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DIRECTORY AND CAPABILITIES

Former NYC Condo Empire Executive Arrested for Larceny, Tax Fraud

March 11, 2024 — Ava Benny-Morrison - Bloomberg
A former New York executive facing lawsuits over the collapse of real estate empire HFZ Capital Group has been arrested in Miami, charged with grand larceny and tax fraud. Nir Meir, 48, was arrested Monday, a spokesperson for the Miami-Dade Police Department confirmed. Meir was detained on an out-of-state warrant, suggesting his arrest may be the result of an investigation by law enforcement in New York. A spokesperson for the Manhattan District Attorney’s Office didn’t immediately respond to a request for comment. Meir’s attorney also didn’t immediately respond to an email. Meir, the former managing principal of HFZ Capital Group, has been battling multiple lawsuits in New York over his involvement in the once-prominent real estate firm. He’s denied wrongdoing. Read the court decision
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Reprinted courtesy of Ava Benny-Morrison, Bloomberg

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Hawaii Federal District Court Compels Appraisal

December 03, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The Hawaii federal district court denied the insurers' motion to dismiss on forum non convenient grounds and granted the insured's motion to compel arbitration. BRE Hotels and Resorts LCC, et al. v. Ace Am Ins. Co., et al., 2024 U,.S. Dist. LEXIS 163852 (D. Haw. Sept. 11, 2024). BRE Hotels & Resorts LLC (BRE) owned the Grand Wailea Resort on Maui and the Turtle Bay Resort on Oahu. Both hotels were damaged by a rainstorm on March 9, 2021. Estimated losses exceeded $55 million. BRE filed a claim with its sixteen insurers. BRE sought $46 million in four categories: business interruption losses at the Grand Wailea ($29.6 million); damaged tiles at the Grand Wailea ($8.3 million); furniture, fixtures, and equipment at Turtel Bay ($6.2 million); and an assortment of ancillary issues at both properties ($1.9 million). The insurers investigated and took issued with BRE's estimates. The insurers contended that most of the tiles suffered from an independent defect and were not damaged by the storm, that the insurance policies did not cover the replacement of undamaged furniture, and that the claimed business interruption losses were too high. The insurers paid $4 million. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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What If Your CCP 998 Offer is Silent on Costs?

March 18, 2019 — Tony Carucci - Snell & Wilmer Real Estate Litigation Blog
In California, the “prevailing party” in litigation is generally entitled to recover its costs as a matter of law. See Cal. Code Civ. Proc. § 1032. But under California Code of Civil Procedure section 998, a party may make a so-called “offer to compromise,” which can reverse the parties’ entitlement to costs after the date of the offer, depending on the outcome of the litigation. Cal. Code Civ. Proc. § 998. The potential payoff of a 998 offer is that “If an offer made by a defendant is not accepted and the plaintiff fails to obtain a more favorable judgment or award, the plaintiff shall not recover his or her postoffer costs and shall pay the defendant’s costs from the time of the offer.” Cal. Code Civ. Proc. § 998(c)(1) (emphasis added). But how do you determine whether a plaintiff obtained a more favorable judgment when the 998 offer is silent with respect to whether it includes costs? In Martinez v. Eatlite One, Inc. (2018) 27 Cal.App.5th 1181, 1182–83, the defendant made a 998 offer of $12,001 that was silent regarding the treatment of attorneys’ fees and costs. Plaintiff did not respond to the offer, and the jury ultimately awarded plaintiff damages of $11,490. Id. In resolving the parties’ competing memoranda of costs and plaintiff’s motion for attorneys’ fees, the trial court awarded plaintiff her costs and attorneys’ fees. Id. at 1182. The trial court reasoned that plaintiff had obtained a more favorable judgment than the 998 offer because she was entitled to pre-offer costs and attorneys’ fees under the statute, which meant plaintiff’s ultimate recovery exceeded the 998 offer when added to the judgment. Id. at 1183. In other words, the court added plaintiff’s pre-offer costs and attorneys’ fees to the $11,490 verdict for the purposes of determining whether the “judgment” was greater than the 998 offer of $12,001. Id. Read the court decision
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Reprinted courtesy of Tony Carucci, Snell & Wilmer
Mr. Carucci may be contacted at acarucci@swlaw.com

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Real Estate & Construction News Roundup (1/24/24) – Long-Term Housing Issues in Hawaii, Underperforming REITs, and Growth in a Subset of the Hotel Sector

February 19, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, commercial real estate’s relationship with technology, towns and cities across the country prevent dollar stores from opening, empty offices and other commercial buildings are reused for housing, and more!

