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Real Estate & Construction News Round-Up (11/30/22) – Proptech Trends, Green Construction, and Sustainable Buildings

December 13, 2022 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
This week’s round-up explores 4 key trends expected to impact proptech in 2023, global investment in green construction technologies, sustainable buildings and their perceived value for tenants in Europe, and more.

• Sitting at the crossroads between real estate and technology, proptech has experienced significant growth, which is expected to accelerate via 4 key trends in 2023. (Zain Jaffer, Forbes)
• Global investment in green construction technologies reached $2.2 billion in 2022, with legislation and technological innovation serving as the key driving forces behind this growth. (Jennifer Kite-Powell, Forbes)
• In Europe, sustainable buildings have increased the asset values for commercial real estate managers, with tenants willing to pay more for efficient buildings. (David Worford, Environment + Energy Leader)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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San Francisco Half-Built Apartment Complex Destroyed by Fire

March 12, 2014 — Beverley BevenFlorez-CDJ STAFF
According to San Jose Mercury News, a 250 million dollar apartment complex being built in San Francisco, California received “catastrophic damage” from a fire on March 11th. The complex was being developed by BRE Properties, Inc., and “was slated to open sometime later this year.” Initial reports blamed high winds for the start of the blaze, however, San Jose Mercury news reported that “downtown San Francisco experienced wind speeds of no more than 10 mph Tuesday, and that heavy winds were not expected Tuesday night” according to the National Weather Service. “Representatives for [BRE Properties, Inc.] were not available for comment,” as reported by San Jose Mercury News. Read the court decision
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IoT: Take Guessing Out of the Concrete Drying Process

February 06, 2019 — Aarni Heiskanen - AEC Business
Flooring, tiling, or painting on a concrete surface that is insufficiently dry can end up being a disaster. An experimental project recently used IoT sensors and AI to determine when it is safe to start finishing concrete surfaces. Haste and Imperfect Conditions Lead to Failure To successfully first cure and then dry concrete requires specific conditions. You need to maintain a temperature higher than 10°C and a relative humidity of greater than 80 percent in the concrete. Once the concrete is hardened, you have to make sure that it is dry enough for finishing. Typically, the relative humidity should not exceed 82 percent. Some flooring materials require a humidity of less than 75 percent for successful application. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

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Not So Unambiguous: California Court of Appeal Finds Coverage for Additional Insured

October 11, 2017 — Malcom Ranger-Murdock - Saxe Doernberger & Vita, P.C.
California’s Fourth District Court of Appeal recently determined that manuscript additional insured endorsements (AIEs), which purportedly provided coverage for ongoing operations only, were ambiguous. The court also found the insurer that issued the policies, American Safety Indemnity Co. (American Safety), acted in bad faith due to its systematic efforts to deny coverage to general contractors as additional insureds. In Pulte Home Corp. v. American Safety Indemnity Co.,1 Pulte Home Corporation (Pulte Home), a general contractor, sued American Safety for failure to defend Pulte Home as an additional insured in connection with two underlying construction defect lawsuits. American Safety contended that it did not have a duty to defend Pulte Home because the loss occurred after the construction project was complete and the applicable AIEs did not provide coverage for completed operations, and/or because the policy’s faulty workmanship exclusions applied. The trial court awarded $1.4 million in compensatory and punitive damages to Pulte Home, and American Safety appealed. Read the court decision
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Reprinted courtesy of Malcom Ranger-Murdock, Saxe Doernberger & Vita, P.C.
Mr. Ranger-Murdock may be contacted at mrm@sdvlaw.com

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Beyond Inverse Condemnation in Wildfire Litigation: An Oregon Jury Finds Utility Liable for Negligence, Trespass and Nuisance

