Real Estate & Construction News Roundup (3/20/24) – Construction Backlog Falls, National Association of Realtors Settle Litigation, and Commercial Real Estate Market’s Effect on City Cuts
April 15, 2024 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, bad loans outweigh loss reserves at top six U.S. banks, the FCC announces a proposed rule aimed at “bulk billing,” office-to-multifamily conversion projects grow in major metro cities, and more!
- The National Association of Realtors has agreed to settle litigation that accused them of artificially inflating real estate commissions – a major decision that could reshape the housing market for buyers, sellers and agents. (Rachel Siegel, The Washington Post)
- An NYU professor considers the positives and negatives of cities cutting services or raising other kinds of taxes to offset the continued faltering of the commercial real estate market. (Alan Rappeport, The New York Times)
- Construction backlog fell in February for every size of contractor except for those with under $30 million in annual revenue, while, over the past year, the largest contractors – those with greater than $50 million in revenue – have experienced the greatest decline in backlog. (Sebastian Obando, Construction Dive).
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Pillsbury's Construction & Real Estate Law Team
OSHA Issues Guidance on Mitigating, Preventing Spread of COVID-19 in the Workplace
February 22, 2021 —
Amy R. Patton & Blake A. Dillion - Payne & FearsOn January 29, 2021, the Occupational Safety and Health Administration (“OSHA”) issued new employer guidance on mitigating and preventing the spread of COVID-19 in the workplace. This guidance is intended to help employers and workers outside the healthcare setting to identify risks of being exposed to and of contracting COVID-19 and to determine any appropriate control measures to implement. While this guidance is largely duplicative of prior OSHA and Centers for Disease Control and Prevention (“CDC”) guidance and recommendations, it contains a few new and updated recommendations that employers should note:
Face Coverings
OSHA recognizes that face coverings, either cloth face coverings or surgical masks, are simple barriers that help prevent the spread of COVID-19, and are beneficial for the wearer as well as others. OSHA recommends that employers should provide all workers with face coverings, unless their work task requires a respirator. These face coverings should be provided at no cost and should be made of at least two layers of tightly woven breathable fabric, and should not have exhalation valves or vents. Employers should also require any other individuals at the workplace (i.e., visitors, customers, non-employees) to wear a face covering unless they are under the age of 2 or are actively consuming food or beverages on site. Wearing a face covering does not eliminate the need for physical distancing of at least six feet apart.
Employers must discuss the possibility of “reasonable accommodations” for any workers who are unable to wear or have difficulty wearing certain types of face coverings due to a disability. In workplaces with employees who are deaf or have hearing deficits, employers should consider acquiring masks with clear coverings over the mouth.
Reprinted courtesy of
Amy R. Patton, Payne & Fears and
Blake A. Dillion, Payne & Fears
Ms. Patton may be contacted at arp@paynefears.com
Mr. Dillion may be contacted at bad@paynefears.com
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Judgment Proof: Reducing Litigation Exposure with Litigation Risk Insurance
March 04, 2024 —
Latosha M. Ellis & Charlotte Leszinske - Hunton Insurance Recovery BlogIt is not just your imagination: verdicts are getting bigger. So-called “nuclear verdicts” have increased in size and frequency over the past decade, particularly after the COVID-19 pandemic. Litigation risk insurance is a little known, but highly effective, option meant to compliment traditional insurance products and provide additional protection for policyholders nervous about litigation exposure.
Unfortunately, it is difficult to predict the exposure presented by any particular case. Between 2020 and 2022, the median
verdict increased 95%—from $21.5 million to $41.1 million. In
2022, a jury handed down a verdict worth $7.3 billion for injury to a single plaintiff. Even if an injury or loss is minor, juries have shown that they are willing to penalize corporate defendants with punitive damages that significantly exceed the award of compensatory damages. With such uncertainty and millions (if not billions) at stake, companies can reduce risk with litigation risk insurance.
Three key types of litigation risk insurance include: (1) punitive wrap insurance, (2) adverse judgment insurance, and (3) judgment preservation insurance.
Reprinted courtesy of
Latosha M. Ellis, Hunton Andrews Kurth and
Charlotte Leszinske, Hunton Andrews Kurth
Ms. Ellis may be contacted at lellis@HuntonAK.com
Ms. Leszinske may be contacted at cleszinske@HuntonAK.com
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Florida Lawmakers Fail to Reach Agreement on Condominium Safety Bill
March 14, 2022 —
Community Associations InstituteFalls Church, March 11, 2022 (GLOBE NEWSWIRE) -- Members of the Florida legislature did not reach an agreement on legislation that would require building inspections and mandatory reserve studies for certain condominium and cooperative communities prior to this session's adjournment, despite the tireless efforts from Sen. Jennifer Bradley (R-Orange Park) and Rep. Daniel Perez (R-Miami) as well as CAI advocates to pass legislation that would contribute to condominium safety after the tragic collapse of Champlain Towers South in Surfside, Fla., last June.
The Virginia General Assembly recently passed legislation introduced by Sen. Scott Surovell (D-Fairfax, VA) that requires the Virginia Housing Commission to study condominium safety issues, specifically building inspections. The Maryland legislature is considering funding for condominium buildings in need of critical repairs, while Hawaii is considering building inspection requirements for condominiums.
Learn more about CAI's efforts to improve condominium safety by visiting www.caionline.org/condosafety.
