Real Estate & Construction News Roundup (08/08/23) – Buy and Sell With AI, Urban Real Estate Demand and Increasing Energy Costs
September 18, 2023 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, we look at AI’s ability to buy and sell real estate, good news from the Labor Department for federally contracted construction workers, the continued promise of proptech, and more!
- With economic hardships for urban commercial real estate, the suburbs may be where the next opportunities lie. (Larry Goodman, Forbes)
- Being able to better meet tenant needs and alleviating the redundant, time-consuming tasks continue to drive interest in, and use of, proptech in the real estate sector. (Kerri Davis, Forbes)
- Imagine using AI to determine which real estate properties to buy and sell. A former real-estate analyst has built a tool for this exact task. (Kelsey Neubauer, Business Insider)
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Pillsbury's Construction & Real Estate Law Team
Developer’s Failure to Plead Amount of Damages in Cross-Complaint Fatal to Direct Action Against Subcontractor’s Insurers Based on Default Judgment
January 21, 2019 —
Christopher Kendrick & Valerie A. Moore - Haight Brown & Bonesteel LLPIn Yu v. Liberty Surplus Ins. Corp. (No. G054522, filed 12/11/18), a California appeals court held that a developer’s failure to allege the amounts of damages sought in its cross-complaint rendered default judgments against a subcontractor void and, therefore, unenforceable against the subcontractor’s insurers in a direct action under Insurance Code section 11580(b)(2).
Yu, the owner, hired ATMI to develop a hotel. ATMI subcontracted with Fitch to perform stucco and paint work. Yu sued ATMI for construction defects and the developer cross-complained against its subcontractors, including Fitch, for breach of contract; warranty; indemnity, etc. Yu’s operative complaint prayed for damages “in an amount not less than $10,000,000, according to proof.” ATMI’s cross-complaint stated that it incorporated the allegations of Yu’s complaint “for identification and informational purposes only,” but “does not admit the truth of any allegations contained therein.” The cross-complaint also prayed for damages with respect to the various causes of action “in an amount according to proof.”
Reprinted courtesy of
Christopher Kendrick, Haight Brown & Bonesteel LLP and
Valerie A. Moore, Haight Brown & Bonesteel LLP
Mr. Kendrick may be contacted at ckendrick@hbblaw.com
Ms. Moore may be contacted at vmoore@hbblaw.com
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How to Lose Your Contractor’s License in 90 Days (or Less): California and Louisiana
November 15, 2021 —
Rafael Boza - Gravel2Gavel Construction & Real Estate Law BlogHaving your Contractor’s License up and running to perform work when needed, where needed, is an indispensable compliance matter that contractors face every year. However, this indispensable process may also be cumbersome and time consuming. Knowing the regulations applicable to your business in each state and what to do, how to do it, and when to do it, is of critical importance to maintain compliance and your ability to work in different states.
In this post we will do a high-level review of reporting obligations in California and Louisiana.
California’s
Contractors’ State License Law, Bus. & Prof. Code §§ 7000 et seq., requires licensees to report various information to the Contractors State License Board (CSLB) “within 90 days” of the effective date or event. Louisiana State
Licensing Laws and Regulations, R.S. §§ 37:24 et seq. and La. Admin. Code tit. 46, XXIX, §§ 101 et seq. also require similar reporting to the Louisiana State Licensing Board for Contractors (LSLBC), sometimes “within 15 days” of the event.
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Rafael Boza, PillsburyMr. Boza may be contacted at
rafael.boza@pillsburylaw.com
Public Adjuster Cannot Serve As Disinterested Appraiser
April 18, 2023 —
Tred R. Eyerly - Insurance Law HawaiiThe Florida Supreme Court found that the president of a public adjusting firm, which was to be compensated on a contingency basis for its adjusting services, could not subsequently serve as a "disinterested" appraiser pursuant to the policy language. Parrish v. State Farm Fla. Ins. Co., 2023 Fl. LEXIS 261 (Feb. 9, 2023).
Jon Parrish was insured under a policy issued by State Farm Florida Insurance Company. When his home was damaged by Hurricane Irma in September 2017, he filed a claim and hired Keys Claims Consultants, Inc. (KCC) to provide public adjusting services. Mr. Parrish agreed to pay KCC a contingency fee equal to ten percent of whatever amount he eventually recovered from State Farm.
