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    Real Estate & Construction News Round-Up (10/06/21)

    Update: Lawyers Can Be Bound to Confidentiality Provision in Settlement Agreement

    With Vice President's Tie-Breaker, US Senate Approves Far-Reaching Climate Bill

    Nebraska’s Prompt Pay Act for 2015

    Force Majeure, Construction Delays, Labor Shortages and COVID-19

    White and Williams Recognizes Women’s History Month: Remembering Virginia Barton Wallace

    Additional Dismissals of COVID Business Interruption, Civil Authority Claims

    New York Court Holds Radioactive Materials Exclusion Precludes E&O Coverage for Negligent Phase I Report

    Florida Adopts Daubert Standard for Expert Testimony

    Be a Good Neighbor: Protect Against Claims by an Adjacent Landowner During Construction

    Project Team Upgrades Va. General Assembly

    FIFA Inspecting Brazil’s World Cup Stadiums

    Sanctions Issued for Frivolous Hurricane Sandy Complaint Filed Against Insurer

    Endorsements Do Not Exclude Coverage for Wrongful Death Claim

    Residential Contractors, Be Sure to Have these Clauses in Your Contracts

    Client Alert: Design Immunity Affirmative Defense Not Available to Public Entities Absent Evidence of Pre-Accident Discretionary Approval of the Plan or Design

    Will Future Megacities Be a Marvel or a Mess? Look at New Delhi

    Atlanta Hawks Billionaire Owner Plans $5 Billion Downtown Transformation

    Recent Third Circuit OSHA Decision Sounds Alarm for Employers and Their Officers

    Federal Subcontractor Who Failed to Follow FAR Regulations Finds That “Fair” and “Just” are Not Synonymous

    US Secretary of Labor Withdraws Guidance Regarding Independent Contractors

    TLSS Partner Burks Smith and Associate Katie Keller Win Summary Judgment on Late Reported Water Seepage Case in South Florida

    Number of Occurrences Depends on Who is Sued

    Appraisal May Include Cause of Loss Issues

    Seeking the Urban Lifestyle in the Suburbs

    Awarding Insurer Summary Judgment Before Discovery Completed Reversed

    Trump Abandons Plan for Council on Infrastructure

    Insurance Attorney Gary Barrera Joins Wendel Rosen’s Construction Practice Group

    Hawaii Federal District Court Again Rejects Coverage for Faulty Workmanship

    New York’s 2022 Comprehensive Insurance Disclosure Act: Significant Amendments to the C.P.L.R.

    In a Win for Property Owners California Court Expands and Clarifies Privette Doctrine

    The NAR asks FAA to Amend their Drone Rules for Real Estate Use

    Home Prices in 20 U.S. Cities Increase at Slower Pace

    Specific Performance of an Option Contract to Purchase Real Property is Barred Absent Agreement on All Material Terms

    Andrea DeField Recognized In 2024 List of Influential Business Women By South Florida Business Journal

    Homebuilders See Record Bearish Bets on Shaky Recovery

    New York Appellate Division Reverses Denial of Landlord’s Additional Insured Tender

    Tetra Tech-U.S. Cleanup Dispute in San Francisco Grows

    The Courts and Changing Views on Construction Defect Coverage

    Defend Trade Secret Act of 2016–-Federalizing Trade Secret Law

    Under Colorado House Bill 17-1279, HOA Boards Now Must Get Members’ Informed Consent Before Bringing A Construction Defect Action

    No Coverage Under Anti-Concurrent Causation Clause

    Amendments to California Insurance Code to Require Enhanced Claims Handling Requirements for Claims Arising Out Of Catastrophic Events

    Ten Years After Colorado’s Adverse Possession Amendment: a brief look backwards and forwards

    Hawaii Federal District Court Rejects Insurer's Motion for Summary Judgment on Construction Defect Claims

    Newport Beach Attorneys John Toohey and Nick Rodriguez Receive Full Defense Verdict

    Ohio: Are Construction Defects Covered in Insurance Policies?

    New York Court Temporarily Enjoins UCC Foreclosure Sale

    Challenging Enforceability of Liquidated Damages (In Federal Construction Context)

    Hunton Insurance Lawyer, Jae Lynn Huckaba, Awarded Miami-Dade Bar Association Young Lawyer Section’s Rookie of the Year Award
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    Ninth Circuit Clears the Way for Review of Oregon District Court’s Rulings in Controversial Climate Change Case

    February 27, 2019 —
    On December 26, a divided panel of the U.S. Court of Appeals for the Ninth Circuit accepted an interlocutory appeal of the presiding District Court’s pre-trial rulings in the novel climate change case that is being tried in Oregon. The case is Juliana, et al. v. United States of America. In its ruling, the Ninth Circuit held that the District Court certification of this case for interlocutory appeal satisfied the provisions of 28 U.S.C. § 1292(b). Ninth Circuit precedents authorize such an appeal when a District Court order “involves a controlling question of law as to which there is a substantial ground for difference of opinion”—which aptly characterizes the U.S. Supreme Court’s view of this litigation. Read the court decision
    Read the full story...
    Reprinted courtesy of Anthony B. Cavender, Pillsbury
    Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com

