Seattle Washington Building Expert Directory

Contractual Indemnification Limitation on Florida Public Projects

July 28, 2016 — David Adelstein – Florida Construction Legal Updates
Construction contract indemnification provisions are governed under Florida Statute s. 725.06. This is a very important statute to know if you are drafting indemnification provisions for any type of construction contract. (There is also Florida Statute s. 725.08 that discusses indemnification provisions applicable to design professionals that is also worth knowing.) Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Precedent-Setting ‘Green’ Apartments in Kansas City

September 17, 2015 — Beverley BevenFlorez-CDJ STAFF
According to the Kansas City Star, the Missouri riverfront apartment development, Second and Delaware, is being constructed with “greener-than-green technology” and features the following: “Sixteen-inch-thick concrete walls. Rooftop gardens. A 90 percent reduction in energy use compared to current building codes.” The two buildings “will comprise the largest U.S. multifamily apartment project using Passive House Institute-certified construction, a system that’s more energy-efficient than the highest LEED (Leadership in Energy and Environmental Design) building standard.” Read the court decision
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Landlords, Brace Yourselves: New Law Now Limits Your Rental Increases & Terminations

March 02, 2020 — Kyle Janecek – Newmeyer Dillion
California can be an especially expensive place to live. While this is the common wisdom, residents of the state are also painfully aware that location is an equally important factor. Yet, to curb unscrupulous actions in certain areas and expansive rental increases, Governor Gavin Newsom has signed AB-1482, which is a state-wide limitation on yearly rental increases, prompting potential additions to leases, and additional notices that landlords are required to give to tenants. Failure to do so may cost landlords unnecessary costs and unforeseen complications around the termination of a tenancy. How Does the Rental Cap Work? The law sets forth three ways that rental increases may be limited: (1) a cap of 5% plus the percent change in the cost of living; (2) a cap of 10%; or (3) where local rent or price control that restricts annual increases in the rental rate to an amount less than the state law. The cap that applies is the one that is the most restrictive on the landlord. For example, if the cost of living has gone up by 6%, and there is a local law that restricts rental increases by 15%, then the state law would cap the landlord to a rental increase of 10%. Notably, this doesn't count any discounts or incentives that are applied to the rent, if they are (a) listed separately and (b) clearly stated within the residential lease agreement. Thus, even if the effective increase would be beyond the applicable cap, the landlord is not obligated to cap rent using the discounted rental fees. Finally, this does not prohibit the landlord from freely setting a rent for new tenants. The cap only applies to existing tenants. Exempt Properties from the Law Certain properties are also exempt from the rental cap law, allowing landlords to increase rents without limitation for the residential properties below:

Housing restricted by deed for purposes of affordable housing.
New housing with a certificate of occupancy that has been granted within the previous 15 years.
Condominiums or townhouses provided that the owner is not (a) a real estate investment trust; (b) a corporation, or (c) a limited liability trust.
A duplex in which one of the units is owner-occupied as the owner's primary residence.