July 10, 2023 — Marisa Miller, John Yacovelle & Kazim Naqvi - Sheppard Mullin
On June 10, 2023, a jury in Portland, Oregon found PacifiCorp and Pacific Power (collectively, “PacifiCorp”) liable for negligence, trespass, and nuisance based on a series of four wildfires that occurred during Labor Day weekend in 2020. PacifiCorp prevailed against the plaintiffs on the claim of inverse condemnation. With respect to the tort-based claims, the jury awarded approximately $72 million in compensatory damages to 17 plaintiffs. The jury later found PacifiCorp liable for $18 million in punitive damages, or one quarter of the compensatory damages that the jury awarded to the 17 plaintiffs. The jury’s liability findings apply to a broader class of owners, whose damages will need to be individually proven in a yet-to-be defined second phase of proceedings. Post-verdict motion practice and appeals may affect the jury’s findings. Reprinted courtesy of Marisa Miller, Sheppard Mullin, John Yacovelle, Sheppard Mullin and Kazim Naqvi, Sheppard Mullin Ms. Miller may be contacted at mmiller@sheppardmullin.com Mr. Yacovelle may be contacted at jyacovelle@sheppardmullin.com Mr. Naqvi may be contacted at knaqvi@sheppardmullin.com Read the court decision
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Employee Handbooks—Your First Line of Defense

April 15, 2015 — Craig Martin – Construction Contractor Advisor
This spring has been busy with questions about employee handbooks. Perhaps it is because the NLRB just issued a directive on the legality of various clauses usually contained in handbooks. Or perhaps it’s because employers, including construction companies, are realizing the importance that handbooks play in defending against claims of harassment. Employee Handbooks Are Important Employee handbooks are an employer’s first line of defense in claims of harassment. A key provision to any employee handbook is an anti-harassment provision that includes:

• A definition of harassment;
• The process to complain about harassment;
• A commitment to investigate all claims of harassment; and
• An assurance that no one will be retaliated against for reporting harassment.

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Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com

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Quick Note: Subcontractor Payment Bond = Common Law Payment Bond

February 16, 2017 — David Adelstein – Florida Construction Legal Updates
What is a common law payment bond? A common law payment bond is a bond not required or governed by a statute. For example, if a prime contractor provides the owner a payment bond, that bond will be a statutory payment bond. On the other hand, if a subcontractor provides the general contractor with a payment bond, that bond will be a common law payment bond. Why? Because there is not a statute that specifically governs the requirements of a subcontractor’s payment bond given to a general contractor. The subcontractor’s payment bond is aimed at protecting the general contractor (and the general contractor’s payment bond) in the event the subcontractor fails to pay its own subcontractors and suppliers. The subcontractor’s payment bond will generally identify that claimants, as defined by the bond, are those subcontractors and suppliers the subcontractor has failed to pay. This common law payment bond is not recorded in the public records so sometimes it can be challenging for a claimant (anyone unpaid working under the subcontractor that furnished the bond) to obtain a copy of the bond. With that said, an unpaid claimant should consider pursuing a copy of this bond in certain situations, particularly if it may not have preserved a claim against the general contractor’s statutory payment bond. Read the court decision
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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at dadelstein@gmail.com

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New York Court Holds Insurer Can Recover Before Insured Is Made Whole

October 24, 2023 — Gus Sara - The Subrogation Strategist
In State Farm Fire & Cas. Co. v. Tamagawa, Index No. 510977/2021, 2023 N.Y. Misc. Lexis 5434, the Supreme Court of New York considered whether an insurance carrier can settle its property subrogation lawsuit with the defendant, and discontinue the lawsuit, while the carrier’s insured still had pending claims with the carrier and claims for uninsured losses against the defendant. The court held that the carrier’s claims for the amount paid are divisible and independent of the insured’s claims and that the carrier’s settlement did not affect the insured’s right to sue for any unreimbursed losses. The court’s decision reminds us that, in New York, a carrier can resolve its subrogation claim before the insured is made whole. In June 2018, a water loss occurred in an apartment owned by Malik Graves-Pryor (Graves-Pryor). Graves-Pryor reported a claim to his property insurance carrier, State Farm Fire & Casualty Company (Carrier). Investigation into the water loss revealed that the water originated from failed plumbing pipes in another apartment unit owned by Taku Tamagawa (Tamagawa). Carrier paid its insured over $600,000 for repairs. In May 2021, Carrier filed a subrogation lawsuit against Tamagawa, alleging improper maintenance of the plumbing pipes. Read the court decision
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Reprinted courtesy of Gus Sara, White and Williams
Mr. Sara may be contacted at sarag@whiteandwilliams.com

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