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Real Estate & Construction News Round-Up (12/07/22) – Home Sales, EV Charging Infrastructure, and Office Occupancy

December 26, 2022 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
This week’s round-up explores decreasing home sales, electric vehicle charging stations, office occupancy levels, and more.

With home sales dropping and more buyers abandoning their plans, forecasters have rarely disagreed as much as they are now regarding where the housing market is going next. (Nicole Friedman, Nick Timiraos, The Wall Street Journal)
Contractors and construction technology firms are watching as skilled workers look for new jobs in a turbulent economy. (Matthew Thibault, Construction Dive)
The ability to conveniently charge electric vehicles away from home is a top concern for many owners, indicating the strong need for an extensive and reliable external charging infrastructure. (Robert Charette, IEEE Spectrum)

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

The Buck Stops Over There: Have Indemnitors Become the Insurers of First and Last Resort?

September 17, 2015 — Garret Murai – California Construction Law Blog
Insurance and indemnity are the primary risk management strategies on construction projects. Insurance, such as commercial general liability insurance, insures against third party claims for bodily injury and property damage, and in the case of builder’s risk insurance, insures against first party claims during construction. Indemnity, on the other hand, shifts liability from one party to another and can be broader than the types of claims covered by insurance although anti-indemnity statutes can limit the breadth of those claims. Sometimes though insurance and indemnity work in ways you might never have expected, like in the next case, Valley Crest Landscape Development, Inc. v. Mission Pools of Escondido, Inc., Case No. G049060 (July 2, 2015), in which the California Court of Appeals for the Fourth District held a subcontractor liable in the face of both an indemnity claim brought by a general contractor as well as a subrogation claim brought by the general contractor’s insurance company. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

Developer Sues TVA After It Halts Nuke Site Sale

December 19, 2018 — Mary B. Powers - Engineering News-Record
The multibillion-dollar completion of a nuclear unit at the Tennessee Valley Authority’s unfinished 1,260-MW Bellefonte plant in Alabama is in limbo after the federal power producer refused to complete its sale to Nuclear Development LLC, which has since filed a breach of contract complaint in federal district court. Read the court decision
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Reprinted courtesy of Mary B. Powers, ENR
ENR may be contacted at ENR.com@bnpmedia.com

Maryland Court Affirms Condo Association’s Right to Sue for Construction Defects

November 27, 2013 — CDJ STAFF
The Maryland Court of Appeals, that state’s highest court, recently reaffirmed that condominium association have broad discretion in suing for construction defects in when they are representing at least two unit owners. Nicholas D. Cowie of the Baltimore-based construction defect legal firm Cowie & Mott, gives his summary of the case on his firm’s web site. Mr. Cowie notes that the Council of Unit Owners of Bentley Place Condominium sued the developer and builder for construction defects in both common areas and within units, representing itself and “two or more” unit owners. A jury awarded $6.6 million; the builder and developer appealed. The court ruled on the appeal that the Council of Unit Owners had a right to pursue these claims, and could recover full damage to common elements, even if some owners are time-barred due to their date of purchase. Mr. Cowie represented the Council of Unit Owners during the lawsuit. Read the court decision
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Client Alert: Release of Liability Agreement Extinguishes Duty of Ordinary Care

February 05, 2015 — R. Bryan Martin and Whitney L. Stefko – Haight Brown & Bonesteel LLP
On January 27, 2015, the California Court of Appeal, Fourth Appellate District, in Eriksson v. Nunnink (Case No. E057158), held a release of liability between Decedent and Defendant was enforceable as a defense to the Decedent's Parents' wrongful death and negligent infliction of emotional distress ("NIED") claims. In Eriksson, the Court concluded that on the basis of the signed release agreement, Defendant did not owe a duty of care to Decedent and thus could only be liable for Decedent's death if caused by the Defendant's gross negligence. The Court held that Plaintiffs failed to establish gross negligence and affirmed the lower court's judgment. Reprinted courtesy of Haight Brown & Bonesteel LLP attorneys R. Bryan Martin and Whitney L. Stefko Mr. Martin may be contacted at bmartin@hbblaw.com; Ms. Stefko may be contacted at wstefko@hbblaw.com Read the court decision
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Recovering Time and Costs from Hurricane Helene: Force Majeure Solutions for Contractors

November 18, 2024 — Matthew DeVries - Best Practices Construction Law
When Hurricane Helene struck North Carolina, it caused severe disruptions to construction projects across the state. Baxter International’s North Cove facility in Marion, N.C., was completely shut down after floodwaters damaged the site and bridges leading to it. Elsewhere, landslides and floods wiped out large sections of Interstate 40, making transportation of materials and equipment nearly impossible. Many contractors in western North Carolina found their projects halted, and their schedules thrown off by this force majeure event. In situations like these, contractors and subcontractor need a plan to mitigate the impact of such natural disasters on their projects. Here are five practical tips to help you secure time extensions and/or compensation for delays: 1. Include a Robust Force Majeure Clause in Your Contract When disaster strikes, your contract is your first line of defense. A well-drafted force majeure clause can make the difference between bearing the costs yourself and getting an extension or compensation. The clause should clearly list specific events such as hurricanes, floods, and road closures as qualifying force majeure events. Read the court decision
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Reprinted courtesy of Matthew DeVries, Buchalter
Mr. DeVries may be contacted at mdevries@buchalter.com

Contingent Business Interruption Claim Denied

April 08, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The insured's claim for contingent business interruption ("CBI") coverage was denied in Millennium Inorganic Chemicals Ltd. v. Nat. Union Fire Ins. Co. of Pittsburgh Pa., 2014 U.S. App. LEXIS 3096 (4th Cir. Feb. 20, 2014). Millenium processed titanium dioxide, a compound used for its white pigmentation, at its plant in Western Australia. Millennium purchased natural gas to process the titanium dioxide from Alinta Sales Pty Ltd., a natural gas supplier. Alinta purchased gas from Apache Corporation. Once Apache processed the natural gas, it was injected into a pipeline. The gas from Apache's facility was commingled with that obtained from other producers, resulting in a mix of gas in a single pipeline. Alinta had sole ownership of the gas once it entered the pipeline. Under Alinta's contract with Millennium, title to the gas passed to Millenium only at the time of delivery, i.e., when the gas left the pipeline and was delivered to Millennium's facility through a separate delivery line. Millennium had no contract or business relationship with Apache, and the contract it had with Alinta made no reference to Apache. An explosion occurred at Apache's facility causing its natural gas production to cease. As a result, Millennium's gas supply was curtailed, and it was force to shut down its operations for a number of months. 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

Washington State Safety Officials Cite Contractor After Worker's Fatal Fall

October 09, 2023 — James Leggate - Engineering News-Record
Inspectors with the Washington State Dept. of Labor & Industries found that flipper deck platforms were not used in line with the manufacturer’s specifications on a jobsite where a worker was killed in a fall earlier this year. Officials cited a contractor, SAK Builders Inc., for $16,800 in penalties over three alleged serious violations. Reprinted courtesy of James Leggate, Engineering News-Record Mr. Leggate may be contacted at leggatej@enr.com Read the full story... Read the court decision
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