'Just Cause' for Terminations Is a Necessity Notably, AB-1482 is not limited to rent restrictions. AB-1482 also restricts the ability of a landlord to evict tenants after the tenant has been occupying the property for over 12 months without just cause. Just cause includes items typical to an ordinary eviction action, such as a failure to pay rent or a default of a material term of the lease, or nuisance actions. Importantly, the legislature provided "no-fault just cause" such as the intent to occupy the real property by the owner or one of their family members, withdrawal of the property from the rental market, compliance with a government agency or an intent to substantially remodel the property. In the event that the just cause is "no-fault," then the owner must either (a) assist the tenant in relocating by providing a direct payment of a full month's rent to the tenant within 15 calendar days of the notice; or (b) waive the payment of the last month's rent. Effectively, this puts a cost on the landlord to terminate a tenancy. Importantly, an owner's failure to do either of those actions will render the termination of tenancy void, and cannot be contractually waived. This does not apply to any of the housing types exempt under the rental cap provision, or (a) transient and tourist hotel occupancy; (b) housing accommodations in a nonprofit hospital, religious facility, extended care facility, licensed residential care facility for the elderly, or in an adult residential facility; (c) housing accommodations in which the tenant shares bathroom or kitchen facilities with the owner; (d) single-family owner-occupied residences where the owner leases no more than two units or bedrooms; or (e) student housing for kindergartens or grades 1 to 12. Notwithstanding, landlords must also provide additional language within their lease giving notice of the rental cap law and the tenant's rights regarding termination. This language is stated within the law, and must be given in 12 point font. What Landlords Must Do Right Now Ultimately, landlords will have to show more care towards termination processes and rental increases moving forward. At a bare minimum, landlords will have to revise their form leases for new tenants and prepare addendums for any tenancies continuing in 2020. While the bare minimum is the new, state-mandated language to inform tenants of their rights, other language may be required if the landlord wishes to reserve a right to terminate in order to take occupancy for themselves. Furthermore, for any leases going forward, any landlord that wants to provide a temporary discount or incentive to rent their units will have to include language outlining and specifically stating the presence of the discount or incentive, or chance that a tenant may contest the increase in rent as a violation of the rental cap portion of the law. Similarly, the changes above will have to be implemented as an addendum to any leases being renewed. A failure to do any of these actions risks that a tenant may contest either the termination for being improper or an increase in rent, as an excessive rent hike. Kyle Janecek is an associate on the firm's Transactional team, and has experience with drafting leases for landlords and tenants, real estate purchase and sale agreements, and loans secured by real estate. For more information on how Kyle can help, contact him at kyle.janecek@ndlf.com. About Newmeyer Dillion For 35 years, Newmeyer Dillion has delivered creative and outstanding legal solutions and trial results that achieve client objectives in diverse industries. With over 70 attorneys working as a cohesive team to represent clients in all aspects of business, employment, real estate, environmental/land use, privacy & data security and insurance law, Newmeyer Dillion delivers holistic and integrated legal services tailored to propel each client's success and bottom line. Headquartered in Newport Beach, California, with offices in Walnut Creek, California and Las Vegas, Nevada, Newmeyer Dillion attorneys are recognized by The Best Lawyers in America©, and Super Lawyers as top tier and some of the best lawyers in California and Nevada, and have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949.854.7000 or visit www.newmeyerdillion.com. Read the court decision
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Viewpoint: Firms Should Begin to Analyze Lessons Learned in 2020

January 04, 2021 — Rich Friedman - Engineering News-Record
If there’s one phrase that describes 2020, it was not “business as usual.” How AEC firms fared last year depended upon their strategies for navigating an uncertain landscape. While we talk about finding a new normal, company leaders in 2021 will have to think more expansively about what they want that “normal” to look like. Reprinted courtesy of Rich Friedman, Engineering News-Record ENR may be contacted at ENR.com@bnpmedia.com Read the full story... Read the court decision
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Louis "Dutch" Schotemeyer Returns to Newmeyer Dillion as Partner in Newport Beach Office

September 14, 2020 — Louis "Dutch" Schotemeyer - Newmeyer Dillion
Prominent business and real estate law firm Newmeyer Dillion is pleased to announce that Louis “Dutch” Schotemeyer has rejoined the firm as a partner in the Newport Beach office. Schotemeyer will expand the firm’s Real Estate Litigation, Construction Litigation, Business Litigation and Labor & Employment practices and strengthen the firm’s legal offerings for companies operating without a dedicated in-house legal counsel. “We are thrilled to be welcoming Dutch back to Newmeyer Dillion. He brings a wealth of litigation experience and has served as a trusted advisor to companies facing myriad complex legal disputes,” said the firm’s Managing Partner, Paul Tetzloff. “His experience as in-house counsel will greatly complement Newmeyer Dillion’s business-first mindset when it comes to providing legal counsel to our clients. He is an invaluable asset to the team.” Prior to rejoining Newmeyer Dillion, Schotemeyer was Vice President and Associate General Counsel for William Lyon Homes, Inc. and Vice President and Deputy General Counsel for Taylor Morrison. His experience as a corporate attorney has strengthened his ability to work with in-house counsel and serve as a relationship attorney that assists clients in managing legal needs by building the right team of legal specialists. Read the court decision
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Reprinted courtesy of Louis "Dutch" Schotemeyer, Newmeyer Dillion
Mr. Schotemeyer may be contacted at dutch.schotemeyer@ndlf.com

