Mitsui Fudosan Said to Consider Rebuilding Tilted Apartments
October 28, 2015 —
Katsuyo Kuwako – BloombergMitsui Fudosan Co., Japan’s biggest developer, is considering rebuilding an apartment complex in Yokohama after one of the four buildings started to tilt, according to a person familiar with the situation.
Kiyotaka Fujibayashi, president and chief executive officer of Mitsui Fudosan Residential Co., on Thursday explained the plans to residents, according to the person, who asked not to be named because the information is private. Another option the company is studying is buying back the apartments from the residents at a price higher than what they had paid, the person said. The project was sold in 2006.
Mitsui Fudosan is the latest developer to come under scrutiny for defects at residential projects in the Tokyo area. Mitsubishi Estate Co., Japan’s biggest developer by market value, said last year it would rebuild a residential complex in the upscale Aoyama neighborhood after finding faults. Also last year, Sekisui House Ltd. said it would reconstruct a residential complex that was being built by Taisei Corp. after finding some columns were missing reinforcing metals.
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Katsuyo Kuwako, Bloomberg
Dispute Review Boards for Real-Time Dispute Avoidance and Resolution
August 20, 2019 —
Neal J. Sweeney, Esq. - ConsensusDocsThe use of dispute tribunals generally referred to as Dispute Review Boards or DRBs on major projects has matured. Use of a DRB cannot guarantee elimination of post-project litigation, but when used properly, a DRB can be an enormously effective tool to avoid and resolve disputes rapidly and during construction.
The modest out-of-pocket costs of a DRB can pay big dividends. DRBs offer the opportunity to shorten the life cycle of a dispute by requiring the principals to confront and address the merits of their dispute, rather than simply hunkering down and focusing on posturing and preparing for arbitration or litigation. Even when a DRB cannot immediately resolve a dispute, the process can still facilitate subsequent settlement and cost-effectively prepare both parties for formal adjudication. DRBs can also enhance communications and help the parties avoid and resolve problems before they spiral into disputes.
DRBs were first and are most widely used on big civil and infrastructure projects, but the benefits of a DRB extend equally to major building projects, particularly hospitals, and industrial projects and should be used in those sectors.
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Neal J. Sweeney, Esq., Jones Walker LLPMr. Sweeney may be contacted at
nsweeney@joneswalker.com
Why Employees Are Taking Ownership of Their Architecture Firms
January 22, 2024 —
Kriston Capps - BloombergThe architecture firm BNIM has always been a leader on sustainable design. In the late 1980s, principal emeritus Bob Berkebile was one of the first architects to push the industry to take the idea of green buildings seriously. Then-President Bill Clinton even recruited him to lead a climate-minded restoration of the White House. Berkebile and his Kansas City, Missouri–based firm — he’s the “B” in BNIM, alongside Tom Nelson, David Immenschuh and Steve McDowell — received top honors from the American Institute of Architects in 2011, among many other accolades.
Now the firm behind such projects as the US Embassy expansion in Kampala, Uganda, and a proposed South Loop park to deck over a highway in downtown Kansas City hopes to stand out in another way. In October, BNIM announced its transition to an employee stock ownership plan, or ESOP. The firm is one of a handful in the industry to recently embrace the employee-ownership model, following similar moves in 2021 by SHoP Architects and Zaha Hadid Architects.
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Kriston Capps, Bloomberg
Mortgagors Seek Coverage Under Mortgagee's Policy
July 19, 2021 —
Tred R. Eyerly - Insurance Law HawaiiThe mortgagor homeowners survived a motion to dismiss their claim for coverageunder the lender's property policy after their home suffered hurricane damage. Gary v. Am. Sec. Ins. Co., 2021 U.S. Dist. LEXIS 100010 (W.D. La. May 26, 2021).
Plaintiffs' home was mortgaged by Pennymac Loan Services, LLC. Pennymac held a property policy with American Security to insure its interest in the home. Plaintiffs were not named as insureds or additional insureds under the policy. Plaintiffs were identified as the borrowers under the policy on the Declarations page.
After hurricane damage to their home, plaintiffs sued American Security for coverage for the losses. American Security moved to dismiss, arguing plaintiffs were neither additional insureds nor third party beneficiaries. Lender-placed policies were designed to insure the lender's collateral whenever the borrower failed to maintain adequate insurance. The Loss Payment provisions in the policy stated that "Loss will be made payable to the named insured [Pennymac]. No coverage will be available to any mortgagee other than that shown as the named insured on the Declarations."
