Manhattan Gets First Crowdfunded Condos
September 03, 2015 —
David M. Levitt & Oshrat Carmiel – BloombergNew York’s first real estate project financed significantly though crowdfunding is set to open, a step forward for a nascent investing model that has yet to prove itself in commercial property.
AKA United Nations, an extended-stay hotel-condominium on East 46th Street near Second Avenue, will start taking guests Sept. 10. Sales of the suites have already begun. Of the $95 million it cost to buy and fix up the existing hotel, $12 million was raised from online pledges.
It’s “the first ever crowdfunded building in New York coming to completion, from A to Z,” said Rodrigo Nino, chief executive officer of Prodigy Network, which is gut-renovating the building with partners. Until now, “everything has been about promises.”
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David M. Levitt, Bloomberg and
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Haight’s San Diego Office is Growing with the Addition of New Attorneys
June 21, 2024 —
Haight Brown & Bonesteel LLPThe San Diego office has recently added two attorneys to the team.
Amanda McKechnie has joined the Construction Law Practice Group. Amanda has extensive experience representing national developers, owners, general contractors, design professionals and subcontractors in complex construction litigation.
Arash Yahyai has joined the Construction Law and General Liability Practice Groups. Arash focuses on defending actions involving complex construction defect, insurance defense, premises liability, product liability, catastrophic personal injury and other general liability related cases.
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Haight Brown & Bonesteel LLP
Protecting and Perfecting Your Mechanics Lien when the Property Owner Files Bankruptcy
June 19, 2023 —
William L. Porter - Porter Law GroupIntroduction/Overview of the Mechanics Lien Law
The California mechanics lien is a powerful tool for contractors, subcontractors and materials suppliers to secure payment of unpaid construction debts. A contractor, subcontractor or materials supplier is allowed to record a mechanics lien on real property, based on the value added to the property by the claimant during the construction process.
The recorded mechanics lien provides the claimant with legal right to force the sale of the improved real property and thereby obtain the funds necessary to pay the delinquent debt. Under the usual procedure, the first step is the recording of mechanics lien with County Recorder’s office in the County where the property is located. A lawsuit to foreclose on the lien must then be filed in the County Superior Court of that County, within ninty (90) days after the mechanics lien is recorded. The goal of the lawsuit is to obtain a judgment for foreclosure on the mechanics lien by way of a forced sale of the property. The net proceeds of the sale will be used to pay the unpaid construction debt secured by the recorded mechanics lien, assuming that sale proceeds exceed the amount of senior liens and encumbrances.
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William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com
Utah’s Highest Court Holds That Plaintiffs Must Properly Commence an Action to Rely on the Relation-Back Doctrine to Overcome the Statute of Repose
August 20, 2018 —
Shannon M. Warren - The Subrogation StrategistEarlier this summer, in Gables & Villas at River Oaks Homeowners Ass’n v. Castlewood Builders LLC, 2018 UT 28, the Supreme Court of Utah addressed the question of whether the plaintiff’s construction defects claims against the general contractor for a construction project were timely-filed, or barred by the statute of repose. In Utah, the statute of repose requires that an action be “commenced within six years of the date of completion.” The plaintiff alleged that its 2014 amended complaint naming the general contractor as a defendant was timely-commenced because, before the date on which Utah’s statute of repose ran, a defendant filed a motion to amend its third-party complaint to name the general contractor as a defendant, and the defendant subsequently assigned its claims to the plaintiff. The plaintiff argued that the filing of its 2014 amended complaint related back[1] to the date of its original complaint. The Supreme Court disagreed, holding that an action is “commenced” by filing a complaint and that a motion for leave to amend does not count as “commencing” an action.
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Shannon M. Warren, White and Williams LLPMs. Warren may be contacted at
warrens@whiteandwilliams.com
DoD Issues Guidance on Inflation Adjustments for Contractors
August 15, 2022 —
Jennifer Harris & Abby Salinas - ConsensusDocsThe Department of Defense (“DoD”) recently issued a memorandum to contracting officers (“COs”) guiding the use of economic price adjustment (“EPA”) clauses to address inflation-related cost increases. The memorandum, entitled Guidance on Inflation and Economic Price Adjustments, comes as the year-over-year inflation rate rose to 8.6% in May, and contractors with fixed-price contracts seek ways to recover their rising costs. EPA clauses allow the parties to mitigate cost risks that present themselves as a result of circumstances beyond the contractor’s control, e.g., inflation and supply chain price fluctuations. Generally, an EPA clause will dictate that the Government bear the cost risk up to a mutually agreed-upon ceiling. EPA clauses apply to the cost portion of a contract, but do not normally apply to the profit. DFARS PGI 216.203-4.
Memorandum: No CO Authority to Grant Contractual Relief Absent an EPA Clause
The memorandum states that absent an existing EPA clause, COs do not have the authority to provide contractual relief for unanticipated inflation under a firm-fixed-price contract.
Reprinted courtesy of
Jennifer Harris, Peckar & Abramson, P.C. (ConsensusDocs) and
Abby Salinas, Peckar & Abramson, P.C. (ConsensusDocs)
Ms. Harris may be contacted at jharris@pecklaw.com
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School Board Sues Multiple Firms over Site Excavation Problem
February 12, 2013 —
CDJ STAFFA West Virginia school board has filed a lawsuit against four companies over the construction of the Lewisburg Elementary School. The main allegation is that Carpenter Reclamation Inc. excavated the site deeper than was called for, which then incurred greater expenses for the subsequent contractors, and further that the liner installed by Carpenter Reclamation was defective. The suit also names Western Surety, which issued a performance bond for Carpenter Reclamation.
The school board claims that Carpenter’s failure to fix the problem, required $5,800 in evaluation, review, and testing. Further, the plumbing and lead contractors had additional expenses of $10,587 and $212,645 because of the deeper foundation. The school board has also named these firms, Dougherty Company, Inc. and Swope Construction, in the lawsuit. Ron Mallory, the president of Swope Construction said that the school board’s dispute was “with the site contractor, not with us,” noting that they did corrective work under a change order.
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OSHA Updates: New Submission Requirements for Injury and Illness Records
October 02, 2023 —
Ashley Meredith Strittmatter & Chelsea N. Hayes - Construction ExecutiveIn a revival of an OSHA recordkeeping rule originally implemented under the Obama administration in 2016 and "rolled back" by the Trump administration in 2019, OSHA issued a final rule on July 21, 2023, requiring certain establishments in high-hazard industries to submit additional injury and illness data electronically to OSHA. The
Final Rule is found at 29 CFR 1904 and goes into effect on Jan. 1, 2024.
What does this mean? On and after Jan. 1, 2024, OSHA will require employers with 100 or more workers in certain high-hazard industries to provide annual information from their
Forms 300 and 301, in addition to the already-required electronic submission of Form 300A. Form 300 is the Log of Work-Related Injuries and Illnesses, including the specific injuries or illnesses and the employee names, while Form 301 is the corresponding Injury and Illness Incident Report, which includes additional details on each item listed on the 300 Log. Form300A is the corresponding Annual Summary showing the injury and illness totals for the year, including the number of cases, number of lost workdays, the injury and illness types, the average number of employees and the total hours employees worked. This Form 300A Annual Summary must be routinely submitted by employers with more than 250 employees on or before March 2 of each year for the prior year.
Reprinted courtesy of
Ashley Meredith Strittmatter and Chelsea N. Hayes, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Ms. Strittmatter may be contacted at astrittmatter@bakerdonelson.com
Ms. Hayes may be contacted at cnhayes@bakerdonelson.com
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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