There was disagreement between State Farm's estimate of the loss and that of KCC. Mr. Parrish demanded that the appraisal process set forth in the policy be implemented. Mr. Parrish informed State Farm that George Keys, the president of KCC, would serve as Mr. Parrish's appraiser.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Construction Group Seeks Defense Coverage for Hard Rock Stadium Claims
December 09, 2019 —
Sergio F. Oehninger & Daniel Hentschel - Hunton Insurance Recovery BlogIn an insurance coverage action pending in the S.D.N.Y., Hunt Construction Group (Hunt) contends that Berkley Assurance Company wrongfully denied defense coverage for claims arising out of the renovation of Hard Rock Stadium (home to the Miami Dolphins and Miami Hurricanes football teams).
The stadium owner, South Florida Stadium LLC (SFS), hired Hunt to serve as the construction manager for the renovation project. Hunt subcontracted with Alberici Constructors Inc. (Alberici) to design and fabricate roof structures for the stadium.
Hunt and SFS sued Alberici over its work on the project. In March 2017, Alberici asserted counterclaims against Hunt and SFS. In May 2018, SFS sought defense and indemnification from Hunt with respect to Alberici’s coverage claims.
Hunt is insured under claims made and reported professional liability insurance policies issued by Berkley with policy periods from June 15, 2016 to June 15, 2017 (with an automatic extended reporting period through August 14, 2017) and from July 15, 2017 to June 15, 2018. Hunt notified Berkley of Alberici’s counterclaim on July 20, 2017 (within the extended reporting period of the 2016-2017 policy) and of SFS’s indemnity claim on June 5, 2018 (within the 2017-2018 policy period).
Reprinted courtesy of
Sergio F. Oehninger, Hunton Andrews Kurth and
Daniel Hentschel, Hunton Andrews Kurth
Mr. Oehninger may be contacted at soehninger@HuntonAK.com
Mr. Hentschel may be contacted at dhentschel@HuntonAK.com
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Virtual Jury Trials of Construction Disputes: The Necessary Union of Both Sides of the Brain
May 17, 2021 —
John Dannecker - Construction ExecutiveBart Smith is the Senior Project Manager for Simply Best, a general contracting firm. He has been assigned to serve as the liaison with outside counsel in a lawsuit against Holly’s Harleys, a project owner who contracted with Best for the construction of a motorcycle showroom. Best filed suit in federal court for additional project costs it incurred, which it contends were caused by the specification of incompatible materials by Holly’s design firm.
The coronavirus pandemic is still raging as the trial date approaches. Courthouse facilities are closed so civil trials are conducted using remote technology, if they occur at all. Bart negotiated the prime contract with Holly’s, and he regrettably allowed Best’s binding arbitration and jury trial waiver clauses in the prime contract to be deleted. Bart worries about how the intricacies of Best’s case can be adequately explained to a jury in a remote trial. His concern approaches panic when Best’s trial counsel explains how the trial will be conducted with none of the parties—their attorneys, the judge, the witnesses or the jury—present in the same location.
Reprinted courtesy of
John Dannecker, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Wendel Rosen’s Construction Practice Group Receives “Tier 1” Ranking by U.S. News and World Reports
November 10, 2016 —
Garret Murai – California Construction Law BlogWendel Rosen’s Construction Practice Group has received a “Tier 1” ranking by U.S. News and World Reports in its 2017 Best Law Firms rankings and the firm as a whole has been named one of the “Best Law Firms.” This is the fourth consecutive year that Wendel Rosen’s Construction Practice Group has achieved a “Tier 1” ranking.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Gilbane Project Exec Completes His Mission Against the Odds
January 19, 2017 —
Debra K. Rubin - Engineering News-RecordAfghanistan’s new Ministry of Defense headquarters in Kabul was supposed to symbolize the nation’s future—and U.S. support in that effort—as a self-sustaining, sophisticated structure akin to the Pentagon. But U.S. funding shortfalls stretched an anticipated 18-month project, which began in 2009, into years. While experienced in running projects in an underdeveloped country in which terror attacks and unstable regional politics are routine, Gilbane Building Co. Project Executive Michael P. Sousa wanted no part of this one in 2013, when he first toured it. “The structure was in a severe state of disrepair and riddled with poor construction,” he says, terming it “an embarrassment” to the U.S. government.
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Debra K. Rubin, ENRMs. Rubin may be contacted at
rubind@enr.com