Pillsbury Insights – Navigating the Real Estate Market During COVID-19
July 06, 2020 —
Caroline A. Harcourt - Gravel2Gavel Construction & Real Estate BlogUntil COVID-19 officially took hold in the U.S. in March of 2020, the U.S. real estate market was active, even robust. Starting in March, however, the possible scope of the pandemic and the sudden imposition of stay-at-home orders resulted in deal volume falling precipitously—with sales, leasing and lending transactions being put on temporary “wait and see” pause or terminated altogether.
The impact of COVID-19 on the real estate market has not been felt evenly. Hotels have been hit extremely hard, with many hotels shuttered altogether and many others only open at staggeringly low occupancy rates. Retail likewise has been virtually shut down in various parts of the country—with retailers across the country asking for rental forbearance or lease surrenders and others, such as J Crew, Neiman Marcus and Pier 1, pursuing bankruptcy reorganizations or liquidation. Multifamily has also been relatively hard hit, and landlords are having to navigate a web of local, state, and even federal regulations regarding tenant protections, such as non-eviction orders. The least affected sector so far has been office—however employers and office space users who are becoming facile with zoom and “working at home” may well re-examine their usage of office space—and it is within the realm of possibility to imagine that even this sector may come under pressure over time.
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Caroline A. Harcourt, PillsburyMs. Harcourt may be contacted at
caroline.harcourt@pillsburylaw.com
Gibbs Giden is Pleased to Announce Four New Partners and Two New Associates
January 08, 2024 —
Gibbs Giden Locher Turner Senet & Wittbrodt, LLPWe take great pleasure in announcing that
Richard Marks and
Kyle Marks have joined the firm. They bring a combined 60 years of real property law experience to Gibbs Giden. Well known Title Insurance and seasoned real estate attorneys they have both served as chair of the Title Insurance Subsection of the Los Angeles County Bar Association and are adjunct professors at Southwestern University School of Law. We are excited to welcome these two exceptional partners and their commitment to representing clients with honesty, integrity, and excellence. You can find them in our firm’s Westlake office.
Talented attorneys
Samantha Riggen and
Christopher Trembley have been named partners. Samantha represents clients in all areas of business and commercial matters with an emphasis on construction litigation on both public and private projects. Christopher’s practice also focuses on construction litigation on behalf of a wide spectrum of industry-stakeholder clients, including suppliers, contractors, and owners. Both work in our firm’s Westlake Village office.
We are also pleased to announce we’ve hired two new associates.
Sarah La Mendola and
Madison Wedderspoon. Sarah has developed an expertise in a wide range of real estate, business, and corporate matters. She received her JD from the University of Pavia, one of the top universities in Italy, in 2012 and her LLM from UCLA in 2015. You can find Sarah in our Westlake Village office. Madison recently graduated from the Boyd School of Law cum laude, is based in our Las Vegas office and works in the areas of business law, contracts, healthcare law, construction, real estate, and common interest community transactional and litigation work.
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Court Orders House to be Demolished or Relocated
April 26, 2011 —
Beverley BevenFlorezCDJ STAFFDecision Affirmed in Central Arkansas Foundation Homes, LLC v. Rebecca Choate
The Arkansas Court of Appeals affirmed the decision by the trial court in Central Arkansas Foundation Homes, LLC v. Rebecca Choate. In the trial case, Central Arkansas Foundation Homes (CAFH) sought payment for a home built for Choate, while Choate alleged that the builders committed multiple construction defects including using the wrong foundation materials and positioning the house in the wrong direction.
After the house was built, CAFH contacted Choate regarding payment, however, Choate alleged that the finished product did not match the contract. “ After CAFH completed construction, it obtained permanent home financing for Choate and tried to contact her to close the transaction. Choate did not respond until October 2005, when she sent CAFH a list of alleged construction defects, including that the house was facing in the wrong direction; that it was not built on a slab; and that the fireplace, garbage disposal, driveway, and storage area were missing. CAFH replied to Choate in writing, telling her that she had until January 6, 2006, to close on the house or CAFH would sell it. The correspondence enclosed worksheets showing that the amount Choate would owe at closing exceeded $94,000, which included interest that had accrued on the as-yet unpaid construction loan.”
Initially, the court found in favor of CAFH. “On April 18, 2007, Choate’s attorney withdrew from representing her. Soon thereafter, CAFH’s attorney asked the court to set a final hearing on the case. The attorney purportedly sent Choate a letter by regular mail on May 15, 2007, advising her that the case was set for trial on July 9, 2007. Choate, however, did not appear. CAFH did appear, and its general manager, John Oldner, testified to events leading up to the case and the amount of damages claimed. According to Oldner, the interest on the construction loan had accrued to the point that CAFH now sought $104,965.88 from Choate. The court found in favor of CAFH and entered judgment for that amount, plus attorney fees, on July 18, 2007. The court ruled that CAFH could sell the house and either remit any excess to Choate or look to Choate for the deficiency if the sales price did not cover the judgment.”
However, Choate successfully argued that she did not receive notice of the trial. A new trial was ordered, and the outcome was quite different. “On June 6, 2008, the circuit court entered judgment for Choate, ruling that the house was not in substantial compliance with the parties’ contract and that the contract should be rescinded. The court found that the house suffered from numerous construction defects, that the contract contemplated a slab rather than a concrete-pier foundation, and that CAFH ignored Choate’s complaints that the house was facing the wrong way. The judgment directed CAFH to hold Choate harmless on the construction loan, to deed Choate’s two acres back to her, and to remove the house from Choate’s property.”