    Zillow Seen Dominating U.S. Home Searches with Trulia

    July 30, 2014 —
    A Zillow Inc. (Z) purchase of Trulia Inc. (TRLA) would create a dominant search website for U.S. house hunters, reshaping an online industry the companies helped popularize. Zillow, the largest U.S. real estate website, is seeking to buy No. 2 Trulia for as much as $2 billion in cash and stock, according to people with knowledge of the matter. An agreement may be announced as soon as next week, said one of the people, who asked not to be identified because the information is private. Talks are ongoing and may not lead to a deal. The companies help buyers and renters find information on homes, generating revenue by selling advertising and charging Realtors to place their listings prominently. Together the Zillow and Trulia networks had more than 68 million unique visitors in June, representing about 71 percent of all visitors to ComScore’s real estate category. That includes desktop and mobile users, ComScore said. A combination would make it hard for rivals to compete, said Steve Murray, president of Real Trends Inc. in Castle Rock, Colorado. Mr. Sherman may be contacted at asherman6@bloomberg.net; Mr. McCracken may be contacted at jmccracken3@bloomberg.net; Mr. Gopal may be contacted at pgopal2@bloomberg.net Read the court decision
    Read the full story...
    Reprinted courtesy of Alex Sherman, Jeffrey McCracken and Prashant Gopal, Bloomberg

    Verdict In Favor Of Insured Homeowner Reversed For Improper Jury Instructions

    October 23, 2018 —
    The appellate court reversed the jury verdict in favor of the homeowners based upon improper instructions purporting to impose a duty to adjust the claim and how to construe a contract. Citizens Prop. Ins. Corp. v Mendoza, 2018 Fla. App. LEXIS 9497 (Fla. Ct. App. July 5, 2018). The insureds incurred water damage to their home caused by a water heater leak. After a claim was filed, the insurer sent an adjuster to investigate the claim. The insurer denied the claim due to an exclusion for constant or repeated seepage or leakage. At trial, the insurer offered testimony that the leak was a continued and repeated seepage of water over a long period of time, which was excluded under the policy, and not a sudden and accidental discharge of water, which would have been covered. Read the court decision
    Read the full story...
    Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
    Mr. Eyerly may be contacted at te@hawaiilawyer.com

    Client Alert: Catch Me If You Can – Giorgio Is No Gingerbread Man

    November 26, 2014 —
    In Giorgio v. Synergy Management Group, LLC (2014) Case No. B248752, a California Court of Appeal held in an opinion published on November 6, 2014, that the Los Angeles County trial court did not abuse its discretion in permitting service by publication on Defendant John Giorgio ("Giorgio") after numerous attempts to find his current address produced a single address in Los Angeles from which mailed service was returned. The Court ruled that publication in a Los Angeles newspaper was proper because Plaintiff had a reasonable belief that service by publication in that county was most likely to give actual notice to the party to be served.” In this intentional tort action, Synergy Management Group, LLC ("Synergy") alleged in its Complaint that Giorgio converted assets of Synergy's assignor by submitting false expense reports which resulted in the misappropriation of the assignor's assets. Synergy personally served Giorgio with the original Complaint at a North Carolina airport and Giorgio failed to respond. Synergy subsequently filed a First Amended Complaint and attempted service via an address in the Netherlands. Again, Giorgio did not respond. Synergy then filed a request for entry of default against Giorgio which was entered that day. Reprinted courtesy of Haight Brown & Bonesteel LLP attorneys Steven M. Cvitanovic, Jesse M. Sullivan and Colin T. Murphy Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com; Mr. Sullivan may be contacted at jsullivan@hbblaw.com; and Mr. Murphy may be contacted at cmurphy@hbblaw.com Read the court decision
    Read the full story...
    Reprinted courtesy of

    Contractors’ Right to Sue in Washington Requires Registration

    July 03, 2022 —
    Summary: In Washington, contractors must be properly registered in order to pursue a legal action against a customer for breach of contract. Dobson v. Archibald, a February 2022 decision by the Washington Court of Appeals, reinforced how the governing statute – RCW 18.27.080 – does not simply create an affirmative defense but establishes a mandatory pleading prerequisite.1 Discussion: In 2018, Archibald hired Dobson to refinish his hardwood floors for $3,200. Dobson was not a registered contractor. She had been referred to Archibald by acquaintances who were familiar with her construction and home repair work, including improvements Dobson had made to her own home. Archibald paid Dobson a $700 deposit before Dobson began her work. At the completion of the floor repair project, Archibald was unhappy with the appearance of the floors and informed Dobson that he would not pay the remaining $2,500. Read the court decision
    Read the full story...
    Reprinted courtesy of John Leary, Gordon & Rees
    Mr. Leary may be contacted at jleary@grsm.com

