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Real Estate & Construction News Roundup (3/6/24) – Steep Drop in Commercial Real Estate Investment, Autonomous Robots Being Developed for Construction Projects, and Treasury Department Proposes Regulation for Real Estate Professionals

April 08, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, major league sports franchises turn to real estate to increase their value, the Associated Builders and Contractors releases a guide on artificial intelligence, New York City helps landlords convert empty office space into housing, and more!

• The Treasury Department proposed a regulation that would require real estate professionals to report information to the agency about all-cash sales of residential real estate to legal entities, trusts and shell companies. (Fatima Hussein, AP)
• For decades, major league teams depended on ticket sales, concessions and TV deals to generate revenue, but team owners in recent years have turned to real estate development to bring in extra cash and drive up the values of their franchises. (Nathaniel Meyersohn, CNN)
• The U.S. commercial real estate market saw a steep drop in investment last year, with the market plummeting by more than 50% to the lowest level since 2012 and CBRE noting a 91% year-over-year drop in direct real estate company investments. (Yuheng Zhan, Business Insider)

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

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KF-103 v. American Family Mutual Insurance: An Exception to the Four Corners Rule

October 29, 2014 — Zach McLeroy – Colorado Construction Litigation
In Colorado, the “complaint rule,” also known as the “four corners rule,” requires an insurer to provide a defense when an underlying complaint alleges any set of facts that may fall within an insurance policy. This can result in a situation where an insurer has a duty to defend although the underlying facts ultimately do not fall within the policy. In KF-103 v. American Family Mutual Insurance, 2014 WL 4409876, District Court Judge Richard P. Matsch recognized an exception to the complaint rule. In doing so, Judge Matsch determined that a court may look beyond the complaint to judicial orders preceding the filing of the complaint to determine whether an insurer has a duty to defend. Therefore, a party may not be able to assert unsupported facts in a complaint for the sole purpose of triggering an insurance policy. KF 103 v. American Family arose out of an underlying easement dispute. In the underlying case, KF 103-CV, LLC (“KF 103”) purchased a piece of property from the Infinity Group. As a condition of the purchase agreement, Infinity Group was required to complete improvements to boundary streets and the intersection of Ski Lane and Sorpresa Lane. Several adjoining property owners (the “neighbors”) objected to the modification of the intersection because it violated an express easement (the “easement”) that provided access to their properties. Read the court decision
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Reprinted courtesy of Zach McLeroy, Higgins, Hopkins, McLain & Roswell, LLC
Mr. McLeroy may be contacted at McLeroy@hhmrlaw.com

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Craig Holden Named Top 100 Lawyer by Los Angeles Business Journal

June 27, 2022 — Craig Holden - Lewis Brisbois
Los Angeles, Calif. (May 17, 2022) - Los Angeles Partner Craig Holden has been named to the Los Angeles Business Journal’s (LABJ) “Top 100 Lawyers” list, which recognizes the most impactful attorneys in the Los Angeles region for their ongoing efforts as outstanding legal professionals. The attorneys on the list were honored on May 12 at LABJ’s inaugural Top 100 Lawyers Awards at the ASU California Center. In the publication’s special section, LABJ Publisher Josh Schimmels noted that the attorneys on the Top 100 Lawyers list “have demonstrated exceptional legal skill and achievements across the full spectrum of responsibility, exemplary leadership and contributions to the Los Angeles community at large.” He also observed, “Considering the fact that the Los Angeles region has long been known for its status as a hub for legal [through] leaders and record-setting attorneys, being a standout in that field is particularly impressive.” Likewise, in discussing his inclusion on the list, Mr. Holden remarked, “I am honored to be included on this list with so many exceptional attorneys from the LA legal community.” Read the court decision
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Reprinted courtesy of Craig Holden, Lewis Brisbois
Mr. Holden may be contacted at Craig.Holden@lewisbrisbois.com

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BHA Sponsors 28th Annual Construction Law Conference in San Antonio, TX

January 07, 2015 — Beverley BevenFlorez-CDJ STAFF
Bert L. Howe & Associates, Inc. is proud to be joining with the State Bar of Texas, Construction Law Section, as a sponsor and exhibitor at the 28th Annual Construction Law Conference to be held March 5-6, 2015 at the San Antonio Marriott Rivercenter. With offices in San Antonio and Houston, Bert L. Howe & Associates, Inc. (BHA) offers the experience of over 20 years of service to carriers, defense counsel, and insurance professionals as designated experts in over 5,000 cases. BHA’s staff encompasses a broad range of licensed and credentialed experts in the areas of general contracting and specialty trades, as well as architects, and both civil and structural engineers, and has provided services on behalf of developers, general contractors and sub-contractors. BHA’s experience covers the full range of construction defect litigation, including single and multi-family residential (including high-rise), institutional (schools, hospitals and government buildings), commercial, and industrial claims. BHA specializes in coverage, exposure, and delay claim analysis as well. Download the seminar brochure and register for the event... For more information on Bert L. Howe & Associates, Inc., you may contact Don MacGregor at dmac@berthowe.com or 210.441.8375. Read the court decision
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Granting Stay, Federal Court Reviews Construction Defect Coverage in Hawaii

