Proposed Bill Provides a New Federal Tax Credit for the Conversion of Office Buildings
September 06, 2021 —
Emily K. Bias & Brittany Griffith - Gravel2Gavel Construction & Real Estate Law BlogAt the end of July 2021, a bill was introduced in the House and Senate, which, if enacted, would create a federal tax credit to fund the conversion of unused office buildings into residential, commercial, or mixed-use properties. The Revitalizing Downtowns Act (S. 2511), which is modeled after the federal historic rehabilitation tax credit, would provide a federal tax credit equal to 20 percent of “qualified conversion expenditures” with respect to a “qualified converted building.”
A “qualified converted building” means any building that (i) was nonresidential real property for lease to office tenants, (ii) has been “substantially converted” from an office use to a residential, retail, or other commercial use, (iii) in the case of conversion to residential units, is subject to a state or local affordable housing agreement or has at least 20 percent of the units rent restricted and set aside for tenants whose income is 80 percent or less of area median gross income, (iv) was initially placed in service at least 25 years before the beginning of conversion, and (v) may be depreciated or amortized.
Reprinted courtesy of
Emily K. Bias, Pillsbury and
Brittany Griffith, Pillsbury
Ms. Bias may be contacted at emily.bias@pillsburylaw.com
Ms. Griffith may be contacted at brittany.griffith@pillsburylaw.com
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Top 10 Take-Aways from the 2024 Annual Forum Meeting in New Orleans
May 20, 2024 —
Marissa L. Downs & Brendan Witry - Laurie & Brennan, LLPOver 600 construction lawyers, experts, and consultants met in New Orleans last week for the Forum’s 2024 Annual Meeting where Program Coordinators Brenda Radmacher and Joseph Imperiale together with John Cook and Buck Beltzer put together an insightful program focused on all things construction litigation. Here are our 10 top take-aways from this unique program.
10. Don't underestimate the soft skills that are necessary to effectively represent your clients. There are different ways to measure success when it comes to construction litigation, according to Stephen Dale (WSP USA), Melissa Beutler Withy (Big-D), and Matthew Whipple (Wohlsen Construction). What these (and likely other inside counsel) will look for when retaining outside counsel is the ability to accurately forecast litigation expense and timely communicate case developments. Being able to master these "soft" skills is as important (if not more so) as an attorney's aptitude for trial advocacy. The in-house counsel who hire litigation counsel will be held accountable to deliver results on the investment they are making in legal fees. Outside counsel who cannot manage budgets or avoid surprises in the course of a case will not be successful as litigators.
Reprinted courtesy of
Marissa L. Downs, Laurie & Brennan, LLP and
Brendan Witry, Laurie & Brennan, LLP
Ms. Downs may be contacted at mdowns@lauriebrennan.com
Mr. Witry may be contacted at bwitry@lauriebrennan.com
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No Signature? Potentially No Problem for Sureties Enforcing a Bond’s Forum Selection Clause
March 21, 2022 —
Brian C. Padove - ConsensusDocsOne of the foundational tenets of contract law is that a party may only be bound by terms they agree to, or in other words, if the party did not sign a contract, that party cannot be bound by the terms thereof. While this principle is generally unwavering, there are certain situations in which a non-signatory to a contract may still be bound by the terms of a contract.
In particular, this non-signatory issue may arise when a payment bond claimant makes a bond claim, subsequently files a lawsuit, but the bond contains a forum selection clause different than the venue of the lawsuit and the surety seeks to enforce the bond’s forum selection clause. For example, the claimant may have filed its lawsuit against the surety in federal court, even though the bond provides language specifically mandating that no lawsuit shall be commenced by any claimant other than in a state court where the project is located. Thus, the question then becomes, can the surety enforce the forum selection clause against the claimant when the claimant did not sign the bond and/or never agreed to the terms thereof? The short answer, it depends (yes, that is a very lawyer-like answer). Given recent case law over the past decade, however, the surety has a strong argument in favor of enforcement of the forum selection clause.
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Brian C. Padove, Watt, Tieder, Hoffar & Fitzgerald, LLP (ConsensusDocs)Mr. Padove may be contacted at
bpadove@watttieder.com
Colorado Trench Collapse Kills Two
July 30, 2019 —
Engineering News-RecordFederal safety officials are investigating the April 16 collapse of a trench that killed two construction workers in northern Colorado. The two men—Cristopher Lee Ramirez, 26, and Jorge Baez Valadez, 41—were installing utilities at a site being developed by D.R. Horton Express Homes in Windsor, Colo., when they were trapped by soil and rocks in the 15-ft-deep trench. The rescue attempt lasted seven hours and involved small shovels because of fears of a second collapse.
