Fairfield Connecticut Building Expert Directory

Real Estate & Construction News Roundup (12/4/24) – Highest Rate of Office Conversions, Lending Caps for Fannie Mae and Freddie Mac and Affordability Challenges for Homebuyers

December 23, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, infrastructure-related ballot initiatives, U.S. Green Building Council’s success stories, support for sustainable building, and more!

2024 is expected to see the highest rate of office conversions since CBRE began tracking them in 2016. (Nish Amarnath, SmartCities Dive)
The Federal Housing Finance Agency has established lending caps of $73 billion each for Fannie Mae and Freddie Mac, allowing them to purchase a total of up to $146 billion in multifamily loans in 2025. (Leslie Shaver, Multifamily Dive)
A number of infrastructure-related initiatives with the potential to impact facilities managers were on the ballot during the 2024 U.S. presidential election. (Joe Burns, Construction Dive)

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

Pennsylvania Supreme Court Denies Review of Pro-Policy Decision

October 22, 2014 — Beverley BevenFlorez-CDJ STAFF
According to McCarter & English, LLP, “product manufacturers relied on commercial general liability policies to defend and indemnify them for product liability claims,” however, in result of the Pennsylvania Supreme Court’s decision in Kvaerner Metals Division of Kvaerner U.S., Inc. v. Commercial Union Ins. Co., 908 A.2d 888 (Pa. 2006), “[i]nsurers began denying coverage to Pennsylvania companies – and companies around the country – arguing that a design or manufacturing defect was not an ‘accident.’” McCarter & English, LLP reported that “the tide has begun to turn, and product manufacturers may once again be reliably protected by from product liability claims.” Read the court decision
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Think Twice About Depreciating Repair Costs in Our State, says the Tennessee Supreme Court

July 09, 2019 — Andres Avila - Saxe Doernberger & Vita, P.C.
Tennessee’s Supreme Court recently held that an insurer may not withhold repair labor costs as depreciation when the policy definition of actual cash value is found to be ambiguous. Tennessee joins other states like California and Vermont that prohibit the depreciation of repair labor costs in property policies. In Lammert v. Auto-Owners (Mut.) Ins. Co., No. M201702546SCR23CV, 2019 WL 1592687, the Lammerts and other insureds sought property damage coverage from Auto Owners Insurance for hail damage to a home and other structures they owned in Tennessee. Auto-Owners Insurance agreed to settle the claims on an actual cash value basis (ACV), which is a method of establishing the value of insured property that must be replaced to determine the indemnity by the insurer. There are multiple methods to calculate ACV. Auto-Owners decided to use the ACV calculation method of deducting depreciation from the cost to repair or replace the damaged property. Depreciation is the decline in value of a property since it was new because of use, age or wear. The rationale behind this method is that an insured should not make a profit by recovering the cost of, for example, a new roof for a damaged roof that was ten years old, and thus depreciation is deducted from the indemnity. Read the court decision
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Reprinted courtesy of Andres Avila, Saxe Doernberger & Vita, P.C.
Mr. Avila may be contacted at ara@sdvlaw.com

EPA Announces Decision to Retain Current Position on RCRA Regulation of Oil and Gas Production Wastes

June 03, 2019 — Anthony B. Cavender - Gravel2Gavel
After much study, EPA has decided against changing its current RCRA Subtitle D rules affecting the state regulation of oil and gas exploration & production waste. Since 1988, EPA has determined that most such wastes should be regulated as only non-hazardous wastes subject to RCRA Subtitle D, and not the more onerous hazardous waste provisions of RCRA Subtitle C. (See the Regulatory Determination of Oil and Gas and Geothermal Exploration, Development and Production Wastes, 53 FR 25,446 (July 6,1988).) As a result, under the Subtitle D rules, the primary regulators of such waste are state regulatory agencies, which follow the state plan non-hazardous waste guidelines developed by EPA. This regulatory disposition has proven to be fairly controversial, and it was recently challenged in a lawsuit filed in the U.S. District Court for the District of Columbia: Environmental Integrity Project, et al. v. McCarthy. To settle this lawsuit, EPA and the plaintiffs entered into a consent decree by which EPA was to make certain determinations about the future of the program after conducting an appropriate study. That study, Management of Exploration, Development and Production Wastes: Factors Informing a Decision on the Need for Regulatory Action, has been completed, and it concludes, after a fairly comprehensive review of these state regulatory programs, that “revisions to the federal regulations for the management of E&P wastes under Subtitle D of RCRA (40 CFR Part 257) are not necessary at this time.” In a statement released on April 23, 2019, EPA accepted these findings and promised that it would continue to work with states and other stakeholders to identify areas for improvement and to address emerging issues to ensure that exploration, development and production wastes “continue to be managed in a manner that is protective of human health and the environment.” Read the court decision
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Reprinted courtesy of Anthony B. Cavender, Pillsbury
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com

Why’d You Have To Say That?

