Columbus Ohio Building Expert Directory

CGL Policies and the Professional Liabilities Exclusion

August 14, 2018 — David Adelstein - Florida Construction Legal Updates
Commercial general liability (CGL) policies for contractors traditionally contain a professional liabilities exclusion. This exclusion is generally added through a specific endorsement to eliminate coverage for professional services. Read the endorsement The point of the exclusion, in a nutshell, is simply to eliminate a CGL policy for a contractor serving as a professional liability policy. Contractors need to appreciate a professional liabilities exclusion added through endorsement because oftentimes there are delegated design components they are responsible for. Perhaps the contractor value engineered a system and is responsible for engineering and signing and sealing the engineered documents (through its subcontractor) associated with that system. Perhaps there is a performance specification that requires the contractor to engineer a system. Perhaps there is a design-build component. Regardless of the circumstance, this professional liabilities exclusion can certainly come into play, particularly if a defect is raised with the design or professional services associated with the engineered system. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Florida Condo Collapse Shows Town’s Rich, Middle-Class Divide

August 04, 2021 — The Associated Press (Terry Spencer & Freida Frisaro) - Bloomberg
The condo tower collapse in Surfside could exacerbate the division that already exists between the tiny Florida town’s new luxury buildings built for the global elite and those constructed decades ago for the middle class. It is already creating headaches for some small businesses. The town has seen the construction of numerous new condos in recent years, where large oceanfront units exceeding 3,000 square feet (280 square meters) with modern amenities can fetch $10 million and up. Meanwhile, small units of 800 square feet (75 square meters) in neighboring condo buildings constructed decades ago can be had for $400,000. Ana Bozovic, a South Florida real estate broker, said the June 24 collapse of the 40-year-old, middle-class Champlain Towers South will exacerbate this division. At least 46 people were killed and more than 90 remain missing. Read the court decision
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Reprinted courtesy of Bloomberg

The G2G Mid-Year Roundup (2022)

July 03, 2022 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
Our mid-year roundup highlights the top-read Gravel2Gavel posts from 2022 so far. Our authors provided deep industry insights and summarized hot topics that addressed various legal implications and disruptions that affected the market, ranging from topics like investing in real estate metaverse to the clean hydrogen transition.

Do Municipal Gas Bans Slow the Clean Hydrogen Transition in Real Estate? by Sidney L. Fowler, Robert G. Howard and Emily Huang. The authors discuss the potential of clean hydrogen and how it will play a significant role in the energy transition by serving as a carbon-free form of energy storage and heat production.
NFT Use Cases in Real Estate by Megan L. Jones and David W. Wright. The authors discuss how entrepreneurs are searching for new industries to disrupt utilizing the advantages offered by NFTs and blockchain more generally, with many turning their heads towards real estate.

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

Blackstone Suffers Court Setback in Irish Real Estate Drama

August 20, 2014 — Donal Griffin and Dara Doyle – Bloomberg
At 11:15 a.m. on July 29, Irish property developer Michael O’Flynn realized that Blackstone Group LP (BX) was trying to gain control of his real estate empire, which includes the country’s tallest residential tower. Ten weeks earlier, the private equity firm had bought 1.8 billion euros ($2.4 billion) of loans to O’Flynn’s companies and the developer personally. Coming out of a meeting, he learned Blackstone was demanding the immediate repayment of 16 million euros of personal loans secured on his shareholdings -- even though he wasn’t in default. By the end of the day he had lost control of the business he’d spent more than 30 years building. “I was shocked that they’d made this demand,” O’Flynn, 57, said in an interview. “It took time to understand the gravity of it because I’ve never been served with a demand in my 36 years of business. I was very recently transferred to Blackstone and I was doing my damnedest to work with them.” Mr. Doyle may be contacted at ddoyle1@bloomberg.net; Mr. Griffin may be contacted at dgriffin10@bloomberg.net Read the court decision
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Reprinted courtesy of Donal Griffin and Dara Doyle, Bloomberg

