ANAHEIM CALIFORNIA CONSTRUCTION EXPERT WITNESS
DIRECTORY AND CAPABILITIES

Toronto Skyscraper With $1.2 Billion of Debt Has Been Put in Receivership

November 16, 2023 — Ari Altstedter - Bloomberg
A landmark condominium project in one of Toronto’s ritziest neighborhoods has been put into receivership after construction delays and cost overruns. Construction of the 85-story tower will be taken over by a court-appointed receiver after its owners, developer Sam Mizrahi and investor Jenny Coco, defaulted on part of the project’s nearly C$1.7 billion in debt ($1.2 billion), according to a Wednesday order from the Ontario Superior Court of Justice. Two funds run by South Korea-based IGIS Asset Management Co. applied for the receivership. Another IGIS fund will extend at least another C$315 million to continue work on the project, court documents said. Read the full story...
Reprinted courtesy of Ari Altstedter, Bloomberg

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No Subrogation, Contribution Rights for Carrier Defending Construction Defect Claim

December 23, 2023 — Tred R. Eyerly - Insurance Law Hawaii
The Court held that the insurer defending the additional insured general contractor had no right to equitable subrogation or equitable contribution from a separate carrier who also insured the general contractor as an additional insured. Old Republic Gen. Ins. Co. v. Amerisure Ins. Co., 2023 U.S. Dist. LEXIS 170293 (N.D. Ill. Sept. 25, 2023). Tanger Grand Rapids, LLC hired Rockford Construction Company to build the Tanger Outlet Center. Rockford subcontracted with Kamminga & Roodvoeis, Inc. (K&R) to work on the pavement for the outlet mall. Under the subcontract, K&R agreed to maintain primary commercial general liability insurance for itself, with Rockford as an additionial insured. K&R obtained a policy from Amerisure. For additional paving work, Rockford subcontracted with Michigan Paving & Materials, CP. The subcontract also required Michigan Paving to maintain primary coverage, with Rockford as an additional insured. Michigan Paving obtained a policy from Liberty Mutual. 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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Construction Litigation Roundup: “This Is Sufficient for Your Purposes …”

April 08, 2024 — Daniel Lund III - Lexology
… but just barely. Federal courts are “notice” pleading courts. One source writes: “Notice pleading refers to pleading standards that merely notify the opposing party and court of the general issues in the case. In contrast to fact pleading standards, notice pleading standards do not require pleadings to include hyper-detailed facts in support of each claim.” Some state courts – including Louisiana – are fact pleading courts. Ordinarily, no one practicing in Louisiana state courts would describe the fact pleading requirements for initiating a lawsuit as mandating “hyper-detailing” of the facts, but … why risk it? In a construction mechanics lien case – the jurisprudence for which requires that courts strictly construe the related law because liens empower lien holders with rights which are “in derogation” of common property ownership rights – the defendant was successful in having the trial court dismiss a lien suit for failing to affirmatively set forth in the complaint (a “petition” in Louisiana) the date of substantial completion. The lien claimant appealed. Read the full story...
Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

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First Circuit Limits Insurers’ Right to Recoup Defense Costs or Settlement Payments

April 02, 2024 — Eric Hermanson, Austin Moody & Victoria Ranieri - White and Williams LLP
Weighing in on an issue that has divided courts nationwide, the U.S. Court of Appeals for the First Circuit has ruled that an insurer under Massachusetts law has no right to recoup defense costs, or amounts the insurer pays in settlement – even if the insurer reserves rights prior to payment and obtains a ruling, after the fact, that no defense or indemnity was owed. Berkley Natl. Ins. Co. v. Atlantic-Newport Realty LLC, No. 22-1959, 2024 U.S. App. LEXIS 4115 (1st Cir. Feb 22, 2024) (“Granite Telecomm"). However, the First Circuit rested its ruling on narrow procedural grounds, which may prolong the controversy rather than resolve it. The insureds in Granite Telecomm owned a company cafeteria. They were sued by a food service worker who suffered a foot infection after being exposed to bacteria during a sewage backup. They sought coverage from their insurer, Berkley. Berkley argued that coverage was barred by a fungus and bacteria exclusion in the policy. The insureds disagreed. They threatened suit under M.G.L. ch. 93A, and demanded that Berkley defend the case. Reprinted courtesy of Eric Hermanson, White and Williams LLP, Austin Moody, White and Williams LLP and Victoria Ranieri, White and Williams LLP Mr. Hermanson may be contacted at hermansone@whiteandwilliams.com Mr. Moody may be contacted at moodya@whiteandwilliams.com Ms. Ranieri may be contacted atranieriv@whiteandwilliams.com Read the full story...

