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Real Estate & Construction News Roundup (8/6/24) – Construction Tech Deals Surge, Senators Reintroduce Housing Bill, and Nonresidential Spending Drops

September 16, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, cybersecurity attacks target contractors, U.S. banks report weaker profits, additional commercial real estate is distressed, and more!

Spending dropped in almost half of nonresidential subcategories in June, with the decrease stemming from higher interest rates, tighter credit conditions and a softening economy. (Sebastian Obando, Construction Dive)
Despite the decline in investment dollars for construction technology, the number of deals surged by 18% year-over-year, indicating sustained interest and activity in the sector. (Sebastian Obando, Construction Dive)
As cybersecurity attacks on U.S.-based businesses ramp up, general contractors are not immune. (Jen A. Miller, Construction Dive)

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

Do You Have the Receipt? Pennsylvania Court Finds Insufficient Evidence That Defendant Sold the Product

December 23, 2024 — Gus Sara - The Subrogation Strategist
In State Farm Fire & Cas. Co. v. Coway USA, Inc., No. 22-cv-3516, 2024 U.S. Dist. LEXIS 192849, the United States District Court for the Eastern District of Pennsylvania (District Court) considered whether the plaintiff produced sufficient evidence to establish that the defendant sold and/or marketed a product and, thus, could be held liable for an alleged defect in the product. The plaintiff, a subrogating insurance carrier, brought strict product liability and breach of warranty claims against the defendant—the installer of a bidet in its insured’s home—claiming that the defendant also marketed and sold the bidet. The sole evidence to support a finding that the defendant sold the bidet was the homeowner’s testimony that she bought the product from the installer. The court found that the insured’s testimony, without any documentation or other corroborating evidence, was insufficient to establish that the defendant sold the product. Since proof of a sale is a required element for strict product liability and breach of warranty claims, the District Court granted the defendant’s motion for summary judgment, dismissing the case. This case involved a water loss to the Pennsylvania residence of Mikyung Kim and her husband Adrian Kim (collectively, the Kims) that was discovered in April 2021. An investigation revealed that the water loss originated from the failure of a bidet for a toilet in the second-floor bathroom. The Kims alleged that defendant, Coway USA, Inc. (Coway), sold the bidet and installed it around 2010. An employee of the plaintiff’s liability expert, a materials engineer, opined that a T-connector—a plastic valve that regulates the flow of water to and through the bidet—failed due to overtightening of the connector during the manufacturing process. Read the court decision
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Reprinted courtesy of Gus Sara, White and Williams
Mr. Sara may be contacted at sarag@whiteandwilliams.com

Thank You for Seven Years of Election to Super Lawyers

May 01, 2023 — Christopher G. Hill - Construction Law Musings
It is with humility and a sense of accomplishment that I announce that I have been selected for the seventh straight year to the Virginia Super Lawyers in the Construction Litigation category for 2023. Add this to my recent election to the Virginia Legal Elite in Construction and I’ve had a pretty good year. As always, I am thrilled to be included on these peer-elected lists. So without further ado, thank you to my peers and those on the panel at Virginia Super Lawyers for the great honor. I feel quite proud to be part of the 5% of Virginia attorneys that made this list for 2023. The full lists of Virginia Super Lawyers will appear in the May edition of Richmond Magazine. Please check it out. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

How a Maryland County Created the Gold Standard for Building Emissions Reduction

May 24, 2021 — Pam McFarland - Engineering News-Record
Montgomery County, Md. is generating significant buzz among U.S. municipalities aiming to reduce greenhouse gas emissions from buildings. Reprinted courtesy of Pam McFarland, Engineering News-Record ENR may be contacted at ENR.com@bnpmedia.com Read the full story... Read the court decision
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For US Cities in Infrastructure Need, Grant Writers Wanted

July 22, 2024 — Patrick Sisson - Bloomberg
It’s a big windfall of federal investment. Together, bills like the Inflation Reduction Act, the Bipartisan Infrastructure Law, and the CHIPS Act present a substantial shift in how the US government funds local economic development, clean energy and environmental justice efforts, potentially giving cities and towns a huge boost. That is, if the nation’s 90,000-plus municipalities and tribal governments can finish filling out all the paperwork. The trillion-dollar trifecta of Biden administration legislation from 2022 underscores just how important grant writing has become. In many ways, the ability of cities to enact new policies and tap federal resources rests on the desks of the staffers or contract workers who research, write and submit applications for funding. Uncle Sam will cheerfully write a check for cities to install solar panels via Clean Electricity Investment and Production Tax Credits, for example, or provide tax credits for buying electric vehicles. But first, you have to ask. Read the court decision
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Reprinted courtesy of Patrick Sisson, Bloomberg

UK Court Rules Against Bechtel in High-Speed Rail Contract Dispute

March 29, 2021 — Peter Reina - Engineering News-Record
The U.K. subsidiary of Bechtel Inc. has lost its legal challenge against the owner of the U.K. London-Birmingham high-speed railroad project, HS2, over its failed bid for a roughly $140-million Construction Partner (CP) contract in early 2019. Reprinted courtesy of Peter Reina, Engineering News-Record Mr. Reina may be contacted at reina@btinternet.com Read the full story... Read the court decision
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Can a Lease Force a Tenant's Insurer to Defend the Landlord?

October 10, 2022 — Kerianne Kane Luckett - Saxe Doernberger & Vita, P.C.
Can an indemnification clause in a commercial lease obligate a tenant’s insurer to defend a landlord? Recently, the United States District Court for the Northern District of New York said, “Yes!” On August 9, 2022, the district court issued a decision in ConMed Corp. vs. Federal Insurance Company, holding that the indemnification clause in a policyholder’s lease triggered the insurer’s duty to defend the landlord in an action arising out of the tenant’s negligence. Facts of the Case ConMed is a medical technology company that leases warehouse space in Georgia from Breit Industrial Canyon (“the Landlord”) to sterilize its medical equipment. ConMed’s employees filed suit against ConMed and a contractor that performed the sterilization, alleging injuries caused by exposure to excessive amounts of chemicals used in the sterilization process (the “ConMed Action”). Thereafter, ConMed’s employees filed a separate lawsuit against the Landlord, alleging that the Landlord permitted storage of unsafe levels of the chemicals at the warehouse without adequate ventilation (the “Landlord Action”). The lease agreement required ConMed to indemnify the Landlord “except in the event of, and to the extent of, Landlord’s negligence or willful misconduct.” Read the court decision
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Reprinted courtesy of Kerianne Kane Luckett, Saxe Doernberger & Vita, P.C.
Ms. Luckett may be contacted at KKane@sdvlaw.com

Wine without Cheese? (Why a construction contract needs an order of precedence clause)(LawÂ Note)

August 11, 2011 — Melissa Brumback, Construction Law in North Carolina

For today’s law note, I’m addressing a comment that came to me last week from Dave O’Hern ofÂ Miller O’Hern Construction.Â Dave writes:

I am a general contractor doing a fuel tank replacement project for our county. In the specifications there is a spec for a UL 142 tank, on the plans the spec references UL 2085 ? a much more expensive tank. My subcontractor bid the UL 142 tank.Â The specifications state that the specs and plans are on the same level of precedence.

The county wants me to furnish the more expensive tank without compensation citing the clause that states the plans and specs are complementary and what is called for by one is binding as if called by all and the most stringent requirement will apply.

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Reprinted courtesy of Melissa Brumback of Ragsdale Liggett PLLC. Ms. Brumback can be contacted at mbrumback@rl-law.com.

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