Seattle Washington Building Expert Directory

Real Estate & Construction News Round-Up (08/10/22)

August 29, 2022 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
The Senate passes the Inflation Reduction Act, construction costs continue to rise across the U.S., commercial real estate advances the adoption of ESG strategies, and more.

The recently-passed Inflation Reduction Act of 2022 leaves out the carried interest tax hike, much to the relief of real estate investors worldwide. (Taylor Driscoll, Bisnow)
Commercial real estate continues to push forward ESG strategies, given the significant carbon footprints left by most office buildings. (Ted Jackson, CFO)
“Space as a Service” tech company Neighbor, which re-purposes under-utilized real estate into storage for tenants, hits its stride in the post-pandemic landscape as the excess of unprofitable space rises. (The Real Deal)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

Workers Hurt in Casino Floor Collapse

February 10, 2012 — CDJ STAFF

More than a dozen construction workers fell about thirty feet when a floor collapsed in a Cincinnati casino. The workers were pouring cement on the second-floor level when the accident happened. The area in question will be the gaming area in the completed casino. Scott Allen, OSHA’s regional spokesperson, said their investigation of the accident would probably take about a month to complete.

The cause of the collapse is still undetermined. Although the weather has been wet in the area, experts thought it unlikely to be the cause. A construction forensics professor at Ohio State University said that “concrete pouring is very common” and that “you cannot go wrong unless something happens with the connection.” Engineering experts said it was more likely an issue with the metal decking.

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A Compilation of Quirky Insurance Claims

August 13, 2014 — Beverley BevenFlorez-CDJ STAFF
Property Casualty 360 showcased five “nutty claims stories” based upon recollections by several insurance professionals. Number four, subtitled, “The Case of the Soaked Survivalists,” described a claim by an elderly couple who “made a $350,000 water-damage claim after heavy rains and an inadequate sump pump ruined what they described as thousands of ‘valuable items’ in their storage area.” However, a claims adjuster discovered during the investigation that the area in question was actually a bomb shelter built during the Cold War era, and the so-called valuable items were actually “soap, toothpaste, canned goods, and more.” The insurer ended up settling for about $200,000. Read the court decision
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Living With a Millennial. Or Grandma.

July 23, 2014 — Zara Kessler – Bloomberg
It turns out millennials really do live in their parents’ houses -- at least according to a Pew Research Center report out today. Almost 57 million people in the U.S. -- 18.1 percent of the population -- lived in a multigenerational household in 2012, including almost one in four 25- to 34-year-olds. This provides needed context to the "millennials living in the basement" phenomenon, and, well, stereotype. Of course, "multigenerational household" is not synonymous with "millennial living in the basement." Pew's definition of the former term is more expansive than the one used by the U.S. Census Bureau (whose data Pew analyzes in the report). There's more detail in the report, but here’s the Sparknotes version: A multi-generational household is a household that includes at least two adult generations (for example, parents and adult children ages 25 or older where either generation can be the household head) or two non-sequential generations (for example, grandparents and grandchildren of any age). Read the court decision
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Reprinted courtesy of Zara Kessler, Bloomberg
Ms. Kessler may be contacted at zkessler@bloomberg.net

Housing Inventory Might be Distorted by Pocket Listings

July 23, 2014 — Beverley BevenFlorez-CDJ STAFF
NBC News reported that pocket listings, or unadvertised listings, may be hiding the true number of homes on the market. “A so-called pocket listing is when the real estate agent signs a listing agreement with a seller but does not advertise it widely or put it in a multiple listing service, where other agents and buyers can see it,” according to NBC News. Lawrence Yun, chief economist for the Realtors, told NBC News that he believes the perceived shortage of inventory “is due to the prevalence of pocket listings in some markets." Pocket listings aren’t illegal. There aren’t any “hard numbers” for these unadvertised listings, and so the number of actual listings is based on conjecture by realtors. "The conditions are ripe for this kind of approach to take," Nela Richardson, chief economist at Redfin, a real estate brokerage, told NBC News. “When there is limited inventory, an agent is able to convince a seller, because there is so much demand for housing that maybe as many eyeballs don’t need to see your home as in a traditional market.” Read the court decision
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DC Wins Largest-Ever Civil Penalty in US Housing Discrimination Suit

November 15, 2022 — Kriston Capps - Bloomberg
Three real estate companies operating in Washington, DC, will pay record-breaking penalties in a suit brought by the city for illegally discriminating against tenants who use Section 8 vouchers and other forms of housing assistance. The attorney general for the District of Columbia, Karl Racine, announced on Thursday a settlement for $10 million. While fair housing cases involving lenders have resulted in larger compensation payouts, $10 million is the largest civil penalty ever levied in a housing discrimination case. In 2020, the city sued several entities — DARO Management Services, DARO Realty and New York-based parent company Infinity Real Estate, as well as several executives — over housing practices in the District. DARO Management operates and rents some 1,200 residential units in more than a dozen apartment buildings spread across Wards 1, 2 and 3, which include DC’s more affluent areas. (DARO Realty owns the properties, DARO Management operates them, and Infinity owns both affiliates.) Read the court decision
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Reprinted courtesy of Kriston Capps, Bloomberg

Inspectors Hurry to Make Sure Welds Are Right before Bay Bridge Opening

August 27, 2013 — CDJ STAFF
Each of the 20 welds at the base of the tower of the Bay Bridge took more than four hours to complete, with the lengthy welds forming at one-and-a-half inches per minute. They’ve been finished for two years now, but inspectors are just now checking the welds for defects. Any defects found will have to be removed and repaired. Mazen Wahbeh, an engineer on the project, assumes that less than 5 percent of the total welded area will have to be repaired. According to Wahbeh, the bridge can open before the welds are thoroughly checked and repaired, and so “the contractor is prioritizing the remaining work.” Read the court decision
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No Coverage For Construction Defect Under Illinois Law

January 28, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The court followed precedent in Illinois and upheld the insurer's denial of coverage for construction defects that did not damage other property. Design Concrete Founds., Inc. v. Erie Ins. Prop. & Cas. Co., 2014 Ill. App. Unpub. LEXIS 2684 (Ill Ct. App. Nov. 26, 2014). In 2005, the homeowners contracted with the general contractor to build a home. The general contractor hired Design to do the foundation work. Design performed its work in August 2005. After the work was completed, cracks formed in the foundation, allowing water to enter the basement and an inward shifting of the foundation. The homeowners sued the general contractor and Design. The complaint alleged that Design failed to build the foundation in a workmanlike manner, resulting in the development of cracks in the foundation. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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