    Augmented and Mixed Reality in Construction

    July 28, 2016 —
    Augmented reality (AR) and mixed reality (MR) are in the headlines, thanks to the recent mobile gaming boom. How are these emerging technologies applicable to construction? In this blog post, I present six application areas to consider. In AR—like Google Glass or Pokémon GO on a mobile device—the visible natural world is overlaid with a layer of digital content. In MR technologies, like Microsoft’s HoloLens or Magic Leap, virtual objects are integrated into and responsive to the natural world. In my earlier post, I wrote about virtual reality (VR), where the real world is replaced by a computer-generated environment. All the virtual technologies are still in relatively early stages of development. However, they already demonstrate the potential to change how we design, build, commercialize, and use the built environment. I brainstormed six application areas for AR and MR in construction. Read the court decision
    Read the full story...
    Reprinted courtesy of Aarni Heiskanen, AEC Business
    Mr. Heiskanen may be contacted at aarni@aepartners.fi

    Should a Subcontractor provide bonds to a GC who is not himself bonded? (Bonding Agent Perspective)

    May 03, 2017 —
    Guest Post Friday is back, and for this week, Construction Law Musings welcomes Steve Moore. Steve has been the Construction & Surety Manager for Towne Insurance Agency-Invincia, in Chesterfield, VA since 2010. Steve’s experience in the Virginia surety bonding marketplace started in 1985 with USF&G. His underwriting travels took him from USF&G to starting National Grange Mutual’s mid-Atlantic bond department over Virginia, Maryland, Delaware, North & South Carolina, to being Reliance Surety’s “Firemark” bond manager in Virginia. Reliance was purchased by Travelers, where Steve continued to grow the surety book of business and build expertise and relationships. Experience with Travelers and Zurich had Steve handling surety bonds for some of Virginia’s largest and best-of-class contractors. Recently, he was contracted by the Commonwealth’s Attorney’s office to serve as a contract surety expert witness on behalf of the state. He is a 1985 graduate of Virginia Tech with double-major B.S. degrees in Finance and Marketing. Today, Steve has business and relationships with Travelers, The Hartford, Westfield, CNA, CBIC, Selective, Liberty Mutual, Ohio Casualty, Cincinnati, and many other companies. Steve’s strong foundation of insurance knowledge and in bonding principles and practices allow him to serve as a great resource for his clients. An old Aesop fable comes to mind when I am asked whether a Sub should bond to an unbonded GC:
    "A woodsman entered the forest and asked the trees to give him a handle made of the best wood. After giving the woodsman a stave of hickory, the forest watched the woodsman fashion an axe onto the handle. In a flash, the woodsman began to chop down the various oaks and maples in the forest. The oak then said to a pine, “It serves us right, since we gave our adversary the very thing that contributes to our doom…"
    When a subcontractor client of mine asks about bonding to an un-bonded general contractor, a number of questions immediately come to mind. Why isn’t the GC bonded? What is the existing relationship between the GC and Sub? How well is the job financed? While wanting to help my subcontractor procure work, and surely enjoying the commissions from writing a bond, I also want to help my sub client manage unforeseen risk. What are the risks to a sub, when posting a bond to an unbonded GC? Read the court decision
    Read the full story...
    Reprinted courtesy of Christopher G. Hill, The Law Office of Christopher G. Hill
    Mr. Hill may be contacted at chrisghill@constructionlawva.com

    First Suit Filed for Losses Caused by COVID-19

    March 30, 2020 —
    Last week, the first lawsuit was filed seeking insurance coverage for business-interruption due to losses caused by COVID-19. The case, Cajun Conti, LLC, et al. v. Certain Underwriters at Lloyd's of London, ,et al., was filed in Louisiana. A New Orleans restaurant, Oceana Grill," seeks a declaratory judgment that its "all risks" policy issued by Lloyd's covers losses resulting from the closure of its restaurant due to the Governor's order restricting public gatherings and the Mayor of New Orleans' order closing restaurants. The lawsuit contends that "contamination of the insured premises by the coronavirus would be a direct physical loss needing remediation to clean the surfaces of the establishment." The lawsuit further alleges the policy contains no exclusions for a "viral pandemic." The suit seeks a declaration that "the policy provides coverage to plaintiffs for any future civil authority shutdowns of restaurants in the New Orleans area due to physical loss from coronavirus contamination and that the policy provides business income coverage in the event that the coronavirus has contaminated the insured premises." The obvious dispute will be whether the coronavirus constitutes a "direct physical loss or damage" as required by the policy. Read the court decision
    Read the full story...
    Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
    Mr. Eyerly may be contacted at te@hawaiilawyer.com