Real Estate & Construction News Roundup (3/20/24) – Construction Backlog Falls, National Association of Realtors Settle Litigation, and Commercial Real Estate Market’s Effect on City Cuts
April 15, 2024 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, bad loans outweigh loss reserves at top six U.S. banks, the FCC announces a proposed rule aimed at “bulk billing,” office-to-multifamily conversion projects grow in major metro cities, and more!
- The National Association of Realtors has agreed to settle litigation that accused them of artificially inflating real estate commissions – a major decision that could reshape the housing market for buyers, sellers and agents. (Rachel Siegel, The Washington Post)
- An NYU professor considers the positives and negatives of cities cutting services or raising other kinds of taxes to offset the continued faltering of the commercial real estate market. (Alan Rappeport, The New York Times)
- Construction backlog fell in February for every size of contractor except for those with under $30 million in annual revenue, while, over the past year, the largest contractors – those with greater than $50 million in revenue – have experienced the greatest decline in backlog. (Sebastian Obando, Construction Dive).
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Pillsbury's Construction & Real Estate Law Team
Wyoming Supreme Court Picks a Side After Reviewing the Sutton Rule
January 16, 2024 —
Ryan Bennett - The Subrogation StrategistIn a matter of first impression, the Supreme Court of Wyoming (Supreme Court), in West American Insurance Company v. Black Dog Consulting Inc., No. S-23-0052, 2023 WY 109, 2023 Wyo. LEXIS 111, examined whether a landlord’s insurer could pursue a subrogation claim against a tenant who caused a fire loss. The Supreme Court, applying a case-by-case approach, found that the insurer could not subrogate against the tenant.
West American Insurance Company (West) insured Profile Properties (Profile), which owned commercial property in Cheyenne, Wyoming. Black Dog Consulting Inc., d/b/a C.H. Yarber (Yarber) leased commercial space from Profile where it operated a metal fabrication business. The lease agreement between Profile and Yarber required Yarber to pay the full expense of Profile’s blanket insurance policy, which included general commercial liability insurance and fire and extended coverage insurance on the building.
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Ryan Bennett, White and Williams LLPMr. Bennett may be contacted at
bennettr@whiteandwilliams.com
How I Prevailed on a Remote Jury Trial
March 04, 2024 —
Samuel Yu - Kahana FeldAre you crazy? That is what I asked my client when he asked me to conduct a jury trial remotely. At the time, I did not even know if it was feasible. While I figured that most courtrooms had remote capabilities, I was not sure whether anyone was crazy enough to do a jury trial remotely and whether a courtroom would accommodate it. Would I be able to truly connect with the jurors? Would the jurors hold it against me that I am appearing remotely while they have to be there in person? I told my client that this was a terrible idea but that I would at least see if it was an option.
At the Final Status Conference, the Court confirmed that it could accommodate a remote appearance for both the party and the party’s counsel and gave its permission to do so. It was also clear that I would be the only attorney exercising this option, and the judge remarked that this would be a first for him. Appearing remotely while other attorneys appear in person is not something I would normally consider. However, this case presented a unique set of circumstances.
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Samuel Yu, Kahana FeldMs. Yu may be contacted at
syu@kahanafeld.com
Giant Gas Pipeline Owner, Contractor in $900M Payment Battle
January 22, 2024 —
David Godkin, Debra K. RubinA Canadian partnership including energy developer TC Energy that is building the $10.6-billion Coastal GasLink pipeline, and a key project contractor, are disputing more than $900 million in project costs in court and in upcoming arbitration. The 670-kilometer line in British Columbia that announced mechanical completion last year is set to carry liquefied natural gas to the LNG Canada export terminal under construction on the province’s Pacific Coast—the country’s first such facility.
Reprinted courtesy of
David Godkin, Engineering News-Record and
Debra K. Rubin, Engineering News-Record
Ms. Rubin may be contacted at rubind@enr.com
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Gibbs Giden is Pleased to Announce Four New Partners and Two New Associates
January 08, 2024 —
Gibbs Giden Locher Turner Senet & Wittbrodt, LLPWe take great pleasure in announcing that
Richard Marks and
Kyle Marks have joined the firm. They bring a combined 60 years of real property law experience to Gibbs Giden. Well known Title Insurance and seasoned real estate attorneys they have both served as chair of the Title Insurance Subsection of the Los Angeles County Bar Association and are adjunct professors at Southwestern University School of Law. We are excited to welcome these two exceptional partners and their commitment to representing clients with honesty, integrity, and excellence. You can find them in our firm’s Westlake office.