October 09, 2023 — Daniel Lund III - Lexology
A surety seeking collateral from indemnitors filed suit in federal court in Louisiana pursuant to a forum selection clause in the indemnity agreement between the parties. The indemnitors were being called upon to provide collateral as a result of defaults on two Louisiana Department of Transportation projects. Seeking to move the dispute to Louisiana state court from federal court, the indemnitors filed a forum non conveniens motion. Among the arguments of the indemnitors removing the case out of federal court was the doctrine of “direct-benefits” estoppel – a policy which “‘holds a non-signatory to a clause in a contract if it “knowingly exploits the agreement” containing the clause.’ In re Lloyd's Reg. N. Am., Inc., 780 F.3d 283, 291 (5th Cir. 2015) (quoting Bridas S.A.P.I.C. v. Gov't of Turkmenistan, 345 F.3d 347, 361-62 (5th Cir. 2003)).” Read the court decision
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Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

DoD Testing New Roofing System that Saves Energy and Water

October 08, 2014 — Beverley BevenFlorez-CDJ STAFF
Builder reported that the Department of Defense (DoD) is hosting a new “dynamic roofing system, installed at the Security Forces Building at Goodfellow Air Force Base in San Angelo, Texas,” which “uses a combination of technologies that heat and cool air and water, produce electricity, and collect rainwater.” If the project is successful, it “could be replicated at thousands of DoD buildings throughout the country in the near future.” Builder described the process: “A retrofitted metal roof is installed over the existing roof, which creates a cavity between the existing and new roofs. Within that cavity insulation, solar thermal heating systems and cooling of air and water for the building can be installed. The roofing, insulation, hydronic solar thermal systems, engineered air pathways, and photovoltaic cells are designed to work symbiotically.” Read the court decision
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Following My Own Advice

October 21, 2015 — Craig Martin – Construction Contractor Advisor
I often advise clients on the use of E-Verify and the importance of getting policies and in place to ensure compliance. This is particularly true for clients that do federal and state work. Now it’s my turn to follow my own advice. I was recently appointed to represent the Nebraska Board of Engineers and Architects. As such, I am a contractor for the State of Nebraska. That means I have to use E-Verify. Here is a refresher of “our” E-Verify obligations as a contractor for the State. Nebraska adopted an E-Verify law in 2009. Nebraska statute section 4-114 requires all contractors that are awarded a contract by a state agency or political subdivision to register with ta federal immigration verification system. Although not explicit in the statute, the Department of Labor has indicated that the obligation to E-Verify applies only to new employees that will be working on the project. Read the court decision
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Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com

In Texas, a General Contractor May be Liable in Tort to a Third-Party Lessee for Property Damage Caused by a Subcontractor’s Work

February 16, 2016 — Michael L. DeBona – White and Williams LLP
In Zbranek Custom Homes, Ltd. v. Joe Allbaugh, et al., No. 03-14-00131-CV, 2015 WL 9436630 (Tex.App.-Austin Dec. 23, 2015), the Court of Appeals of Texas, Austin, considered the circumstances under which a general contractor can be held liable for injuries to a non-contracting party’s property. The court held that, because the general contractor, Zbranek Custom Homes, Ltd. (Zbranek), exercised control over the construction of the fireplace at issue, Zbranek owed a duty of care to the first lessees of the home that Zbranek built. In Zbranek, Bella Cima Developments, L.P. (Bella Cima) hired Zbranek to act as the general contractor for the construction of a home. As the general contractor, Zbranek engaged various subcontractors to perform different aspects of the construction, including the framing, stucco and masonry work for an outdoor fireplace. Read the court decision
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Reprinted courtesy of Michael L. DeBona, White and Williams LLP
Mr. DeBona may be contacted at debonam@whiteandwilliams.com

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