Consider Short-Term Lease Workouts For Commercial Tenants
August 17, 2020 —
Steven Ostrow, C. Jason Kim & Patrick Haggerty - White and WilliamsThe COVID-19 pandemic is adversely affecting commercial real estate as it continues to wreak havoc in industries throughout the economy. For many years, the primary declining CRE sector has been brick and mortar retail stores. However, the retail sector is no longer suffering alone, as the COVID-19 outbreak is hurting most other CRE sectors: office, hospitality, multifamily, restaurant, personal services, entertainment and construction.
Federal, state and local governments have ordered business shutdowns and social and travel restrictions limiting most social and commercial activities. As a result, commercial tenants throughout the country are going out of business, temporarily closing, curtailing operations, laying off employees and suffering sharply declining revenues.
Short-Term Leasing Workouts of Tenant Defaults
Thousands of tenants are partially operating or temporarily closed and lack sufficient cash flow or access to additional working capital to pay some or all of their rent. How should a landlord address a distressed tenant's default and request for rent relief, taking into account the landlord's own responsibilities to pay maintenance costs, real estate taxes and debt service on the property?
Reprinted courtesy of White and Williams attorneys
Steven Ostrow,
C. Jason Kim and
Patrick Haggerty
Mr. Ostrow may be contacted at ostrows@whiteandwilliams.com
Mr. Kim may be contacted at kimcj@whiteandwilliams.com
Mr. Haggerty may be contacted at haggertyp@whiteandwilliams.com
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Hunton Offers Amicus Support in First Circuit Review of “Surface Water” Under Massachusetts Law
August 01, 2023 —
Michael S. Levine, Lorelie S. Masters & Janine A. Hanrahan - Hunton Insurance Recovery BlogHunton’s insurance team has offered its support on behalf of amicus curie United Policyholders in a brief to the
First Circuit concerning the meaning of “surface water” in the context of a broad, all-risk property insurance policy?
This important question arose in a dispute between Medical Properties Trust (“MPT”), a real estate investment trust, and Zurich American Insurance Company (“Zurich”), its insurer, after water entered and destroyed Norwood Hospital. The water at issue entered the building after collecting on the surface of the building’s flat parapet roof. Zurich argued that because the water collected on the surface of the roof, the water met the meaning of the term “surface water,” as that term was used in the policy’s definition of “flood.” Flood coverage is subject to a $100 million sublimit, whereas the policy’s general limit is $750 million.
Reprinted courtesy of
Michael S. Levine, Hunton Andrews Kurth and
Lorelie S. Masters, Hunton Andrews Kurth
Mr. Levine may be contacted at mlevine@HuntonAK.com
Ms. Masters may be contacted at lmasters@HuntonAK.com
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Meet D1's Neutrals Series: KENNETH FLOREY
June 12, 2023 —
Marissa L. Downs - The Dispute ResolverCompany: Robbins Schwartz
Office Location: Chicago, IL
Email: kflorey@robbins-schwartz.com
Website: https://www.rsnlt.com/attorneys/kenneth-m-florey/
Law School: DePaul University (JD 1992)
Types of ADR services offered: Mediation, Arbitration, Project Neutral
Affiliated ADR organizations: AAA Panel of Arbitrators and Mediators
Geographic area served: Nationwide
Q: Describe the path you took to becoming an ADR neutral.
A: I’ve been involved in construction litigation my entire career as an attorney, going on 30 years. After being an advocate for all sides to these disputes (owners, contractors, and design professionals), I recognize the immense value of ADR to clients and decided to start shifting my litigation experience and skills to the neutral realm as an arbitrator and mediator.
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Marissa L. Downs, Laurie & Brennan, LLPMs. Downs may be contacted at
mdowns@lauriebrennan.com
What Should Business Owners Do If a Customer Won’t Pay
January 02, 2024 —
Scott L. Baker - Los Angeles Litigation BlogIt should be simple: you provide a service, and your customer pays you for that service. Unfortunately, it is not always so simple.
Not getting paid for your work can be one of the most frustrating issues, especially for small businesses. It also does not take much for money matters to
lead to larger disputes. So, what should small business owners do in these cases?
1. Start with a reminder notice
Most sources, including the
U.S. Chamber of Commerce, agree that business owners should not begin by escalating the situation. Take time to review and fully understand the circumstances of this individual case. Then, begin with resending the invoice or sending reminders to pay.
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Scott L. Baker, Baker & AssociatesMr. Baker may be contacted at
slb@bakerslaw.com
Harmon Hotel Construction Defect Update
July 18, 2011 —
CDJ STAFFCoverage of the ongoing litigation concerning the Harmon Hotel continues to proliferate. Architectural Record and a number of other news outlets continue to provide additional details and coverage of the matter. Chief among the conditions alleged are improperly installed reinforcing steel inside link beams on 15 floors. MGM Claims that the conditions amount to hundreds of millions of dollars in damages, while Perini (the builder) indicated in a July 12th statement that the buildings problems are related to the design, and the they are “fixable.”
