AI Systems and the Real Estate Industry
April 03, 2023 —
Robert G. Howard & Craig A. de Ridder - Gravel2Gavel Construction & Real Estate Law BlogArtificial intelligence (AI) systems captured considerable attention with the release of a large language chatbot, ChatGPT, by OpenAI, in November of last year. On March 14, OpenAI unveiled GPT-4, a more powerful “multimodal” chatbot responding to both text and images. And, on March 21, Google launched its conversational computer program, Bard, to compete with GPT-4. These chatbots allow users to initiate detailed queries or requests and receive prompt responses in complete sentences. Users are not forced to scroll through a list of results like those produced by search engines and follow-up questions can be asked.
AI systems have been touted for many years and these new breakthroughs may drastically change the way that we create content.
Notwithstanding their unprecedented capabilities, AI systems can produce imperfect results. New chatbots, for example, can generate plausible-sounding but nonsensical, biased or false responses. Accordingly, heavy fact-checking is necessary. OpenAI has warned that ChatGPT is prone to filling in replies with incorrect data if there is not enough information available on the topic on the internet. Bard includes a website disclaimer that it “may display inaccurate or offensive information that doesn’t represent Google’s views.” On March 20, a breach at OpenAI allowed users to see other people’s chat histories before the service was shut down. Further, there is a real risk that courts will rule that certain content generated by these systems infringes the copyright or database rights of the owner of the materials and data that the technologies relied on. When entering into agreements with AI software providers, companies should also be concerned about
other risks, including misappropriation of data, security, confidentiality, privacy and third-party claims.
Reprinted courtesy of
Robert G. Howard, Pillsbury and
Craig A. de Ridder, Pillsbury
Mr. Howard may be contacted at robert.howard@pillsburylaw.com
Mr. de Ridder may be contacted at craig.deridder@pillsburylaw.com
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School District Settles Over Defective Athletic Field
December 11, 2013 —
CDJ STAFFThe Hillsboro, Oregon School District has settled a lawsuit with Mahlum Architects of Portland, one of the four companies sued by the school district over problems with a soccer field. The total lawsuit was for $1.7 million. The architects have settled for $25,000. The manufacturer of Astro Turf also settled with the school for an as-yet undisclosed amount.
What the school describes as the “primary defendants” have yet to settle. The school had to close the soccer field when drainage problems lead to large holes in the playing field.
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That’s Common Knowledge! Failure to Designate an Expert Witness in a Professional Negligence Case is Not Fatal Where “Common Knowledge” Exception Applies
June 03, 2019 —
Lyndsey Torp - Snell & Wilmer Real Estate Litigation BlogIn reversing summary judgment for defendants, the California Fourth District Court of Appeal recently held that homeowners suing their real estate broker for negligence did not need an expert witness to establish the elements of their causes of action. Ryan v. Real Estate of the Pacific, Inc. (2019) 32 Cal. App. 5th 637. Typically, expert witnesses are required to establish the standard of care in professional negligence cases. But in Ryan, the court of appeal held that the “common knowledge” exception applied despite this general rule, because the conduct required by the particular circumstance of the case was within the common knowledge of a layman. The conduct in question here? The broker’s failure to disclose to his client that the client’s neighbor told him that she planned extensive renovations that would obstruct the client’s property’s ocean views.
Ryan and Patricia Ryan (the Ryans) hired defendant Real Estate of the Pacific, Inc., doing business as Pacific Sotheby’s International Realty (Sotheby’s) and defendant real estate broker to sell their residence in La Jolla, California. During an open house at the residence, a neighbor informed the Ryan’s real estate broker that she planned extensive renovations at her home that would, among other things, permanently obstruct the Ryan’s westerly ocean views and take several years to complete. The real estate broker never informed the Ryans of this, nor the subsequent buyer. The subsequent buyer purchased the property for $3.86 million, and defendants received $96,500 as commission for the sale. The day after escrow closed, the buyers learned of the renovations, and sought to rescind the purchase. Based on advice of defendants, the Ryans refused, and the dispute proceeded to arbitration. The buyer obtained a rescission of the purchase, with the Ryans order to pay damages, interest, and attorneys’ fees and costs in excess of $1 million. The Ryans then sued Sotheby’s and the real estate broker to recover these amounts and damages caused by defendants’ alleged negligence.
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Lyndsey Torp, Snell & WilmerMs. Torp may be contacted at
ltorp@swlaw.com
Will the Hidden Cracks in the Bay Bridge Cause Problems During an Earthquake?
