Fairfield Connecticut Building Expert Directory

Real Estate & Construction News Roundup (05/23/23) – Distressed Prices, Carbon Removal and Climate Change

June 05, 2023 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In this week’s roundup, we consider distressed property bonds and loans, cities that are sinking under their own skyscrapers, efforts to lower carbon emissions, the unexpected potential of dirty diapers as a building material, and so much more. Globally, more than $190 billion of property bonds and loans are trading at distressed prices, a result of China’s real estate woes. (Alice Huang and Erin Hudson, Bloomberg) PacWest Bancorp sees a stock market boost as it announces the sale of its real estate loans, valued at around $2.6 billion. (Jaiveer Shekhawat and Chibuike Oguh, Reuters) New construction home sales exceeded expectations for April while existing home sales dropped. (Anna Bahney, CNN) Read the court decision
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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

Renovation Contractors: Be Careful How You Disclose Your Projects

December 09, 2011 — Derek J. Lindenschmidt, Colorado Construction Litigation

In Palu and Beyer v. Toney, 2011 WL 2560249 (Bankr. D. Colo.), the United States Bankruptcy Court for the District of Colorado determined that a Colorado District Court order granting summary judgment in favor of plaintiff home buyers was binding on the Bankruptcy Court in the defendant contractor’s bankruptcy proceeding based on issue preclusion.

Pertinent to this column is the subject matter of the summary judgment motion: Colorado’s Seller’s Property Disclosure (Form LC-18-5-04). In the underlying state court action, the plaintiff home buyers filed a motion for summary judgment contending that the defendant contractor represented to them, through the Seller’s Property Disclosure, that there were no present or past conditions involving moisture or water problems, roof problems or leaks, skylight problems, or gutter downspout problems.

In granting plaintiffs’ motion, the state court determined that the defendant contractor made these representations on her Seller’s Property Disclosure despite witnessing water leaking from the skylight onto the floor and being aware of repairs to the roof, skylight, and interior drywall prior to the sale of the property.

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Reprinted courtesy of Derek J. Lindenschmidt of Higgins, Hopkins, McClain & Roswell, LLP. Mr. Lindenschmidt can be contacted at lindenschmidt@hhmrlaw.com

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Federal Defend Trade Secrets Act Enacted

July 14, 2016 — Michael B. McClellan & Jason L. Morris – Newmeyer & Dillion LLP
On May 11, 2016, President Obama signed the Defend Trade Secrets Act (“DTSA”) into law, creating a private federal civil cause of action for trade secret misappropriation. This landmark legislation, a product of bipartisan backing and significant support from the business community, will affect businesses and individuals operating in almost every economic sector across the country. The DTSA will potentially be at issue any time an employee with access to confidential, proprietary, and trade secret information moves on to a competitor or launches a startup that competes with the former employer. This will be true so long as the product or service that the trade secret relates to is either used in or intended for use in interstate or foreign commerce. Under present commerce clause jurisprudence, the vast majority of businesses providing products and services in the United States will be affected by this new law. The DTSA will provide, for the first time, a codified federal civil remedy for misappropriation of trade secrets. Although most states have adopted some version of the Uniform Trade Secrets Act (“UTSA”), there remains significant variation between the states in their application of the UTSA and litigants face significantly different statutory frameworks depending upon which state holds jurisdiction over the dispute. In addition, prior to this new law, litigants were limited to pursuing their claims for misappropriation of trade secrets in state courts, unless federal diversity jurisdiction applied to the dispute. The DTSA changes that dynamic, providing original federal subject matter jurisdiction over trade secret disputes. Reprinted courtesy of Michael B. McClellan, Newmeyer & Dillion and Jason L. Morris, Newmeyer & Dillion Mr. McClellan may be contacted at Michael.mcclellan@ndlf.com Mr. Morris may be contacted at Jason.morris@ndlf.com Read the court decision
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Pulled from the Swamp: EPA Wetland Determination Now Judicially Reviewable

