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Definitions Matter in Illinois: Tenant Held Liable Only for Damage to Apartment Unit

September 09, 2024 — Gus Sara - The Subrogation Strategist
In Phila. Indem. Ins. Co. v. Gonzalez, No. 1-23-0833, 2024 Ill. App. Unpub. LEXIS 1372, the Appellate Court of Illinois considered whether the terms of a lease agreement limited a tenant’s liability for fire damages, a fire caused by her negligence, to her apartment unit only. The plaintiff insured the subject apartment building, which incurred damage to several units as result of a fire in the tenant’s unit. The lease defined “Premises” as the specific apartment unit occupied by the tenant and held the tenant responsible for damage caused to the Premises. While the court found that the lease permitted the plaintiff to subrogate against the tenant, it held that the lease terms limited the damages to the tenant’s apartment unit only. In Gonzalez, the plaintiff’s insured owned a multi-unit apartment building in Chicago. In September 2019, the building owner entered into a lease agreement with the defendant for apartment Unit 601. The lease stated that Unit 601 was the “Leased Address (Premises).” Another provision stated that building owner “hereby leases to Tenant(s) and Tenant(s) hereby leases from Landlord(s) for use as a private dwelling only, the Premises, together with the fixtures and appliances (if any) in the premises…” The lease also stated that “Tenant shall be liable for any damage done to the premises as a result of Tenant’s or Tenant’s invitees, guests or others authorized to reside in the Premises [sic] direct action, negligence, or failure to inform Landlord of repairs necessary to prevent damage to the Premises.” Read the full story...
Reprinted courtesy of Gus Sara, White and Williams
Mr. Sara may be contacted at sarag@whiteandwilliams.com

COVID-19 Business Interruption Claims Four Years Later: What Have We Learned?

September 23, 2024 — Patrick McKnight - The Dispute Resolver
Four and half years ago the COVID-19 pandemic spread around the globe, bringing with it interesting, but challenging, legal problems for construction attorneys. Construction projects ground to a halt. Ever-changing guidance from authorities ranging from the U.S. Department of Labor to local health authorities resulted in a web of evolving obligations for general contractors and subs alike. One of the most closely watched legal questions was the wave of business interruption claims filed by plaintiffs, many of whom owned businesses impacted by government shutdowns. During the opening months of the pandemic, I noted that hundreds of business interruption claims had been filed by insureds across the country. At that time, the only thing certain was that although the outcome remained unknown, virus exclusions were likely to become more likely in the future. Needless to say, much has happened since early 2020. What does the data say about the outcome of business interruption claims? In sum, plaintiffs have had an uphill battle. A helpful resource for analyzing the outcome of business interruption suits is the Covid Coverage Litigation Tracker (“Tracker”), an insurance law analytics tool offered by Penn Carey Law of the University of Pennsylvania. According to its website, “[t]he Covid Coverage Litigation Tracker is a multi-sourced database and dashboard through which to view the unfolding insurance litigation arising out of the pandemic in federal and state courts. Widely cited in briefs, judicial opinions, and the press, the tracker also serves as a proof of concept for new methods to identify, track, and understand emerging case congregations in real time.” Read the full story...
Reprinted courtesy of Patrick McKnight, Fox Rothschild LLP
Mr. McKnight may be contacted at pmcknight@foxrothschild.com

Real Estate & Construction News Roundup (7/10/24) – Strong Construction Investment in Data Centers, Increase Use of Proptech in Hospitality and Effects of Remote-Work on Housing Market

August 05, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, renters stay in their units longer, GenAI change how commercial real estate operates, and banks continue high exposure due to commercial real estate.

Strong investor interest, particularly in opportunistic and value-add segments, signals a strong market for construction firms specializing in high-yield projects. (Sebastian Obando, Construction Dive)
A growing number of renters are staying in their units for longer periods of time than they did a decade ago with over one-third of U.S. renters have lived in the same apartment for more than five years. (Mary Salmonsen, Multifamily Dive)
Several U.S. regional and mid-sized banks continue to face the squeeze from high exposure to the commercial real estate sector that has been shaken by higher-for-longer interest rates and empty office buildings. (Reuters)