Talented attorneys
Samantha Riggen and
Christopher Trembley have been named partners. Samantha represents clients in all areas of business and commercial matters with an emphasis on construction litigation on both public and private projects. Christopher’s practice also focuses on construction litigation on behalf of a wide spectrum of industry-stakeholder clients, including suppliers, contractors, and owners. Both work in our firm’s Westlake Village office.
We are also pleased to announce we’ve hired two new associates.
Sarah La Mendola and
Madison Wedderspoon. Sarah has developed an expertise in a wide range of real estate, business, and corporate matters. She received her JD from the University of Pavia, one of the top universities in Italy, in 2012 and her LLM from UCLA in 2015. You can find Sarah in our Westlake Village office. Madison recently graduated from the Boyd School of Law cum laude, is based in our Las Vegas office and works in the areas of business law, contracts, healthcare law, construction, real estate, and common interest community transactional and litigation work.
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Gibbs Giden
Compliance Doesn’t Pay: Compliance Evidence Inadmissible in Strict Liability Actions
February 05, 2024 —
Kyle Rice - The Subrogation StrategistIn Sullivan v. Werner Co., No. 18 EAP 2022, 2023 Pa. LEXIS 1715 (Dec. 22, 2023), the Supreme Court of Pennsylvania (Supreme Court) clarified that in light of its decision in Tincher v. Omega Flex, Inc., 628 Pa. 296 (2014), evidence that a product complied with industry standards is inadmissible in an action involving strict product liability.
In Tincher, the Supreme Court overruled prior case law and reaffirmed that Pennsylvania is a Second Restatement Jurisdiction. As stated in Sullivan, discussing Tincher, under the Restatement (Second) of Torts § 402A, a “seller of a product has a duty to provide a product that is free from ‘a defective condition unreasonably dangerous to the consumer or [the consumer’s] property.’ To prove breach of this duty, a ‘plaintiff must prove that a seller (manufacturer or distributor) placed on the market a product in a “defective condition.””
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Kyle Rice, White and WilliamsMr. Rice may be contacted at
ricek@whiteandwilliams.com
Fine Art Losses – “Canvas” the Subrogation Landscape
February 26, 2024 —
William L. Doerler - The Subrogation StrategistIf a fire or flood destroys a high-net-worth client’s fine art collection, an insurer who pays out a claim related to the loss has an incentive to pursue subrogation. This article explores some of the issues an insurer should “canvas” before pursuing subrogation for these types of claims.
Damage to fine art can occur in a number of ways. For instance, fine art may be damaged in a natural disaster – such as a flood or a wildfire. Artwork may also be accidentally damaged because of a transportation-related incident physically damaging the art. In addition, artwork may suffer fire or smoke damage from a fire within a building. Another possibility is that the artwork suffers damage because of renovations either to the insured’s home or a neighboring property. For example, a renovation contractor may damage artwork due to vibrations or leaking water. A construction worker, moreover, may turn with a tool in his hand, or trip and fall, damaging the artwork.
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William L. Doerler, White and Williams LLPMr. Doerler may be contacted at
doerlerw@whiteandwilliams.com
Project Completion Determines Mechanics Lien Recording Deadline
April 08, 2024 —
William L. Porter - Porter Law GroupThe California mechanics lien is one of the most powerful collection remedies available to contractors, subcontractors and suppliers who are unpaid for work performed and materials supplied in relation to a California private works construction project. The mechanics lien allows the claimant to actually sell the property where the work was carried out in order to obtain payment, entirely of course, against the wishes of the property owner. There are a number of important steps to follow and timelines to be met in order to pursue this remedy.
First, Understand Your Preliminary Notice Deadline
Working within deadlines is absolutely crucial to preserving mechanics lien rights under California law. The deadlines differ, depending on whether you are a “direct” contractor, also known as “original” or “prime” contractor (one who contracts directly with the property owner) or a subcontractor or material supplier. The process begins with the serving of a “preliminary notice” no later than 20 days after the party serving the preliminary notice begins supplying labor or materials to the project. Direct contractors are only required to serve the preliminary notice on the construction lender (Civil Code section 8200-8216), whereas subcontractors and material suppliers must serve not only the construction lender, but also the owner and direct contractor (see Civil Code section 8200(e)).
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William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com