Sustainability Puts Down Roots in Real Estate
January 27, 2020 —
Stephanie Amaru - Gravel2Gavel Construction & Real Estate Law BlogSustainability has evolved from a passing trend or niche preference into an undeniable, growing driver of the real estate market. This is particularly true as millennials comprise an increasing proportion of the workforce, home-buying population, and individuals influencing the future of real estate development in the United States.
If anything illustrates the significance of younger generations’ increasing interest in sustainability, it is the Global Climate Strike that drew participation of many thousands of young people, with 2,500 events scheduled in over 150 countries. In New York City, 1.1 million public school students were excused from school to join the strike in an event planned to precede the UN Summit, which itself was intended to push countries toward a commitment to faster transition to renewable energy and stricter climate targets. While both policymakers and citizens of previous generations have been split on their willingness to address global climate change with urgency, younger generations are feeling a stronger sense of responsibility for curbing the world’s trajectory towards a climate catastrophe, which will be inherited by them and their children. This has manifested in action that promotes awareness of and political action with respect to these issues—such as the Global Climate Strike—as well as evolving habits and preferences in both consumer goods and real estate.
Greener Space
In recent years, real estate developers have recognized that there is a market for “greener” developments that reduce annual expenditures on buildings, whether it be through small spaces requiring less electricity and promoting energy efficiency, or through renewable energy options such as solar photovoltaic power. Some real estate developers have chosen to install these options themselves, while others seek out sustainable financing options to cover the costs of renewable energy. If installing renewable energy is too costly, real estate developers will seek out more cost-effective locations for their brick-and-mortar operations.
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Stephanie Amaru, PillsburyMs. Amaru may be contacted at
stephanie.amaru@pillsburylaw.com
Hunton Insurance Group Advises Policyholders on Issues That Arise With Wildfire Claims and Coverage – A Seven-Part Wildfire Insurance Coverage Series
June 27, 2022 —
Scott P. DeVries & Yosef Itkin - Hunton Insurance Recovery BlogWildfires destroy millions of acres a year in the United States, spewing smoke across much of the nation. The cost of damage alone over the past several years soars into the hundreds of billions. As wildfires continue to spread, particularly as we enter wildfire season, policyholders’ claims will rise and with that, so too will wildfire insurance coverage issues. Many believe that when a fire damages their property and/or interrupts their business operations, a claim gets submitted and is automatically paid; sadly, this is often not the case.
In a seven-part series delving into issues relating to wildfire insurance coverage, the Hunton insurance group provides a comprehensive understanding of the types of policies that may be available, legal and factual issues that may arise, and steps policyholders can take – both in advance and during the claims process – to maximize recovery. The following issues will be addressed:
- Part One: Types of Wildfire-Related Losses and the Policies That May Provide Coverage
- Part Two: Coverage for Smoke-Related Damages
- Part Three: Standard Form Policy Exclusions
- Part Four: Coverage for Supply Chain Related Losses
- Part Five: Valuation of Loss, Sublimits, and Amount of Potential Recovery
- Part Six: Ensuring Availability of Insurance and State Regulations
- Part Seven: How to Successfully Prepare, Submit and Negotiate the Claim
Reprinted courtesy of
Scott P. DeVries, Hunton Andrews Kurth and
Yosef Itkin, Hunton Andrews Kurth
Mr. DeVries may be contacted at sdevries@HuntonAK.com
Mr. Itkin may be contacted at yitkin@HuntonAK.com
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Summary Judgment for Insurer Reversed Based on Expert Opinion
May 30, 2022 —
Tred R. Eyerly - Insurance Law HawaiiAfter the trial court discounted the insured's expert witness and granted summary judgment to the insurer, the Florida District Court of Appeal reversed. Morales v. Citizens Prop. Ins. Corp., 2022 Fla. App. LEXIS 1831 (Fla. Ct. App. March 15, 2022).
The insureds' property was allegedly damaged by Hurricane Irma in 2017. They filed a claim with Citizens. Citizens sent its adjuster and eventually denied the claim because the policy did not cover damages caused by wear and tear. Further, there was no coverage for loss caused by "rain . . . unless a covered peril first damages the building causing an opening in a roof or wall and the rain . . . enters through this opening."
The insureds sued and Citizens moved for summary judgment. At the hearing, Citizens' expert, a civil engineer, concluded that there were no storm-created openings in the roof. The insureds engaged a licensed contractor, Steven Delgado, who stated that he found significant damage to the roofing system and water intrusion through the roof. He observed loose shingles which were most likely damaged during Hurricane Irma, allowing for high winds and airborne debris to create small openings permitting water intrusion.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Governor Signs Permit Extension Bill Extending Permit Deadlines to One Year
October 23, 2018 —
Garret Murai - California Construction Law BlogIt’s like that feeling you got when your teacher said you have another week to complete your group project.
On September 21, 2018, Governor Brown signed AB 2913, which, for the first time, provides a uniform 12-month period across the state for work to commence before a building permit expires. Previously, the period was six months.
