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Real Estate & Construction News Roundup (3/6/24) – Steep Drop in Commercial Real Estate Investment, Autonomous Robots Being Developed for Construction Projects, and Treasury Department Proposes Regulation for Real Estate Professionals

April 08, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, major league sports franchises turn to real estate to increase their value, the Associated Builders and Contractors releases a guide on artificial intelligence, New York City helps landlords convert empty office space into housing, and more!

The Treasury Department proposed a regulation that would require real estate professionals to report information to the agency about all-cash sales of residential real estate to legal entities, trusts and shell companies. (Fatima Hussein, AP)
For decades, major league teams depended on ticket sales, concessions and TV deals to generate revenue, but team owners in recent years have turned to real estate development to bring in extra cash and drive up the values of their franchises. (Nathaniel Meyersohn, CNN)
The U.S. commercial real estate market saw a steep drop in investment last year, with the market plummeting by more than 50% to the lowest level since 2012 and CBRE noting a 91% year-over-year drop in direct real estate company investments. (Yuheng Zhan, Business Insider)

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

Construction Defect Class Action Lawsuit Alleges National Cover-up of Pipe Defects

December 10, 2015 — Beverley BevenFlorez-CDJ STAFF
Two Miami condominium associations have filed suit “concerning defective fire sprinkler systems and a national cover up over a significant life safety issue in multi-unit condominiums in Florida and across the country.” The attorneys representing the class action lawsuit, Gonzalez, Montoya, Siegfried, Sobel, and Hale, “believe that the problem is nationwide and that monetary damages arising from the claims will exceed $1 billion,” a press release by Colson Hicks Eidson stated. “The 56-count lawsuit filed against a dozen manufacturers, suppliers and distributors seeks compensatory, incidental and consequential damages.” According to CBS Miami, “The suit claims the companies knowingly used [a] chemical that caused cracks and leaks in pipes that affected the water pressure in sprinkler systems.” Plaintiff attorneys claim that the cost to repair each building is estimated at between $50 to $100 million each. Read the full story, Press Release... Read the full story, CBS Miami... Read the court decision
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Surety's Settlement Without Principal's Consent Is Not Bad Faith

January 05, 2017 — Tred R. Eyerly – Insurance Law Hawaii
The Sixth Circuit found that the surety did not act in bad faith when it settled the general contractor's claims against the State of Michigan over delays on a construction project. Great Am. Ins. Co. v. E.L. Bailey & Co., 2016 U.S. App. LEXIS 20018 (6th Cir. Nov. 7, 2016). Bailey, the general contractor, entered into a surety agreement under which Great American would issue surety bonds on behalf of Bailey in the construction of a kitchen at a State prison. Bailey, the principal, paid Great American (GAIC), the surety, to provide bonds guaranteeing contract performance to the State, the obligee or owner. GAIC provided a performance bond, guaranteeing performance of the contract work, and a payment bond, guaranteeing payments to subcontractors and suppliers. Under the agreement, Bailey would indemnify GAIC for all payments or other expenses GAIC incurred due on either bond, and would pay upon demand collateral in an amount to be determined by GAIC. In the event of an alleged breach by Bailey, the agreement assigned to GAIC all Bailey's rights under its contract with the State and well as all its claims against any party. Bailey never finalized completion, and GAIC reached agreement with the State for another contractor to complete the project. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Boyfriend Pleads Guilty in Las Vegas Construction Defect Scam Suicide

November 07, 2012 — CDJ STAFF
One of the odder twists of the Las Vegas construction defect scandal was the charge that Nancy Quon’s boyfriend helped her in an initial suicide attempt. Quon, implicated by not charged in the case of taking control of homeowner boards in order to profit from construction defect settlements. William Webb was alleged to have bought the drug GBH in order to allow Quon, his girlfriend, to commit suicide. Ms. Quon later overdosed on a combination of alcohol and prescription drugs. In addition to pleading guilty to the drug charges, Webb also made a plea bargain with prosecutors in which he did not admit guilt in an insurance fraud charge, but acknowledged that prosecutors would likely be successful at obtaining a conviction. Webb will be sentenced February 7 and is expected to receive a sentence of six years imprisonment. Read the court decision
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Bert L. Howe & Associates to Join All-Star Panel at West Coast Casualty Seminar

March 26, 2014 — Beverley BevenFlorez-CDJ STAFF
Don MacGregor of Bert L. Howe & Associates, a consulting firm, will join fellow panelists Hon. Peter Lichtman (ret), Hon. Nancy Wieben Stock (ret), Peter S. Curry, Brian Kahn, Esq., and Paul R. Kiesel, Esq in a break-out discussion entitled “Working Smarter with Technology” at this year’s West Coast Casualty Construction Defect Seminar being held May 15th-16th at the world-famous Disneyland Hotel in Anaheim, California. West Coast Casualty's Construction Defect Seminar is the largest seminar of its kind worldwide focusing on all of the elements of the prosecution, defense, coverage and technologies of construction defect claims and litigation from a national perspective. With offices in California, Nevada, Colorado, Florida and Texas (Houston & San Antonio), Bert L. Howe & Associates provides construction consulting and expert witness services to insurance professionals and lawyers specializing in construction defect litigation, construction risk analysis, and property claims arising from construction-related activities. Download an Invitation and Register... Read the court decision
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OSHA Updates: New Submission Requirements for Injury and Illness Records

