ANAHEIM CALIFORNIA BUILDING CONSULTANT
DIRECTORY AND CAPABILITIES

Damage Control: Major Rebuilds After Major Weather Events

October 21, 2024 — David McMillin - Construction Executive
More than two feet of rain drenching Fort Lauderdale in a day, baseball-sized hail chunks falling on Minneapolis and the deadliest wildfire in more than a century destroying more than 2,100 acres of Maui—2023 was a stark reminder that Mother Nature is a force to be reckoned with. In total, $28 billion dollars’ worth of extreme weather and climate-related disasters ripped across the U.S. last year—a new record, according to the National Oceanic and Atmospheric Administration. And there’s no relief in sight: 2024 is already the second-busiest tornado season on the books, and wildfires were burning in Oregon, California, Montana and Texas as this issue went to print. Part of dealing with disasters is preparing for their impact to infrastructure, and Roland Orgeron Jr.—who co-founded New Orleans-based Legacy Industries with business partner Blake Couch in 2016—has been helping clients do just that. “We do a lot of consulting to identify vulnerabilities, and we offer action plans for companies based on potential storm scenarios,” Orgeron Jr. says. Some of those clients include large oil and gas companies with operations along the Mississippi River that cannot afford to be shut down for any extended period. “Before Hurricane Ida hit, we pre-positioned equipment inside some facilities, and we had guys responding the day after the storm to clear the area and assess the damage,” Orgeron Jr. says. During the immediate response to Hurricane Ida in 2021, the company’s work involved more than keeping the business locations up and running; they needed to help a business’ employees find a place to live. “We have a home stabilization contract with one oil and gas company designed to make sure their employees can get back to work as comfortabl

A Funny Thing Happened to My Ground Lease in Bankruptcy Court

November 25, 2024 — Christopher F. Graham & Morgan A. Goldstein - White and Williams LLP
EXECUTIVE SUMMARY Ground leases are an important – if somewhat unusual – part of the real estate finance industry. Because they typically cover large expensive properties like Rockefeller Center and The Empire State Building, to name two, and last a long time (99 years and up to start) the likelihood of something unexpected or unintended happening is high. This likelihood increases dramatically if, as highlighted below, one or both of the lease parties’ files for bankruptcy. Accordingly, real estate professionals should take note and take care when entering into any transaction involving a ground lease. Reprinted courtesy of Christopher F. Graham, White and Williams LLP and Morgan A. Goldstein, White and Williams LLP Mr. Graham may be contacted at grahamc@whiteandwilliams.com Ms. Goldstein may be contacted at goldsteinm@whiteandwilliams.com Read the full story...

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Florida Legislative Change Extends Completed Operations Tail for Condominium Projects

December 10, 2024 — Holly A. Rice - Saxe Doernberger & Vita, P.C.
The Florida Legislature recently passed House Bill 1021 which amended Florida Statute § 718.124. The July 1, 2024 amendment changes Florida’s statute of repose (“SOR”) trigger date for condominium projects. Now, the SOR trigger for existing condominium projects will be governed by Florida Statute §718.124, not Florida Statute § 95.11. Most critically, Florida Statute § 718.124 changes the trigger events for when the “clock” starts running and impacts how long the SOR runs. Notably, Florida Statute § 718.124 already governed the trigger event for the statute of limitations (“SOR”) for condominium projects. One important overarching takeaway for contractors to carefully assess is that the change in the “trigger” event may result in the SOR concluding at a later date than originally planned – affecting time on the risk and, critically, the availability of insurance. The standard approach of using a static 10-year completed operations tail on a condominium construction insurance program may now be insufficient in certain circumstances. Read the full story...
Reprinted courtesy of Holly A. Rice, Saxe Doernberger & Vita, P.C.
Ms. Rice may be contacted at HRice@sdvlaw.com

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Real Case, Real Lessons: Understanding Builders’ Risk Insurance Limits

August 12, 2024 — David McLain - Higgins, Hopkins, McLain & Roswell, LLC
In the recent case of 5333 Mattress King LLC v. Hanover Insurance Company, the United States District Court for the District of Colorado provided significant insights into the limits of builders’ risk insurance policies. Mattress King LLC, a warehouse owner, faced a substantial loss when a subcontractor drove a crane over and damaged the warehouse’s concrete floor slab during construction. Despite having a builders’ risk insurance policy with Hanover Insurance Company, coverage was denied, leading to litigation. Applicable Policy Provisions The policy in question was a Commercial Marine/Commercial Lines Builders’ Risk insurance policy. Builders’ risk insurance is designed to cover direct physical loss to covered property during construction unless the loss is excluded or limited by the policy. Key exclusions of the policy at issue included losses caused by faulty, inadequate, or defective:

