Pillsbury Insights – Navigating the Real Estate Market During COVID-19
July 06, 2020 —
Caroline A. Harcourt - Gravel2Gavel Construction & Real Estate BlogUntil COVID-19 officially took hold in the U.S. in March of 2020, the U.S. real estate market was active, even robust. Starting in March, however, the possible scope of the pandemic and the sudden imposition of stay-at-home orders resulted in deal volume falling precipitously—with sales, leasing and lending transactions being put on temporary “wait and see” pause or terminated altogether.
The impact of COVID-19 on the real estate market has not been felt evenly. Hotels have been hit extremely hard, with many hotels shuttered altogether and many others only open at staggeringly low occupancy rates. Retail likewise has been virtually shut down in various parts of the country—with retailers across the country asking for rental forbearance or lease surrenders and others, such as J Crew, Neiman Marcus and Pier 1, pursuing bankruptcy reorganizations or liquidation. Multifamily has also been relatively hard hit, and landlords are having to navigate a web of local, state, and even federal regulations regarding tenant protections, such as non-eviction orders. The least affected sector so far has been office—however employers and office space users who are becoming facile with zoom and “working at home” may well re-examine their usage of office space—and it is within the realm of possibility to imagine that even this sector may come under pressure over time.
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Caroline A. Harcourt, PillsburyMs. Harcourt may be contacted at
caroline.harcourt@pillsburylaw.com
Recording “Un-Neighborly” Documents
April 03, 2019 —
Bob Henry - Snell & Wilmer Real Estate Litigation BlogIn September 2018, in Baumgartner v. Timmins, 245 Ariz. 334, 429 P.3d 567, the Arizona Court of Appeals provided further clarification on what constitutes an “encumbrance” on a property for purposes of Arizona’s statutory scheme prohibiting the recording of “false documents.” The statute, A.R.S. § 33-420, prohibits the recording of documents that a person knows to be forged, are groundless, or that contain material misstatements (or false claims). A person who claims an “interest in, or a lien or encumbrance against” real property who records such documents can be held liable for $5,000 or treble the actual damages caused by the recording (whichever is greater), A.R.S. § 33-420(A), and perhaps even be found guilty of a class 1 misdemeanor, A.R.S. § 33-420(E).
At issue in Baumgartner were neighbors fighting about CC&Rs—a typical neighborhood fight. In 2015, some of the neighbors filed suit against the Timminses for violating the CC&Rs. The Timminses did not contest the lawsuit, resulting in a default judgment. In what the Court of Appeals characterized as a lawsuit filed by the Timminses “in apparent response to the [first] lawsuit and resulting default judgment,” the Timminses created, signed, and recorded affidavits contending that the Plaintiffs in the original lawsuit were themselves “in violation of several provisions of the CC&Rs.” The Plaintiffs then filed suit again against the Timminses, this time contending that the Timminses had violated A.R.S. § 33-420 by recording the affidavits because the affidavits, the Plaintiffs contended, created encumbrances on their properties. The Apache County Superior Court agreed, and issued a final judgment nullifying the recorded documents and awarding the Timminses damages, along with their attorneys’ fees and costs.
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Bob Henry, Snell & WilmerMr. Henry may be contacted at
bhenry@swlaw.com
Maybe Supervising Qualifies as Labor After All
May 22, 2023 —
Christopher G. Hill - Construction Law MusingsRemember back in 2021 when I
“mused” about Dickson v. Fidelity and Deposit Company of Maryland et al.? Remember how the Eastern District of Virginia held that mere supervision does not qualify as “labor” under the federal
Miller Act? Well, the 4th Circuit recently weighed in on the appeal of that case and had some interesting things to say about the definition of labor.
As a quick reminder, Plaintiff worked as a project manager on a project to repair and upgrade certain stairs at the Pentagon. Plaintiff subcontracted with prime contractor Forney Enterprises Inc. on this project. On Dec. 20, 2018, the prime contract was terminated. Plaintiff filed the Miller Act suit on Feb. 5, 2020. Dickson alleged that Fidelity and Deposit Company of Maryland, or F&D, must pay him, pursuant to the Miller Act, the amount he is owed for the labor he performed on the project. Now before the district court were cross-motions for summary judgment. In evaluating Plaintiff’s claims, the district court examined the defendant’s claims that (1) Dickson’s work did not qualify as “Labor” under the Miller Act, and (2) that the suit was not timely filed. The Eastern District of Virginia court agreed with both arguments.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Bad Faith Claim For Independent Contractor's Reduced Loss Assessment Survives Motion to Dismiss
January 28, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe insured's bad faith claim based upon the insurer's alleged use of an independent contractor to assess the amount of loss in order to lower the amount paid survived a motion to dismiss. Williamson v. Chubb Indem. Ins. Co., 2013 U.S. Dist. LEXIS 178022 (E.D. Pa. Dec. 19, 2013).
