Seattle Washington Building Expert Directory

Albert Reichmann, Builder of NY, London Finance Hubs, Dies at 93

January 17, 2023 — Laurence Arnold - Bloomberg
Albert Reichmann, the longtime president of his family’s Olympia & York Developments Ltd., builder of the World Financial Center in New York and the first phase of Canary Wharf in London, has died. He was 93. He died on Dec. 17, according to the National Post and a notice on the website of Steeles Memorial Chapel, a Toronto-area funeral home. As the eldest of the three Orthodox Jewish brothers behind Olympia & York, Reichmann held the title of president. In practice, his brother Paul — who died in 2013 — was the company’s “idea man and deal-doer,” in the words of Anthony Bianco, a former Businessweek writer whose book on the family called Olympia & York “the greatest property development company in Western history.” Before its 1992 bankruptcy, it was the largest private owner of commercial property in New York City. Forbes magazine calculated the brothers’ cumulative net worth at $9.2 billion at its height in 1988, making them among the world’s richest people. Read the court decision
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Reprinted courtesy of Laurence Arnold, Bloomberg

Remote Depositions in the Post-Covid-19 World

September 06, 2021 — Islam M. Ahmad - Wilke Fleury, LLP
Despite the easing of COVID-19 restrictions in California, many of the changes imposed on the legal industry by the pandemic will likely remain in effect for the foreseeable future. One major change for litigators has been conducting depositions remotely. This change takes an already intricate task and makes it further complex by adding a new dimension of factors to consider. It is imperative that litigators understand these factors to avoid giving their opposition an undue advantage and to maximize the utility of depositions. While we may disagree as to whether remote depositions are a welcome change, the fact of the matter is that lawyers must adapt to them and provide adequate legal representation. This article explores some of the challenges and opportunities presented by remote depositions.

The Deponent

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Reprinted courtesy of Islam M. Ahmad, Wilke Fleury, LLP
Mr. Ahmad may be contacted at iahmad@wilkefleury.com

Approaches in the Absence of a Differing Site Conditions Clause

April 10, 2019 — Parker A. Lewton - Smith Currie
A contractor who has encountered unforeseen conditions will typically rely on the contract’s differing site conditions clause as a means to recovery. Most construction contracts address those issues directly. In ConsensusDocs Standard Agreement and General Conditions between Owner and Constructor, the starting point is § 3.16.2. But what if the contract does not contain a differing site conditions clause? Or, what if the contract does contain such a clause, but the contractor failed to provide adequate notice or satisfy other conditions or requirements of the contract? When reliance on a differing site conditions clause is impractical, a contractor still may seek recovery in certain instances under one or more of the following legal theories: misrepresentation; fraud; duty to disclose; breach of implied warranty; and mutual mistake. Misrepresentation Misrepresentation occurs when an owner “misleads a contractor by a negligently untrue representation of fact[.]” John Massman Contracting Co. v. United States, 23 Cl. Ct. 24, 31 (1991) (citing Morrison–Knudsen Co. v. United States, 170 Ct. Cl. 712, 718–19, 345 F.2d 535, 539 (1965)). A contractor may be able to recover extra costs incurred, under a theory of misrepresentation, if it can show that (1) the owner made an erroneous representation, (2) the erroneous representation went to a material fact, (3) the contractor honestly and reasonably relied on that representation, and (4) the contractor’s reliance on the erroneous representation was to the contractor’s detriment. See T. Brown Constructors, Inc. v. Pena, 132 F.3d 724, 728–29 (Fed. Cir. 1997). These four requirements can be satisfied, for example, through the use of deposition testimony detailing the owner’s representations and the contractor’s reliance thereon. See, e.g., C & H Commercial Contractors, Inc. v. United States, 35 Fed. Cl. 246, 256–57 (1996). Read the court decision
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Reprinted courtesy of Parker A. Lewton, Smith Currie
Mr. Parker may be contacted at palewton@smithcurrie.com

Apartment Projects Fuel 13% Jump in U.S. Housing Starts

May 19, 2014 — Michelle Jamrisko and Hui-yong Yu – Bloomberg
A surge in construction of multifamily dwellings in April propelled U.S. housing starts to the highest level in five months, helping overcome slack demand for single-family homes. Housing starts climbed 13.2 percent to a 1.07 million annualized rate following March’s 947,000 pace, according to figures released today by the Commerce Department in Washington. Another report showed a measure of consumer confidence unexpectedly declined from a nine-month high. An almost 40 percent increase in construction starts on projects such as condominiums and apartment buildings accounted for almost all of the April gain, as single-family activity was held back by declining affordability. The report highlights a shift in demand for housing in the wake of the financial crisis, which left many Americans wary of taking on new debts. Michelle Jamrisko may be contacted at mjamrisko@bloomberg.net; Hui-yong Yu may be contacted at hyu@bloomberg.net Read the court decision
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Reprinted courtesy of Michelle Jamrisko and Hui-yong Yu, Bloomberg

Insurer's Summary Judgment Motion to Reject Claim for Construction Defects Upheld

