The Great Skyscraper Comeback Skips North America
February 05, 2015 —
Patrick Clark – BloombergTall buildings are back. Developers around the globe completed a record 97 buildings of at least 200 meters (656 feet) in height in 2014, according to a new report from the Council on Tall Buildings and Urban Habitat, as size-obsessed builders got back on a growth track after a two-year skyscraper dip.
It’s not hard to explain the pattern. A typical skyscraper takes two to four years to finish, says report co-author Daniel Safarik. Work back from the year of completion, and the global financial crisis looks like an easy explanation for the drop-off in tall buildings. If you thought it was hard to get a home loan in 2009, imagine asking bankers to finance a gravity-and-wind-defying symbol of luxury, industry, and capitalist will. Especially, as Bloomberg Businessweek’s Bryant Urstadt pointed out, since supertall buildings are notorious for being hard to fill with tenants. (It’s worth noting that “tall” isn’t a technical term, though “supertall,” which is used to describe buildings more than 300 meters tall, is. And construction schedules vary. The Ryugyong Hotel in Pyongyang, North Korea, planned for 330 meters, has been under construction for 28 years, according to a CTBUH report last year.)
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Patrick Clark, Bloomberg
Texas Allows Wide Scope for Certificate of Merit
January 07, 2025 —
Lian Skaf - The Subrogation StrategistThe purpose of certificate of merit (sometimes referred to as affidavit of merit) statutes is to identify frivolous claims before the court wastes time and resources during litigation. More common in medical malpractice cases, several states have enacted similar requirements for professional negligence claims dealing with construction-related issues. While a subrogation attorney should not be bringing a frivolous case to suit anyway, the requirement adds another step in the process that plaintiffs need to properly navigate.
Chapter 150 of the Texas Civil Practice and Remedies Code requires that in an action arising out of professional services by a licensed or registered professional, claimants must file an affidavit from a qualified expert attesting to the theories of recovery, the negligence and the factual basis for the claims. The expert must be competent, have the same professional license or registration as the defendant and practice in the area of practice of the defendant.
In Janis Smith Consulting, LLC v. Rosenberg, No. 03-23-00370-CV, 2024 Tex. App. LEXIS 7961, the Court of Appeals of Texas, Third District (Court of Appeals) addressed a challenge from the defendant as to the sufficiency of the plaintiff’s certificate of merit in an interlocutory appeal. The Court of Appeals affirmed the lower court’s dismissal of the defendant’s motion to dismiss based on the allegedly improper certificate of merit, holding that the plaintiff’s expert was sufficiently qualified to certify the legitimacy of the case.
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Lian Skaf, White and Williams LLPMr. Skaf may be contacted at
skafl@whiteandwilliams.com
Parties Can Agree to Anything In A Settlement Agreement………Or Can They?
October 17, 2023 —
Alexa Stephenson & Ivette Kincaid - Kahana FeldA settlement agreement is a contract. When parties to pending litigation enter into a settlement, they enter into a contract. Such a contract is subject to the general law governing all contracts. (T. M. Cobb Co. v. Superior Court (1984) 36 Cal.3d 273, 280 [204 Cal. Rptr. 143, 682 P.2d 338] [offers by a party to compromise under Code Civ. Proc., § 998].) Courts seek to interpret contracts in a manner that will render them “lawful, operative, definite, reasonable, and capable of being carried into effect’” without violating the intent of the parties. (Robbins v. Pacific Eastern Corp. (1937) 8 Cal.2d 241, 272–273; Kaufman v. Goldman, (2011) 195 Cal. App. 4th 734, 745.
A settlement agreement like a contract is a document that is typically negotiated between the parties to the agreement and it is up to the parties to determine its terms. Settlements take time and sometimes negotiating the settlement terms takes longer. This is especially true in complex litigation and multiparty matters where negotiating the settlement terms is just as contentious as litigating the matter. Just like contracts, in a settlement agreement the parties cannot agree to terms that violate public policy. A contract is thought to be against public policy if it results in a breach of law, harms citizens, or causes injury to the state. Contracts that are voided on public policy grounds carry no legal obligations. For example, an employer cannot force an employee to sign a contract that forbids the worker from joining a union.
Reprinted courtesy of
Alexa Stephenson, Kahana Feld and
Ivette Kincaid, Kahana Feld
Ms. Stephenson may be contacted at astephenson@kahanafeld.com
Ms. Kincaid may be contacted at ikincaid@kahanafeld.com
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Construction Defects Lead to “A Pretty Shocking Sight”
October 14, 2013 —
CDJ STAFFWalls black with mold. Grass growing on carpets. The board chair of the Penhorwood condos, Christine Burton, describes the photos as “a pretty shocking sight.” The residents were all evicted in 2011 and given only fifteen minutes to gather what possessions they could after the buildings were found to be structurally unsound. An attempt was made to stabilize the buildings, but they kept shifting and cracking, exposing the interiors to the elements.
