Department of Transportation Revises Its Rules Affecting Environmental Review of Transportation Projects
December 04, 2018 —
Anthony B. Cavender - Gravel2Gavel Construction & Real Estate Law BlogOn October 29, the U.S. Department of Transportation (DOT) published a final rule in the Federal Register which amends and revises the environmental National Environmental Policy Act (NEPA) procedures rules employed by the Federal Highway Administration (FHWA), the Federal Railroad Administration (FRA), and the Federal Transit Administration (FTA). There is a renewed interest in transportation infrastructure projects, and recent legislation is intended to accelerate required environmental reviews.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Construction Mezzanine Financing
March 29, 2017 —
Tim Davis & Steven Coury - White and Williams LLPConstruction mezzanine lending is on the rise and more development deals are getting done with a capital stack that includes mezzanine debt in addition to the traditional components of sponsor equity and senior mortgage debt. Below are important issues and concepts to bear in mind when structuring the financing of a construction project that includes a mezzanine debt component.
Funding Sequence
Funding Sequence
When will the proceeds of the mezzanine loan be advanced? In some instances, the mezzanine loan proceeds will be advanced only after all of the borrower’s equity has been contributed to the construction of the project. In other instances, the borrower’s equity and the mezzanine loan proceeds go in either pari passu or simultaneously at another ratio. If the equity is not entirely contributed in advance, the mezzanine lender may require that the uncontributed equity be held by the mezzanine lender or held in a pledged account. The mezzanine lender may also further mitigate the risk of non-funding of the equity by requiring an equity funding guaranty (as discussed below).
Additionally, when will the mezzanine loan proceeds be advanced in relation to the senior mortgage loan proceeds? Will the entire mezzanine loan be advanced prior to any senior mortgage loan advance or will they be advanced pari passu? Depending on the business deal, the mezzanine loan agreement will need to reflect how and when the equity, the mezzanine debt, and the mortgage debt will be advanced.
Reprinted courtesy of
Tim Davis, White and Williams LLP and
Steven Coury, White and Williams LLP
Mr. Davis may be contacted at davist@whiteandwilliams.com
Mr. Coury may be contacted at courys@whiteandwilliams.com
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Traub Lieberman Attorneys Recognized in 2019 Edition of Who’s Who Legal
June 10, 2019 —
Traub LiebermanTraub Lieberman attorneys
Richard K. Traub and
Richard J. Bortnick have been recognized in Who’s Who Legal Insurance & Reinsurance: Lawyers.
Published by London-based Law Business Research Limited, Who’s Who Legal recognizes the premier legal practitioners in multiple areas of business law. Start in 1996, Who’s Who Legal has recognized over 24,000 private practice lawyers and 2,500 consulting experts from over 150 national jurisdictions across the globe.
Traub is a founder and co-managing partner of Traub Lieberman who works in a wide array of fields, including construction, pharmaceutical, product manufacturing, technology, insurance and reinsurance. Bortnick is a Partner in the firm’s New Jersey office who counsels clients on cyber and technology risks, exposures and best practices, cyber breach response management and interaction with regulators. He also handles matters involving directors’ and officers’ liability, professional liability, insurance coverage, and commercial litigation matters.
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Ambiguity Kills in Construction Contracting
May 27, 2019 —
Christopher G. Hill - Construction Law MusingsWell, I’m back and hope to have a more consistent publishing schedule moving forward. I appreciate the continued readership through what has been a busy time for my solo construction practice over the last couple of months. Now, back to our program. . .
Here at Construction Law Musings, I have often beaten the drum of a solid contract that leaves as little as possible to chance or the dreaded “grey areas” where we construction lawyers like to make money. An example of the issues that can arise from ambiguity can be found in a case from 2017 in the Western District of Virginia, W.C. English, Inc. v. Rummel, Klepper & Kahl, LLP et al
In this case, English, a general contractor, entered into a contract for Quality Assurance (QA) functions with RK&K, the defendant, on a contract English entered into with the Virginia Department of Transportation (VDOT). Needless to say, because this would not be a post at Musings otherwise, there were issues with the QA performed by RK&K leading to additional costs for English to correct certain work that did not comply with the contract documents between VDOT and English. English sued for breach of contract based upon a term sheet, signed by the parties, from RK&K that required RK&K to indemnify English for claims by VDOT that related to RK&K’s work (the English Term Sheet). RK&K moved to dismiss the complaint based upon a different term sheet, also signed by the parties, which stated that RK&K could not be held responsible for English’s failure to perform pursuant to the contract documents (the RK&K Term Sheet).