August 15, 2018 — Tred R. Eyerly - Insurance Law Hawaii
The Third Circuit upheld the district court's order granting summary judgment in favor of the insurer on a claim seeking coverage for construction defects. Lenick Constr. v. Selective Way Ins. Co., 2018 U.S. App. LEXIS 15197 (3d Cir. June 6, 2018). Westrum was the general contractor for a 92 unit development, and it subcontracted with Lenick to perform rough and finish carpentry and to install paneling, windows, and doors provided by the developer. After the project was completed, it was discovered that some units experienced water infiltration, leaks and cracked drywall. The condominium development sued Westrum, alleging contract and warranty claims. Westrum impleaded Lenick, asserting claims for breach of contract and indemnification. Lenick sought a defense from its insurer, Selective. Selective defended under a reservation of rights. 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

Fannie-Freddie Elimination Model in Apartments: Mortgages

April 08, 2014 — Sarah Mulholland – Bloomberg
The apartment-lending units of Fannie Mae (FNMA) and Freddie Mac were among their few money makers after the U.S. housing collapse. Now they should help transform the U.S. mortgage industry. Lawmakers seeking to eliminate the two government lenders, which were seized by regulators during the 2008 credit crisis, see an antidote to the reckless lending that blew up the U.S. housing market in the structure of the firms’ multifamily operations, which share risks with lenders. Senate Banking Committee Chairman Tim Johnson and Republican Mike Crapo are proposing legislation to create a new government-backed reinsurer of mortgage bonds that would require private investors to bear losses on the first 10 percent of capital. The model for the provision mirrors Fannie Mae and Freddie Mac (FMCC)’s multifamily lending operations, requiring lenders to shoulder some of the risk on loans they originate. Read the court decision
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Reprinted courtesy of Sarah Mulholland, Bloomberg
Ms. Mulholland may be contacted at smulholland3@bloomberg.net

New York Climate Mobilization Act Update: Reducing Carbon Emissions and Funding Solutions

August 30, 2021 — Caroline A. Harcourt - Gravel2Gavel Construction & Real Estate Blog
In our June 16 CMA Update, we discussed how the New York City Climate Mobilization Act (CMA) will affect building owners and the market for CMBS mortgage loans (loans pooled and resold as commercial mortgage-backed securities). (For more information on C-PACE financing, see Sustainable Buildings and Development: Carbon Emissions and the Recent Climate Mobilization Act of New York City.) In this update, we will outline some of the funding solutions that are available to New York City building owners looking to retrofit their buildings in order to comply with the CMA’s requirements. Funding Solutions for Covered Building Owners The cost of retrofitting buildings to incorporate energy efficient features and to achieve compliance with the CMA can be daunting. Read the court decision
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Reprinted courtesy of Caroline A. Harcourt, Pillsbury
Ms. Harcourt may be contacted at caroline.harcourt@pillsburylaw.com

How One Squirrel Taught us a Surprising Amount about Insurance Investigation Lessons Learned from the Iowa Supreme Court

April 03, 2019 — Graham C. Mills - Newmeyer & Dillion
A recent decision issued by the Iowa Supreme Court, City of West Liberty, Iowa v. Employers Mutual Casualty Company, highlights the importance for a policyholder to investigate a loss fully so that a wide range of evidence can be gathered and presented to show why there is coverage. The facts of City of West Liberty are a little unusual, but its lesson is not limited to Iowa insurance law; the issues litigated in this case show the value of investigating what caused a loss regardless of whether the loss occurred in California, Iowa, or elsewhere. Background on the Case City of West Liberty involved an insurance coverage dispute between a municipality owned electrical power plant and its insurance company. The dispute arose from a single adventurous squirrel who climbed onto an outdoor electrical transformer, touching two different parts of the power plant: a portion of the steel frame and a bare cable clamp. In doing so, the squirrel created a “conductive path,” in the words of the Iowa Supreme Court, between the high voltage clamp and the grounded frame. The path, once created, caused significant damage to the transformer and other electrical equipment at the city’s power plant. The city submitted a claim for the resulting damage, but the insurance company denied it. The insurer denied based on an exclusion in the insurance policy for property damage “caused by arcing or by electrical currents other than lightning.” According to the insurance company, the squirrel had no role in causing the damage; all of the damage resulted from arcing, which was excluded from coverage. The ensuing lawsuit focused upon whether the squirrel had a role in causing the damage. If yes, then there would be coverage according to Iowa insurance law; when a loss results from two causes, one of which is covered and the other is not, then there is coverage if the loss occurs from the covered cause. Due to this legal standard, the city contended that, apart from the arcing causing any damage, the squirrel caused the damage too. Because the insurance policy provided protection against mischievous actions performed by squirrels, the city contended that it was entitled to coverage, even if the excluded arcing contributed to the same damage too. Unfortunately, for the city, the Iowa Supreme Court rejected that argument, finding instead that the property damage resulted only from the arcing, which was excluded from coverage. In reaching its conclusion, the court absolved the squirrel of any wrongdoing, finding that it did not cause any of the property damage. Read the court decision
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Reprinted courtesy of Graham C. Mills, Newmeyer & Dillion
Mr. Mills may be contacted at graham.mills@ndlf.com

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