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Engineering News-RecordENR may be contacted at
ENR.com@bnpmedia.com
Remote Trials Can Control Prejudgment Risk
September 07, 2020 —
Robert G. Devine, Victor J. Zarrilli & Kimberly M. Collins - White and Williams LLPWhile courts across the country are largely unavailable to litigants demanding a jury trial, pre-judgment interest rules present an increasing penalty risk to a defendant wanting its day in court and may not always make a plaintiff whole. The COVID-19 pandemic has altered the manner in which people and industries operate across the board. In light of the need to maintain social distancing whenever possible, the use of technology to replace in-person appearances is becoming more commonplace. As more attorneys become comfortable with the remote platform, the willingness to consider a remote trial grows.
With in-person jury trials suspended until further notice, it is important for attorneys and parties to consider the attendant consequences of the indefinite delay in waiting for a traditional jury trial. Aside from general inconvenience, continued delays may have a substantial financial impact, particularly with regard to the accumulation of pre-judgment interest.
Reprinted courtesy of White and Williams LLP attorneys
Robert G. Devine,
Victor J. Zarrilli and
Kimberly M. Collins
Mr. Devine may be contacted at deviner@whiteandwilliams.com
Mr. Zarrilli may be contacted at zarrilliv@whiteandwilliams.com
Ms. Collins may be contacted at collinsk@whiteandwilliams.com
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Los Angeles Construction Sites May Be on Fault Lines
December 30, 2013 —
CDJ STAFFCalifornia law prohibits building near or on top of earthquake fault lines, but Los Angeles County building officials may have used outdated information that misreported the location of certain faults. The Los Angeles Times reports that after their earlier articles on fault lines, the officials have started using newer maps.
According to the older maps, an apartment building under construction on Brockton Avenue in Los Angeles is 1.9 miles away from the Santa Monica fault. But a more recent map, created by the state in 2010, shows that the fault line could potentially be right under the building site.
The builders of another apartment building potentially located on the Santa Monica fault said that the city did not ask for a fault investigation. The Los Angeles Department of Building and Safety said that there was no official zone designation for the Santa Monica fault, and so did not require seismic studies.
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OSHA COVID-19 Vaccination and Testing ETS Unveiled
November 19, 2021 —
Donna Reichle - Construction ExecutiveAssociated Builders and Contractors today released the following statement on the Occupational Safety and Health Administration’s issuance of its COVID-19 vaccination and testing Emergency Temporary Standard, which applies to employers with 100 or more employees as required by President Biden’s Path Out of the Pandemic COVID-19 Action Plan.
“The OSHA ETS is likely to increase compliance costs and cause regulatory burdens that will exacerbate several headwinds facing the construction industry—which is currently facing a workforce shortage of 430,000, escalating materials prices and supply chain bottlenecks—and the American economy,” says Ben Brubeck, ABC vice president of regulatory, labor and state affairs. “We are currently reviewing the 490-page rule and related documents from the Biden-Harris administration in order to thoroughly evaluate its impact on our membership and the construction industry.”
Reprinted courtesy of
Donna Reichle, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Ms. Reichle may be contacted at
reichle@abc.org
Wildfire Insurance Coverage Series, Part 5: Valuation of Loss, Sublimits, and Amount of Potential Recovery
July 25, 2022 —
Scott P. DeVries & Yosef Itkin - Hunton Insurance Recovery BlogInsurance policies provide different levels of insurance coverage and even if the amount purchased was adequate at one time, developments over time (e.g., inflation, upgrades, regulatory changes and surge pricing) may leave the policyholder underinsured. In this post in the Blog’s Wildfire Insurance Coverage Series, we emphasize the need for policyholders to take a close look at the policy’s terms to select the right type and amount of coverage for a potential loss.
Various types of coverage are available and there has been extensive litigation concerning the amount of coverage provided by one policy form or another. For example, the policyholder may have purchased market value coverage (the value of the house at the time of the wildfire), replacement coverage subject to a policy limits cap, guaranteed replacement cost coverage, or some variation on the theme. While the property may be properly valued when the insurance is purchased, it may become undervalued at the time of loss due to factors like inflation or home improvements that were not disclosed to the insurer. And, however generous the limits may be when the policy is procured, as one court discussed, it may be insufficient when “surge pricing” occurs after a wildfire.
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Reprinted courtesy of
Scott P. DeVries, Hunton Andrews Kurth and
Yosef Itkin, Hunton Andrews Kurth
Mr. DeVries may be contacted at sdevries@HuntonAK.com
Mr. Itkin may be contacted at yitkin@HuntonAK.com
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