There is significant speculation that MGM Resorts International isn’t interested in repairing the hotel due to a glut of hotel rooms attendant to the troubled economy. In a statement Tuesday Perini reportedly stated that “Repairing and opening the Harmon would only create a greater glut of unused hotel rooms for MGM,” “If market conditions were better and MGM found that demand existed for the Harmon hotel rooms, MGM would not be claiming that the Harmon is unstable.”
MGM asserts that Perini failed to ”properly construct” the project. Clark County’s Department of Development Services has reportedly asked MGM to provide a plan to fix the project by August 15th.
The Harmon is part of the $8.5 billion CityCenter project that opened in the fourth quarter of 2009 and is jointly owned by MGM Resorts and Dubai World.
Prior reports indicated that the owner (MGM) had considered razing the entire project. The future of the project remains uncertain.
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Tarriffs, a Pandemic and War: Construction Contracts Must Withstand the Unforeseeable
May 16, 2022 —
Brett Moritz, Adrian Bastianelli III & Adam Handfinger - Construction ExecutiveSince the tariffs on steel and the first wave of the COVID-19 pandemic, the construction industry has been reeling from the impact of material shortages and price increases, labor shortages, breakdowns in the supply chain and the inflationary effect of these issues. Unfortunately, the war in Ukraine has only exacerbated the situation.
International conflicts can constrain supply, resulting in delays and price increases for contractors, subcontractors and suppliers. The disruption caused by the war is expected to be particularly acute due to the role that Russia and Ukraine play in the world economy and the effect of the economic sanctions that have been imposed on Russia by the United States and other countries. Russia controls approximately 10% of the global copper reserves and is estimated to produce about 10% of the world’s nickel supply. It also provides at least 30% of Europe’s oil and natural gas. Ukraine is a significant source of raw materials, such as iron. Thus, the war will cause significant shortages and price increases to the global construction industry. There are already reports of delays and cost increases for commodities such as nickel, aluminum, copper and—most importantly—steel, which have resulted in impacts to construction costs and schedules. Suppliers are especially sensitive to the volatile markets caused by these conditions. Some are insisting on automatic price increases in their purchase orders.
All of this, not to mention the anticipation of what may come next, points to the necessity for a new paradigm to achieve a successful project. It is more important today than ever that owners, contractors, subcontractors and suppliers reasonably address the economic and time impacts of these unforeseeable events in preparing contracts for future work and in administering existing contracts. Otherwise, the risk of a default on more than one level may put projects in jeopardy, to no one’s benefit.
Reprinted courtesy of
Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Hunton Andrews Kurth Associate Cary D. Steklof Selected to Florida Trend’s Legal Elite Up & Comers List for 2019
September 09, 2019 —
Michael S. Levine - Hunton Andrews KurthHunton Andrews Kurth’s insurance coverage practice is proud to congratulate Cary D. Steklof for being selected by his peers to Florida Trend’s Legal Elite Up & Comers list for 2019. A total of 131 attorneys under the age of 40 throughout the state of Florida were recognized for their leadership in the law and their communities. Cary was one of only seven attorneys selected for their skill and counsel in the area of insurance. We congratulate Cary and all of the recipients of this award who have distinguished themselves for their superior advocacy, knowledge, and accomplishments as young professionals.
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Michael S. Levine, Hunton Andrews KurthMr. Levine may be contacted at
mlevine@HuntonAK.com
Most Common OSHA Violations Highlight Ongoing Risks
July 27, 2020 —
David M. McLain – Colorado Construction LitigationIn the 12 months from October 2018 through September 2019, the most recent period reported by OSHA,[1] the workplace safety agency cited the following standards[2] more than any other in the 28 states which do not have OSHA-approved state plans, including Colorado:
- 1926.501 – Duty to have fall protection – included in 459 citations, resulting in $2,475,596 in penalties ($5,393/citation);
- 1926.451 – General requirements for scaffolds – included in 265 citations, resulting in $834,324 in penalties ($3,148/citation);
- 1926.1053 – Requirements for ladders including job-made ladders – included in 164 citations, resulting in $354,853 in penalties ($2,163/citation);
- 1926.503 – Training requirements related to fall protection - included in 114 citations, resulting in $156,076 in penalties ($1,369/citation);
- 1926.405 - Wiring methods, components, and equipment for general use – included in 93 citations, resulting in $150,821 in penalties ($1,621/citation);
- 1926.20 - General safety and health provisions – included in 85 citations, resulting in $328,491 in penalties ($3,864/citation);
- 1926.1052 – Requirements for stairways – included in 79 citations, resulting in $155,651 in penalties ($1,970/citation);
- 1926.102 – Requirements for eye and face protection - included in 67 citations, resulting in $165,595 in penalties ($2,471/citation);
- 1926.403 – General requirements for electrical conductors and equipment – included in 63 citations, resulting in $146,050 in penalties ($2,318/citation), and;
- 1926.100 – Requirements for head protection – included in 55 citations, resulting in $127,274 in penalties ($2,314/citation).
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David McLain, Higgins, Hopkins, McLain & RoswellMr. McLain may be contacted at
mclain@hhmrlaw.com