A Funny Thing Happened to My Ground Lease in Bankruptcy Court
November 25, 2024 —
Christopher F. Graham & Morgan A. Goldstein - White and Williams LLPEXECUTIVE SUMMARY
Ground leases are an important – if somewhat unusual – part of the real estate finance industry. Because they typically cover large expensive properties like Rockefeller Center and The Empire State Building, to name two, and last a long time (99 years and up to start) the likelihood of something unexpected or unintended happening is high. This likelihood increases dramatically if, as highlighted below, one or both of the lease parties’ files for bankruptcy. Accordingly, real estate professionals should take note and take care when entering into any transaction involving a ground lease.
Reprinted courtesy of
Christopher F. Graham, White and Williams LLP and
Morgan A. Goldstein, White and Williams LLP
Mr. Graham may be contacted at grahamc@whiteandwilliams.com
Ms. Goldstein may be contacted at goldsteinm@whiteandwilliams.com
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Blackouts Require a New Look at Backup Power
April 06, 2020 —
John McBride - Construction ExecutiveRecent blackouts on both East and West coasts are causing commercial property owners to reassess their need for backup power. The likelihood of more-frequent blackouts means backup power must evolve from ensuring the safe exit of office workers to enabling core business functions to continue uninterrupted. That’s a major shift in preparedness that construction executives should consider in future planning.
In New York City on July 13, 2019, a Con Edison blackout left 72,000 customers in Manhattan and Queens without power primarily because of a flawed connection at an electrical substation. Eight days later, a second Con Edison blackout left more than 50,000 customers, mostly in Brooklyn, without power due to high usage during a heat wave. These events occurred even though, as Con Edison stated, the New York City grid is one of the most complex and technologically advanced in the world and contains multiple layers of redundancy.
In northern and central California in late October, 2019, intentional blackouts were implemented by Pacific Gas and Electric (PG&E) on a massive scale in response to out-of-control wildfires. “Never before in California history have more than 2 million people gone five days without electrical power because of the intentional safety policy of a utility,” reported the Los Angeles Times. It was the second massive blackout in California in two weeks, after PG&E had earlier shut off power to almost 2 million people in rolling blackouts.
The blackouts on both coasts are remarkable not only for their breadth but for the range of causes—from limiting wildfires sparked in part by faulty, above-ground, power lines to a flawed connection at a substation to overuse during a heat wave. The conditions creating those causes are not likely to subside, and Con Edison warned this summer of more service outages to come. In California, The Washington Post writes, “blackouts are redefining the prosperous state.”
Reprinted courtesy of
John McBride, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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NAHB Examines Single-Family Detached Concentration Statistics
April 01, 2014 —
Beverley BevenFlorez-CDJ STAFFIn the National Association of Builders’ (NAHB) publication Eye on Housing, the NAHB examined “the share of homeowners living in single-family detached housing” statistics as reported in the 2012 American Community Survey (ACS).
Wausau, Wisconsin had the highest share of homeowners living in single-family detached housing within a metropolitan area. Interestingly, NAHB found that “[w]ith the exception of Modesto, CA, all of the metropolitan areas in the top ten [were] located in the Midwest.”
The New York-White Plains-Wayne (New York) division had the lowest share of homeowners living in single-detached housing.
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Plehat Brings Natural Environments into Design Tools
May 01, 2019 —
Aarni Heiskanen - AEC BusinessNatural elements are an essential part of the built environment. However, BIM tools offer almost no support to landscape architecture. Plehat is introducing a new solution that helps architects and decision-makers to understand the dynamics of nature and make smart design choices.
Plehat used photogrammetric 3D models of Uunisaari islands, to the south of Helsinki. The experimenters modeled the buildings and the plants on the island and used game engine software to create a virtual reality (VR) experience. They called the app the “Landscape Time Machine”. The technology solution they developed paved the way for new software that the company will launch later this year.
In 2018, Plehat, a landscape design startup, received funding from the Finnish national KIRA-digi digitalization project to carry out a test. The experimentation demonstrated how seasonal changes and weather conditions affect plants, and how the environment can be visualized and analyzed virtually.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Insurer’s Duty to Indemnify Not Ripe Until Underlying Lawsuit Against Insured Resolved
February 03, 2020 —
David Adelstein - Florida Construction Legal UpdatesA liability insurer has two duties: 1) the duty to defend its insured; and 2) the duty to indemnify its insured.
With respect to the second duty – the duty to indemnify – this duty is typically “not ripe for adjudication unless and until the insured or putative insured has been held liable in the underlying action.” Hartford Fire Ins Co. v. Beazer Homes, LLC, 2019 WL 5596237, *2 (M.D.Fla. 2019) (internal quotation omitted).
For instance, Beazer Homes involved an insurance coverage dispute stemming from construction defects. An owner sued its general contractor for construction defects relating to stucco problems. The general contractor paid for the repairs. The general contractor then sued its stucco subcontractor to recover the costs it incurred. The subcontractor tendered the defense of the lawsuit to its commercial general liability insurer which is defending its insured-subcontractor under the commonly issued reservation of rights.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Supreme Court of Oregon Affirms Decision in Abraham v. T. Henry Construction, et al.
April 20, 2011 —
Beverley BevenFlorez CDJ STAFFAfter reviewing the decision in Abraham v. T. Henry Construction, et al., the Oregon Supreme Court affirmed that a tort claim for property damage arising from construction defects may exist even when the homeowner and the builder are in a contractual relationship.