The Court of Appeals “found that Choate would be unjustly enriched by retaining the benefit of the septic systems and utility lines that CAFH installed on her land. The court therefore awarded $5340 to CAFH as a quantum-meruit recovery for the value of that work. CAFH contends that the award is not sufficient, but we see no clear error.” In the end, the Court of Appeals provided this reason for declining to reverse the trial court’s decision: “The court in this case apparently concluded that the house constructed by CAFH was so fundamentally at odds with Choate’s contractual expectations that she was not unjustly enriched and should simply be, as nearly as possible, returned to the status quo ante. Accordingly, the court ordered the house removed from her property and permitted CAFH to either relocate the house or salvage the house’s materials and unused appliances. We decline to reverse the court’s weighing of the equities in this manner.”
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Exploring Architects’ Perspectives on AI: A Survey of Fears and Hopes
March 19, 2024 —
Aarni Heiskanen - AEC BusinessRIBA, the Royal Institute of British Architects, ran a survey in late 2023 with 500 respondents on the impact of AI on their profession. The study also explored the near-term outlook for AI adoption and use. The results reveal divided opinions among architects. A popular view is that AI threatens the profession, even though a larger portion sees tools like AI as necessary in the coming years.
The Present Use of AI
The respondents were asked, for the projects they are currently working on, how often their practice used AI in any way.
In all, 41% said that they use AI to some degree. Of those, 43% agree that AI has improved efficiency in the architectural design processes, while 24% disagree.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
National Demand Increases for Apartments, Refuting Calls for Construction Defect Immunity in Colorado
September 08, 2016 —
Jesse Witt – The Witt LawfirmFor the last four years, the homebuilders’ lobby has been aggressively pushing the idea that consumer protection laws are stifling condominium construction in Colorado. The lobbyists claim that the fear of liability for construction defects has forced many local developers to build apartments instead of condominiums. They have dismissed the notions that the shift to apartments merely reflects supply and demand, or that modern families might actually prefer to rent rather than buy. To support this theory, they have touted high condominium sales in other states. A new story from NPR’s Here & Now refutes this claim, however.
Contrary to what the lobbyists have been saying, data now confirm that large numbers of Americans prefer to rent, not buy, their homes. NPR reported today that home ownership in the U.S. fell to its lowest rate since 1965, while the share of U.S. households who rent is nearing a 50-year high. This trend appears nationwide and can hardly be blamed on consumer protection laws in Colorado.
Reprinted courtesy of
Jesse Howard Witt, Acerbic Witt
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Mr. Witt welcomes comments at www.witt.law
Vietnam Expands Arrests in Coffee Region Property Probe
February 19, 2024 —
Mai Ngoc Chau - BloombergVietnam authorities detained the Communist Party chief of coffee-producing province Lam Dong as they expand an investigation into alleged bribery tied to a tourist and residential project, the public security ministry said in a website statement.
Party chief Tran Duc Quan was arrested for allegedly abusing his power and position, according to the statement. Quan allegedly violated the law while giving instructions to the Dai Ninh property project in the province, causing severe consequences, it said.
A Lam Dong Provincial Party Committee representative declined to provide a comment about the arrest. A representative for Quan was not available.
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Congratulations to Las Vegas Partner Jeffrey W. Saab and Associate Shanna B. Carter on Obtaining Another Defense Award at Arbitration!
January 14, 2025 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPThe case arose from an incident at Plaintiff’s residence where she alleged that a failure to properly diagnose an issue with her HVAC unit led to its destruction, displacement from her home, and damage to her roof and kitchen, resulting in a diminution of value to her house. Jeff and Shanna represented the HVAC contractor, who denied any wrongdoing during the two-day arbitration at which a total of six witnesses were examined. Jeff and Shanna utilized Plaintiff’s own experts’ testimony to successfully challenge liability and bring forth a motion for spoliation, resulting in a complete defense award for Jeff and Shanna’s client, which included an award of costs.
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Dolores Montoya, Bremer Whyte Brown & O'Meara LLP
Time is Money. Unless You’re an Insurance Company
December 02, 2015 —
Garret Murai – California Construction Law BlogBenjamin Franklin may never have been President but he’s better known than most of them. Not least of all for his pithy quotes on a wide range of subjects:
On personal finance – “A penny saved is a penny earned.”
On education – “Tell me and I forget, teach me and I remember, involve me and I learn.”
On getting real – “In this world nothing can be said to be certain, except death and taxes.”
On guests – “Guests, like fish, begin to smell after three days.”
On lawyers – “A countryman between two lawyers is like a fish between two cats.”
On beer – “In wine there is wisdom, in beer there is freedom, in water there is bacteria.”
But if you were to pick one theme that seems to recur the most in Franklin’s quotes, it would be productivity:
“Time is money.”
“By failing to prepare, you are preparing to fail.”
“Never leave that till tomorrow which you can do today.”
“Early to bed and early to rise, makes a man happy, wealthy and wise.”
But, as the next case, Grebow v. Mercury Insurance Company, Case No. B261172, California Court of Appeals for the Second District (October 21, 2015), illustrates, sometimes the most efficient way of doing things may not necessarily be the most financially prudent way of doing things.
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com