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
EO or Uh-Oh: Biden’s Executive Order Requiring Project Labor Agreements on Federal Construction Projects
March 14, 2022 —
Nicole Stone, Jones Walker LLP - ConsensusDocsOn February 4, 2022, President Biden issued Executive Order (“EO”) 14063[1]. The EO requires that a Project Labor Agreement (“PLA”) be in place for any federal “large-scale construction projects” estimated at $35 million or more. To compete for or perform projects subject to the PLA requirement contractors must agree to be subject to the applicable PLA. For federal projects under $35 million or projects receiving federal financial assistance are not required by the EO to have PLA, but federal agencies will have discretion to require PLAs. The EO will not go into effect until after implementing regulations are finalized, probably after the beginning of June 2022.
Requiring PLAs on federal construction projects is a substantial shift from even the Obama Administration’s policy in favor of PLAs. Biden’s PLA EO will have an impact on federal contractors and likely industry repercussions beyond federal procurement. Only time and experience will tell whether those impacts will all be positive as the Biden Administration insists or will drive up construction costs and give unions more leverage than they have in the market as the critics insist.
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Nicole Stone, Jones Walker LLP (ConsensusDocs)Ms. Stone may be contacted at
nstone@joneswalker.com
Real Estate & Construction News Round-Up (02/08/23) – The Build America, Buy America Act, ESG Feasibility, and University Partnerships
February 27, 2023 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogThis week’s round-up explores President Joe Biden’s recent State of the Union address and plans for the Build America, Buy America Act, the feasibility of real estate companies achieving their ESG goals, and how developers, lenders, and tenants are partnering with universities to solve real estate challenges.
- During his annual State of the Union address, President Joe Biden detailed his Build America, Buy America plans and standard to require all construction materials on federal infrastructure projects to be made in the United States. (Jennifer Goodman & Zachary Phillips, Construction Dive)
- Speculation surrounding the economic environment and real estate stability is testing the feasibility and resilience of the environmental, social and corporate governance (ESG) framework used by corporations to measure their societal impact. (Anna Staropoli, Commercial Observer)
- Adopting Web3 and decentralization in the real estate industry is projected to bring about significant changes and improvements. (David Bitton, Forbes)
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Pillsbury's Construction & Real Estate Law Team
Sixth Circuit Finds No Coverage for Faulty Workmanship Under Kentucky Law
December 30, 2013 —
Tred Eyerly — Insurance Law HawaiiFollowing Kentucky law, the Sixth Circuit determined there was no coverage for a construction defect claim. Liberty Mut. Fire Ins. Co. v. Kay & Kay Contracting, LLC, 2013 U.S. App. LEXIS 23587 (6th Cir. Nov. 19, 2013).
Walmart hired a contractor to build a new store. The contractor hired Kay and Kay to perform site preparation work and construct the building pad for the new store.
After Kay and Kay completed the building pad and the store was erected, cracks were noticed in the building's walls. Walmart contended there was settling in the some of the fill areas. Kay and Kay denied liability, but demanded coverage under its CGL policy with Liberty Mutual.
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Tred EyerlyTred Eyerly can be contacted at
te@hawaiilawyer.com
Liability Insurer’s Duty To Defend Insured Is Broader Than Its Duty To Indemnify
June 03, 2019 —
David Adelstein - Florida Construction Legal UpdatesWhen it comes to liability insurance, an insurer’s duty to defend its insured from a third-party claim is much broader than its duty to indemnify. This broad duty to defend an insured is very important and, as an insured, you need to know this. “A liability insurer’s obligation, with respect to its duty to defend, is not determined by the insured’s actual liability but rather by whether the alleged basis of the action against the insurer falls within the policy’s coverage.” Advanced Systems, Inc. v. Gotham Ins. Co., 44 Fla. L. Weekly D996b (Fla. 3d DCA 2019) (internal quotation omitted). This means:
Even where the complaint alleges facts partially within and partially outside the coverage of a policy, the insurer is nonetheless obligated to defend the entire suit, even if the facts later demonstrate that no coverage actually exists. And, the insurer must defend even if the allegations in the complaint are factually incorrect or meritless. As such, an insurer is obligated to defend a claim even if it is uncertain whether coverage exists under the policy. Furthermore, once a court finds that there is a duty to defend, the duty will continue even though it is ultimately determined that the alleged cause of action is groundless and no liability is found within the policy provisions defining coverage.
Advanced Systems, supra(internal citations and quotations omitted).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com