Real Estate & Construction News Roundup (08/30/23) – AI Predicts Home Prices, Construction’s Effect on the Economy, and Could Streamline Communications for Developers
October 17, 2023 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, SV invests in a new green “mega-city” outside San Francisco, refunds are given to investors in fraudulent real estate deal, homebuyers are losing purchasing power, and more!
- With major tech companies like Google and Amazon laying off workers, those with computer science and related degrees are looking to construction as a place to start or restart their careers. (Zachary Phillips, Construction Dive)
- Although Silicon Valley is the haven for most tech startups, Israel has become a place where those in construction innovation can find support and funding. (Matthew Thibault, Construction Dive)
- For those who may be concerned about the future price of their home, it may be possible for AI to look at a house and predict its price with “striking accuracy.” (Jacob Zinkula, Business Insider)
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Pillsbury's Construction & Real Estate Law Team
Haight has been named a Metropolitan Tier 1 and Tier 2 “Best Law Firm” by U.S. News – Best Lawyers® “Best Law Firms” in 2025
November 11, 2024 —
Haight Brown & Bonesteel LLPHaight Brown & Bonesteel LLP is listed in the U.S. News – Best Lawyers® (2025 Edition) “Best Law Firms” list with metro rankings in the following areas:
Los Angeles
- Metropolitan Tier 1
- Product Liability Litigation – Defendants
Orange County
- Metropolitan Tier 1
- Product Liability Litigation – Defendants
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Haight Brown & Bonesteel LLP
Five-Year Statute of Limitations on Performance-Type Surety Bonds
December 01, 2017 —
David Adelstein - Florida Construction Legal UpdatesThe statute of limitations on a claim against a performance-type bond is 5 years from the breach of the bond, i.e., the bond-principal’s default (based on the same statute of limitations that governs written contracts / obligations). See Fla. Stat. s. 95.11(2)(b). This 5-year statute of limitations is NOT extended and does NOT commence when the surety denies the claim. It commences upon the default of the bond-principal, which would be the act constituting the breach of the bond. This does not mean that the statute of limitations starts when a latent defect is discovered. This is not the case. In dealing with a completed project, the five-year statute of limitations would run when the obligee (beneficiary of the bond) accepted the work. See Federal Insurance Co. v. Southwest Florida Retirement Center, Inc., 707 So.2d 1119, 1121-22 (Fla. 1998).
This 5-year statute of limitations on performance-type surety bonds has recently been explained by the Second District in Lexicon Ins. Co. v. City of Cape Coral, Florida, 42 Fla. L. Weekly D2521a (Fla. 2d DCA 2017), a case where a developer planned on developing a single-family subdivision.
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dadelstein@gmail.com
Jersey Shore Town Trying Not to Lose the Man vs. Nature Fight on its Eroded Beaches
February 26, 2024 —
Associated Press - BloombergNORTH WILDWOOD, N.J. (AP) — A New Jersey shore town locked in a legal battle with the state over tens of millions of dollars it has spent trying -- mostly in vain -- to hold back the ocean now is more vulnerable than ever.
A recent winter storm destroyed part of the sand dunes in North Wildwood, leaving tiny piles about the size of a child’s sand castle to protect a popular resort town with $2.5 billion worth of private property, and at least that much in government buildings and infrastructure.
New Jersey has
fined the town $12 million for unauthorized beach repairs that it says could worsen erosion, while
the city is suing to recoup the $30 million it has spent trucking sand to the site for over a decade.
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Bloomberg
Three Reasons Lean Construction Principles Are Still Valid
February 27, 2019 —
Kevin Clary - Construction ExecutiveWhen lean principles were first introduced to the construction industry five years ago, project managers raced to implement the production method. The internet was rife with content about how to easily overhaul a jobsite and transform it into the picture of efficiency.
However, the number of lean construction critics have multiplied significantly in recent months. They claim concepts are near impossible to implement or, even worse, automation eliminates the need for deliberate human processes. These ideas are misleading. Lean principles are still valid for a few key reasons.
