Real Estate & Construction News Roundup (1/10/24) – New Type of Nuclear Reactor, Big Money Surrounding Sports Stadiums, and Positivity from Fannie Mae’s Monthly Consumer Survey
February 05, 2024 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, the commercial real estate market poses a risk to financial stability, New York City moves towards net-zero building emissions, workers at several Los Angeles area hotels tentatively agree to a new contract, and more!
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Pillsbury's Construction & Real Estate Law Team
The Expansion of Potential Liability of Construction Managers and Consultants
November 18, 2019 —
Scott D. Cessar - Construction ExecutiveOver the last decade or so, there has been far more judicial willingness to adopt legal theories that result in an increased risk of exposure to construction managers and consultants working on construction projects. This has resulted in a greater likelihood of lawsuits being filed that name construction managers and consultants as defendants and a greater likelihood of those lawsuits surviving efforts to have the lawsuits dismissed prior to trial. The consequence of more claims has led to increased costs for legal expenses, settlements and uncompensated personnel time devoted to the defense of the claims.
This expansion of potential liability may be broken into two sets:
- claims for pure economic loss not arising from property damage or personal injury by parties not in a contractual relationship with a construction manager or consultant; and
- claims for property damage or personal injury by a party not in a contractual relationship with a construction manager or consultant.
The first set concerns claims by a contractor against a construction manager or consultant that its breach of duties owed to the owner on a project and/or its provision of incomplete or inaccurate information on a project, which it knew, or should have reasonably anticipated, would be relied on by the contractor, resulted in damages to the contractor.
Reprinted courtesy of
Scott D. Cessar, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Cessar may be contacted at
scessar@eckertseamans.com
Affordable Housing, Military Contracts and Mars: 3D Printing Construction Potential Builds
September 05, 2022 —
Adam J. Weaver & Lindsey Mitchell - Gravel2Gavel Construction & Real Estate Law BlogThe 3D printing construction market is likely on the cusp of a boom.
This unique construction method boasts many advantages in comparison to traditional forms of construction. Projects can be completed more quickly and at a fraction of the cost, given fewer laborers are required and the materials used are much cheaper. Though market growth stalled during the COVID-19 pandemic, industry leaders expect 3D printing construction to experience exponential growth in the coming years.
While 3D printing technology has risen in popularity and prominence in the past couple of decades, it is only recently that 3D printing companies have begun making strides in the construction industry. Critical to the construction process is the software that is used to create and model the planned structure. A software program turns a building’s blueprint into code that then dictates the movement of a 3D printer on the construction site. After a concrete-like mix is loaded into the printer, the printer begins to build the walls by laying one cylindrical layer of concrete at a time, in accordance with the blueprint. There is no one-size-fits-all approach in 3D printing construction: some companies print the core structure as well as the roof and floor of the structure, while others print only the core and shell and install those portions separately using traditional methods and materials.
Reprinted courtesy of
Adam J. Weaver, Pillsbury and
Lindsey Mitchell, Pillsbury
Mr. Weaver may be contacted at adam.weaver@pillsburylaw.com
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A Court-Side Seat: Flint Failures, Missed Deadlines, Toad Work and a Game of Chicken
October 05, 2020 —
Anthony B. Cavender - Gravel2GavelThe last few weeks have yielded a number of interesting developments in the Federal courts.
FEDERAL COURTS OF APPEAL
In re Flint Water Cases
Several local and State of Michigan officials, including the former governor, requested dismissal from the civil litigation seeking damages for the massive failure of Flint, Michigan’s public drinking water system. On August 5, 2020, the U.S. Court of Appeals for the Sixth Circuit agreed that the plaintiffs, residents of Flint, have successfully pled a case that the conduct of the defendants so “shocked the conscience” that a claim for a violation of their substantive due process rights was appropriately alleged. The defendants, including the former governor, argued that they were entitled to a qualified immunity defense. The court rejected this argument on the basis of the earlier decisions made by the court in this matter. Judge Sutton concurred because he was bound by this precedent, but remarked that the evidence for the governor’s culpability was very thin; he was not intimately connected to the extraordinary error in judgment. The majority was very upset with this concurrence as indicted by their own opinion.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Washington State Supreme Court Issues Landmark Decision on Spearin Doctrine
September 29, 2021 —
Cameron Sheldon - Ahlers Cressman & Sleight PLLCThe Washington State Supreme Court’s recent decision in Lake Hills Invs., LLC v. Rushforth Constr. Co. No. 99119-7, slip op. at 1 (Wash. Sept. 2, 2021) marks the first time in over 50 years that it has ruled on the Spearin doctrine. The Court’s opinion clarified the contractor’s burden when asserting a Spearin defense and affirmed the jury’s verdict in favor of contractor AP Rushforth Construction Company (AP). The decision is a major win for Ahlers Cressman & Sleight PLLC attorneys Scott Sleight, Brett Hill, and Nick Korst, who represented AP throughout its long-running dispute with Lake Hills Investments, LLC (LH), including the two-month jury trial and the appeal. Leonard Feldman of Peterson | Wampold | Rosato | Feldman | Luna and Stephanie Messplay of Van Siclen Stocks & Firkins also represented AP on appeal.