• Planning, zoning, surveying, or development
• Design, specifications, workmanship, repair, construction, renovation, remodeling, grading, or compaction
• Materials used in construction or renovation
• Maintenance of the covered property

Read the full story...
Reprinted courtesy of David McLain, Higgins, Hopkins, McLain & Roswell, LLC
Mr. McLain may be contacted at mclain@hhmrlaw.com

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Courthouse Reporter Series: Nebraska Court of Appeals Vacates Arbitration Award for Misconduct

November 18, 2024 — Brendan J. Witry - The Dispute Resolver
Vacating an arbitration award is often seen as an uphill battle. Indeed, the U.S. Supreme Court has stated that “courts may only vacate an arbitrator’s decision ‘only in very unusual circum

Real Case, Real Lessons: Understanding Builders’ Risk Insurance Limits

August 12, 2024 — David McLain - Higgins, Hopkins, McLain & Roswell, LLC
In the recent case of 5333 Mattress King LLC v. Hanover Insurance Company, the United States District Court for the District of Colorado provided significant insights into the limits of builders’ risk insurance policies. Mattress King LLC, a warehouse owner, faced a substantial loss when a subcontractor drove a crane over and damaged the warehouse’s concrete floor slab during construction. Despite having a builders’ risk insurance policy with Hanover Insurance Company, coverage was denied, leading to litigation. Applicable Policy Provisions The policy in question was a Commercial Marine/Commercial Lines Builders’ Risk insurance policy. Builders’ risk insurance is designed to cover direct physical loss to covered property during construction unless the loss is excluded or limited by the policy. Key exclusions of the policy at issue included losses caused by faulty, inadequate, or defective:

• Planning, zoning, surveying, or development
• Design, specifications, workmanship, repair, construction, renovation, remodeling, grading, or compaction
• Materials used in construction or renovation
• Maintenance of the covered property

Business Risk Exclusion Dooms Coverage for Construction Defect ClaimJanuary 21, 2025 — Tred R. Eyerly - Insurance Law Hawaii
The First Circuit, following Massachusetts law, found that coverage for allegations against the insured contractor for faulty workmanship were barred by the policy's (j) (6) Exclusion. Admiral Ins. Co. v. Tocci Bldg. Corp., 2024 U.S. App. LEXIS 28439 (1st Cir. Nov. 8, 2024). Tocci Building Corporation was the construction manager for an apartment project owned by Toll JM EB Residential Urban Renewal LLC (Toll). There were several work quality issues and delays on the project and Toll eventually terminated Tocci for alleged mismanagement of the project. Toll then filed a lawsuit against Tocci. The claims against Tocci included (1) damage to sheetrock resulting from faulty roof work; (2) mold formation resulting from inadequate sheathing and water getting into the building; and (3) damage to a concrete slab, wood framing, and underground pipes resulting from soil and settlement due to improperly backfill and soil compaction. Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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Real Estate & Construction News Roundup (10/1/24) – Hybrid Work Technologies, AI in Construction and the Market for Office Buildings

November 05, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, commercial mortgage bond market in trouble, commercial real estate investments, pressure on mortgage REITs, and more!

• Short-term issues facing U.S. commercial real estate have made it an investment opportunity and values have bottomed out. (CNBC)
• As organizations report plans to shake up their real estate portfolios, the flight to quality spurs interest in space planning, amenities and hybrid work technologies. (Joe Burns, Facilities Dive)
• The conversation about AI’s potential benefits and risks has been a common refrain in construction recently. (Matthew Thibault, Construction Dive)

Read the full story...
Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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Flushing Away Liability: What the Aqua Engineering Case Means for Contractors and Subcontractors

October 21, 2024 — Heather Zipperer - Colorado Construction Litigation Blog
The recent Town of Mancos v. Aqua Engineering case is an insightful example of how well written contracts and timely legal action can make all the difference in resolving disputes between municipalities, general contractors, and subcontractors. The ruling favored Aqua Engineering; a subcontractor that played a role in a wastewater treatment facility project gone wrong. The court’s decision highlighted key legal principles, including the economic loss rule and the importance of well-structured contracts in construction disputes. Whether you are a subcontractor looking to avoid undue liability or a general contractor seeking to ensure subcontractors shoulder their fair portion of responsibility, this case offers valuable lessons for all parties involved in construction projects. The Background: A Wastewater Project with Issues In 2008, the Town of Mancos, Colorado, hired Souder, Miller & Associates (“SMA”) to design a new wastewater treatment facility. SMA subcontracted Aqua Engineering to help implement a specific wastewater treatment system known as the Multi-Stage Activated Biological Process (“MSABP”). However, after construction, the facility never worked as expected. For years, the Town faced ongoing issues, and despite Aqua’s involvement in attempts to fix the problems, the facility remained dysfunctional. Read the full story...
Reprinted courtesy of Higgins, Hopkins, McLain & Roswell, LLC

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