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Real Estate & Construction News Roundup (10/04/23) – NFL Star Gets into Real Estate, DOJ Focuses on “Buyer-Broker Commissions”, and the Auto Workers’ Strike Continues

November 13, 2023 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, seller impersonation fraud becomes an issue in the United States, major retailers are closing over 3,000 stores nationwide, the Tampa Rays are set to construct a new $1.3 billion stadium, and more!

NFL star Tyler Lockett is preparing for his life and career after football by becoming a real estate broker in both Washington state and Texas. (Brady Henderson, ESPN)
Seller impersonation fraud has become a major scam in the United States with 73% of real estate firms reporting an increase in these schemes since the beginning of the year. (Diane Tomb, Fortune)
“Buyer-broker commissions” are a focus for the U.S. Justice Department as they have filed a “statement of interest” in one case in Massachusetts while there are several other pending lawsuits in U.S. courts. (Mike Scarcella, Reuters)

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

1 De Haro: A Case Study on Successful Cross-Laminated Timber Design and Construction in San Francisco

November 06, 2023 — Cait Horner, Adam J. Weaver & Allan C. Van Vliet - Gravel2Gavel Construction & Real Estate Law Blog
At the intersection of San Francisco’s SOMA, Potrero Hill and Showplace Square districts, a first-of-its-kind building offers an example of the potential widespread success of mass timber construction in the United States. 1 De Haro, a 134,000-square-foot, 4-story office and light industrial project built by Bay Area developer SKS Partners is not only the first cross-laminated timber (CLT) building in the San Francisco, it is also the first multistory mass timber building of its type to be fully executed in California and the first CLT project in the United States to be delivered via railways. We recently sat down with Yvonne Fisher and Lee Ishida of SKS to discuss the unique design process, marketing success and overall industry buzz surrounding one of their latest projects. Reprinted courtesy of Cait Horner, Pillsbury, Adam J. Weaver, Pillsbury and Allan C. Van Vliet, Pillsbury Ms. Horner may be contacted at cait.horner@pillsburylaw.com Mr. Weaver may be contacted at adam.weaver@pillsburylaw.com Mr. Van Vliet may be contacted at allan.vanvliet@pillsburylaw.com Read the court decision
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Governor Ducey Vetoes Water and Development Bills

June 09, 2016 — Patrick J. Paul – Snell & Wilmer Real Estate Litigation Blog
With the second regular legislative session of Governor Doug Ducey’s tenure complete, the Governor exercised his veto pen rejecting several laws impacting water and land development. On May 9th, Governor Ducey vetoed two measures that could have allowed developers to manipulate the requirements of Arizona’s Groundwater Management Act of 1980: Senate bills the 1268 (adequate water supply requirements) and 1400 (county water supply). The bills’ sponsor, Senator Gail Griffin, had expressed concerns that the federal government was exercising too much control of the water supply in Cochise County in its efforts to ensure the continued flow of water in the San Pedro River. Read the court decision
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Reprinted courtesy of Patrick J. Paul, Snell & Wilmer
Mr. Paul may be contacted at ppaul@swlaw.com

Hurricane Damage Not Covered for Home Owner Not Named in Policy

March 20, 2023 — Tred R. Eyerly - Insurance Law Hawaii
The court granted the insurer's motion to dismiss because, although there was coverage for the property under the mortgagee's policy, the home owner was not a named or additional insured under the policy. Cart v. Great Am. Assur. Co., 2023 U.S. Dist. LEXIS 6207 (W.D. La. Jan. 12, 2023). Plaintiffs' property was damage by Hurricanes Laura and Delta. Because Plaintiff failed to maintain homeowner's hazard insurance subject to the mortgage, Rushmore Management Services procured a force-placed lender policy on the property through Great American. Plaintiffs filed suit asserting breach contract claims. Great American moved to dismiss. 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

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

Assembly Bill 1701 Contemplates Broader Duty to Subcontractor’s Employees by General Contractor