June 26, 2014 —
Beverley BevenFlorez-CDJ STAFFDespite a “no cracks” welding code and contract provision for the San Francisco-Oakland Bay Bridge, in 2008 Caltrans proceeded with the project despite welding cracks created by the Chinese firm hired to build the roadway, according to the Sacramento Bee. By the time the cracks had been discovered, the costs were at $6.5 billion and climbing, and fixing the cracks would be time-consuming and expensive.
However, there is some dispute as to rather the welding “cracks represent a hazard to the traveling public.”
“Examine history,” Brian Maroney, Caltrans’ chief engineer for the bridge, said in a recent interview by the Sacramento Bee. “… Caltrans reviewed major quakes around the globe and never found a case in which weld cracks caused bridge-roadway fractures.”
However, the Sacramento Bee reported that there was a case where welding cracks led to fractures. For instance, after the southern California earthquake in 1994 centered in Northridge, the Santa Clara River Bridge “suffered several fractures in steel girders. The breaks were traced to tiny cracks in welds, likely present before the quake, and worsened by vibrations of heavy trucks passing overhead. When the quake struck, the girders fractured.”
The Santa Clara bridge did not collapse. Sacramento Bee claimed it remained standing because the I-beam-shaped girders were “not fracture-critical.” However, the Bay Bridge’s “roadway consists of box-girder segments welded together. In effect, they create one contiguous, fracture-critical girder,” Abolhassan Astaneh-Asl, UC Berkeley engineering professor told the Sacramento Bee. “If welds crack and grow rapidly during a large quake, the entire roadway could fail.”
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A Performance-Based Energy Code in Seattle: Will It Save Existing Buildings?
August 11, 2011 —
Douglas Reiser, Builders Council BlogThe City of Seattle has one of the most stringent energy codes in the nation. Based upon the Washington State Energy Code (which has been embroiled in litigation over its high standards), the code demands a lot from commercial developers. But, does it prevent developers from saving Seattle?s classic and old buildings? Perhaps.
The general compliance procedure requires buildings to be examined during the permitting process. This means that buildings are examined before they begin operating. The procedure is not malleable and is applicable to all buildings, old and new, big and small.
The downside of this procedure is that it eliminates awarding compliance to those buildings exhibiting a number of passive features, such as siting, thermal mass, and renewable energy production. This problem has prevented a number of interesting and architecturally pleasing existing building retrofits from getting off the ground. The cost of complying with the current system can be 20% more, and it might prevent builders from preserving a building?s historical integrity.
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Reprinted courtesy of Douglas Reiser of Reiser Legal LLC. Mr. Reiser can be contacted at info@reiserlegal.com
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Partner Denis Moriarty and Of Counsel William Baumgaertner Listed in The Best Lawyers in America© 2017
September 08, 2016 —
Haight Brown & Bonesteel LLPPartner Denis Moriarty and Of Counsel William Baumgaertner were selected by their peers for inclusion in The Best Lawyers in America© 2017. This marks the fifth consecutive year Mr. Moriarty has been listed for his work in insurance law, and this marks the eleventh year Mr. Baumgaertner has been listed for his defendants’ and plaintiffs’ work in personal injury and product liability litigation.
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Art Dao, Executive Director of the Alameda County Transportation Commission, Speaks at Wendel Rosen’s Infrastructure Forum
April 01, 2015 —
Garret Murai – California Construction Law BlogOn March 2, 2015, Art Dao, Executive Director of the Alameda County Transportation Commission, spoke to a packed house at the Wendel Rosen Construction Practice Group’s Infrastructure Forum on the Commission’s plans for nearly $8 billion in transportation improvement funding approved by voters this past year under Measure BB.
The Alameda County Transportation Commission
The Commission, which was formed in 2010 following the merger of the Alameda County Congestion Management Agency and the Alameda County Transportation Improvement Authority, serves as the congestion management agency for the County of Alameda and is responsible for planning, funding and delivering transportation programs and projects throughout the county.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Real Estate & Construction News Round-Up 04/20/22
May 02, 2022 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogConstruction defects emerge in pandemic-era buildings, investor confidence is improving in China’s real estate market, the proptech field continues to show significant signs of growth, and more.
- Investor confidence in China’s real estate market is improving, with bond trading volumes and prices rising over the last few weeks, but the market is not projected to resume its high growth rate of the past. (Weizhen Tan & Evelyn Cheng, CNBC)
- The economic shock caused by soaring mortgage rates over the past few weeks has dramatically increased mortgage payments for new homebuyers. (Lance Lambert, Fortune)
- With the metaverse economy projected to be worth between $8 and $13 trillion by 2030, blockchain technology serves as a key driver for virtual real estate sales, allowing for “true” ownership of a property. (Robert Koonin, Dan Jasnow, & Kinnon McDonald, TFL)
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Pillsbury's Construction & Real Estate Law Team