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    Real Estate & Construction News Round-Up 04/06/22

    Owners and Contractors are Liable for Injuries Caused by their Independent Contractors under the “Peculiar Risk Doctrine”

    US-Mexico Border Wall Bids Include Tourist Attraction, Solar Panels

    43% of U.S. Homes in High Natural Disaster Risk Areas

    Stormy Seas Ahead: 5th Circuit to Review Whether Maritime Law Applies to Offshore Service Contract

    Providence Partner Monica R. Nelson Helps Union Carbide Secure Defense Verdict in 1st Rhode Island Asbestos Trial in Nearly 40 Years

    Virginia General Assembly Tweaks Pay-if-Paid Ban

    Insurer's Attempt to Limit Additional Insured Status Fails

    West Virginia Couple Claim Defects in Manufactured Home

    First Circuit Rejects Insurer’s “Insupportable” Duty-to-Cooperate Defense in Arson Coverage Suit

    Despite Feds' Raised Bar, 2.8B Massachusetts Offshore Wind Project Presses On

    Construction Law Client Alert: California’s Right to Repair Act (SB 800) Takes Another Hit, Then Fights Back

    The Prolonged Effects on Commercial Property From Extreme Weather

    Sales of Existing Homes in U.S. Fall to Lowest Since 2012

    How the California and Maui Wildfires Will Affect Future Construction Projects

    Ambush Elections are Here—Are You Ready?

    Florida Governor Signs COVID-19 Liability Shield

    Remote Depositions in the Post-Covid-19 World

    No Coverage for Construction Defect Claim Only Impacting Insured's Work

    Specific Performance: Equitable Remedy to Enforce Affirmative Obligation

    New Jersey Condominium Owners Sue FEMA

    Revisiting the CMO; Are We Overusing the Mediation Privilege?

    Don’t Forget to Mediate the Small Stuff

    NY Is Set To Sue US EPA Over ‘Completion’ of PCB Removal

    Clearly Determining in Contract Who Determines Arbitrability of Dispute

    Pay Loss Provision Does Not Preclude Assignment of Post-Loss Claim

    Contractor Owed a Defense

    Exclusion Does Not Bar Coverage for Injury To Subcontractor's Employee

    Ahead of the Storm: Preparing for Irma

    Default Should Never Be An Option

    New Hampshire’s Statute of Repose for Improvements to Real Property Does Not Apply to Product Manufacturers

    Calling Hurricanes a Category 6 Risks Creating Deadly Confusion

    Three Recent Cases Strike Down Liquidated Damages Clauses In Settlement Agreements…A Trend Or An Aberration?

    Construction Defects and Warranties in Maryland

    Green Construction Claims: More of the Same

    Major Change to Residential Landlord Tenant Law

    Bought a New Vacation Home? I’m So Sorry

    Flexible Seattle Off-Ramp Would Retain Shape in Quake

    Haight Brown & Bonesteel Attorneys Named Best Lawyers in America ® 2016

    Defective Sprinklers Not Cause of Library Flooding

    Gilbert’s Plan for Downtown Detroit Has No Room for Jail

    Important Information Regarding Colorado Mechanic’s Lien Rights.

    Construction Litigation Group Listed in U.S. News Top Tier

    Cal/OSHA Approves COVID-19 Emergency Temporary Standards; Executive Order Makes Them Effective Immediately

    Intellectual Property And Employment Law Best Practices: Are You Covering Your Bases In Protecting Construction-Related Trade Secrets?

    Rent Increases During the Coronavirus Emergency Part II: Avoiding Violations Under California’s Anti-Price Gouging Statute

    Filing Lien Foreclosure Lawsuit After Serving Contractor’s Final Payment Affidavit

    Turner Construction Selected for Anaheim Convention Center Expansion Project

    BWB&O Partner Jack Briscoe and Associate Anoushe Marandjian Win Summary Judgment Motion on Behalf of Homeowner Client!

    American Council of Engineering Companies of California Selects New Director
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    Manhattan Gets First Crowdfunded Condos

    September 03, 2015 —
    New York’s first real estate project financed significantly though crowdfunding is set to open, a step forward for a nascent investing model that has yet to prove itself in commercial property. AKA United Nations, an extended-stay hotel-condominium on East 46th Street near Second Avenue, will start taking guests Sept. 10. Sales of the suites have already begun. Of the $95 million it cost to buy and fix up the existing hotel, $12 million was raised from online pledges. It’s “the first ever crowdfunded building in New York coming to completion, from A to Z,” said Rodrigo Nino, chief executive officer of Prodigy Network, which is gut-renovating the building with partners. Until now, “everything has been about promises.” Reprinted courtesy of David M. Levitt, Bloomberg and Oshrat Carmiel, Bloomberg Read the court decision
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    Reprinted courtesy of

    Is the Sky Actually Falling (on Green Building)?

    November 03, 2016 —
    I have spoken on many occasions here at Construction Law Musings and elsewhere about the risks and rewards for contractors found in sustainable construction. The rewards were fairly apparent. New markets, government incentives and the desires of owners to be “green” clearly point toward a need for contractors to get into the sustainable building game. However, when I was first writing my Eeyore like thoughts most of the thoughts of all us construction attorneys were speculative. Whether because wholesale “green” construction was relatively new or because the court process was relatively slow, there were not many ways to test if our, shall we say “less optimistic,” predictions were going to come to pass. For better or worse, several of the more dire predictions have come true. One major green construction debacle is the Destiny USA litigation. I cannot possibly set out all of the various issues as well as my friend and colleague Chris Cheatham does in his e-book about the project and its aftermath. I highly recommend this e-book and the posts found at Chris’ Green Building Law Update blog for those of you interested in how the IRS, the USGBC and the Green Bonds Program interact to cause many a pitfall for construction and design professionals. Read the court decision
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    Reprinted courtesy of Christopher G. Hill, The Law Office of Christopher G. Hill, PC
    Mr. Hill may be contacted at chrisghill@constructionlawva.com

