Fairfield Connecticut Building Expert Directory

Real Estate & Construction News Roundup (12/4/24) – Highest Rate of Office Conversions, Lending Caps for Fannie Mae and Freddie Mac and Affordability Challenges for Homebuyers

December 23, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, infrastructure-related ballot initiatives, U.S. Green Building Council’s success stories, support for sustainable building, and more!

2024 is expected to see the highest rate of office conversions since CBRE began tracking them in 2016. (Nish Amarnath, SmartCities Dive)
The Federal Housing Finance Agency has established lending caps of $73 billion each for Fannie Mae and Freddie Mac, allowing them to purchase a total of up to $146 billion in multifamily loans in 2025. (Leslie Shaver, Multifamily Dive)
A number of infrastructure-related initiatives with the potential to impact facilities managers were on the ballot during the 2024 U.S. presidential election. (Joe Burns, Construction Dive)

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Hawaii Federal District Court Rejects Insurer's Motion for Summary Judgment on Construction Defect Claims

November 06, 2018 — Tred R. Eyerly - Insurance Law Hawaii
Taking into consideration a "Revised Occurrence Endorsement," the federal district court determined the insurer had a duty to defend. Gemini Ins Co. v. Constrx Ltd., 2018 U.S. Dist. LEXIS 163453 (D. Haw. Sept. 24, 2018). Constrx Ltd. (CRX) contracted with the AOAO to perform remedial construction repairs to condominium buildings and apartment units. CRX asserted that it completed all work, including charge orders and punch list items and it left the site. CRX was paid less that the contract amount and demanded arbitration against the AOAO. In the arbitration the AOAO relied upon a report by Posard Brock & Associates (PBA) Report which set forth the AOAO's claims against CRX, including corrective work, remaining punch list work, construction delay costs, cost overruns, and other items justifying its payment than less that the contract amount. 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

Coverage Denied for Condominium Managing Agent

May 24, 2018 — Tred R. Eyerly - Insurance Law Hawaii
Determining there were no allegations of bodily injury or property damage in the underlying lawsuit, the court found there was no duty to defend or indemnify the condominium's managing agent. State Farm Fire & Cas. Co. v. Certified Mgmt., 2018 U.S.Dist. LEXIS 71124 (D. Haw. April 27, 2018). Frederick Caven sued Certified Management, dba Associa Hawaii ("Associa") on behalf of himself and a class. Caven alleged that he owned a condominium and was a member of the Regency homeowners' association. The suit alleged that Associa was the managing agent for the association. Caven sold his unit in April 2016. Caven asked Associa for condominium documents to provide to the purchaser. Associa charged Caven $182.29 to download 197 pages of condominium documents for Regency. Associa also charged Caven $286.46 for a one-page "fee status confirmation," a document prepared by Associa which contained financial and other information needed to complete the sale. Caven alleged that the fees charged by Associa and other unit owners were excessive and in violation of Hawaii law. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Colorado Chamber of Commerce CEO Calls for Change to Condo Defect Law

March 05, 2015 — Beverley BevenFlorez - CDJ STAFF
According to the Denver Business Journal, Dennis Houston, president and CEO of the Parker Chamber of Commerce in Colorado, spoke at the state’s capitol recently, calling legislators “to make it harder for attorneys to file class-action lawsuits against condominium builders so that areas like his can attract a workforce of millennials.” Houston and other Chamber of Commerce leaders gathered at the capitol “to lobby for sensible energy policies and construction defects reform, among other things.” Read the court decision
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Background Owner of Property Cannot Be Compelled to Arbitrate Construction Defects