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

Sources of Insurance Recovery for Emerging PFAS Claims

December 17, 2024 — Jasjeet K. Sahani - Saxe Doernberger & Vita, P.C.
This year, the Environmental Protection Agency (“EPA”) issued its first-ever national, legally enforceable drinking water standard to protect communities from exposure to harmful per-and polyfluoroalkyl substances (“PFAS”), also known as “forever chemicals.”[1] In addition, the Food and Drug Administration announced that grease-proofing materials containing PFAS are no longer being sold for use in food packaging in the United States.[2] These are likely the first in a line of many PFAS regulations that will emerge as the harmful effects of PFAS are further understood. With this increasing regulatory focus on PFAS and their harmful effects, companies whose operations might involve these substances should be aware of what they are and potential sources of recovery for claims that arise from their omnipresence. PFAS Background According to the EPA, PFAS are widely used, long-lasting chemicals which break down slowly over time.[3] PFAS can be found in thousands of items, including, but not limited to: pots and pans, cleaning products, fabric and leather coatings, firefighting foam, carpeting, roofing materials, paints, sealants, caulks, and adhesives.[4] Additionally, manufacturing processes, waste storage, and treatment sites commonly release PFAS into the air, soil, and water.[5] Read the full story...
Reprinted courtesy of Jasjeet K. Sahani, Saxe Doernberger & Vita, P.C.
Ms. Sahani may be contacted at JSahani@sdvlaw.com

David Uchida Joins Kahana Feld’s Los Angeles Office as Partner

December 31, 2024 — Linda Carter - Kahana Feld
Kahana Feld is pleased to announce that David M. Uchida recently joined the firm as a partner in the firm’s Los Angeles Office. He is a member of the firm’s General Liability group. A client-focused and seasoned litigator, David has defended product manufacturers and suppliers in complex toxic tort and environmental litigation. David also has extensive experience defending clients in alleged asbestos, benzene, and silica exposure claims. Read the full story...
Reprinted courtesy of Linda Carter, Kahana Feld
Ms. Carter may be contacted at lcarter@kahanafeld.com

Texas Allows Wide Scope for Certificate of Merit

January 07, 2025 — Lian Skaf - The Subrogation Strategist
The purpose of certificate of merit (sometimes referred to as affidavit of merit) statutes is to identify frivolous claims before the court wastes time and resources during litigation. More common in medical malpractice cases, several states have enacted similar requirements for professional negligence claims dealing with construction-related issues. While a subrogation attorney should not be bringing a frivolous case to suit anyway, the requirement adds another step in the process that plaintiffs need to properly navigate. Chapter 150 of the Texas Civil Practice and Remedies Code requires that in an action arising out of professional services by a licensed or registered professional, claimants must file an affidavit from a qualified expert attesting to the theories of recovery, the negligence and the factual basis for the claims. The expert must be competent, have the same professional license or registration as the defendant and practice in the area of practice of the defendant. In Janis Smith Consulting, LLC v. Rosenberg, No. 03-23-00370-CV, 2024 Tex. App. LEXIS 7961, the Court of Appeals of Texas, Third District (Court of Appeals) addressed a challenge from the defendant as to the sufficiency of the plaintiff’s certificate of merit in an interlocutory appeal. The Court of Appeals affirmed the lower court’s dismissal of the defendant’s motion to dismiss based on the allegedly improper certificate of merit, holding that the plaintiff’s expert was sufficiently qualified to certify the legitimacy of the case. Read the full story...
Reprinted courtesy of Lian Skaf, White and Williams LLP
Mr. Skaf may be contacted at skafl@whiteandwilliams.com

Oracle Sues Procore, Claims Theft of Trade Secrets for ERP Integration

November 25, 2024 — Jeff Yoders - Engineering News-Record
Oracle, Inc., has sued Procore in federal court in Northern California, accusing the construction management platform provider of stealing confidential information related to developing enterprise resource planning products for contractors. Read the full story...
Reprinted courtesy of Jeff Yoders, ENR
Mr. Yoders may be contacted at yodersj@enr.com

Anatomy of a Data Center

October 28, 2024 — Robert A. James & Matt Olhausen - Gravel2Gavel Construction & Real Estate Law Blog
Traditional and social media are thick with reports and predictions of the remarkable increase in size, power consumption and significance of data centers. Not only technology companies but real estate and energy developers, investment funds, lenders, and professionals of all stripes are in or determined to enter this sector. Our inboxes are full—it’s data center this, data center that. But what exactly is a data center? What infrastructure, technology and human resources come together to create and sustain one of these localized points of computation? By understanding their components, we can glean some understanding of the business, public policy and (our focus) legal issues that arise before and during their operation. In this article, we cite key characteristics of a reference Blackacre Data Center, with occasional glances at other (real) structures that offer variations on themes. Blackacre is a composite of several centers we have encountered in our law practice. These facilities differ widely in size, location and functions, so your mileage will vary. Reprinted courtesy of Robert A. James, Pillsbury and Matt Olhausen, Pillsbury Mr. James may be contacted at rob.james@pillsburylaw.com Mr. Olhausen may be contacted at matt.olhausen@pillsburylaw.com Read the full story...

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