In addition to doubling the expiration period, the statute includes a “justifiable cause” provision permitting local building departments to extend the time for one or more additional periods of not more than 180 days per extension upon written demonstration of “justifiable cause for the extension.”
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Garret Murai, Wendel, Rosen, Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Embracing Generative Risk Mitigation in Construction
February 12, 2024 —
Georgia Stillwell - Construction ExecutiveProject delays have long plagued the construction industry, with risk often identified as the primary culprit. However, finding effective solutions to mitigate risk on complex projects has remained daunting. Traditional methods for simulating risk primarily focus on extending project timelines, overlooking the diverse range of opportunities available for risk mitigation. With the construction industry’s digital transformation, generative methodologies have emerged to handle complex decision-making in uncertain situations. This article aims to shed light on the limitations of existing risk modeling and introduce a novel approach known as generative risk mitigation to enhance decision-making under deep uncertainty.
According to McKinsey, 98% of megaprojects experience cost overruns exceeding 30%. Project delays have become so pervasive that the industry has grown accustomed to them. For example, in 2022, the UK government issued ‘
The Green Book,’ which requires contingency funds in projects, such as a 44% contingency budget for standard civil projects. This implies that for a $100 million project, you should allocate $144 million to manage expected risks. There is no denying significant academic literature on the root cause of these delays: it is ‘risk,’ and there is an entire industry based on it.
Conversations with project directors and risk experts reveal the same issue, different project. And that issue is that we cannot easily forecast risk, qualify the impacts or fully understand the opportunities that exist to mitigate risks and make timely decisions. A method that will finally help us overcome this has emerged within the industry.
Reprinted courtesy of
Georgia Stillwell, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Duty to Defend Affirmed in Connecticut Construction Defect Case
August 13, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to an article by Matthew Vocci of Ober | Kaler in JD Supra, the Supreme Court of Conneticut affirmed in Travelers Cas. & Sur. Co. v. Netherlands Ins. “that allegations of years-long, continuing and progressive water intrusion caused by alleged construction defects triggered a duty to defend under CGL coverage language.”
Vocci stated that the result demonstrated “the importance of the wording of the allegations relating to construction defects, resulting damage and when the parties were on notice of the issues. For property owners, contractors/builders/developers and their insurers, the allegations in the complaint guide what can be a difficult and contentious determination regarding whether the insured is provided with a defense from its CGL carrier.”
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Big Bertha Lawsuits—Hitachi Zosen Weighs In
January 31, 2018 —
John P. Ahlers – Ahlers Cressman & Sleight PLLCIn a recent article published by
Seattle Business Magazine, the Japanese manufacturer of the much-maligned tunnel machine (nicknamed “Bertha”) provided its version of events and its position to the public. The interview took place after executives from Hitachi Zosen were not invited to the ceremony celebrating Bertha’s breakthrough at the end of its two-mile journey underground Seattle. Ultimately, apparently, Seattle Tunnel Partners (“STP”), the general contractor for the project, and Washington State Department of Transportation (“WSDOT”) agreed that Hitachi Zosen executives could attend the event, but they were not allowed to stand with other dignitaries on a specially-built viewing platform. The $3.2 billion Alaska Way Viaduct replacement project is embroiled in a number of legal controversies. Now that the tunnel is finished, Hitachi Zosen has finally decided to tell its side of the story.
Hitachi’s problems started on December 5, 2013, three days after the tunnel-boring machine (“TBM”) hit a 120-foot long, eight-inch diameter steel well casing (the project DRB has determined that the pipe was a differing site condition), the TBM overheated and ground to a halt. The project was shut down almost two years while the TBM was being repaired. According to Hitachi Zosen, it always worked hard to get the job done. “We wanted to finish the tunnel and make Seattle happy with the results,” said Hidetoshi Hirata, the general manager for Hitachi Zosen.
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John P. Ahlers, Ahlers Cressman & Sleight PLLCMr. Ahlers may be contacted at
john.ahlers@acslawyers.com
Consequential Damages Can Be Recovered Against Insurer In Breach Of Contract
July 22, 2019 —
David Adelstein - Florida Construction Legal UpdatesIn a favorable case for insureds, the Fifth District Court of Appeal maintained that “when an insurer breaches an insurance contract, the insured is entitled to recover more than the pecuniary loss involved in the balance of the payments due under the policy in consequential damages, provided the damages were in contemplation of the parties at the inception of the [insurance] contract.” Manor House, LLC v. Citizens Property Insurance Corp., 44 Fla. L. Weekly D1403b (Fla. 5thDCA 2019) (internal citations and quotation omitted). Thus, consequential damages can be recovered against an insurer in a breach of contract action (e.g., breach of the insurance policy) if the damages can be proven and were in contemplation of the parties at the inception of the insurance contract.
In Manor House, the trial court entered summary judgment against the insured holding the insured could not seek lost rental income in its breach of contract action against Citizens Property Insurance because the property insurance policy did not provide coverage for lost rent. However, the Fifth District reversed this ruling because the trial court denied the insured the opportunity to prove whether the parties contemplated that the insured, an apartment complex owner, would suffer lost rental income (consequential damages) if the insurer breached its contractual duties.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