October 02, 2023 — Ashley Meredith Strittmatter & Chelsea N. Hayes - Construction Executive
In a revival of an OSHA recordkeeping rule originally implemented under the Obama administration in 2016 and "rolled back" by the Trump administration in 2019, OSHA issued a final rule on July 21, 2023, requiring certain establishments in high-hazard industries to submit additional injury and illness data electronically to OSHA. The Final Rule is found at 29 CFR 1904 and goes into effect on Jan. 1, 2024. What does this mean? On and after Jan. 1, 2024, OSHA will require employers with 100 or more workers in certain high-hazard industries to provide annual information from their Forms 300 and 301, in addition to the already-required electronic submission of Form 300A. Form 300 is the Log of Work-Related Injuries and Illnesses, including the specific injuries or illnesses and the employee names, while Form 301 is the corresponding Injury and Illness Incident Report, which includes additional details on each item listed on the 300 Log. Form300A is the corresponding Annual Summary showing the injury and illness totals for the year, including the number of cases, number of lost workdays, the injury and illness types, the average number of employees and the total hours employees worked. This Form 300A Annual Summary must be routinely submitted by employers with more than 250 employees on or before March 2 of each year for the prior year. Reprinted courtesy of Ashley Meredith Strittmatter and Chelsea N. Hayes, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Ms. Strittmatter may be contacted at astrittmatter@bakerdonelson.com Ms. Hayes may be contacted at cnhayes@bakerdonelson.com Read the court decision
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Janeen Thomas Installed as State Director of WWBA, Receives First Ever President’s Award

July 11, 2021 — Janeen Thomas - Lewis Brisbois
On June 9, 2021, New York Partner Janeen M. Thomas was installed as a State Director of the Westchester Women’s Bar Association (WWBA) for the 2021-2022 term. In this role, Ms. Thomas will represent the WWBA at statewide meetings of the Women’s Bar Association of the State of New York (WBASNY). During the installation ceremony, Ms. Thomas was awarded with the association's first ever President’s Award by WWBA Outgoing President Judge Lisa Margaret Smith of the Southern District of New York (retired), for her service as Co-Chair of the WWBA Diversity & Inclusion Committee during the 2020-2021 term. During the award presentation, Ms. Thomas was recognized for organizing three programs, including:

“A Panel Discussion on Police Reform: New York’s Executive Order for Necessary Change,” which featured Dr. Jim Bostic, Minister, Author and Executive Director, Nepperhan Community Center; Jason Clark, Esq., Deputy, New York State Attorney General’s Office and Past-President, Metropolitan Black Bar Association; Kitley S. Covill, Esq., Westchester County Legislator, District 2, Prof. Randolph McLaughlin, Esq., Of Counsel, Newman Ferrara LLP and Professor, Pace University Law School and Maria L. Imperial, Esq., CEO, YMCA White Plans & Central Westchester;

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Reprinted courtesy of Janeen Thomas, Lewis Brisbois
Ms. Thomas may be contacted at Janeen.Thomas@lewisbrisbois.com

Illinois Earns C- on its 2022 Infrastructure Report Card while Making Strides on Roads and Transit

May 02, 2022 — American Society of Civil Engineers
Chicago, Ill. – The Illinois Section of the American Society of Civil Engineers (ASCE) today revealed its 2022 Infrastructure Report Card, giving the state an overall grade of C-. Illinois' civil engineers studied eleven infrastructure categories. Of those eleven, six categories are in mediocre condition, and five categories are in poor condition. The committee representing more than 2,700 civil engineers across Illinois collected and analyzed data and based its grades on eight criteria, including condition, funding, public safety and resilience. As a major hub for our nation's infrastructure, Illinois has taken considerable steps to improving its transportation and infrastructure networks and several major categories showed improvements – notably transit and roads. To view the report card and all eleven categories evaluated, visit https://infrastructurereportcard.org/state-item/Illinois/. ABOUT THE ILLINOIS SECTION OF THE AMERICAN SOCIETY OF CIVIL ENGINEERS Civil engineering experts in their respective fields from the Illinois Section of ASCE, with assistance from the Central Illinois Section, Quad Cities Section, and the St. Louis Section, prepared The Report Card for Illinois' Infrastructure. The Report Card is created to educate and advise our elected officials and citizens on the condition of our State's infrastructure using sound engineering evaluation criteria and to provide recommendations on how to raise the grade. Since 1915, the Illinois Section has represented Civil Engineers in America's engineering hub and the organization recently celebrated its Centennial Anniversary. ASCE provides a platform for our members to mentor, learn and teach, which enables us to serve as stewards of infrastructure in our state, nation and throughout the world. Read the court decision
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