1. Lean involves seeing things from the customer’s point of view
One of the defining principles of lean construction is understanding value from the customer’s point of view. The concept encourages stakeholders, including the owner, contractor and supplier, to come together during the early planning stage of the project. The significant level of trust created from this exercise can’t be replicated by machinery. It involves compassion, collaboration and a sense of creativity that artificial intelligence is yet to possess. Moreover, the rapport gained through this service-oriented exercise is worth the time investment.
Reprinted courtesy of
Kevin Clary, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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District Court's Ruling Affirmed in TCD v American Family Mutual Insurance Co.
May 10, 2012 —
CDJ STAFFIn the case, TCD, Inc. v American Family Mutual Insurance Company, the district court’s summary judgment was in favor of the defendant. In response, the Plaintiff, TCD, appealed “on the ground that the insurance company had no duty to defend TCD under a commercial general liability (CGL) insurance policy.” The appeals court affirmed the decision.
The appeals ruling provides a brief history of the case: “This case arises out of a construction project in Frisco, Colorado. The developer, Frisco Gateway Center, LLC (Gateway), entered into a contract with TCD, the general contractor, to construct a building. TCD entered into a subcontract with Petra Roofing and Remodeling Company (Petra) to install the roof on the building. The subcontract required Petra to "indemnify, hold harmless, and defend" TCD against claims arising out of or resulting from the performance of Petra’s work on the project. The subcontract also required Petra to name TCD as an additional insured on its CGL policy in connection with Petra’s work under the subcontract.”
Furthermore, “TCD initiated this case against Petra and the insurance company, asserting claims for declaratory judgment, breach of insurance contract, breach of contract, and negligence. The district court entered a default judgment against Petra, and both the remaining parties moved for summary judgment. The court granted summary judgment on the entirety of the action, in favor of the insurance company, concluding that the counterclaims asserted by Gateway against TCD did not give rise to an obligation to defend or indemnify under the CGL policy.”
The appeals court rejected each contention made by TCD in turn. First, “TCD contend[ed] that Gateway’s counterclaims constitute[d] an allegation of ‘property damage,’ which is covered under the CGL policy.” The appeals court disagreed. Next, “TCD argue[d] that [the court] should broaden or extend the complaint rule, also called the ‘four corners’ rule, and allow it to offer evidence outside of the counterclaims to determine the insurance company’s duty to defend in this case.” The appeals court was not persuaded by TCD’s argument.
The judgment was affirmed. Judge Roman and Judge Miller concur.
Read the court’s decision…
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Gehry-Designed Project Seen Bringing NYC Vibe to L.A.
April 28, 2014 —
Nadja Brandt and John Gittelsohn – BloombergBillionaire Stephen Ross’s Related Cos. new project in the sleepy end of downtown Los Angeles is designed to invigorate Grand Avenue the way its Time Warner Center helped energize New York’s Columbus Circle.
“The notion of bringing together this diverse mix of uses, and allowing for a lot of public spaces and public events, has proven to be very powerful in the right locations and with the right planning.” said William Witte, president of Related’s California division.
The New York-based firm formed a joint venture with Los Angeles-based SBE Entertainment Group LLC to restart plans for a $650 million-to-$700 million complex with entertainment, shopping, apartments, condominiums and a luxury hotel, Witte said. After going back and forth with local officials for most of the past year, Related won approval in January for the Frank Gehry-designed project from Los Angeles County supervisors.
Ms. Brandt may be contacted at nbrandt@bloomberg.net; Mr. Gittelsohn may be contacted at johngitt@bloomberg.net
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Nadja Brandt and John Gittelsohn, Bloomberg
Get Construction Defects in Writing
December 11, 2013 —
CDJ STAFFSometimes, even if a developer is willing to make a repair, sometimes the repair doesn’t get to the actual problem, according to Nicholas D. Cowie of Cowie & Mott, writing on his blog. He notes that “getting it ‘right’ the first time is important and written documentation is key.” He gives the example of “when a developer agrees to informally repair a window or roof leak, the ‘repair,’ as far as the developer is concerned, may consist merely of sending out a worker with a caulk gun to seal gaps that should have been protected with a solid flashing material during the original installation.”
As a better course, he says that homeowner associations should “request a written description of the proposed repair” in order that it can be evaluated. This also allows follow-up to determine if the agreed-upon repair was done properly. And, although some homeowners associations would rather not have the original subcontractor repair their own work, here warranties often come into play.
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