CA Homeowners Challenging Alternate Pre-Litigation Procedures

April 15, 2014 — Beverley BevenFlorez-CDJ STAFF
Garret Murai on his California Construction Law blog discussed how some homeowners have challenged homebuilders who use alternative pre-litigation procedures instead of the rules of California’s Right to Repair Act (SB 800). “The Right to Repair Act, which was intended to help curb the then rising tide of residential construction defect litigation, provides mandatory pre-litigation procedures which must be followed in construction defect cases involving new residential construction,” Murai explained. “One of the major exceptions to the statutory pre-litigation procedures under SB 800, however, is that a homebuilder can opt to use its own alternative pre-litigation procedures if disclosed to a homebuyer.” Murai used The McCaffrey Group, Inc. v. Superior Court case to demonstrate that homeowners can challenge the builder’s use of alternative pre-litigation procedures, and win if they can prove that the alternate procedures are “unconscionable.” “For homebuilders, the take away is that, sure you can adopt your own alternative pre-litigation procedures under the Right to Repair,” Murai stated, “but if you do just know that they may be challenged by homeowners who may contend that they are unconscionable, which kinda defeats the whole idea behind SB 800 which was intended to reduce the amount of litigation the first place.” Read the court decision
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Don’t Assume Your Insurance Covers A Newly Acquired Company

February 19, 2019 — Patrick M. McDermott & Michael S. Levine - Hunton Insurance Recovery Blog
The Supreme Court of Virginia’s decision yesterday finding no coverage for fire damage to a building is a cautionary tale for companies acquiring other companies. Erie Ins. Exch. v. EPC MD 15, LLC, 2019 WL 238168 (Va. Jan. 17, 2019). In that case, Erie Insurance issued a property insurance policy to EPC. The policy covered EPC only and did not cover any subsidiaries of EPC. EPC then acquired the sole member interest in Cyrus Square, LLC. Following the acquisition, fire damaged a building that Cyrus Square owned. EPC sought coverage under its property insurance policy. Because the policy did not cover Cyrus Square, EPC argued that a provision extending coverage to “newly acquired buildings” applied, contending that EPC had newly acquired Cyrus Square’s building by virtue of becoming the sole member interest in the LLC. Based on the law relative to LLCs and its interpretation of the policy, the Supreme Court of Virginia ruled against EPC. It found that although EPC had acquired Cyrus Square, it had not “newly acquired” the building and so the “newly acquired buildings” coverage extension did not apply. Reprinted courtesy of Patrick M. McDermott, Hunton Andrews Kurth and Michael S. Levine, Hunton Andrews Kurth Mr. McDermott may be contacted at pmcdermott@HuntonAK.com Mr. Levine may be contacted at mlevine@HuntonAK.com Read the court decision
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The Best Laid Plans: Contingency in a Construction Contract

September 13, 2021 — Josh Levy, Katesha Long & Samantha Schacht - Construction Executive
This article is the first of a three-part series on contingencies in construction contracts. This series will explain:

what a construction contingency is;
the two primary schools of thought regarding how a construction contingency fund should be used and managed; and
construction contract drafting considerations for contingency clauses.

Armed with this information, owners and contractors will be better equipped to tackle the inevitable project surprises. Life is full of surprises, some good and some not too good. Surprises during construction are seldom welcome events. However, experienced owners and contractors know to expect the unexpected and plan accordingly by including contingency funds in their budgets. For them, the question is not whether or not to include a contingency, but how much to set aside and how to structure and manage the fund. Reprinted courtesy of Josh Levy, Katesha Long & Samantha Schacht, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Ms. Schacht may be contacted at samantha.schacht@huschblackwell.com Ms. Long may be contacted at katesha.long@huschblackwell.com Read the court decision
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Fannie Mae Says Millennials Are Finally Leaving Their Parents' Basements

December 17, 2015 — Julie Verhage – Bloomberg
Parents, rejoice. Your offspring may finally be moving out of the family basement. A new report (PDF) from Fannie Mae, the U.S. government-backed mortgage company, suggests that the millennial generation is getting a move on. "According to the ACS [Census Bureau’s American Community Survey], the number of homeowners aged 25-34 fell by more than 250,000 in each year between 2007 and 2012, but has declined by less than 100,000 annually since then," Fannie Mae said. "In fact, the decline between 2013 and 2014 was statistically insignificant, the first indication of stability in the number of young homeowners since the onset of the Great Recession." So while the number of homeowners in that age range is still on the decline, the trend looks poised for a reversal, and Fannie Mae said it won't take much to see positive growth in millennial homeownership in the near future. Read the court decision
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Reprinted courtesy of Julie Verhage, Bloomberg

COLUMBUS OHIO BUILDING EXPERT DIRECTORY AND CAPABILITIES