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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

Cross-Office Team Secures Defense Verdict in Favor of Client in Asbestos Case

November 18, 2024 — Lewis Brisbois Newsroom
St. Louis/Kansas City, Mo. (October 23, 2024) - St. Louis Partners Tracy J. Cowan and Karen M. Volkman, along with Kansas City Partner Vincent Gunter, secured a defense verdict in a Jackson County, Missouri matter on behalf of a Lewis Brisbois client, which was the successor-in-interest to a life, health and reinsurance firm, against claims brought by an individual who worked in the corporate headquarters and was diagnosed with mesothelioma. Background The plaintiff was 62 years old when she was diagnosed with mesothelioma. She worked as a clerk for several years in the 1970s in a 19-story office building that opened in 1963. The plaintiff claimed construction work being performed in the areas where she worked exposed her to asbestos from above the suspended ceiling. The beams and girders in the building were fireproofed with sprayed-on insulation. Although the plaintiff did not perform any maintenance work, she relied on evidence from several operating engineers who worked above the ceiling near the fireproofing to establish the presence of asbestos in the building. The plaintiff submitted claims for negligence and unsafe workplace. At the beginning of trial, the LBBS client had a pending motion for summary judgment on the grounds that the plaintiff’s exclusive remedy was governed by the Missouri Workers’ Compensation Law. The Court denied a motion to continue the trial and submitted the workers’ compensation issue as an affirmative defense. Read the court decision
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Reprinted courtesy of Lewis Brisbois

When Brad Pitt Tried to Save the Lower Ninth Ward

February 18, 2019 — Rob Walker - Bloomberg
In the months that followed Hurricane Katrina in 2005, there was much discussion about how to rebuild the New Orleans neighborhoods devastated by flooding. Some even questioned whether certain areas should be rebuilt at all: The city’s population would likely be smaller; perhaps its footprint should be revised? The Lower Ninth Ward, for instance—a working-class black neighborhood ravaged when a floodwall failed—might be a lost cause, some said, because it was so severely damaged. Neighborhood residents and activists pushed back, insisting the Lower Nine deserved rebuilding. One of the most high-profile efforts to do so came from an unlikely figure: Brad Pitt. In 2007 the actor founded the Make It Right Foundation, a nonprofit whose mission was to build affordable housing to help Lower Nine residents come home. Attracting designs from prize-winning architects and committing to the highest energy-efficiency standards, Make It Right pledged to build 150 residences. As Pitt later wrote, the organization aimed to make “a human success story of how we can build in the future, how we can build with equality, how we can build for families." Read the court decision
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Reprinted courtesy of Rob Walker, Bloomberg

Seabold Construction Ties Demise to Dispute with Real Estate Developer

April 29, 2024 — Richard Korman - Engineering News-Record
When Harry W. Seabold, co-founder and CEO of Seabold Construction, died unexpectedly in January 2023 at age 69, the Beaverton, Ore.-based general contractor, which had been in business since 1984, kept chugging along for a year on two adjacent North Portland apartment projects. Reprinted courtesy of Richard Korman, Engineering News-Record Mr. Korman may be contacted at kormanr@enr.com Read the full story... Read the court decision
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Potential Pitfalls Under the Contract Disputes Act for Federal Government Contractors

February 28, 2018 — Sarah K. Carpenter – Smith Currie Publications
The Contract Disputes Act (CDA) governs monetary and non-monetary disputes arising out of contracts or implied-in-fact contracts between the federal government and contractors. Because the CDA is an exclusive remedy, it is important that contractors be wary of the many pitfalls that may be encountered by a contractor seeking to assert a claim against the government under the CDA. The pitfalls faced by a contractor under the CDA can arise before a contractor becomes aware of a potential claim. Pursuant to the Federal Acquisition Regulation (FAR) § 43.204(c), a contracting officer should include in any supplemental agreement, including any change order, a Contractor’s Statement of Release which requires a contractor to execute a broad release of the government from any and all liability under the contract. As a result of this FAR provision, in executing a routine change order, a contractor may inadvertently release its right to pursue a potential claim under the CDA. A contractor should always review any release language prior to executing a supplemental agreement or change order with the government. Read the court decision
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Reprinted courtesy of Sarah K. Carpenter, Smith Currie
Ms. Carpenter may be contacted at skcarpenter@smithcurrie.com

