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Real Estate & Construction News Roundup (4/17/24) – Travel & Tourism Reach All-Time High, President Biden Emphasizes Housing in SOTU Address, and State Transportation Projects Under Scrutiny

May 13, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, Airbnb advocates for new short-term rental rules, the U.S. Supreme Court rules on hefty development fees, loan losses becomes a greater issue for banks, and more!

• The Federal Highway Administration has not completed guidance that state transportation departments need to administer programs supported by the Infrastructure Investment and Jobs Act and other federal funds. (Dan Zukowski, Construction Dive)
• The global economic contribution of the travel and tourism industry is set to reach an all-time high of $11.1 trillion in 2024. (Jenna Walters, Hotel Dive)
• Airbnb plans to work with city and state governments to “advocate for short-term rental rules that allow renters to share their home.” (Lakshmi Varanasi, Business Insider)

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

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New Jersey Federal Court Examines And Applies The “j.(5)” Ongoing Operations Exclusion

October 07, 2019 — Anthony L. Miscioscia and Timothy A. Carroll - White and Williams LLP
In PJR Construction of N.J. v. Valley Forge Insurance Company, 2019 U.S. Dist. LEXIS 127973 (D.N.J. July 31, 2019) (PJR Construction), a New Jersey federal court held that the “j.(5)” “Ongoing Operations Exclusion” applied to bar coverage for property damage to property on which a construction company allegedly performed faulty work. The court’s opinion follows prior New Jersey state court precedent, including Ohio Casualty Insurance Company v. Island Pool & Spa, Inc., 12 A.3d 719 (N.J. Super. Ct. App. Div. 2011) (Island Pool), but also provides additional guidance on the elements which can make the Ongoing Operations Exclusion applicable to exclude coverage. In PJR Construction, a commercial property owner engaged a construction company to build a 26,000 square foot swim club and related 3,000 square foot pavilion building in New Jersey. After about 75% of the work was completed, the property owner fired the construction company and denied it access to the property. The owner later sued the construction company in New Jersey state court alleging “shoddy workmanship” in, among other things, sealants, flashing, water resistant barriers, masonry and the handicap ramps. The construction company sought coverage from its CGL insurer, which denied coverage based on, among other things, the j.(5) Ongoing Operations Exclusion. After the denial of coverage, the company sued the insurer in New Jersey federal court seeking a declaration of coverage. Reprinted courtesy of Anthony L. Miscioscia, White and Williams LLP and Timothy A. Carroll, White and Williams LLP Mr. Miscioscia may be contacted at misciosciaa@whiteandwilliams.com Mr. Carroll may be contacted at carrollt@whiteandwilliams.com Read the court decision
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Deferred Maintenance?

December 17, 2024 — Daniel Lund III - Lexology
A Tennessee-based “outsourced maintenance vendor” to an engine company filed suit in Louisiana state court seeking to recover nearly $150,000 on “open account,” for work previously performed. The engine company removed the case to the Federal District Court in New Orleans and asserted as a defense that the vendor lacked a proper Louisiana construction contractor’s license. The engine company filed a motion for summary judgment based on the defense. Under Louisiana law, a contract between parties is “absolutely null”--considered to have never existed--where one of the parties performed services without a required Louisiana contractor’s license, and the combined work reaches a $50,000 threshold. The engine company asserted that the vendor performed typical construction contractor work, including plywood flooring, applied epoxy to concrete flooring, erected part of a commercial carport, undertook certain heavy demolition, and installed fences, guardrails, and wire racks. Read the court decision
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Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

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Berlin Lawmakers Get a New Green Workspace

June 21, 2021 — Iain Rogers - Bloomberg
On a site steeped in history a few hundred meters from the Reichstag in central Berlin, an office building is rapidly taking shape that handily symbolizes how climate protection has come to dominate the political narrative ahead of September’s election. The modular Luisenblock West, which will provide working space for Germany’s Bundestag, or lower house of parliament, is mostly wooden beyond a reinforced concrete core. The individual units that make up the bulk of the building are assembled at a site in the east of the city and designed to reduce carbon footprint by capturing thousands of tons of carbon dioxide. With just four months until the national vote that will mark the end of Angela Merkel’s 16-year reign, the Greens are leading the chancellor’s conservative bloc in some opinion polls and climate protection is high on the list of priorities for many voters. The former fringe party has a real chance of leading a German government for the first time, while traditional parties scramble to affirm their environmental credentials. Read the court decision
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Reprinted courtesy of Iain Rogers, Bloomberg

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Learning from Production Homes of the Past

August 13, 2014 — Beverley BevenFlorez-CDJ STAFF
Big Builder recaps production homes by decade, beginning with Sears Catalog Homes of the 1920s. They cover major events, original prices, intended buyers, geographic areas, designer/developers, styles/floor plans, and how they broke ground. Big Builder chose to highlight Greenbelt Row Houses for the 1930s, Levittown Tract Homes for the 1940s, as well as additional home builders for each decade through 2010. Read the court decision
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Court finds subcontractor responsible for defending claim

May 18, 2011 — CDJ STAFF

In an unpublished decision, the California Fourth Appellate District Court has reversed the judgment of Judge Linda B. Quinn of the Superior Court of San Diego. In the case Inland California, Inc. v. G.A. Abell, Inland, a general contractor had subcontracted with Apache Construction and Precision Electric Company (G.A. Abell).



Apache alleged that extra demolition and drywall work was needed due to Precision’s electrical work. Inland tendered a defense of Apache’s claims. However, Precision did not provide any defense. Inland withheld payment from Precision.



At trial, Inland “conceded Precision earned the $98,000 in progress payments Inland withheld.” They were obligated to additionally pay Precision’s costs and attorney fees.



The Fourth Appellate District court has overturned this and remanded the case back to the lower court. The judges determined that Precision was obligated to defend itself against the claims raised by Apache and therefore vacated the judgment against Inland.



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Hunton Andrews Kurth Associate Cary D. Steklof Selected to Florida Trend’s Legal Elite Up & Comers List for 2019

September 09, 2019 — Michael S. Levine - Hunton Andrews Kurth
Hunton Andrews Kurth’s insurance coverage practice is proud to congratulate Cary D. Steklof for being selected by his peers to Florida Trend’s Legal Elite Up & Comers list for 2019. A total of 131 attorneys under the age of 40 throughout the state of Florida were recognized for their leadership in the law and their communities. Cary was one of only seven attorneys selected for their skill and counsel in the area of insurance. We congratulate Cary and all of the recipients of this award who have distinguished themselves for their superior advocacy, knowledge, and accomplishments as young professionals. Read the court decision
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Reprinted courtesy of Michael S. Levine, Hunton Andrews Kurth
Mr. Levine may be contacted at mlevine@HuntonAK.com

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Review the Terms and Conditions of Purchase Orders- They Could be Important!

February 15, 2018 — Christopher G. Hill – Construction Law Musings
There are many moving parts on a commercial construction project. These range from site surveys to weather events to ordering materials. On most large construction projects, the prime contract and subcontracts are generally drafted ahead of time and hopefully reviewed by both in house personnel and an experienced construction attorney. However, there are situations, particularly where the contract may be one for service or provision of materials where individual purchase orders are issued as opposed to what would likely be looked at as a long form subcontract. Read the court decision
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Reprinted courtesy of Christopher G. Hill, The Law Office of Christopher G. Hill, PC

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