Torrey Pines Court Receives Funding for Renovation
August 06, 2014 —
Beverley BevenFlorez-CDJ STAFFSan Diego Source reported that “CIT Real Estate Finance provided…$60 million…to refinance existing debt and fund the renovations at Torrey Pines Court,” a five-building Class A office campus located in La Jolla, California. The 206,128 square foot complex, which resides on 9.24 acres, is adjacent to the Torrey Pines Golf Course. CIT has funded the project in partnership with Rockwood Capital and The Muller Company.
"We are excited to begin renovations that will complete our repositioning of Torrey Pines Court with state-of-the-art office space and amenities,” David Streicher, Partner at Rockwood Capital, stated according to a press release in the Wall Street Journal. “We expect that the renovations, coupled with the project's picturesque setting, will solidify Torrey Pines Court's position as the preferred office destination in the submarket. We thank CIT for working with us to create a sound financing package that will take this project to the next level."
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New Jersey Supreme Court Issue Important Decision for Homeowners and Contractors
September 08, 2016 —
Wally Zimolong – Supplemental ConditionsThe lack of insurance coverage for a contractor’s faulty workmanship is the bane of both homeowners looking to recover damage for defective work and contractors seeking to defend against such claims. In many states, like Pennsylvania, courts hold that faulty workmanship is not an “occurrence” that is covered by a standard commercial general liability insurance policy. In other words, courts hold that CGL policies cover damage to other property not part of the construction project itself.
This is problematic for both the homeowner and the insured. For the homeowner, the lack of a policy providing indemnification sometimes means the homeowner is left trying to collect against a defendant, who is otherwise but has little to no assets against which to collect a judgment. For the contractor, the lack of a policy providing coverage means that assets are at risk and it could be forced to spend significant sums in attorneys fees defending the case.
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Wally Zimolong, Zimolong LLCMr. Zimolong may be contacted at
wally@zimolonglaw.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
Texas Legislature Puts a Spear in Doctrine Making Contractor Warrantor of Owner Furnished Plans and Specifications
May 31, 2021 —
Paulo Flores, Timothy D. Matheny & Jackson Mabry - Peckar & Abramson, P.C.The Texas Legislature has just sent Senate Bill 219 (“S.B. 219”) to the Governor for signature; if this legislation is signed by the Governor, it will further erode the Texas legal doctrine that makes the contractor the warrantor of owner-furnished plans and specifications unless the prime contract specifically places this burden on the owner.
Background
49 states follow what is known as the Spearin doctrine (named after the U.S. Supreme Court case of United States v. Spearin) in which owners warrant the accuracy and sufficiency of owner-furnished plans and specifications. Texas, on the other hand, follows the Texas Supreme Court created Lonergan doctrine, which has been an unfortunate presence in Texas construction law since 1907. In its “purest form,” as stated by the Texas Supreme Court, the Lonergan doctrine prevents a contractor from successfully asserting a claim for “breach of contract based on defective plans and specifications” unless the contract contains language that “shows an intent to shift the burden of risk to the owner.” Essentially, this then translates into the contractor warranting the sufficiency and accuracy of owner-furnished plans and specifications, unless the contract between them expressly places this burden on the owner. Over the years some Texas courts of appeal had ameliorated this harsh doctrine, but in 2012, the Texas Supreme Court indicated Lonergan was still the law in Texas, in the case of El Paso v. Mastec. In 2019, the Texas Legislature took the first step toward hopefully abrogating the Lonergan doctrine by implementing a new Chapter 473 to the Texas Transportation Code with respect to certain projects undertaken by the Texas Department of Transportation, and Texas political subdivisions acting under the authority of Chapters 284, 366, 370 or 431 of the Transportation Code, adopting, as it were, the Spearin Doctrine in these limited, transportation projects. Now, the legislature has further chipped away at the Lonergan doctrine with the passage of S.B. 219.
Reprinted courtesy of
Paulo Flores, Peckar & Abramson, P.C.,
Timothy D. Matheny, Peckar & Abramson, P.C. and
Jackson Mabry, Peckar & Abramson, P.C.