At trial, the owner—Lake Hills Investments, LLC (LH)—asserted it was entitled to $3 million in liquidated damages and $12.3 million for defects it alleged were caused by AP’s deficient workmanship. AP denied responsibility for the delays and most of the defects and requested payment of $5 million. Regarding LH’s defect claims, AP argued as an affirmative defense that the defects were caused by deficiencies in the plans and specifications provided by LH. This affirmative defense was rooted in the Spearin doctrine, which states that when the contractor follows plans and specifications provided by the owner, the contractor is not responsible for defects caused by the plans and specifications.
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Cameron Sheldon, Ahlers Cressman & Sleight PLLCMs. Sheldon may be contacted at
cameron.sheldon@acslawyers.com
Fourth Circuit Holds that a Municipal Stormwater Management Assessment is a Fee and Not a Prohibited Railroad Tax
April 22, 2019 —
Anthony B. Cavender - Gravel2GavelOn February 15, the U.S. Court of Appeals for the Fourth Circuit decided Norfolk Southern Railway Co. v. City of Roanoke, et al.; the Chesapeake Bay Foundation was an Intervenor-Defendant. The Fourth Circuit held that a large stormwater management fee (stated to be $417,000.00 for the year 2017) levied by the City of Roanoke against the railroad to assist in the financing of the City’s permitted municipal stormwater management system was a permissible fee and not a discriminatory tax placed on the railroad.
The Railroad Revitalization and Regulatory Reform Act of 1976 specifically provides that states and localities may not impose any tax that discriminates against a rail carrier, 49 U.S.C. § 11501. Accordingly, the issue confronting the Fourth Circuit was whether the assessment was fee and not a tax.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
HP Unveils Cheaper, 3-D Printing System to Spur Sales
November 05, 2014 —
Jack Clark - BloombergHewlett-Packard Co. (HPQ) unveiled a new 3-D-capable computer and speedier 3-D printer technology as it prepares to spin off its personal-computer and printer businesses into a stand-alone company.
The company today introduced Sprout, an $1,899 computer that lets people scan and manipulate 2-D and 3-D objects. It will be available early next month online and in some U.S. stores. Hewlett-Packard also said new 3-D printer technology will make the process cheaper and faster than competitors.
The Palo Alto, California-based company is betting that 3-D technology will help revitalize sales and spur growth in the printer industry. More than 2.3 million 3-D printers will ship in 2018, up from about 108000 this year, according to researcher Gartner Inc. Earlier this month, Hewlett-Packard said it would split into two companies by late 2015, with one focused on corporate hardware services and the other -- dubbed HP Inc. -- on PCs and printers.
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Jack Clark, BloombergMr. Clark may be contacted at
jclark185@bloomberg.net
As Some States Use the Clean Water Act to Delay Energy Projects, EPA Issues New CWA 401 Guidance
August 26, 2019 —
Anthony B. Cavender - Gravel2GavelIn just the past few weeks, three states have used their Clean Water Act 401 authority to delay, for an indefinite period, FERC-authorized pipeline expansion projects. On May 6, 2019, the Oregon Department of Environmental Quality denied, without prejudice, Jordan Cove’s application for a Section 401 water quality certification. Jordan Cove plans to build an LNG export terminal at Coos Bay, Oregon, if it can obtain the necessary federal and permits. Under Section 401(a) of the Clean Water Act, any applicant for a federal permit to conduct any activity, including the operation of facilities which may result in any discharge into the navigable waters, shall provide the permitting agency a certification from the State in which the discharge may originate that any such discharge will comply with the applicable provisions of the Clean Water Act, including effluent limitations and state water quality standards. The States have a “reasonable time”—which shall not exceed one year after the receipt of the 401 application—in which to act, or the state’s authority may be waived by this inaction. The Oregon DEQ concluded that Jordan Cove has not demonstrated that its project, as presently configured, will satisfy state water quality standards. The 401 applications submitted by Transcontinental Gas Pipe Line Co. (Transco) to the New Jersey Department of Environmental Protection and the New York State Department of Environmental Protection were similarly rejected without prejudice on May 15, 2019 (New York) and June 5, 2019 (New Jersey). This use of the states’ 401 authority has frustrated plans to build and operate LNG pipelines around the country.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com