Jean Nouvel’s NYC ‘Vision Machine’ Sued Over Construction Defects

December 10, 2015 — Beverley BevenFlorez-CDJ STAFF
The Telegraph reported that the developers of famed architect Jean Nouvel’s futuristic building are being sued over alleged window pane defects. The building contains a customized, “curving curtain wall of different sized panes of colorless glass—each set in a unique angle and torque,” according to Nouvel’s firm. However, some residents reported “wind whistling through the panes of glass, and water seeping in.” Furthermore, “[t]he draft is so severe in some places that hydronic heating pipes have frozen and burst, according to court papers.” Attorney for the developer told the Telegraph, “Our clients will be vigorously defending this matter and we believe we will prevail in the case.” Read the court decision
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The Enforceability of “Pay-If-Paid” Provisions Affirmed in New Jersey

January 04, 2023 — Levi W. Barrett, Michael S. Zicherman & Brian Glicos - Peckar & Abramson, P.C.
On December 7, 2022, the Appellate Division affirmed the New Jersey Superior Court decision in Jersey Precast v. Tricon Enterprises, Inc. et al., finding that the “pay-if-paid” clause in a material supplier’s purchase order with a general contractor was binding and enforceable. While clauses conditioning a general contractor’s obligation to pay its subcontractors on the general contractor’s receipt of payment from the project owner are not unique – this is the first time that a court in New Jersey has affirmed this practice in a published opinion. [1] Background The general contractor, Tricon, sent Jersey Precast its standard form purchase order for the supply of prestressed box beams to fulfill a public improvement contract with Union County. The reverse side of the form purchase order contained standard terms and conditions, and included a pay-if-paid clause drafted by Michael Zicherman, a partner of Peckar & Abramson, P.C. While Jersey Precast provided some draft revisions to the terms and conditions, Tricon never signed the purchase order and the proposed revisions were never accepted. Significantly, Jersey Precast did not attempt to modify the pay-if-paid provision. It later developed that the construction of the project became impossible, and the beams fabricated by Jersey Precast were not used. Tricon invoiced Union County for the cost of the beams, but the County failed to make payment and refused to accept delivery of the beams. Reprinted courtesy of Levi W. Barrett, Peckar & Abramson, P.C., Michael S. Zicherman, Peckar & Abramson, P.C. and Brian Glicos, Peckar & Abramson, P.C. Mr. Barrett may be contacted at lbarrett@pecklaw.com Mr. Zicherman may be contacted at mzicherman@pecklaw.com Mr. Glicos may be contacted at bglicos@pecklaw.com Read the court decision
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Home Building Likely to Stick to Slow Pace

November 13, 2013 — CDJ STAFF
The National Association of Realtors is predicting that home builders will continue to be cautious in the number of homes they build, leading to a continued shortage and higher prices for those that are built. “The inventory shortage will not go away,” said Lawrence Yun, the chief economist for the National Association of Realtors. According to Mr. Yun, the inventory is the lowest it has been in 13 years. As a result of many factors, including rising home prices and rising interest rates, the group is predicting that new home sales will remain flat next year, offering little incentive to builders. Read the court decision
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SEATTLE WASHINGTON BUILDING EXPERT DIRECTORY AND CAPABILITIES