Paycheck Protection Program Forgiveness Requirements Adjusted
June 29, 2020 —
Jacob W. Scott - Smith CurrieOn June 5, 2020, the President signed into law the Paycheck Protection Program Flexibility Act of 2020, amending portions of the Paycheck Protection Program (“PPP”). Most importantly, the PPP Flexibility Act adjusted the forgiveness requirements for PPP loans.
The CARES Act allowed borrowers to apply for forgiveness of loan amounts used for payroll and other covered costs during an eight-week period beginning on the date of origination, or by June 30, 2020, whichever came first. The CARES Act also allowed borrowers to use the loan funds by June 30 to restore employee and payroll levels that had been reduced as a result of COVID-19. The Small Business Administration instructed borrowers that at least 75% of the loan funds had to be used to cover payroll costs during the covered period to be eligible for forgiveness.
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Jacob W. Scott, Smith CurrieMr. Scott may be contacted at
jwscott@smithcurrie.com
You Cannot Arbitrate Claims Not Covered By The Arbitration Agreement
March 16, 2020 —
David Adelstein - Florida Construction Legal UpdatesRegardless of the type of contract you are dealing with, “[a]rbitration provisions are contractual in nature, and therefore, construction of such provisions and the contracts in which they appear is a matter of contract interpretation.” Wiener v. Taylor Morrison Services, Inc., 44 Fla. L. Weekly D3012f (Fla. 1st DCA 2019). This means if you want to preserve your right to arbitrate claims you want to make sure your contract unambiguously expresses this right. Taking this one step further, if you want to make sure an arbitrator, and not the court, determines whether the claim is arbitrable if a dispute arises, you want to make sure that right is expressly contained in the arbitration provision.
For example, in Wiener, a homeowner sued a home-builder for violation of the building code – a fairly common claim in a construction defect action. The homeowner’s claim dealt with a violation of building code as to exterior stucco deficiencies. The home-builder moved to compel the lawsuit to arbitration based on a structural warranty it provided to the homeowner that contained an arbitration provision. The structural warranty, however, was limited and did not apply to non-load-bearing elements which, per the warranty, were not deemed to have the potential for a major structural defect (e.g., a structural defect to load-bearing elements that would cause the home to be unsafe or inhabitable). The trial court compelled the dispute to arbitration pursuant to the arbitration provision in the structural warranty.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
The Fair Share Act Impacts the Strategic Planning of a Jury Trial
May 10, 2017 —
Andrew Ralston, Jr. - White and Williams LLPComplex questions surrounding the application of the Fair Share Act, which modified Pennsylvania’s common law “joint and several” liability law, are being taken up by courts in the Commonwealth with increasing frequency. Given the practical consequences of the differences in application between the Act and “joint and several” liability, additional litigation over the application of the Fair Share Act to real world factual situations will undoubtedly arise.
Recent Caselaw
Currently, in Roverano v. PECO Energy, the Superior Court of Pennsylvania is considering the question of whether, under the Fair Share Act, the jury, or else the trial judge, is responsible for the task of apportioning liability to multiple defendants in a strict liability case. In Roverano – an asbestos case -- a jury awarded the plaintiff $6.3 million. On the verdict sheet were eight joint tortfeasor co-defendants. The judge did not allow the jury to apportion liability to each defendant and, as a result, no guidance was provided by the jury about how much each defendant was to contribute to the award. Instead, the judge merely divided the jury’s award by eight (the number of defendants in the case) and apportioned to each defendant one-eighth of the verdict amount.
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Andrew Ralston, Jr., White and Williams LLPMr. Ralston may be contacted at
ralstona@whiteandwilliams.com
What Sustainable Building Materials Will the Construction Industry Rely on in 2020?
March 23, 2020 —
Emily Folk - Construction ExecutiveThe construction industry has had a successful year in developing new ways to make building sustainable and healthy for citizens. From recycled glass to cork, there's been an abundance of materials used for creating better structures. Many of these trends will roll over into 2020, but there's no doubt that a new crop of green solutions will surface.
Construction companies and contractors will benefit from keeping staying on the leading edge of new trends. Environmentalism is on everyone's minds, and consumers want sustainable structures for their attractiveness and eco-friendly properties. Implementing the next best resources puts engineers ahead of the competition while preserving the planet.
