Real Estate & Construction News Roundup (09/06/23) – Nonprofit Helping Marginalized Groups, Life Sciences Taking over Office Space, and Housing Affordability Hits New Low
October 24, 2023 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, Walmart adds their own generative AI, major airlines reduce their capacity at regional airports, autoworkers prepare for a strike as negotiations continue, and more!
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Pillsbury's Construction & Real Estate Law Team
Court Holds That Insurance Producer Cannot Be Liable for Denial of COVID-19 Business Interruption Claim
November 23, 2020 —
Christopher P. Leise & Marc L. Penchansky - White and Williams LLPAfter an insurance carrier denied a lawyer and her law firm’s claim for lost business income due to the COVID-19-related shutdown, she sued both her carrier and the insurance producer that procured the policy. See Wilson v. Hartford Casualty Company, No. 20-3384 (E.D.Pa. Sep. 30, 2020). In one of the first cases to consider producer liability in COVID-19 cases, Judge Eduardo Robreno dismissed the lawsuit against the producer and the carrier.
USI procured the Policy from Hartford for Rhonda Hill Wilson and her law firm. The Policy included coverage for lost business income and extra expense caused by direct physical loss of, or damage to property. Similarly, the Policy covered lost business income if a nearby property experienced a direct physical loss that caused a civil authority to issue an order that prohibited access to the law firm’s property. The Policy also included a virus exclusion “for loss or damage caused directly or indirectly by . . . [p]resence, growth, proliferation, spread or any activity of . . . virus.”
Judge Robreno did not decide whether the Policy afforded any coverage to Wilson and her law firm for their COVID-19 losses. Rather, he found that even if they could, the virus exclusion unambiguously barred any coverage they could possibly claim. For that reason, Judge Robreno dismissed the claims against Hartford.
Reprinted courtesy of
Christopher P. Leise, White and Williams LLP and
Marc L. Penchansky, White and Williams LLP
Mr. Leise may be contacted at leisec@whiteandwilliams.com
Mr. Penchansky may be contacted at penchanskym@whiteandwilliams.com
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Los Angeles Could Be Devastated by the Next Big Earthquake
October 15, 2013 —
CDJ STAFFA group of scientists have made a list of about 1,500 concrete buildings in Los Angeles which could potentially collapse in an earthquake. They have offered to make the list available to Los Angeles officials, although the city has yet to take them up on the offer. In response, a group of Times reporters combed through records to identify which buildings were of the sort most likely to collapse in an earthquake. The group found more than 1,000 concrete buildings built before 1976 when Los Angeles increased the requirements for steel rebar.
Experts estimate that in a major earthquake, five percent of these buildings could collapse, which for Los Angeles would mean about 50 buildings. Many of these buildings could be seismically retrofitted, but the article notes that a retrofit starts with a $100,000 structural study. Carol Schatz of the Central City Association notes that the cost of retrofitting “would be greater than the value of the building.”
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Toolbox Talk Series Recap - Undocumented Change Work
October 15, 2024 —
Douglas J. Mackin - The Dispute ResolverIn the August 29, 2024 edition of Division 1's Toolbox Talk Series,
Don Rea presented on the causes of undocumented change order work and what actions parties to a construction project can take to protect themselves, which compliments and reinforces some of the key points from the
May 30, 2024 Toolbox Talk on maximizing profits while experiencing changes during project performance.
Article 7 of AIA A201 General Conditions covers (i) change orders, (ii) constructive change directives, and (iii) “minor changes.” Work that falls outside the scope of the construction contract will often fit into one of these three categories. Rea’s presentation focused on the fact that, regardless of which category applies, proper documentation of the change work is vital.
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Douglas J. Mackin, Cozen O’ConnorMr. Mackin may be contacted at
dmackin@cozen.com
ADA Compliance Checklist For Your Business
February 06, 2019 —
Danielle Carter - Bremer Whyte Brown & O'Meara LLPThe Americans with Disabilities Act (ADA) protects people with disabilities against discrimination in three important settings:
1. Employment (ADA Title I)
2. Government Services and Public Transportation (ADA Title II)
3. Commercial Facilities and Places of Public Accommodation (ADA Title III)
Since business owners typically act as both employers and facility managers, they must pay careful attention to Title I and Title III of the ADA. A business owner’s ADA compliance checklist should include the following:
1. ADA Compliance Audit for Structural Accessibility. The ADA and its accompanying regulations set forth detailed legal standards and requirements for accessible design, which specify, for example, the minimum width of doors to conference rooms, the maximum height of public drinking fountains, and the maximum thickness of hallway carpeting. Many older buildings were built without features that accommodate people with disabilities, such that the ADA may require improvements to be made to existing facilities.
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Danielle Carter, Bremer Whyte Brown & O'Meara LLPMs. Carter may be contacted at
info@bremerwhyte.com
Payment Bond Claim Notice Requires More than Mailing
August 04, 2015 —
Christopher G. Hill – Construction Law MusingsIt’s been a while since I posted something new relating to Virginia’s “Little Miller Act” and its various notice requirements for a subcontractor to make a payment bond claim.
I have posted on the basics of a Virginia payment bond claim previously here at Musings. One of these basics is the 90 day notice requirement for suppliers or second tier subcontractors with no direct contractual relationship to the general contractor. A recent case from the Norfolk, Virginia Circuit Court examined when notice is “given” under the Little Miller Act.
In R T Atkinson Building Corp v Archer Western Construction, LLC the Court looked at the question of whether mailing of the notice of claim is enough to constitute notice being “given” in a manner that would satisfy the statutory requirements. In that case, the supplier mailed the notice within the 90 day window, but the defendant argued on summary judgment that it did not receive the notice until 2 days after the 90 day window had closed. In support of this contention, the defendant provided tracking information showing delivery by the USPS on the non-compliant date.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.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
No Bond, No Recovery: WA Contractors Must Comply With WA Statutory Requirements Or Risk Being Barred From Recovery If Their Client Refuses To Pay
September 18, 2018 —
Joshua Lane - Ahlers Cressman & Sleight PLLCThe risk that a contractor’s client may refuse to pay the full contract balance is a day-to-day reality for every contractor. That risk – and the stress it causes in the mind of any contractor – is tempered by the knowledge that Washington statutes provide contractors with ready access to the courts to file a lawsuit and be fully compensated for the work performed. But a recent case provides a grim reminder that the same statutes that giveth court access can also taketh away.
Washington’s Contractor Registration Act (“WCRA”)[1] requires every contractor engaging or offering to engage in services in Washington to register with the Department of Labor and Industries (”L&I”). In order to sue to collect compensation for work or to enforce a contract, a contractor must prove that he/she “was a duly registered contractor and held a current and valid certificate of registration at the time he or she contracted for the performance of such work or entered into such contract.”[2] In order to conclude that a contractor has substantially comply with these requirements, a court must find that:
(1) The department has on file the information required by RCW 18.27.030; (2) the contractor has at all times had in force a current bond or other security as required by RCW 18.27.040; and (3) the contractor has at all times had in force current insurance as required by RCW 18.27.050.[3]
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Joshua Lane, Ahlers Cressman & Sleight PLLCMr. Lane may be contacted at
joshua.lane@acslawyers.com