Real Estate & Construction News Roundup (3/20/24) – Construction Backlog Falls, National Association of Realtors Settle Litigation, and Commercial Real Estate Market’s Effect on City Cuts
April 15, 2024 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, bad loans outweigh loss reserves at top six U.S. banks, the FCC announces a proposed rule aimed at “bulk billing,” office-to-multifamily conversion projects grow in major metro cities, and more!
- The National Association of Realtors has agreed to settle litigation that accused them of artificially inflating real estate commissions – a major decision that could reshape the housing market for buyers, sellers and agents. (Rachel Siegel, The Washington Post)
- An NYU professor considers the positives and negatives of cities cutting services or raising other kinds of taxes to offset the continued faltering of the commercial real estate market. (Alan Rappeport, The New York Times)
- Construction backlog fell in February for every size of contractor except for those with under $30 million in annual revenue, while, over the past year, the largest contractors – those with greater than $50 million in revenue – have experienced the greatest decline in backlog. (Sebastian Obando, Construction Dive).
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Pillsbury's Construction & Real Estate Law Team
Pa. Contractor Pleads No Contest to Prevailing-Wage Charges, Pays Workers $20.7M
September 20, 2021 —
Tom Ichniowski - Engineering News-RecordPennsylvania construction contractor Glenn O. Hawbaker Inc. has pleaded no contest to counts of theft of worker pay—in alleged violation of state prevailing-wage laws—and will pay 1,267 workers restitution of $20.7 million in unpaid wages, Pennsylvania Attorney General Josh Shapiro said.
The company entered its plea to four felony counts of “theft by failure to make required disposition of funds received” on Aug. 3 before President Judge Pamela A. Ruest of the Centre County Court of Common Pleas in Bellefonte, Pa.
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Tom Ichniowski, Engineering News-Record
Mr. Ichniowski may be contacted at ichniowskit@enr.com
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Defining Catastrophic Injury Claims
December 16, 2019 —
Bremer Whyte Brown & O'Meara LLPHow do we define circumstances and injuries that go beyond a typical claim and severely impact a person’s life? How do we characterize the types of claims where an individual’s enjoyment of life is affected in an extraordinary manner? Typically, attorneys refer to these types of cases as “catastrophic injury” claims. These are the type of personal injury claims where the health of an individual has been so seriously impacted that their life has been irreparably altered. Defining these claims legally is somewhat murky and case law has done little to provide attorneys with a specific definition of the term. However, a recent Workers Compensation Appeals Board ruling attempted to list factors in order to establish a catastrophic injury claim. These include:
- An intensity and seriousness of treatment received for an injury;
- The ultimate outcome when a person’s physical injury is permanent and stationary;
- Whether the severity of the physical injury impacts the person’s ability to perform daily activities;
- Whether the physical injury is closely analogous to one of the injuries specified in various statutes, including loss of a limb, paralysis, severe burns, or a severe head injury; and
- If the physical injury is incurable or progressive. Wilson v. State of California CAL Fire (5/10/19) 2019 Cal.Wrk.Comp. LEXIS 29.
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Window Installer's Alleged Faulty Workmanship On Many Projects Constitutes Multiple Occurrences
May 10, 2017 —
Tred R. Eyerly - Insurance Law HawaiiLawsuits filed for recovery due to the faulty design and installation of doors and windows by homeowners across the country were found to allege multiple occurrences. Pella Corp. v. Liberty Mut. Ins. Co., 2017 U.S. Dist. 53631 (C.D. Iowa March 31, 2017).
The underlying lawsuits alleged that Pella Corporation's windows were defectively designed, manufactured, or installed, and allowed water intrusion to buildings that resulted in third-party property damage or personal injury.
Pella sued Liberty Mutual for declaratory judgment and filed a motion for partial summary judgment to determine how many occurrences the underlying cases presented. Pella sought a determination that each of the 15 underlying cases presented one "occurrence" as the term was defined in the CGL policies issued by Liberty Mutual. Liberty Mutual argued that only three or four occurrences were presented, relying on common fact patterns.
Pella argued that there were separate and distinct causes of different injuries and damage and thus, each underlying case constituted a separate occurrence. Liberty Mutual, on the other hand, highlighted language within the definition of "occurrence," which stated that an "occurrence" included "continuous or repeated exposure to the same general harmful conditions." The "substantially the same general harmful conditions" language dictated that the scope of "occurrence" be understood to be broad, such that various instances of damage-causing water intrusion in different times and places constituted "substantially the same general harmful conditions."