January 06, 2012 — Tred R. Eyerly - Insurance Law Hawaii

The federal district court ultimately stayed a construction defect case, but offered comments on the current status of coverage disputes for such defects in Hawaii. See National Union Fire Ins. Co. of Pittsburgh, Pa. v. Simpson Mfg. Co., 2011 U.S. Dist. LEXIS 128481(D. Haw. Nov. 7, 2011).

National Union filed a complaint for declaratory relief to establish it had no duty to defend or to indemnify Simpson Manufacturing Company in four actions pending in the Hawaii state courts. The state court actions concerned allegedly defective hurricane strap tie hold downs that were manufactured and sold by Simpson. The hurricane ties allegedly began to prematurely corrode and rust, causing cracking, spalling and other damage to homes.

National Union contended the underlying allegations did not constitute "property damage" caused by an "occurrence," as defined in the policies.

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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com

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Chambers USA 2022 Ranks White and Williams as a Leading Law Firm

July 18, 2022 — White and Williams LLP
White and Williams is once again recognized by Chambers USA as a leading law firm in Pennsylvania for achievements and client service in the areas of insurance law and real estate finance law. The firm has also been recognized for achievements and client service in banking and finance law in Philadelphia and the surrounding area. In addition, seven lawyers received individual honors: two for their work in insurance, two for their work in real estate finance, another for his work in real estate, one for her work in bankruptcy and restructuring and one for his work in commercial litigation. White and Williams is acknowledged for our renowned practice offering expert representation to insurers and reinsurers across an impressive range of areas including coverage, bad faith litigation and excess liability. The firm is recognized for notable strength in transactional and regulatory matters, complemented by the team's adroit handling of complex alternative dispute resolution proceedings. Chambers USA also acknowledged the firm's broad trial capabilities include handling data privacy, professional liability and toxic tort coverage claims. White and Williams’ lawyers have further expertise in substantial claims arising from bodily injury and wrongful death suits. Read the court decision
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Reprinted courtesy of White and Williams LLP

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Insurer Beware: Failure to Defend Ends with Hefty Verdict

June 01, 2011 — Douglas Reiser, Builders Council Blog

Served with a lawsuit that you turned over to your insurer? Insurer refusing to defend you? Well, find some hope in this news. Washington’s IFCA has the claws to ensure that insurers perform their duties.



Contractors heavily rely on the defense provisions of their Commercial General Liability (CGL) policies. In construction, a legal dispute can easily rear its head when you least expect it. Luckily, Washington registered contractors are required to maintain CGL insurance. That insurance often provides contractors with adequate legal defense in the event that they are sued.



But, what if your insurer turns down the defense request? They might be staring at massive damages. A current Reiser Legal client, Australia Unlimited, Inc., recently won a large verdict against Hartford Insurance, after the insurer unreasonably denied their claim. The firm who represented Australia Unlimited Inc. in that case, Hackett Beecher and Hart, were successful in procuring a $5.43 Million verdict



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Reprinted courtesy of Douglas Reiser of Reiser Legal LLC. Mr. Reiser can be contacted at info@reiserlegal.com

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Can a Contractor be Liable to Second Buyers of Homes for Construction Defects?

November 05, 2014 — Craig Martin - Construction Contractor Advisor
Whether a contractor will be liable to a second purchaser, even though the contractor never contracted with the second purchaser, varies state to state. The Pennsylvania Supreme Court, in Conway v. The Cutler Group, is the latest court to rule that a subsequent purchaser lacks privity and cannot pursue an action against the builder. In that case, the Conways purchased a home from the original owner. After living in the home for about two years, the Conways discovered water leaking around the windows. The Conways sued the builder, alleging breach of the implied warranty of habitability. The builder defended the claim, asserting that it had not contracted with the Conways and thus had not provided any warranties to the Conways. The trial court agreed and dismissed the claim. The first level of appellate court reversed the trial court, holding that the warranty of habitability was intended to level the playing field between the builder and purchaser of a home and it should be extended to subsequent purchasers. The Pennsylvania Supreme Court disagreed and refused to extend any warranties to subsequent purchasers. 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

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