Real Estate & Construction News Roundup (8/6/24) – Construction Tech Deals Surge, Senators Reintroduce Housing Bill, and Nonresidential Spending Drops
September 16, 2024 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, cybersecurity attacks target contractors, U.S. banks report weaker profits, additional commercial real estate is distressed, and more!
- Spending dropped in almost half of nonresidential subcategories in June, with the decrease stemming from higher interest rates, tighter credit conditions and a softening economy. (Sebastian Obando, Construction Dive)
- Despite the decline in investment dollars for construction technology, the number of deals surged by 18% year-over-year, indicating sustained interest and activity in the sector. (Sebastian Obando, Construction Dive)
- As cybersecurity attacks on U.S.-based businesses ramp up, general contractors are not immune. (Jen A. Miller, Construction Dive)
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Pillsbury's Construction & Real Estate Law Team
Insured Fails to Provide Adequate Proof of Water Damage Through Roof
December 10, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe federal district court granted the insurer's motion for summary judgment due on the insured's claims for water damage to a church. Unity Church of God in Christ of York v. Church Mutual Ins. Co., 2024 U.S. Dist. LEXIS 163204 (M.D. Pa. Sept. 11, 2024).
Unity Church alleged that it suffered a sudden and accidental direct physical loss to its church. Wind damage to the roof of the church allowed rainwater to leak into the sanctuary of the church. Notice was given to Church Mutual Insurance Company, but coverage was denied.
Unity Church filed suit alleging breach of contract. Church Mutual answered and asserted a counterclaim for a declaratory judgment that the water damage to the church was outside the policy's coverage because the damage was caused by rain. Church Mutual filed for summary judgment.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Viva La France! 2024 Summer Olympics Construction Features Sustainable Design, Including, Simply Not Building at All
August 26, 2024 —
Garret Murai - California Construction Law BlogIf you’re like me and many others you’ve probably been watching the 2024 Summer Olympics in Paris, France. We were in Paris last year and we passed the construction site of the Aquatics Centre, one of only three new permanent facilities that was constructed for this year’s Olympics. On a side note, Parisian Uber drivers are some of the most aggressive drivers I’ve seen, replete with honking, hand gestures, and cursing at other drivers and pedestrians in, of course, French. Putain!
In recent history, Olympic construction costs have skyrocketed, often vastly exceeding the planned budgets of the host cities, and, in recent years, has caused even some host city hopefuls to reconsider
whether to even throwing their hats in the ring. The 2020/2021Summer Olympics in Tokyo, for example, had an original budget of $7.5 billion. The actual cost was over $13 billion and, depending on what beans you count, may have been over twice that! Paris seeks to change all of this.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
California Court of Appeal Finds Coverage for Injured Worker Despite Contractor's Exclusion
August 05, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe California Court of Appeal affirmed the trial court's finding that the policy covered a worker's injuries despite the Contractor's Exclusion. Cal. Spec. Insulation . Allied Work Surplus Lines, Ins. Co., 2024 Cal. App. LEXIS 317 (Cal. Ct. App. May 17, 2024).
Air Control Systems, Inc. was retained by a property owner to perform improvement work on a building. Air Control retained California Specialty Insulation, Inc. (CSI) to install duct insulation. Jason Standiford, an Air Control employee, sure CSI, asserting negligence for injuries he suffered when he fell 16 to 20 feet after. A CSI employee drove a scissor lift into a ladder he was standing on.
CSI was insured through a commercial general liability policy from Allied World. The policy included an endorsement titled "Bodily Injury to Any Employee or Temporary Worker of Contractors Exclusion." The Contractor Exclusion state the policy did not apply to "'Bodily injury' . . . to any 'employee' or 'ten,poary work' of any contractor or subcontractor arising out of in or the course of the rendering or performing services of any kind or nature by such contractor or subcontractor." Neither the endorsement nor the policy defined the term "contractor."
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Attention Contractors: U.S. Department of Labor Issues Guidance on Avoiding Discrimination When Using AI in Hiring
November 25, 2024 —
Matthew DeVries - Best Practices Construction LawI recently blogged about the use of
AI and ChatGBT in the construction industry. Today’s guest post by
Alexandra Shulman and
Leah Lively addresses the recent guidance by the USDOL on the issue of using AI when hiring in recruitment, which is applicable to those constructions who use AI in the recruitment process.
AI in hiring: About 80% of U.S. and almost all Fortune 500 companies use AI-powered hiring software. AI may be used to target online advertising for job opportunities and to match candidates to jobs on employment platforms (e.g., LinkedIn, Indeed). AI may also be used to reject or rank applicants using automated resume screening and chatbots based on knockout questions, keyword requirements, or specific qualifications or characteristics.
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Matthew DeVries, BuchalterMr. DeVries may be contacted at
mdevries@buchalter.com
Hawaii Supreme Court Finds Climate Change Lawsuit Barred by “Pollution Exclusion”
November 05, 2024 —
Jason Taylor - Traub Lieberman Insurance Law BlogOn October 7, 2024, the Hawaii Supreme Court answered the question of whether an “accident” includes an insured’s reckless conduct in emitting harmful greenhouse gases (“GHGs”) and whether such emissions are “pollutants” as defined in a general liability policy’s pollution exclusion. In Aloha Petro., Ltd. v. National Union Fire Insurance Co. of Pitt., PA, No., 2024 Haw. LEXIS 179 (Oct. 7, 2024), the Hawaii Supreme Court answered in the affirmative as to both certified questions from the United States District Court for the District of Hawaii, holding that an insured’s reckless conduct can be an “accident” and that GHGs are “pollutants” under the policies’ pollution exclusions.
In the underlying case, the County of Honolulu and the County of Maui (the “Counties”) sued Aloha Petroleum, Ltd. (“Aloha”) and several other fossil fuel companies for climate change-related harms. Namely, the Counties alleged that the fossil fuel industry knew that its products would cause catastrophic climate change, and rather than mitigating their emissions, defendants concealed such knowledge, promoted climate science denial, and increased their production of fossil fuels. Aloha was allegedly on notice that its products caused harmful climate change through its former parent company, Phillips 66, and its current parent company, Sunoco. Given this knowledge, the District Court determined that the Counties allegations constituted reckless conduct by Aloha.
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Jason Taylor, Traub LiebermanMr. Taylor may be contacted at
jtaylor@tlsslaw.com
Los Angeles Team Secures Summary Judgment for Hotel Owner & Manager in Tenant’s Lawsuit
July 08, 2024 —
Lewis Brisbois NewsroomLos Angeles, Calif. (June 11, 2024) - Los Angeles Partners David Samuels and Meegan Moloney recently obtained summary judgment for the owner and manager of a Southern California hotel in a lawsuit brought by a tenant who alleged that she suffered injuries due to the presence of mold in her leased space.
The plaintiff had entered into a commercial lease for space within the Crowne Plaza Hotel in Redondo Beach, California, for use for her spa and massage business. The lease contained "exculpatory provisions" absolving Lewis Brisbois' clients "from any and all liability and responsibility for any loss, injury or damage incurred or claimed by reason of damage to property located on the leased premises."
Shortly after taking possession of the space in September 2019, the plaintiff claimed she became ill and subsequently discovered the presence of mold in the heating, ventilation, and air conditioning ducts. In October 2022, she sued the hotel's owner and manager, asserting a host of claims including negligence, fraud - negligent and intentional misrepresentation, negligent infliction of emotional distress, breach of contract, breach of covenant of quiet enjoyment, private nuisance, and unfair business practices.
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Lewis Brisbois
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.
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