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The Future of Construction Work with Mark Ehrlich

February 19, 2024 — Aarni Heiskanen - AEC Business
In this episode of the AEC Business podcast, I had the pleasure of speaking with Mark Ehrlich, a veteran of the construction industry from the USA and the author of “The Way We Build: Restoring Dignity to Construction Work.” Our conversation delved into the evolving landscape of construction work and the challenges faced by construction workers today. Mark shared his extensive background, starting as a carpenter and rising through the ranks to become the head of a 25,000-member union organization. His experience spans decades, and he has authored three books and numerous articles on labor issues. The historical labor shifts We discussed the historical shift from a predominantly unionized construction workforce to the current bifurcated system in the US, where union strongholds in the north contrast sharply with the non-union, lower-wage environments in the south and other regions. Mark highlighted the issues of wage theft, declining safety standards, and the exploitation of undocumented workers. Read the full story...
Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

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A Look at Trending Legislative Changes Impacting Workers' Comp

February 26, 2024 — Rosanna Shamash - Construction Executive
The tides are shifting in the construction industry when it comes to legal matters—and business owners could feel the brunt of it. Recent legislative changes in the state of New York could signal how workers’ compensation cases move forward across the country and impact business owners in the space. Arguably, New York has historically laid the groundwork for workers’ compensation law in numerous other states. Now, we’re seeing a clear shift in favor of workers with some of the recent legislative changes. Owners, operators and executives in the construction space have increasingly found themselves facing costly claims that in years prior carried a smaller dollar value and were largely viewed as inconsequential. So, what’s the best way for business owners in the construction industry to protect their businesses for the future? Start by gaining a basic understanding of changes in the legal landscape, by securing defense attorneys who know the construction space and by taking steps to protect your business before an incident happens. Reprinted courtesy of Rosanna Shamash, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...

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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 Blog
In 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).

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

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The Prolonged Effects on Commercial Property From Extreme Weather

January 29, 2024 — The Hartford Staff - The Hartford Insights
As evidenced by the extraordinary heat in the Southwest, a string of tornadoes in South and Midwest, and heavy rains in California and Florida, 2023 was a banner year for extreme weather. However, 2024 may be no different, which means now is the time for businesses to rethink the way they approach volatile weather, as well as the frequency and severity of storms and natural disasters. The risks and challenges that businesses face as extreme weather becomes stronger and causes more property damage, requires innovative technology with specialized insurance solutions. Through updated building codes, advancements in technology and meaningful infrastructure improvements, businesses can make a difference in protecting their property and reducing losses. Stronger Building Codes To Withstand Storms It is not uncommon to see the destruction that a hurricane or tornado leaves behind. However, stronger building codes are one of the best ways to make sure property can withstand catastrophes. Florida for example implemented changes to its building codes after Hurricane Andrew, and then again in 2007 after the Hurricanes of 2004 and 2005. New construction since then has made houses and buildings significantly more hurricane proof. Buildings constructed 30 years ago were likely built with codes that may have neglected the impact of strong winds from an extreme hurricane or significant rainfall that a storm can bring, especially along the Atlantic and Gulf coasts. Read the full story...
Reprinted courtesy of The Hartford Staff, The Hartford Insights

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