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
South Carolina Supreme Court Finds that Consequential Damage Arise From "Occurrence"
October 10, 2013 —
Tred Eyerly — Insurance Law HawaiiThe South Carolina Supreme Court held that continuing damage that was part of a continuum of property damage constituted an "occurrence." Auto-Owners Ins. Co. v. Rhodes, 2013 S.C. LEXIS 248 (Sept. 25, 2013).
Rhodes hired Eadon to design, fabricate, and erect three outdoor advertising signs on Rhodes' property bordering an interstate highway. After the signs were erected, one fell across the highway, blocking both lanes of southbound traffic. The state Department of Transportation ordered Rhodes to remove the remaining two signs and revoked Rhodes' permit to maintain signs on the property.
Rhodes sued Eaton. Eaton's insurer, Auto-Owners, filed a declaratory judgment action to determine whether there was coverage under the CGL policy. The trial court found the sign falling on the interstate constituted an "occurrence" that resulted in damages beyond the defective work to property other than the defective work itself.
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Tred EyerlyTred Eyerly can be contacted at
te@hawaiilawyer.com
Wood Wizardry in Oregon: Innovation Raises the Roof for PDX Terminal
April 15, 2024 —
Aileen Cho - Engineering News-RecordDrones, self-propelled modular transporters and a curtain wall that really does hang off the roof like a curtain are all notable technologies that made installing an 18-million-lb timber roof possible at Portland International Airport. Of equal weight is the emphasis on full-scale sourcing of the timber and representing the Pacific Northwest’s residents, history and geography.
Reprinted courtesy of
Aileen Cho, Engineering News-Record
Ms. Cho may be contacted at choa@enr.com
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Colorado’s New Construction Defect Law Takes Effect in September: What You Need to Know
November 21, 2017 —
Jesse Witt - The Witt Law FirmOriginally published by CDJ on September 7, 2017
Colorado’s new construction defect law officially takes effect this month. Although HB 17-1279 was passed in May, the statutory text provides that it only applies “with respect to events and circumstances occurring on or after September 1, 2017.” With that date now upon us, practitioners should be mindful of the law’s new requirements.
The law applies to any lawsuit wherein a homeowner association files a construction defect action on behalf of two or more of its members. “Construction defect action” is defined broadly to include any claims against construction professionals relating to deficiencies in design or construction of real property. Before an association may commence such an action, its board must follow several steps.
First, the board must deliver notice of the potential construction defect action to all homeowners and the affected construction professionals at their last known addresses. This requirement does not apply to construction professionals identified after the notice has been mailed, or to construction professionals joined in a previously-approved lawsuit. The notice must include a description of the alleged construction defects with reasonable specificity, the relief sought, a good-faith estimate of the benefits and risks involved, and a list of mandatory disclosures concerning assessments, attorney fees, and the marketability of units affected by construction defects. The notice must also call a meeting of all homeowners. The notice should be sent to the construction professionals at least five days before the homeowners.
Reprinted courtesy of
Jesse Howard Witt, Acerbic Witt
Mr. Witt may be contacted at www.witt.law
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To Catch a Thief
March 06, 2023 —
Christopher Durso - Construction ExecutiveTony Rader calls it “peeling back the onion”—the slow, methodical process of uncovering the full extent of an embezzlement scam that eventually totaled more than $1 million. What National Roofing Partners (NRP) first discovered was bad enough. The Coppell, Texas–headquartered company, which oversees a nationwide network of nearly 250 commercial roofing contractors, learned in 2018 that a South Texas firm called Statewide Texas Roofing was billing clients for work on behalf of NRP and pocketing all the money. It turned out to be a scheme masterminded by NRP’s then-president, who created Statewide, staffed the company with his kids and used phony work orders to steal hundreds of thousands of dollars in client fees from NRP. He’d been president for six years and with the company since it was created in 2007. It was a huge betrayal—and still just the tip of the iceberg.
“Initially, we thought it was only half a million [dollars] or so,” says Tony Rader, NRP’s chief operating officer. “But I’ll never forget, [Chief Executive Officer] Steve [Little] and I were talking over a bourbon one night, and that’s when I told him, ‘I’ve seen this once before, and this is like an onion. You’ve only peeled off the outer layers. We’re going to be finding stuff for a year, and it’s just going to get bigger and bigger and bigger.’ He said, ‘You think?’ And I said, ‘Oh, I’m pretty sure.’” Rader was all too correct. Working with a third-party forensic accountant, NRP found that not only were its then-chief financial officer and several other employees involved in the scheme, but the president had also abused his corporate credit card, racking up personal charges going back to 2013—on luxury vacations, expensive dinners, clothes, jewelry, even his daughter’s destination wedding in Jamaica. The final tally on his scams: $1.4 million.
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Christopher Durso, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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