September 15, 2016 — CDJ STAFF
Landowners and developers bogged in an EPA wetland determination were recently thrown a life line when the United States Supreme Court determined The Army Corps of Engineer’s (Corps) “jurisdictional determinations” (JD) regarding wetland designations are reviewable by the court. United States Army Corps of Engineers v. Hawkes Co. Inc. Under the Clean Water Act (CWA) landowners and developers who do not have the proper permits can face severe criminal and civil penalties for releasing any pollutant into “the waters of the United States.” Anybody stuck wading through the permitting process will tell you it is difficult, time consuming, expensive, and may eventually prohibit the intended use of the property. Furthermore, there is yet to be a consensus on the definition or scope of the term “waters of the US”. Consequently, a landowners or developers may never be certain whether a permit is necessary before conducting any activity that may discharge a pollutant into a “water of the United States”. Read the court decision
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Reprinted courtesy of Sean Minahan, Lamson, Dugan and Murray, LLP
Mr. Minahan may be contacted at sminahan@ldmlaw.com

Courts Will Not Rewrite Your Post-Loss Property Insurance Obligations

June 14, 2021 — David Adelstein - Florida Construction Legal Updates
In the preceding posting, I wrote about making sure you comply with your property insurance policy’s post-loss policy obligations. By failing to comply, you can render your policy ineffective meaning you are forfeiting otherwise valid insurance coverage, which was the situation discussed in the preceding posting. As an insured, you should never want this to occur! In another case, discussed here, the property insurance policy had a preferred contractor endorsement. This means that instead of paying the insured insurance proceeds, the insurer could perform the repairs with its preferred contractor. Typically, the insured will pay a discount on their premium for this preferred contractor endorsement. The insurer elected to move forward with the repairs based on the preferred contractor endorsement but the insured performed the repairs on his own and then sold the house. By doing this, the appellate court held the insured rendered his policy ineffective by breaching his own policy (and failing to allow this post-loss obligation to take place). The explicit terms of the policy allowed the insurer to perform the repairs instead of paying the insured insurance proceeds. The court could NOT rewrite the post-loss obligations in the policy by requiring the insurer to pay insurance proceeds when the insurer, per the preferred contractor endorsement, elected to perform the repairs. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Treble Damages Awarded After Insurer Denies Coverage for Collapse

July 03, 2022 — Tred R. Eyerly - Insurance Law Hawaii
The Fourth Circuit upheld the district court's decision that a collapse was covered, but reversed the denial of treble damages to the insured. DENC, LLC v. Phila. Indem. Ins. Co., 2022 U.S. App. LEXIS 10443 (4th Cir. April 18, 2022). The district court decision was summarized here. DENC owned The Crest, an apartment building leased to Elon University for student housing. Philadelphia Indemnity Company insured the property. In January 2018, students gathered on a second-floor breezeway for a party. Partygoers began jumping in the breezeway, which caused an abrupt collapse. Observers noticed that the breezeway was hanging down by more that a foot. DENC filed a claim with Philadelphia the next day. An adjuster was sent to inspect the breezeway. By that time, the city had condemned The Crest. The adjuster said that undiscovered "water damage which occurred over an extended period of time" caused the loss. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Future Environmental Rulemaking Proceedings Listed in the Spring 2019 Unified Federal Agenda

July 15, 2019 — Anthony B. Cavender - Gravel2Gavel
The latest federal regulatory agenda has been released, which, among other matters, lists proposed and projected environmental regulatory proceedings being considered by different departments and agencies. Here are some selected items. EPA 1. The Water Office

EPA plans to issue in December 2019 a Notice of Proposed Rulemaking (NPRM) to consider making a regulatory determination as a prelude to listing as drinking water contaminants PFOA and PFOS pursuant to the Safe Drinking Water Act.
EPA (along with the Corps of Engineers) plans to issue an NPRM in December 2019 that will propose to revise and update its 2008 mitigation banks and in-lieu fee programs, with a final rule scheduled for September 2020.
An NPRM to revise the 2015 effluent limitations guidelines and standards for the Steam Electric Power Generating Point Source Category will be released in June 2019.

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Anthony B. Cavender, Pillsbury

anthony.cavender@pillsburylaw.com

Real Estate & Construction News Roundup (07/05/23) – A Hospitality Strike in Southern California, Agencies Step in With Lenders and the Social in ESG

Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog

There are new ways the commercial real estate sector can grow its commitment to climate goals and contributions to reducing its carbon footprint. (Mahesh Ramanujam, Forbes)
Thousands of hospitality workers in Southern California went on strike to demand higher wages, access to affordable family health care benefits and stronger workplace protections. (Julianne McShane, NBC)