    Worker’s Compensation Exclusivity Rule Gets “Trumped” by Indemnity Provision

    October 27, 2016 —
    Sorry, I couldn’t help myself with the title. The next case, Aluma Systems Concrete Construction of California v. Nibbi Bros., Inc., California Court of Appeals for the First District, Case No. A145734 (August 16, 2016), discusses the interplay between indemnity provisions and the worker’s compensation exclusivity rule. The worker’s compensation exclusivity rule generally provides that worker’s compensation insurance is the exclusive remedy of employees for injuries or death arising out of the course and scope of their employment. In the Aluma case, the California Court of Appeals, addressed what happens when a subcontractor’s employees are injured on a project, sue the general contractor, and the general contractor, pursuant to an indemnity provision in its subcontract, tenders the claim to the subcontractor whose worker’s compensation insurance has already paid the employees. Read the court decision
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    Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
    Mr. Murai may be contacted at gmurai@wendel.com

    California Contractor License Bonds to Increase in 2016

    December 02, 2015 —
    The post, which originally appeared on The Surety Bond Insider, was written by Jon Gottschalk, a member of the SuretyBonds.com Educational Outreach team. on SuretyBonds.com helps contractors fulfill their bonding requirements. The Contractors State License Board (CSLB) is requiring all California contractors to purchase a $15,000 bond by January 1, 2016— a $2,500 increase from the $12,500 amount that was previously required. The additional $2,500 was previously accounted for by an additional requirement to obtain a contractor’s license. Those applying for the license had to post the $12,500 surety bond and proof of financial solvency in the amount of $2,500. Essentially, contractors were required to show that their current assets were greater than their liabilities by no less than $2,500. By increasing the bond amount to include that additional $2,500, the CSLB has removed the burden of proving financial solvency from those who wish to obtain their license. Read the court decision
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    Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
    Mr. Murai may be contacted at gmurai@wendel.com

    Summary Judgment for Insurer on Construction Defect Claim Reversed

    January 07, 2025 —
    The Fifth Circuit reversed the district court's granting of summary judgment to the insurer on a construction defect claim asserted against the insured. TIG Ins. Co. v. Woodsboro Farmers Cooperative, 2024 U.S. App. LEXIS 24003 (5th Cir. Sept. 20, 2024). In March 2013, Woodsboro Farmers Cooperative contracted with E.F. Erwin, Inc. to construct two Brock 105' diameter grain silos. Erwin hired subcontract AJ Constructors, Inc. (AJC) to construct the silos. Erwin was responsible for supervising the work. Brock silos were kits shipped by the manufacturer and then assembled according to the manufacturer's manuals and specifications. The silos are constructed section by section. AJC began erecting the silos in May 2013 and completed its work in June or early July. Erwin occasionally inspected the work and found the silos were structurally sound and not defective. AJC left the job site after completing the assembly. Read the court decision
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    Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
    Mr. Eyerly may be contacted at te@hawaiilawyer.com

    Does a Broker Forfeit His or Her Commission for Technical Non-Compliance with Department of Real Estate Statutory Requirements?

    September 14, 2020 —
    In a recent Arizona Court of Appeals case, CK Revocable Trust v. My Home Group Real Estate LLC, 2020 WL 4306183 (7/28/2020), the Court of Appeals addressed the distinction between “substantive” and “technical” statutory requirements for real estate broker commission agreements. The Court explained that failure to comply with a substantive requirement would preclude the broker from recovering a commission, but failure to comply with a technical requirement would not. As examples of such substantive requirements, the Court identified the statutory requirement that the broker be licensed at the time the claim for commission arose, and the statutory requirement that the listing agreement be signed by both the broker and the client. Read the court decision
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    Reprinted courtesy of Kevin J. Parker, Snell & Wilmer
    Mr. Parker may be contacted at kparker@swlaw.com

    Contractor Gets Green Light to Fix Two Fractured Girders at Salesforce Transit Center

    January 28, 2019 —
    The Transbay Joint Powers Authority announced Jan. 10 that procurement has begun for the repair of the two fractured bottom flanges of the twin parallel girders that span 80 ft across Fremont Street in the 4.5-block-long Salesforce Transit Center in San Francisco. TJPA shuttered the transit center on Sept. 25, less than six weeks after it had opened, after a ceiling installer noticed a crack in one of the bridgelike spans. Read the court decision
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    Reprinted courtesy of Nadine M. Post, ENR
    Ms. Post may be contacted at postn@enr.com

    Housing Advocacy Group Moved to Dissolve New Jersey's Council on Affordable Housing

    November 05, 2014 —
    The New Jersey Law Journal reported that "[a]n affordable housing advocacy group in New Jersey is asking the state Supreme Court to remove from the administration of Gov. Chris Christie the authority to determine municipalities’ obligations for low- and moderate-income housing and to instead place that responsibility in the hands of trial judges." New Jersey's state constitution mandates affordable housing obligations (referred to as the Mount Laurel decisions). “It is no longer possible to trust that COAH can or will faithfully implement the Mount Laurel doctrine,” wrote the center’s associate director, Kevin Walsh, in the motion to enforce litigants’ rights, as quoted by the New Jersey Law Journal. “This should be the end; there should be no more extensions, no further last chances.” Municipalities are protected from being sued by developers, however, last year the court stated "that it would consider lifting that protection if COAH failed to adopt new regulations that passed constitutional muster," according to the New Jersey Law Journal. Read the court decision
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    Reprinted courtesy of