean that even where you, a construction professional with a great construction lawyer, have reviewed and edited a subcontract presented to you or provided a well-drafted contract to the other party that contains an attorney fees provision, every dollar that you spend on litigation is a dollar less of profit.
Couple the fact that no construction company can or should bid or negotiate work with an eye toward litigation (aside from having a well written contract that will be enforced to the letter here in Virginia). Particularly on “low bid” type projects, contractors and subcontractors cannot “pad” their bids to take into account the possibility of attorney fees, arbitration, or litigation. Furthermore, the loss of productivity when your “back office” personnel are tied up dealing with discovery, phone calls, and other incidents of litigation that do nothing but rehash a bad project and increase the expense sap money from the bottom line. While the possibility of a judgment including attorney fees may soften this blow, you are still out the cash.
All of this said, if you are in commercial construction for any significant period of time disputes will arise and I have discussed the process in some detail at other places here at Construction Law Musings. As a construction litigator, I am fully aware of this fact of life. Efficient management of these disputes is key, particularly when they escalate to the point where some form of outside “help” (read arbitrator or judge) is necessary.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Plaintiffs Not Barred from Proving Causation in Slip and Fall Case, Even With No Witnesses and No Memory of Fall Itself
February 01, 2022 —
David Hoynacki, Arezoo Jamshidi & Lawrence S. Zucker II - Haight Brown & Bonesteel LLPOn January 19, 2022, the California Court of Appeal, Second Appellate District (Los Angeles), held that a plaintiff is not barred as a matter of law from proving causation in a slip and fall case if there were no witnesses to the fall, and the plaintiff does not remember the fall itself. The Court of Appeal stated specifically that circumstantial evidence would permit a jury to make a “reasonable and probable inference” regarding contributing factors to a fall, even with no eye-witness evidence.
In
Kaney v. Mazza (BC619247, Jan. 19, 2022), plaintiff and appellant Lydia Kaney (Kaney), was visiting her sister in her rented home in September of 2014. At some point during the visit, the light in the bathroom at the top of the stairs stopped working—Kaney used the stairs, and fell. Kaney filed suit against her sister and the owner of the home alleging premises liability, negligence, and violation of the Americans with Disabilities Act (ADA). In her deposition, Kaney testified that she remembered going up to the bathroom, and then waking up on the floor in pain. She could not remember how she fell; she did not know if she had missed a step, or if she had slipped and fallen backwards. She speculated that a worn-out bath mat may have been the cause of the slip and fall because the rubber traction on the bath mat was worn away.
Reprinted courtesy of
David Hoynacki, Haight Brown & Bonesteel LLP,
Arezoo Jamshidi, Haight Brown & Bonesteel LLP and
Lawrence S. Zucker II, Haight Brown & Bonesteel LLP
Mr. Hoynacki may be contacted at dhoynacki@hbblaw.com
Ms. Jamshidi may be contacted at ajamshidi@hbblaw.com
Mr. Zucker may be contacted at lzucker@hbblaw.com
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Subcontractors Must be Careful Providing Bonds when General Contractor Does Not
April 05, 2017 —
Christopher G. Hill – Construction Law MusingsAfter I wrote the title to this post, I thought, “Well, that says it all, doesn’t it?” I also considered the fact that for those that read this construction law blog on a regular basis, I am likely stating the obvious. I then thought about the fact that there can be confusion regarding the purpose of bonds versus insurance. Couple this with the fact that Murphy was an optimist, and I thought this would be a good reminder.
Bonds and insurance have one fundamental difference between them. When your construction company buys insurance, that insurance is meant to protect your company. When your company provides a payment and/or performance bond, that bond is there not to protect your company but to protect everyone else on the job and the project itself. Where insurance will pay for your company’s qualifying errors so that that money does not come out of the bottom line, a bond contract will have an indemnification agreement whereby anything paid by the surety will then be reimbursed by you and your company dollar for dollar (as opposed to just the premium).
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Christopher G. Hill, The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Summary Judgment for Insurer on Construction Defect Claim Reversed
January 07, 2025 —
Tred R. Eyerly - Insurance Law HawaiiThe Fifth Circuit reversed the district court's granting of summary judgment to the insurer on a construction defect claim asserted against the insured. TIG Ins. Co. v. Woodsboro Farmers Cooperative, 2024 U.S. App. LEXIS 24003 (5th Cir. Sept. 20, 2024).
In March 2013, Woodsboro Farmers Cooperative contracted with E.F. Erwin, Inc. to construct two Brock 105' diameter grain silos. Erwin hired subcontract AJ Constructors, Inc. (AJC) to construct the silos. Erwin was responsible for supervising the work.
Brock silos were kits shipped by the manufacturer and then assembled according to the manufacturer's manuals and specifications. The silos are constructed section by section. AJC began erecting the silos in May 2013 and completed its work in June or early July. Erwin occasionally inspected the work and found the silos were structurally sound and not defective. AJC left the job site after completing the assembly.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
California Plant Would Convert Wood Waste Into Hydrogen Fuel
January 10, 2022 —
James Leggate - Engineering News-RecordA climate-focused tech company announced plans to open a $100-million plant outside Bakersfield, Calif., to convert wood waste into hydrogen fuel to prevent the material from emitting greenhouse gases. There has been no construction contract award, to date.
Reprinted courtesy of
James Leggate, Engineering News-Record
Mr. Leggate may be contacted at leggatej@enr.com
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Pennsylvania Supreme Court Adopts New Rule in Breach-of-the-Consent-to-Settle-Clause Cases
August 19, 2015 —
Sean Mahoney – White and Williams LLPIn Babcock & Wilcox Company, et al. v. America Nuclear Insurers, et al., the Pennsylvania Supreme Court recently held that where a liability insurer has agreed to provide a defense to its insured in an underlying tort action subject to a reservation of rights but refuses to consent to a settlement in that action, the insured may nevertheless accept the settlement over the insurer’s objection where the settlement is “fair, reasonable, and non-collusive” from the perspective of a reasonably prudent person in the insured’s position in light of the totality of the circumstances and is covered. Babcock & Wilcox Company v. America Nuclear Insurers, No. 2 WAP 2014, 2015 WL 4430352 (Pa. Jul. 21, 2015). This decision fills an important gap in Pennsylvania precedent addressing the rules applicable when an insurer refuses to consent to an insured’s settlement of a lawsuit.
In Babcock, the underlying plaintiffs sued Babcock & Wilcox Company and Atlantic Richfield Company (“the Insureds”) alleging that the Insured’s nuclear facilities caused bodily injury and property damage. The Insureds’ liability insurers agreed to defend the Insureds subject to a reservation of rights. The insurers later refused to consent to an offer to settle the underlying action for a total of $80 million because they believed the Insureds were likely to succeed on the merits. Nevertheless, in 2009, the Insureds accepted that offer and settled the underlying action for $80 million, notwithstanding the insurer’s refusal. The Insureds then sought reimbursement of the $80 million settlement from their insurers, who rejected that request on the ground that the Insureds had breached the consent-to-settlement/cooperation provisions of the implicated policies.
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Sean Mahoney, White and Williams LLPMr. Mahoney may be contacted at
mahoneys@whiteandwilliams.com