Texas Supreme Court to Review Eight-Corners Duty-to-Defend Rule

April 05, 2021 — Jared De Jong - Payne & Fears
The Texas Supreme Court has accepted certified questions from the Fifth Circuit Court of Appeals to clarify Texas’ eight-corners rule for determining the existence of a duty to defend. In Bitco Gen. Ins. Corp. v. Monroe Guar. Ins. Co., No. 19-51012, 2021 WL 955155 (5th Cir. Mar. 12, 2021), certified question accepted (Mar. 19, 2021), the Fifth Circuit asked the Texas Supreme Court to provide guidance on Texas insurance law. In Bitco, the insured was sued for negligently drilling an irrigation well. The insured allegedly got a drilling bit stuck in a bore hole, refused to fix the issue, and eventually abandoned the well. The policy did not cover continuing property damage known to the insured before the policy incepted. The policy period ran from Oct. 6, 2015 to Oct. 6, 2016, and the parties stipulated the drill bit became stuck in November 2014. Read the court decision
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Reprinted courtesy of Jared De Jong, Payne & Fears
Mr. De Jong may be contacted at jdj@paynefears.com

Update – Property Owner’s Defense Goes up in Smoke in Careless Smoking Case

September 21, 2020 — Michael J. Ciamaichelo - The Subrogation Strategist
Property owners owe a duty of reasonable care to avoid causing harm to neighboring properties. In Steamfitters Local Union No. 602 v. Erie Ins. Exch., 2020 Md. LEXIS 347 (July 27, 2020) (Steamfitters Local), a matter originally discussed in a June 2019 blog post, the Court of Appeals of Maryland affirmed that, where the property owner knows or should have known that people are habitually discarding hundreds of cigarette butts into a mulch bed along the boundary of the neighboring property, the property owner owes a duty to its neighbors to prevent the risk of fire. As discussed in Steamfitters Local, a fire originated in a strip of mulch at property owned by the Steamfitters Local Union No. 602 (Union) and caused damage to neighboring properties. The fire occurred when an unknown person discarded a cigarette butt into the mulch. Following the fire, investigators found hundreds of cigarette butts in the mulch where the fire originated. A representative for the Union acknowledged that there were more butts in the mulch “than there should have been” and that, “[i]n the right situation,” a carelessly discarded cigarette could cause a fire. The Union, however, had no rules or signs to prohibit or regulate smoking at the property, where apprentices would often gather prior to class. The insurance companies for the damaged neighbors filed subrogation actions alleging that the Union, as the property owner, failed to use reasonable care to prevent a foreseeable fire. A jury found in favor of the subrogating insurers and the defendants appealed. Read the court decision
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Reprinted courtesy of Michael J. Ciamaichelo, White and Williams LLP
Mr. Ciamaichelo may be contacted at ciamaichelom@whiteandwilliams.com

How Mushrooms Can Be Used To Make Particle Board Less Toxic

April 15, 2015 — Sam Grobart – Bloomberg
Think much about particle board? You should. It’s in everything from the chairs we sit on to the houses we live in. Problem is, the close cousin of plywood is usually made using urea formaldehyde to help bind the wood particles together. The substance has been classified as a known human carcinogen by the Environmental Protection Agency. One company, Ecovative Design in upstate New York, has figured out how to replace urea formaldehyde with with an unlikely alternative: mushrooms. Not whole mushrooms like you'd find on a pizza, but the root structure of mushrooms, called mycelium. Mycelium does as good a job as any binding wood particles, but will break down into harmless organic matter when disposed. Read the court decision
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Reprinted courtesy of Sam Grobart, Bloomberg

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