When the case was initially filed, the plaintiffs alleged breach of contract and negligence. The defendants moved for summary judgment arguing that one, the claim was barred by the six-year statute of limitations and two, no special relationship (such as one between a doctor and patient) existed. The court agreed with the defendants. However, the Court of Appeals while affirming the trial court’s decision on breach of contract reversed the decision on negligence. The Court of Appeals stated that an administrative or statute rule could establish a standard of care independent from the contract.
The Oregon Supreme Court gave an example of cases where a tort claim could exist when a contract is present: “If an individual and a contractor enter into a contract to build a house, which provides that the contractor will install only copper pipe, but the contractor installs PVC pipe instead (assuming both kinds of pipe comply with the building code and the use of either would be consistent with the standard of care expected of contractors), that failure would be a breach of contract only. […] If the failure to install the copper pipe caused a reduction in the value of the house, the plaintiff would be able to recover that amount in an action for breach of contract. […] On the other hand, if the contractor installed the PVC pipe in a defective manner and those pipes therefore leaked, causing property damage to the house, the homeowner would have claims in both contract and tort. […] In those circumstances, the obligation to install copper instead of PVC pipe is purely contractual; the manner of installing the pipe, however, implicates both contract and tort because of the foreseeable risk of property damage that can result from improperly installed pipes.”
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Hunton Andrews Kurth Insurance Attorney, Latosha M. Ellis, Honored by Business Insurance Magazine
May 03, 2021 —
Andrea DeField & Michael S. Levine - Hunton Andrews KurthWe are proud to share that Business Insurance has named Hunton Andrews Kurth insurance coverage associate, Latosha M. Ellis, one of the magazine’s 2021 Break Out Award winners. Business Insurance’s Break Out Awards honor 40 top professionals from around the country each year who are expected to be the next leaders in risk management and the property/casualty insurance field. Business Insurance reviewed hundreds of nominees, all of whom have worked in commercial insurance or related sectors for under 15 years. Out of those hundreds, Latosha was selected as one of the 40 honorees for 2021.
Latosha is well-deserving of this honor. She is committed to excellence in the practice of law and in her service to clients, both of which have earned her a sterling reputation in the Virginia and District of Columbia legal communities. In addition to her litigation success and excellent client service skills, Latosha is a leader, both in the firm and in the legal community. Latosha not only serves as a mentor to several young attorneys at our firm, but she is also a board member of the University of Richmond Law School Alumni Board (currently serving on a three-year term) and a planning member of the American Bar Association’s (ABA) professional development committee. She also co-chaired the 2021 ABA Insurance Coverage and Litigation Committee Annual CLE Conference, for which she implemented new diversity and inclusion standards and ensured several program sessions geared towards young lawyers. In addition, Latosha was selected as the firm’s 2019 Pathfinder for the Leadership Council for Legal Diversity, serves on the executive board of the Women’s Bar Association of the District of Columbia, and was inducted into the American Bar Association’s Section of Litigation Young Lawyer Leadership Program.
Reprinted courtesy of
Andrea DeField, Hunton Andrews Kurth and
Michael S. Levine, Hunton Andrews Kurth
Ms. DeField may be contacted at adefield@HuntonAK.com
Mr. Levine may be contacted at mlevine@HuntonAK.com
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Inverse Condemnation and Roadwork
October 09, 2023 —
David R. Cook Jr. - Autry, Hall & Cook, LLPThe following case, issued yesterday by the Georgia Supreme Court, addresses the accrual of the statute of limitations on a claim of inverse condemnation based on nuisance.
Wise Bus. Forms, Inc. v. Forsyth Cnty., S22G0874, 2023 WL 6065278 (Ga. Sept. 19, 2023)
We granted certiorari in this case to clarify the standards for determining when a claim for inverse condemnation by permanent nuisance accrues for purposes of applying the four-year statute of limitation set forth in OCGA § 9-3-30 (a).
[. . .]
Permanent nuisance cases vary in relation to when the alleged harm to a plaintiff’s property caused by the nuisance becomes “observable” to the plaintiff. Forrister, 289 Ga. at 333 (2), 711 S.E.2d 641. In some cases, the harm to the plaintiff’s property is immediately observable “upon the creation of the nuisance.” Id. For example, where a landowner or governmental agency “erects a harmful structure such as a bridge or conducts a harmful activity such as opening a sewer that pollutes a stream,” and it is immediately obvious that the structure or activity interferes with the plaintiff’s interests, the plaintiff must file “one cause of action for the recovery of past and future damages caused by [the] permanent nuisance” within four years of the date the structure is completed or the harmful activity is commenced. Id. at 333-336 (2) and (3), 711 S.E.2d 641 (citing Restatement (Second) of Torts §§ 899 and 930). Phrased another way, where the “construction and continuance” of the permanent nuisance at issue is “necessarily an injury, the damage is original, and may be at once fully compensated. In such cases[,] the statute of limitations begins to run upon the construction of the nuisance.” City Council of Augusta v. Lombard, 101 Ga. 724, 727, 28 S.E. 994 (1897).
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David R. Cook Jr., Autry, Hall & Cook, LLPMr. Cook may be contacted at
cook@ahclaw.com