The insureds' home was damaged. Chubb, their insurer, retained an independent contractor, Eastern Diversified Services (EDS) to assess the amount of loss. EDS estimated the loss to be $193,270.43, and Chubb paid this amount.
Chubb's standard practice was to conduct damage estimates itself using an estimating program called Symbility. EDS used a different program with a data base creating lower payments for loss. When this was brought to Chubb's attention, Chubb refused to recalculate the plaintiff's estimate.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Curtain Wall Suppliers Claim Rival Duplicated Unique System
February 28, 2022 —
Annemarie Mannion - Engineering News-RecordChicago-area construction material suppliers that hold patents for a curtain wall system used in high-rise construction projects are suing a rival, claiming it created a knock-off of the system based on a former employee’s knowledge and put the system to use on construction projects.
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Annemarie Mannion, Engineering News-Record
ENR may be contacted at enr@enr.com
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The Comcast Project is Not Likely to Be Shut Down Too Long
July 13, 2017 —
Wally Zimolong - Supplemental ConditionsJan Von Bergen at the Philadelphia Inquirer reported that work on Comcast’s new tower came to a halt this morning when striking members of Local 542 picketed the Comcast tower project and other union trades refused to cross the picket line. However, this show of solidarity (during the afternoon on the Friday before the Fourth of July) is unlikely to last past the long weekend. Why? Because any conduct by Local 542 aimed at encouraging a work stoppage by other union members is illegal and the companies that employ the sympathetic union members are in breach of contract if they do not work on Tuesday.
Any actions by Local 542 to encourage members of a different trade unions to honor their picket line is a secondary boycott. The National Labor Relations Act prohibits secondary boycotts. Specifically, the NLRA prohibits a union for inducing employees of an employer not subject to a labor dispute to refuse to work.
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Wally Zimolong, Zimolong LLCMr. Zimolong may be contacted at
wally@zimolonglaw.com
The Johnstown Dam Failure, as Seen in the Pages of ENR in 1889
April 08, 2024 —
Scott Lewis - Engineering News-RecordThe small headline of the Engineering News article shown here belies the gravity of the disaster: the deadliest dam failure in U.S. history. The South Fork Dam in Pennsylvania was a 72-ft-tall, 931-ft long earth and rockfill structure. After a stop-and-start construction process over a dozen years, it was completed in 1853. The dam went through several changes of ownership and was repaired inadequately. Fish screens were installed that obstructed the spillway and caused water to overtop and erode the structure. This mass of water uprooted trees, rocks, houses, rail cars and animals as it thundered down the valley before smashing into a stone railway embankment. Fires ignited by wrecked locomotives burned for three days. The death toll was 2,208.
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Scott Lewis, Engineering News-Record
Mr. Lewis may be contacted at lewisw@enr.com
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What Are The Most Commonly Claimed Issues In Construction Defect Litigation?
April 22, 2019 —
David M. McLain - Colorado Construction Litigation BlogAs a lawyer that has spent his career defending against construction defect claims, one of the most common questions I get when counseling clients regarding risk management is: “What are the most commonly claimed issues in construction defect litigation?” Until very recently, my answer to this question has been based on my own experience and knowledge on the subject, and only vaguely reliant on empirical data.
Recently, two engineers, Elizabeth Brogan and William McConnell, along with Caroline Clevenger, an associate professor at the University of Colorado, Denver, wrote a paper entitled “Emerging Patterns in Construction Defect Litigation: A Survey of Construction Cases.” The authors analyzed 41 multifamily construction defect cases litigated in 2015, 2016 and 2017, mostly in the Denver metro area.
The authors classified the 55 most prevalent alleged defects into the following categories: structural issues; civil issues; building envelope issues; roof issues; deck, balcony and porch issues; fire protection issues; and miscellaneous issues. The authors then identified the 10 most commonly claimed construction defects, which occurred in over half of all of the cases analyzed.
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David M. McLain, Higgins, Hopkins, McLain & Roswell, LLCMr. McLain may be contacted at
mclain@hhmrlaw.com