August 17, 2017 — Richard H. Glucksman, Esq. & Chelsea L. Zwart, Esq. – Chapman Glucksman Dean Roeb & Barger
AB 1701 recently passed the Assembly and is pending in the Senate’s Labor and Industrial Relations and Judiciary Committees. The Bill, if signed by the Governor, would create a new section in the California Labor Code (Section 218.7) making “direct contractors” – defined as a contractor “making or taking a contract in the state for the erection, construction, alteration, or repair of a building, structure, or other private work” – liable for wages a subcontractor or sub-subcontractor fails to pay to its employee for work included in the general contractor’s contract with the project owner. Under the new law, direct contractors would be liable for up to one year from the date of completion of the work for unpaid wages, fringe benefits, health and welfare benefits, and pension fund contributions, including interest and state tax payments owed to a subcontractor’s employee. The employee, however, would not be able to recover penalties or liquidated damages from the general contractor. AB 1701 would give the employee, Labor Commissioner, or a joint labor-management cooperation committee the right to enforce the direct contractor’s liability through a civil action. It would also extend to third parties who are owed fringe or other benefit payments or contributions on the employee’s behalf. Pursuant to the proposed language of the new statute, a prevailing plaintiff in such an action would be entitled to their reasonable attorneys’ fees and costs, including expert witness fees. Although Labor Code § 218.7 would impose certain obligations on the subcontractor to provide the direct contractor with relevant project and payroll records, the subcontractor’s failure to comply with those obligations does not relieve the direct contractor from liability. Impact AB 1701’s apparent purpose is to protect employees, an undeniably important legislative goal. However, if passed, the bill could greatly increase general contractors’ exposure when subcontracting work and their cost of doing business. Especially because the new law would not impact existing laws requiring a direct contractor to timely pay a subcontractor. As a result, many coalitions against AB 1701 stress the halting effect this could have on the construction industry as a whole, particularly private construction, which is not as heavily regulated as public works. CGDRB will continue to monitor this Bill and provide updates as developments occur. Reprinted courtesy of Richard H. Glucksman, Chapman Glucksman Dean Roeb & Barger and Chelsea L. Zwart, Chapman Glucksman Dean Roeb & Barger Mr. Glucksman may be contacted at rglucksman@cgdrblaw.com Ms. Zwart may be contacted at czwart@cgdrblaw.com Read the court decision
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Spencer Mayer Receives Miami-Dade Bar Association's '40 Under 40' Award

March 04, 2024 — Lewis Brisbois Newsroom
Miami, Fla. (February 23, 2024) – Miami Associate Spencer Mayer received the 2024 Miami-Dade Bar Association Young Lawyers Section’s '40 under 40' Award at the association's annual "Miami Nights" event on February 22. Mr. Mayer serves on the Board of Directors of the Miami Dade Bar Association’s Young Lawyers Section. Lewis Brisbois was a proud sponsor of this event, which raised funds for the organization's community service initiatives and pro bono programming. Mr. Mayer is a member of the General Liability Practice. His practice focuses on all aspects of civil litigation, including complex commercial litigation, products liability, premises liability, wrongful death, catastrophic injury, and insurance coverage. Read the court decision
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Reprinted courtesy of Lewis Brisbois

Zinc in London Climbs for Second Day Before U.S. Housing Data

January 21, 2015 — Alex Davis – Bloomberg
Zinc rose for a second day and copper held gains before data showing increased housing construction in the U.S. and a stimulus decision by the European Central Bank. Zinc advanced as much as 0.8 percent. Housing starts in the U.S., the second-largest metals consumer, climbed 1.2 percent in December from the previous month, according to a Bloomberg survey, after falling 1.6 percent in November. The ECB will announce a 550 billion-euro ($636 billion) government-bond purchase program this week, according to 93 percent of respondents in a separate survey. Read the court decision
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Reprinted courtesy of Alex Davis, Bloomberg
Mr. Davis may be contacted at adavis150@bloomberg.net

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