About Community Associations Institute
Since 1973, Community Associations Institute (CAI) has been the leading provider of resources and information for homeowners, volunteer board leaders, professional managers, and business professionals in the more than 355,000 homeowners associations, condominiums, and housing cooperatives in the United States and millions of communities worldwide. With more than 42,000 members, CAI works in partnership with 36 legislative action committees and 63 affiliated chapters within the U.S., Canada, South Africa, and the United Arab Emirates as well as with housing leaders in several other countries, including Australia, Spain, and the United Kingdom. A global nonprofit 501(c)(6) organization, CAI is the foremost authority in community association management, governance, education, and advocacy. Our mission is to inspire professionalism, effective leadership, and responsible citizenship—ideals reflected in community associations that are preferred places to call home. Visit us at www.caionline.org, and follow us on Twitter and Facebook @CAISocial.
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Remediation Work Caused by Installation of Defective Tiles Not Covered
August 19, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThe federal district court applied California law to find there was no coverage when the subcontractor was sued for broken tiles on a project. Am. Home Assur. Co. v. SMG Stone Co., 2015 U.S. Dist. LEXIS 75910 (N. D. Cal. June 11, 2015).
The subcontractor installed stone floor tiles at the project. The developer discovered fractures in some of the tiles. The fractured tiles were removed and replaced. This remediation process required the removal and replacement of portions of drywall and concrete subfloor installed by other subcontractors. The developer sued the subcontractor, who tendered the defense to its insurer.
The insurer denied coverage and filed for a declaratory judgment that there was no coverage for the floor tile fracture claims.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
A Year-End Review of the Environmental Regulatory Landscape
January 11, 2022 —
Anne Idsal Austin & Joel Simon - Gravel2Gavel Construction & Real Estate Law BlogOur guest today is Anne Idsal Austin, a nationally recognized environmental lawyer who has held several high-profile federal and state regulatory roles. As a partner who recently joined Pillsbury’s environmental and natural resources practice, she provides strategic consulting and policy advice, helping clients navigate the dynamic regulatory and legal waters in an era of energy transition, decarbonization and an emphasis on ESG principles. Prior to joining Pillsbury, Anne was the Principal Deputy Assistant Administrator for the U.S. Environmental Protection Agency’s Office of Air and Radiation, known as OAR or OAR, where she had primary oversight over United States clean air policy and regulation. Prior to that, she served as the EPA regional administrator for Region 6, overseeing all federal environmental programs in Texas, Louisiana, New Mexico, Oklahoma and Arkansas. Prior to joining EPA, Anne held several positions where she shaped environmental and energy policy at the highest levels of government in the state of Texas. Welcome to our podcast, Anne.
Anne Austin: Thanks so much. It’s great to be here today, Joel.
Joel Simon: Anne, I’m really excited for this chance to speak with you because there’s so much going on at the federal environmental policy level, and it would be great to have someone really knowledgeable present this to us in an organized fashion. So with that minor task ahead of you, could you start us off with a brief overview of the environmental regulatory landscape?
Reprinted courtesy of
Anne Idsal Austin, Pillsbury and
Joel Simon, Pillsbury
Ms. Austin may be contacted at anne.austin@pillsburylaw.com
Mr. Simon may be contacted at joel.simon@pillsburylaw.com
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The Prompt Payment Act Obligation is Not Triggered When the Owner Holds Less Retention from the General Contractor
October 27, 2016 —
John P. Ahlers – Ahlers & Cressman PLLCMost states have laws known as “prompt payment” statutes which govern the timing of payments on public works projects[i] from project owners to general contractors, and from general contractors to subcontractors.[ii] The purpose of these statutes is to ensure that contractors and subcontractors who may have less leverage than the project owners and prime contractors, respectively, are paid for their work on a timely basis.
Prompt Payment Act cases are rare, and, since many of the prompt payment statutes are founded on the same principles, when we come across a Prompt Payment Act case, it is “blog worthy.” This dispute arose from the construction of the Exposition Light Rail Line Project connecting downtown Los Angeles with Culver City on which FCI/Fluor/Parsons (“FFP”) was the prime contractor, and Bloise Construction, Inc. (“Bloise”) was the excavation subcontractor to FFP. Under the prime contract, Expo,[iii] the owner, was permitted to withhold ten percent of the payments owed to FFP, and FFP, pursuant to its subcontract with Bloise, was entitled to also withhold ten percent of the payments to Bloise as retention.
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John P. Ahlers, Ahlers & Cressman, PLLCMr. Ahlers may be contacted at
jahlers@ac-lawyers.com
Party Loses Additional Insured Argument by Improper Pleading
September 20, 2017 —
Tred R. Eyerly - Insurance Law HawaiiThe Archdiocese failed to plead breach of contract against the County for failure to name the Archdiocese as an additional insured under the liability policy. Pachella v. Archdiocese of Philadelphia, 2017 Pa. Commw. Unpub. LEXIS 595 (Pa. Commw. Ct. Aug. 14, 2017).
Richard and Pachella filed a complaint against the Archdiocese, alleging that Mrs. Pachella was injured when she tripped and fell on the sidewalk outside of St. Patrick's Parish. At the time, the County was leasing St. Patrick's premises for use as an election polling place. The Archdiocese filed a third party complaint alleging negligence and breach of contract claims under a Lease Agreement between St. Patrick's and the County.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