Mr. Flores may be contacted at PFlores@Pecklaw.com
Mr. Matheny may be contacted at tmatheny@pecklaw.com
Mr. Mabry may be contacted at jmabry@pecklaw.com
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Account for the Imposition of Material Tariffs in your Construction Contract
March 28, 2018 —
David Adelstein – Florida Construction Legal UpdatesAfter Hurricane Irma, I wrote an article that contractors should revisit the
force majeure provisions in their construction contracts. Not later. But Now.
The force majeure provision is an important provision in a construction contract to account for certain uncertainties that you have NO control over.
Recently, another reason has given rise to contractors needing to revisit their force majeure provisions, as well as any provisions dealing with material escalations. Not later. But now. The
imposition of raw steel and aluminum tariffs (tax on imported goods) and the back-and-forth regarding a potential trade war leads to the kind of uncertainty that should be assessed as a risk.
A risk in both time and cost from material escalations.
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dadelstein@gmail.com
Keeping Your Workers Safe When Air Quality Isn't
August 21, 2023 —
Kim Ritchie - Construction ExecutiveKim Ritchie, Vice President, Canada, ISN
Construction Executive Q&A
What risks do wildfires and poor air quality pose to workers?
Exposure to smoke caused by wildfires can have significant health risks, especially for those with preexisting medical conditions. Smoke exposure and poor air quality can trigger immediate effects such as coughing, difficulty breathing and irritation of the throat, eyes and lungs. However, despite smoke dissipating, it could have long-term health complications with cardiovascular impacts, such as heart attacks and stroke.
With the lasting impacts caused by exposure to wildfire smoke and poor air quality, it's essential for organizations to look out for their workers’ long-term health.
Reprinted courtesy of
Kim Ritchie, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Land a Cause of Home Building Shortage?
June 17, 2015 —
Beverley BevenFlorez-CDJ STAFFDiana Olick of CNBC reported that builders are not keeping up with the housing demand due to a lack of supply of developed lots as well as the increasing price of available land.
"You have to find the land, you've got to be able to buy it and you've got to persuade someone to let you develop it. The one you hear the most about is the last one," Paul Emrath, vice president of survey and housing policy research at the National Association of Home Builders (NAHB), told CNBC.
Olick wrote that “[l]and prices have actually surpassed their peak values in many markets where builders are particularly active, especially in Texas.”
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General Liability Alert: A Mixed Cause of Action with Protected and Non-Protected Activity Not Subject to Anti-SLAPP Motion
February 18, 2015 —
Valerie A. Moore, Lawrence S. Zucker II and Blythe Golay – Haight Brown & Bonesteel LLPIn Baral v. Schnitt (filed 2/5/2015, No. B253620), the California Court of Appeal, Second Appellate District, held that California’s anti-SLAPP statute does not authorize the striking of allegations of protected activity in a cause of action that also contains meritorious allegations of non-protected activity not within the purview of the statute. In so holding, the court attempted to resolve, or at least add its voice to, the growing conflict among appellate districts on the issue.
A SLAPP lawsuit (Strategic Lawsuit Against Public Participation) seeks to chill or punish the exercise of constitutional rights to free speech and to petition the government for redress of grievances. California’s Legislature enacted the anti-SLAPP statute to permit a defendant to file a special motion to strike as to any cause of action that arises out of an act in furtherance of such rights. In Baral, the plaintiff alleged that his business partner had violated fiduciary duties in usurping the plaintiff’s ownership and management interests in their jointly owned company, so that the defendant could benefit from a secret sale of the company. The complaint alleged that the defendant hired a public accounting firm and prevented the plaintiff from participating in its investigation in order to force the plaintiff's cooperation of the sale of the company. The defendant filed an anti-SLAPP motion, seeking to strike all references to the accounting firm's audit. The trial court denied the motion, on the ground that the anti-SLAPP statute applies to causes of action, not allegations.
Reprinted courtesy of Haight Brown & Bonesteel LLP attorneys
Valerie A. Moore,
Lawrence S. Zucker II and
Blythe Golay
Ms. Moore may be contacted at vmoore@hbblaw.com.
Mr. Zucker may be contacted at lzucker@hbblaw.com.
Ms. Golay may be contacted at bgolay@hbblaw.com.
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