November 07, 2012 — CDJ STAFF
In Truppi v. Pasco Engineering, John Quattro sued Property Management Contractors, Inc. over construction defects in William Truppi’s home. All parties are named in the suit. The California Court of Appeals ruled that Property Management Contractors, Inc. (PMCI) could not compel Mr. Quattro to arbitration. The background of the case involves two houses built in Encinitas, California by PCMI: one for Mr. Truppi at 560 Neptune, and one for Mr. Quattro at 566 Neptune. Both contracts contained an arbitration provision. Mr. Quattro signed the contract for his residence and Mr. Truppi signed the other. Mr. Quattro then sued PCMI and its principal, William Gregory. Mr. Quattro claimed to be the true contracting party for the 560 Neptune residence and a third party beneficiary of the contract Mr. Truppi signed, and stated that PCMI was aware of this. PCMI in a demurrer stated that Quattro “had only a ‘prospective beneficial interest in the property upon its eventual sale or lease.’” Mr. Quattro amended his complaint to account for the issues raised by PCMI. The court rejected PCMI’s demurrer to the amended complaint. Finally, PCMI and Gregory asserted that Quattro was “not the real party in interest” and could not sue. PCMI continues to assert that Quattro lacks standing, but their attorney sent Quattro an e-mail stating, “While my client disputes that you are a party, and that you lack standing to assert the claim, to the extent you do so I believe you are obligated to proceed by way of arbitration.” The court did not cover the issue of Quattro’s standing in the case, only if he could be compelled to arbitration. The court affirmed the lower court’s finding that Quattro could not be compelled to arbitrate the construction defect claim as neither he nor Gregory signed the contract in an individual capacity. Further, the court noted that PCMI and Gregory “denied the existence of an agreement between themselves and Quattro on the 560 contract,” and cannot compel arbitration on a non-existent agreement. And while non-signatories can, in some situations be compelled to arbitrate, the court found that “these cases are inapplicable because here they seek to have the alleged third party beneficiary (Quattro) compelled by a nonsignatory (Gregory).” The arbitration clause in question “expressly limited its application to persons or entities that signed the 560 contract.” As Mr. Quattro was not a signatory to that agreement, the court found that he could not be held to its arbitration provision. Read the court decision
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Arizona Rooftop Safety: Is it Adequate or Substandard?

October 01, 2014 — Beverley BevenFlorez-CDJ STAFF
The Wall Street Journal reported that the Occupational Safety and Health Administration (OSHA) recently “took the unprecedented step of formally proposing to take over construction workplace safety in Arizona because it said the state doesn't require proper fall protection.” OSHA’s deputy director, Jordan Barab, told the Wall Street Journal, “We told them we did not think their standard…was at least as effective as ours.” However, “[a] spokeswoman for Arizona's state workplace enforcement agency countered that the state's requirements are adequate, adding that it will respond to the federal notice ‘as appropriate.’” Read the court decision
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Anatomy of a Construction Dispute- A Wrap Up

November 15, 2022 — Christopher G. Hill - Construction Law Musings
Over the past four weeks, I’ve “mused” on the “stages” of a construction dispute. What started as a kernel of thought in my mind turned into what has seemed to be a popular set of four posts that I hope were both informative and interesting. Because of the great feedback I’ve gotten, I thought that I’d consolidate the posts into one so that my readers (thank you, by the way) will have them all in one place. Here they are: The Anatomy of a Construction Dispute- The Claim– This post discussed the steps for setting out a claim under your construction contract and the steps to lay the groundwork should you need to move forward with a more formal means of collection. The Anatomy of a Construction Dispute Stage 2- Increase the Heat– This post discussed various methods to increase the heat on the party with whom you have a claim prior to litigation or arbitration. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Brazil Congress Chiefs Deny Wrongdoing in Petrobras Scandal

March 12, 2015 — Raymond Colitt, Anna Edgerton and Sabrina Valle – Bloomberg
(Bloomberg) -- Brazil’s congressional heads denied involvement in the country’s largest corruption scandal after being named among dozens of politicians for investigation. Renan Calheiros and Eduardo Cunha, the heads of the Senate and lower house respectively, and Rio de Janeiro Senator Lindbergh Farias all rejected allegations of graft in the kickback scheme dubbed Carwash. Farias told the Folha de Sao Paulo newspaper in an interview published Sunday that while he may have acted improperly, his actions weren’t illegal. The senator said he took a 2 million real-donation ($650,000) from Andrade Gutierrez SA, a Rio-based construction company. Reprinted courtesy of Bloomberg reporters Raymond Colitt, Anna Edgerton and Sabrina Valle Mr. Colitt may be contacted at rcolitt@bloomberg.net Ms. Edgerton may be contacted at aedgerton@bloomberg.net Ms. Valle may be contacted at svalle@bloomberg.net Read the court decision
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