• Between 1988 and September 2023, the hotel room supply in the select service and extended stay hotel sector has increased by 60% greater than full-service hotel room supply growth. (Michele Laufik, Hotel Dive)
• With high mortgage rates and home prices, would-be buyers are understandably looking for deals — even if they need to move to a different city, state or region to find them. (Ana Teresa Solá, CNBC)
• Roughly 60 towns and cities have made changes to their zoning laws since 2018 to prevent dollar stores from opening within their limits. (Alex Bitter, Business Insider)

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

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How Pennsylvania’s Supreme Court Decision Affects Coverage of Faulty Workmanship Claims

March 31, 2014 — Beverley BevenFlorez-CDJ STAFF
Darin J. McMullen of the firm Anderson Kill explained how a recent opinion by the Pennsylvania Supreme Court allows “Pennsylvania policyholders” to “more confidently challenge insurance companies’ denials of faulty workmanship claims.” The decision in Indalex Inc. v. National Union Fire Ins. Co. of Pittsburgh, PA, 2013 Pa. Super 311 (Dec. 3, 2013) “reverses a nearly decade-long trend of Pennsylvania decisions narrowing the scope of insurance coverage for construction and defect-related claims under commercial general liability insurance policies,” according to McMullen. “Equally important, the Indalex ruling dealt a blow to the insurance industry’s continual efforts to win overbroad expansion of the rulings in Kvaerner Metals Div. of Kvaerner U.S., Inc. v. Commercial Union Ins. Co., Millers Capital Ins. Co. v. Gambone Bros. Dev. Co., and Erie Ins. Exchange v. Abbott Furnace Co., which found that claims of faulty workmanship in some circumstances may not constitute coverage-triggering ‘occurrences.’” Read the court decision
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Reprinted courtesy of

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Real Estate & Construction News Roundup (6/18/24) – Cannabis’ Effect on Real Estate, AI’s Capabilities for Fund Managers and CRE’s Exposure on Large Banks

July 15, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, hotel-to-apartment conversions take big leap, state governments pass squatting legislation, US regional banks risk having debt ratings downgraded, and more!

• Reclassifying cannabis as a lower-risk substance could bring significant changes to the real estate sector associated with cannabis. (Margaret Jackson, Yahoo)
• More than 60 of the largest banks in the country are at increased risk of failure due to their commercial real estate (CRE) exposures. (Florida Atlantic University).
• As extreme weather grows in frequency and intensity, the nation’s patchwork of building codes have not kept up with modern conditions and if something goes wrong, contractors are not off the hook if they simply build to code. (Julie Strupp, Construction Dive)

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

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Jason Feld Awarded Volunteer of the Year by Claims & Litigation Management Alliance

April 15, 2024 — Linda Carter - Kahana Feld
On April 3, 2024, Kahana Feld’s Co-Founding Partner, Jason Feld was honored by the Claims & Litigation Management Alliance (CLM) with the Inaugural Volunteer of the Year award. The CEO of CLM, Ronna Ruppelt stated, “The new CLM Volunteer of the Year award honors dedicated members who passionately serve the CLM community. Jason’s service spans over a decade as both the President and Director of Events for the Orange County Chapter. Under his guidance, this chapter has flourished – not only educating and connecting the CLM community but rallying members to give back to the local community through service events in the process. Jason is also a frequent writer, speaker, and contributor for CLM events, and we are proud to honor him as our inaugural CLM Volunteer of the Year.” Mr. Feld is a renowned nationwide construction claims leader who actively speaks at industry events. He serves as panel counsel for many prominent insurance carriers and provides personal counsel for multiple national and regional builders, developers, and contractors. With his vast experience and expertise, Mr. Feld is a trusted authority in the field and is highly regarded for his legal representation. Read the court decision
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Reprinted courtesy of Linda Carter, Kahana Feld
Ms. Carter may be contacted at lcarter@kahanafeld.com

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Intellectual Property And Employment Law Best Practices: Are You Covering Your Bases In Protecting Construction-Related Trade Secrets?

November 15, 2021 — Colin Holley - ConsensusDocs
There are four main types of intellectual property (IP) – patents, copyrights, trademarks and trade secrets. Many companies have IP rights of all four types. Very different steps are required to protect different types of IP. Your company should work with an experienced IP attorney to develop and continuously update a comprehensive IP protection plan. And for the reasons discussed below, it is important for your company’s IP protection plan to be closely coordinated with employment and contracting practices. Patents are rights that may be granted to protect uniquely-original and usable inventions for a prescribed period of years, the length of which depends on the patent type. To register a patent, an application must be filed with the United States Patent and Trademark Office (USPTO), which will decide whether the invention is patentable. A registration gives the owner the ability to prevent others from using or selling the invention without permission. Registered patents may be challenged in court on several grounds, but mounting a successful challenge is a very expensive proposition. A patent registration is thus a highly valued asset and is key to preventing others from using or copying your invention, unless you have a foolproof way to keep your invention secret and out of the hands of competitors. On the other hand, if it is possible to keep the invention secret for enough time to gain a commercial advantage over competitors and the enforceability of the patent is questionable, registering a patent may be a mistake because the invention must be publicly disclosed in excruciating detail, for all competitors to see. Read the court decision
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Reprinted courtesy of Colin Holley, Watt, Tieder, Hoffar, & Fitzgerald, LLP
Mr. Holley may be contacted at cholley@watttieder.com

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