The Benefits of Sustainable Construction
Eco-friendly buildings offer numerous benefits to their builders and owners. They generate less waste, require less energy and output less carbon dioxide, making the Earth cleaner. Because they consist of high-quality materials, they help building owners save money on maintenance and upkeep. These funds can go toward other necessary expenses, such as purchasing inventory or implementing upgrades for tenants.
Reprinted courtesy of
Emily Folk, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Japan Quake Triggers Landslides, Knocks Power Plant Offline
September 10, 2018 —
Jeff Rubenstone - Engineering News-RecordA magnitude 6.7 earthquake occurred on the northern Japanese island of Hokkaido on Sept. 6, leaving at least seven dead and damaging buildings and structures in the region, including a 1,650MW coal-fired thermal power plant that was taken offline.
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Jeff Rubenstone, ENRMr. Rubenstone may be contacted at
rubenstonej@enr.com
Additional Insured Not Entitled to Indemnity Coverage For Damage Caused by Named Insured
February 23, 2017 —
Tred R. Eyerly – Insurance Law HawaiiThe additional insured unsuccessfully sought to recover damages to its building caused by the named insured. Brit UW, Ltd. v. Tripar, Inc., 2017 U.S. Dist. LEXIS 2462 (N.D. Ill. Jan. 6, 2017).
Davis Russell Real Estate and Management LLC hired Tripar, Inc., a general contractor, to renovate a 12-unit apartment building. The entire roof was to be replaced by a roofing subcontractor. Davis Russell drafted a Professional Services Agreement (PSA) that governed the project. Tripar was to obtain a CGL policy and provide a certificate of insurance evidencing the coverage. Davis Russell was to be named as an additional insured.
Tripar's insurance broker prepared a certificate of insurance reflecting that a CGL policy was issued to Tripar by Brit UW, Ltd. But the certificate clearly stated that it was not issued by the insurer and that it did not alter coverage. The certificate of insurance further stated that it conferred no rights upon the holder.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Real Estate & Construction News Roundup (08/15/23) – Manufacturing Soars with CHIPS Act, New Threats to U.S. Infrastructure and AI Innovation for One Company
September 25, 2023 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, wildfires wreak havoc in Maui, JLL unveils an AI specifically for commercial real estate, the lasting effects of the CHIPS ACT, and more!
- So far, 11,000 JLL employees have used the company’s new proprietary large language model that has generative AI capabilities specifically for the commercial real estate industry. (Lindsey Wilkinson, Construction Dive)
- Since the enactment of the CHIPS Act, manufacturing activity has boomed with a nearly 80% increase from June 2022. (Sebastian Obando and Julia Himmel, Construction Dive)
- Construction-tech-focused investors among others have poured $35 million into an Israeli startup that develops leakage detection technology using artificial intelligence to prevent water damage. (Sharon Wrobel, Times of Israel)
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Pillsbury's Construction & Real Estate Law Team
Parties to an Agreement to Arbitrate May be Compelled to Arbitrate with Non-Parties
February 28, 2022 —
Paul R. Cressman Jr. - Ahlers Cressman & Sleight PLLCIn a recent case decided by Division III of the Washington Court of Appeals, David Terry Investments, LLC – PRC v. Headwaters Development Group LLC,[1] the court held that parties to an arbitration agreement can be compelled to arbitrate related claims with non-parties to the agreement based on the doctrine of equitable estoppel.
The case involved six joint venture agreements to develop three separate properties in Spokane, two joint venture agreements per property. One entity, David Terry Investments, LLC – PRC (“DTI”), owned by David Terry, was a partner in each of the six joint venture agreements. DTI joint ventured with S.G. Spady Consulting (“SGSC”) and with Headwaters Development Group LLC (“HDG”) separately for each of the three properties. HDG owned the three properties, and SGSC was to provide construction management advice. Steve Spady was the principal of both HDG and SGSC. Stoneridge was a licensed general contractor, the principal of which was also Steve Spady.
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Paul R. Cressman Jr., Ahlers Cressman & Sleight PLLCMr. Cressman may be contacted at
paul.cressman@acslawyers.com