The owners of the Fort McMurray condominium complex are suing the developer, contractor, and others for $60 million. Fort McMurray has ordered that the buildings be torn down, although the condo owners don’t have the funds for this. Even the funds for continuing the lawsuit are hard to come by. Ms. Burton notes “because of the evacuation and the cost of stabilizing the building so that we could go in and get people’s furniture and personal effect out has pretty much depleted our funds.” The owners “have no more money.”
The condo owners are hoping that they can sell the land where their former homes are in order to recoup some of their losses.
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Red Tape Is Holding Up a Greener Future
March 13, 2023 —
The Editors - BloombergSeven months on, Democrats are still celebrating the Inflation Reduction Act, even though a crucial determinant of its success — permitting reform for energy projects — remains undone. Recent data shows just how imperative it is for them to stop dragging their feet.
What’s now called the IRA had little to do with inflation. It was a climate bill, and a big one: It provided $370 billion to improve energy efficiency, reduce emissions and smooth the path to a clean-power economy. It came on top of a 70% surge in private investment since 2017.
But the biggest impediment to the US energy transition isn’t financing: It’s building.
A decade ago, between 25% and 30% of proposed wind and solar projects moved from the drawing boards to completion. But as new projects and new funding have soared, utilities have been unable to keep up, leading to an immense backlog. A recent report by BloombergNEF found that over just six years, global clean-energy investment has gone from half the level of fossil-fuel investment to near parity, an extraordinary leap that reflects the market’s appetite for clean power. Yet America’s dysfunctional regulation is preventing many needed projects from even breaking ground.
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The Editors, Bloomberg
Virginia General Assembly Helps Construction Contractors
June 10, 2015 —
Christopher G. Hill – Construction Law MusingsAs reported last week at the Virginia Real Estate, Land Use and Construction Law Blog (authored by my good friend Tim Hughes (@timrhughes)), the Virginia General Assembly has passed an amendment to the jurisdictional limitations of Virginia General District Courts. The new statute, going into effect July 1, 2011, increases the jurisdiction of these courts to $25,000 from the present level of $15,000.
Why is this a big deal? As a solo practitioner who represents contractors and subcontractors in cases big and small, this increase is a boon to my practice and the collect-ability of some debts. I think back to the numerous conversations I have had with clients who had bona fide claims for around $20,000. These conversations inevitably turned toward the cost of Circuit Court versus General District Court and whether it would be better to leave money out of the claim to avoid the ramped up attorney fee and filing costs (not to mention the time from filing to judgment). This conversation was especially relevant in the instance where the contracts did not contain an attorney fees provision.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Unlocking the Potential of AI and Chat GBT in Construction Management
September 11, 2023 —
Matthew DeVries - Best Practices Construction LawThe construction industry is one of the most complex and challenging sectors. Projects can be highly demanding and require a significant amount of planning and coordination to complete successfully. However, with advancements in technology, specifically the use of artificial intelligence (AI) and chat GBT, the construction industry can experience a transformation in how it operates.
One of the significant challenges in construction projects is the management of data. Information is collected from various sources and needs to be organized and analyzed to make informed decisions. AI can play a significant role in data analysis by providing real-time insights into the project’s progress. This can help in predicting potential delays, identifying areas where cost savings can be made, and even improve safety measures.
Chat GBT, a natural language processing tool, can assist in project management by acting as a virtual assistant to construction managers. The software can be programmed to answer questions about the project, provide updates on the progress, and even suggest solutions to potential problems. This can help in reducing the workload of the project manager and allow them to focus on other critical tasks.
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Matthew DeVries, Burr & Forman LLPMr. DeVries may be contacted at
mdevries@burr.com
Insurer’s Broad Duty to Defend in Oregon, and the Recent Ruling in State of Oregon v. Pacific Indemnity Company
January 02, 2024 —
Keith Sparks - Ahlers Cressman & Sleight PLLCOregon law mandates a broad duty to defend, requiring insurers to provide legal representation to their policyholders whenever there is a potential for coverage under the policy. The significance of this broad interpretation means that an insurer has a duty to defend an insured even in situations where the alleged facts only imply a covered claim, and even in situations where the underlying claim is ultimately not covered by the policy. The insurer’s duty to defend is triggered if the allegations of the complaint, reasonably interpreted, could result in the insured being held liable for damages covered by the policy. This is referred to as the “four-corners” rule; it is also sometimes referred to as the eight-corners rule (for the four corners of the complaint plus the four corners of the policy). Oregon’s adoption of a broad interpretation of the duty to defend affirmatively places the onus on insurers to err on the side of coverage.
This broad duty to defend is based on the principle that an insured should not have to bear the expense of defending a lawsuit that the insurer may ultimately have to pay for. The duty to defend is also important because it helps ensure that insureds have access to legal representation when faced with a lawsuit.
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Keith Sparks, Ahlers Cressman & Sleight PLLCMr. Sparks may be contacted at
keith.sparks@acslawyers.com