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Tred R. Eyerly - Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
From Both Sides Now: Looking at Contracts Through a Post-Pandemic Lens
August 03, 2020 —
Lori S. Smith - White and WilliamsA little over a year ago, I wrote a blog post about the danger of relying on precedent. Now, more than ever, clients and their advisors need to revisit contract forms on which they may have been relying for years. While many of us have lived through times that required certain adjustments in how we viewed contractual obligations — recessions, wars, oil embargoes, natural disasters, 9/11 — none of these events had the widespread and long-lasting impact that the current COVID-19 pandemic is having. None of these events shut down the U.S. economy and impacted global supply chains across every industry in the manner we are now experiencing.
With this in mind, there is a need to figure out what the “new normal” will look like for contract negotiations in a post-pandemic world. Business professionals need to now anticipate more widespread disruption than we could have ever before imagined. It isn’t just force majeure clauses or material adverse effect provisions, as these will likely add pandemics and government shutdowns to their ever-growing list of contemplated risks, if they were not already expressly covered. And it is not clear, at least in the near-term, whether a resurgence or mutation of COVID-19 or the emergence of another virus can truly be seen as unforeseeable in a post-COVID world. The issues are much more fundamental to the approach that parties may take in negotiating contracts. Commercial contracts between purchasers, vendors, distributors, licensors and licensees will need to evaluate allocation of risk from both sides and come to a new happy medium that all can live with in an ever-evolving world. While parties should review their standard contracts in their entirety, some key provisions to think about include:
- Length of the contract and exclusivity. Depending on which side you are on, you may want to reconsider a long-term arrangement that ties your company to a particular vendor or distributor. Supply chain disruption can have a seriously detrimental impact on your business. Are requirements contracts where a particular supplier is required to make available all of your needs for a certain good or service really the best arrangement for your business? What about take or pay arrangements where you are obligated to which are common in certain industries pay a minimum amount or a penalty to a supplier whether or not you actually purchase the contemplated volume of goods ? Do you really want to be tied up in an exclusive arrangement, or do you need flexibility to maintain secondary or tertiary sources of supply? Do you want to provide a licensee with an exclusive right to your technology (even within a limited field of use or industry sector)?
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Lori S. Smith, White and WilliamsMs. Smith may be contacted at
smithl@whiteandwilliams.com
Certified Question Asks Hawaii Supreme Court to Determine Coverage for Allegations of Greenhouse Gas Emissions
October 09, 2023 —
Tred R. Eyerly - Insurance Law HawaiiThe federal district court certified questions to the Hawaii Supreme Court regarding coverage for underlying allegations of greenhouse gas emissions. Aloha Petroleum, Ltd. v. Nat'l Union Fire Ins. Co. of Pittsburgh, 2023 U.S. Dist. LEXIS 156211 (D. Haw. Sept. 5, 2023).
Aloha was sued in two lawsuits, one filed by the County of Maui and the second filed by the City and County of Honolulu. The underlying lawsuits alleged that Aloha disregarded known risks of harm to the counties when selling its fuel products that would inevitably combust and produce greenhouse gasses, particularly carbon dioxide, thereby changing the climate and causing harm to the counties.
Aloha tendered the suits to AIG. Coverage was denied based on AIG's determination there was no "occurrence" and the pollution exclusion barred coverage. Aloha sued AIG in federal district court seeking a declaratory judgment on AIG's obligations under the policy.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
MGM Seeks to Demolish Harmon Towers
September 01, 2011 —
CDJ STAFFCiting public safety concerns and the cost of repair, MGM Resorts International is seeking to demolish the unfinished hotel tower. The company has a few hurdles to go through before they start laying the charges to implode the structure. Any plans would have to be approved by not only Clark County officials, but also the district court has an order blocking any activity during litigation between MGM and the general contractor on the project, Perini Building Company.
Architectural Record reports that MGM states it would take “approximately 18 months to conduct test and come up with an approved, permitted design to fix the Harmon.” MGM feels that repairs would then take another two to three years. Perini contends that they could “provide stamped drawings detailing all necessary repairs within three months.” They attribute MGM’s desire to demolish the building as “buyer’s remorse.”
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Turner Construction Selected for Anaheim Convention Center Expansion Project
May 21, 2014 —
Beverley BevenFlorez-CDJ STAFFThe Anaheim, California city council selected Turner Construction Company “to manage a $180 million expansion of the Anaheim Convention Center, a venue that hosted 238 tradeshows, conventions, meetings and consumer events in 2013,” according to Construction Digital.
“Turner’s Southern California office calls Anaheim home, and we are pleased to be working on such a great project in our own backyard,” Kevin Dow, Vice President and General Manager of Turner’s Southern California office told Construction Digital.
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